You absolutely must spend time on your financial education.

A great financial IQ doesn’t have to do with frugality or pushing money into the stock market. It is establishing a healthy approach to income and creating businesses that are income generators for you.

What do you do to become financially literate?

Thorough analysis is is a vital component of increasing your knowledge of money.

It doesn’t matter if you’re doing interent-based niche affiliate marketing, real estate deals, trading commodities, or swing trading your ability to accomplish what you want is mainly based on your financial education.

Why don’t we analyze a hypothetical example.

Would you pay for a gallon of milk or a cow?

If you spend cash on milk, it is consumed and it is gone. You’ll have to order milk over and over again when it is finished. Even if the milk is not worth as much as a cow, over a period of time, you’d still be spending money on milk again and again.

However, if a cow were to have a price tag of sixty times more than milk, you spend significant amounts of money when you buy the cow, but after consuming all the milk from the cow, you’d come out even on on your initial money and keep more income later on. In fact, that cow may birth 2 more calves and you might be able to sell a calf for additional income!

Do you get it?

Everyone is able to generate wealth. When you take an old beat up clunker and really work at it, paint it with a new coat of paint, and fix it to make it start running again, you could sell that thing for even more income than if it was just a beat up old pile of junk. You would have created more assets by using your financial intelligence.

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This entry was posted on Monday, December 8th, 2008 at 12:16 pm and is filed under Business and Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.