“Financial literacy makes it okay for you to make small or big mistakes. On the other hand, being financially illiterate only makes those mistakes dire and regrettable.” — Anas Hamshari
If you’re wondering how to grow your financial IQ, you are not alone!
This is a question that I’ve asked for years.
How do you learn more about becoming wealthy?
Wealth is not something that you have; it’s something that you are.
You become it.
You think like a wealthy person.
You view things the way a wealthy person would.
If you continue to grow in this area, you actually become wealthy.
I’ve used these strategies to increase my net worth over 10x over the last four years.
And I want to share with you!
It Starts with Words!
How do you go about making money?
To quote Jerry McGuire: “Show me the money!”
A lot of people want to get right to the wealth, right?
Well, let’s slow down and talk about the words that we’re all using.
When we’re around people that are wealthy versus not wealthy, they’ll use different terms.
Robert Kiyosaki, author of Rich Dad, Poor Dad, said that words are the primary difference between the two groups.
Wealthy people use terms such as internal rate of return, cash-on-cash return, annuity, cashflow, passive income tax implications, and financial planning.
If you’re not wealthy or around wealthy people, you’re not going to use these terms.
Industries also have certain terms that they use.
It’s not just the words we’re using that are important…
It’s also the words that we’re learning.
I didn’t come from money.
It’s easy to think from a place of scarcity.
You might think things like:
“I’ll never get there.”
“I’ll never have money.”
“I’ll never be there.”
Try to stop this as soon as possible!
It is really important that you change your mindset when it comes to money,
If you want to learn some wealth affirmations, check out this video!
Affirmations help change the way you view money, the way you talk about money, and the way you feel about money.
They allow you to operate from a more abundant wealth perspective.
When you’re around wealthy people, it’s really important that you become a learner.
When you’re reading and see a word that you don’t know, look it up.
Try to learn as much as you can.
If you want to earn more, you’ve got to learn more.
If you’re willing to learn, you’re going to use these terms with no problem!
Now, there are certain terms from certain industries that are used.
For example, in real estate:
Let’s say I call a broker and tell them: “I’m looking to buy a building for about $120,000 per door.”
There’s a certain term that’s used instead of just buying per unit.
Instead, you would use: trading at $120,000 a door.
If you insider industry terms, it makes you appear as an expert rather than a newbie.
This happens to a lot of people when they get involved in different types of investments.
If you don’t speak the right lingo, you won’t be perceived as someone who knows what you’re talking about.
It is very, very important that you learn new words for that specific industry.
It’s also important to get around people you can learn from.
Get Around Wealthy People
If you want to become wealthy, you have to get around wealthy people.
If you want to increase your financial IQ, you have to learn from people that have a high financial IQ.
So how do you do that?
One is to go to networking events.
I go to at least 10 conferences a year.
They can be both in person and online.
You can find out about them through podcasts and networking.
I lead a meetup in the Los Angeles area.
During conferences, you are constantly being introduced to new ideas and new investing terms.
The second way is you can think about your own circle of friends and family.
Maybe you have a distant relative or friend who’s done very well financially.
Take them out for coffee!
Get to know them!
Connecting with somebody who is very successful, can be really, really valuable.
It worked for me!
I had a relative who I hadn’t seen in years.
When I reached out, I discovered he was a real estate person.
We had a connection and we were able to get together.
I basically just asked him a bunch of questions trying to understand the things that I should be doing to achieve what he had.
He became a mentor to me after that.
This really helped my financial education grow.
A great way to help your financial IQ is to get a mentor to help you along this path.
A big part of this is asking great questions.
Some great questions to ask a wealthy person could be:
What are some of the biggest challenges you face now in your business or in your investing?
What advice would you give to someone who’s in your situation?
What’s a mistake you made that you wouldn’t do again?
These are very intentional, direct questions.
It gives them a chance to mentor and share their experience.
If you can find a way to bring value when you’re around wealthy people, it is going to absolutely change your life.
There’s a quote by Jim Roan that says: “Make yourself valuable to valuable people.”
What does that mean?
He’s basically saying:
If you can find people that are doing big things, and you can solve a problem for them, you’re going to make yourself very valuable to them.
In that scenario, people typically get paid very well to solve problems.
The more valuable the problem, the better you get paid.
That’s a bonus if you want to increase your financial IQ!
If you can go to somebody who’s very successful and find a way to help solve a problem for them…
That could potentially have you invited onto the team to help solve problems.
This would not only increase your financial IQ, but your wealth as well!
Consume Great Content
If you want to increase your financial IQ and wealth, you have to consume great content.
You have to read great books.
You have to listen to great podcasts.
You have to consume videos and information and magazines.
Remember: It’s important that you continually learn and grow.
If you want to earn more, you have to learn more.
Really successful people typically read one to two hours a day, which sounds crazy!
I don’t read one to two hours a day, but there are people I know who do.
The average CEO reads between 50-100 books a year.
You should be consuming information that will grow your financial wealth and perspective.
I do have some recommendations for you!
Now, I don’t take everything at face value from any of these sources.
I actually combine what I’ve learned from multiple different avenues.
But looking into each of these will really help you learn more about finance.
My first recommendation is The Economist, which is a British magazine.
The Economist gives you a 30,000ft view of what’s happening in world economies.
You can get it digitally on your phone, in print, and as a podcast.
Speaking of podcasts, there’s also tons of podcasts out there!
There are podcasts about wealth, real estate, inflation and other types of macroeconomics.
I recently started a podcast called The Mailbox Money Show.
We talk about different forms of passive investing, all different asset classes and ways you can grow your wealth.
There are tons of books you can read as well!
I actually have 10-12 financial books I recommend that have really helped me increase my financial IQ and helped me grow my net worth by 10x over the last four years.
Check them out here!
Now, I want to hear from you.
Do you have any reading or podcasts recommendations?
What things have been helpful to grow your financial IQ?
Please comment down below and we can help build our information libraries together!
Let’s grow our community and help each other find the resources that work best for us!
Before you leave, make sure to check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.
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