Increase your financial IQ and create more money for the end of the month


If you are like most people, you have a job, work hard and at the end of the month receive a salary. I was quite shocked when it turned out that February was my absolutely worst financial month I have had in a long time, and it is the shortest month of the year and it made me wonder what on earth does the rest of the year hold??
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So I decided to take a look into my finances, see where the problems lie and see what else I could do. Surely there must be something….. 

What I learned growing up was ‘get out of debt, cut up your credit cards, get a job, work hard, look for promotions, stay within a stable company’. (Sound familiar? – check out my post asking if you own your job, or if your job owns you). I have been told ‘live below your means’, and ‘when the going gets tough, look for ways to cut back’. Any of these sound familiar?

 I have always been on the lookout to make some extra money: I sold Honey Jewelry, Avon Cosmetics, Smile Educational Toys and Acorn Kids Products to make some extra cash. These all took up a lot of precious family time and it was hard work. But I did what I needed to do: attended the training, went to the meetings, jumped on board for the seminars, bought the compulsory starter kits – and realized that you only really made good money if you made this your full time career and were on the top of the ladder. They are all fantastic companies but just not right for me at that phase of my life. I always thought that if I could just earn a bit more money from a second job or a side hustle, I could get out of debt and make loads of cash.

Selling make up to earn an extra incomeDog walker Selling paint for an additional income

Realistically, this is not so simple. But don’t let this get you down – the secret is not so difficult and anyone can do it – the thing is that we have just never been taught this in school, and most of us are never taught this in adult life. The biggest adjustment is actually your mindset. You need to move away from that ‘old school’ thinking I mentioned earlier and change the way you think because money does not work in the same way that it did twenty, thirty, fifty years ago.

 I find the stories of ordinary people like Richard Branson and Robert Kiyosaki really interesting (ok – they were ‘ordinary like you and I when they started!) and how they have made their money and so I started to do some reading to see what they did and if there was anything there that I could do to change the way my money works. Why are these people successful? I mean my world is far from the world of accounts and accounting – I don’t work with balance sheets and income statements but I have decided that I am tired of the way things are and I need to make a change.

Financial Intelligence

The first thing that stood out was that I have to increase my financial intelligence. I have heard of emotional intelligence, academic intelligence, cultural intelligence and even real estate intelligence, but never before had I heard of financial intelligence. 

Financial intelligence is part of our intelligence that we use to solve our financial problems. Financial IQ measures this intelligence. Just as your mental IQ could be 120 and that would make you smarter than someone with a mental IQ of 96, so a person with a higher financial IQ will be able to solve financial problems quicker or better than a person with a lower financial IQ.

Calculating your finances

I was also intrigued to learn that there are so many professional people with high paying jobs, but they do not have money. How can this be? Again, aren’t we taught to finish school, study hard for a degree, and go for that high paying job such as a CA, lawyer, doctor, engineer etc and then all of your money problems should just…simply not exist? Well not exactly. Real life happens and in an ugly way you learn, hey wait a minute, I actually don’t have any money.

You can barely afford your own medical aid and you are not quite living that dream you had envisioned. Life is tough. You are living paycheck-to-paycheck. And why is this so? Basically it is because you are lacking in financial intelligence. Just because a person’s academic intelligence is high and well developed does not automatically mean that their financial intelligence is high and well developed. But this is something that you can learn and practice.

To make it easier to understand, if you are earning $ 300,000.00 then you have a higher financial IQ than a person who is earning $ 100,000.00 a year. Somehow you have figured out how to earn more money. And if there are two people who earn $200,000.00 a year and one pays less tax than the other person, the person paying the least tax has a higher financial IQ than the other person. It’s not actually about the money, but it’s about how you work with your money.

Fear cycle

Did you know that there are so many people who have a fear of becoming poor? Millions of people are seriously worried that they are not going to have enough money for their retirement. This fear is the thing that keeps them in their steady paying job so they sit there day after day, clocking in and out on time, taking their leave annually and trying to save every penny they can. It’s like we’ve all been churned out of a toy soldier factory all thinking in the same way. We need to start getting creative with our thinking. Think out of the box.

By changing the way you think about money, and learning about money and how you can make money, you will start to develop your own financial intelligence.

Remember that money is just money. Nothing more, nothing less. It depends on what you do with it that makes the difference. Money isn’t evil. Money isn’t good. It is the people that work with the money that makes it become these things.


So change your thinking!

Chane your mindset

Instead of thinking that the glass is half empty, or half full, decide to become the person who is pouring the drink! Change your mindset.

Get excited about new opportunities that present themselves to you in the form of debt or monetary loss and grab these opportunities with both hands. When these unfortunate things happen, you must push on through these failures and learn from your mistakes. But that is not enough. You absolutely no doubt HAVE to fix the problem. Fix the financial errors. But do not fix them by taking out loans or using credit cards. That would be insane and completely against what I am talking about here. You would be getting yourself into more debt and just making your situation worse. You need to start thinking creatively and thinking outside of the box when it comes to money. There are more ways to make money than just having a J.O.B. When you need more money, have a loss or are in debt, how can you make more money to make up that shortfall?

In essence you need to learn how to SOLVE your money problems. If there is one word to take away from this entire post, that is it * solve *


Always remember that the process of making money is more important that the money itself.

So go on, scroll down to the comments box and share one thing that you do (besides having a job) to create some extra money for yourself and your family.