How to be financially intelligent

If you want to be rich, you have to learn to be financially intelligent first.

Difficulty: Moderately Challenging
  1. Step 1

    Know accounting. Accounting is the technical language of how money moves, how it is stored, and how it is used. You have to know accounting to know how your money is moving and what it is doing for you.

  2. Step 2

    Follow the news. This may be boring, but knowing how the world is changing can give you insight into how money will change along with it.

  3. Step 3

    Know the law. You can't win a game where you don't know the rules. Following what Congress does can give you an edge.

  4. Step 4

    Know the difference between a liability and an asset. An asset is something that gives you money, a liability takes money away. By this definition, a house, car, luxury yacht, etc. are liabilities.

  5. Step 5

    Learn economics. This will help be more efficient in how you spend and invest.

  6. Step 6

    Learn how to invest. Diversify your stocks and also your methods of investing. Invest in real estate and businesses.

From: ehow

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