financial quotient (FQ)

All of us have heard of Intelligence Quotient, IQ. The significance of high IQ on our society.
However, later on, we learns that emotional quotient, EQ is equally important in managing our rational decision in a very emotional situation.
Well, have you heard of financial quotient?

Simply defined as knowledge in managing our money and understanding the value of money versus time.

So, how can we achieve high financial quotient?
Some says, we have to be rich, in order to learn this FQ.
IMHO, it is not how much we earn but how much we keep/ save that counts.
Once we learned how to save, then we can plan how to manage our money.
There is another term called Portfolio Intelligence, in simple words, we learn how to allocate our money into different type of investment vehicle and diversification.

Once we are done with the portfolio allocation, we need to monitor our investment. Trying to keep the cost down, there is a few ways (namely; dollar cost averaging, value averaging and unit averaging).

Not to forget, always be smart about taxes. Learn about the exemption of taxes and utilise it.

few pointers to bear in mind:-

*Always keep emotion in check

*Always read on personal financial planning books (knowledge is power, power to make more returns in our investment)

*Time is the most important variable in maximising our returns (invest as early as we can)

*Always identify, which is asset and which is liabilities. (Spend money on liabilities are not considered as investment)

*Always keep the cost down (in other words, value investing the key to success. Thats what warren buffet is preaching)

*Always invest in MAIN STREET and NOT WALL STREET