Importance of Financial EQ in Today’s Uncertain World
Looking for a financially empowered life?
How many times have your asked yourself this question- “What can I do more to reach those financial goals and lead a financially stress free life in this every-changing world that we live in?” There are many aspects of answering this question. Most of us feel Financial stress in sometime or the other during our lifetime. Of course, adapting to the changes is one solution but the crux of the matter is that it is important to channelize all that you can to work towards reaching this financial empowerment.
When we talk about leading a financially satisfied life, most of the time it is the Financial IQ or Financial capabilities that we are thinking about; that how the right products, right investments, right time aligned with workable goals will lead us to that final financial juncture. But we often forget that IQ has many sub-categories, emotional quotient being one of them. And finances and emotions, well who all don’t do that impulse buying here time and again?? Money has that energy and it is very emotionally driven at times (well, most of the time).
A strong Financial IQ coupled with a strong Emotional Intelligence can be the right concoction that can help you build that amazing Financial Quotient that you are looking for.
What does Financial Emotional Quotient mean to you?
Think about the last purchase you made or the last financial decision you took before reading this article. Perhaps it was a work decision like hiring a new employee, or negotiating for a salary or buying a birthday present for a friend. Was there any emotion attached there?
Financial Emotional Quotient/Intelligence is understanding what you feel about money and why. It is really reflecting on what money means to you in an emotional form so you can change the perspectives and beliefs around it if they are creating bottlenecks in your growth. While talking particularly about Financial Emotional Quotients in today’s times where in uncertainty, changes, financial upheavals are the new norms it is important to take care of a few things especially,
- Know more about your Financial Story, where you are coming from emotionally as far as your finances are concerned, put that into context with the numbers in your excel sheet.
- Aligning your self reflection is not just for your investment decisions but also for your day to day financial decisions like shopping, paying for presents, budgets, negotiating contracts etc.
- Differentiate between your wants and needs, your vision, the things that matter to you before you take any financial decisions. Does an impulse purchase matter more than positive financial future?
- Avoid self-sabotaging yourself financially by knowing your triggers and patterns, this would help in cultivating that discipline that is one of the biggest needed skill for financial wellness.
- Understand your Money Type (we’ll talk about more on this in our future posts, but if you are interested in a sneak peak, take the Money Type Quiz to know more about your money personality).
Just like working out regularly will help build your physical strength and contribute to your overall health. Financial EQ teamed up with Financial IQ can help improve your financial wellness.