Financial Intelligence: Mastering The Principles Of Wealth Creation, Assets Multiplication

By Cami Ezenwa

At no time in our lives, has the principles of financial Intelligence and assets creation and multiplication become more crucial as now.

The scarcity of the naira amidst an increasing basket of needs has made financial Intelligence principles and wealth creation capabilities sure necessities.

But to start, what do we mean by financial intelligence?  Well, when we say that a person is intelligent, wesimply imply that the person has a higher level of knowledge, a way of reasoning and response to issues that puts them ahead of others.

It then means that financial Intelligence is having financial knowledge and understanding that, not only puts one ahead of others, but leads to the achievement of  results, a secure future and measure of fulfilment.

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According to Felix Akinnibi in Cowrywise, Financial intelligence is the ability to understand and effectively manage one’s financial affairs.

It involves a combination of knowledge, skills, and attitudes that enable individuals to make informed decisions about their financial resources, both in the present and in the future.

It has equally been described as simply the principle of finding money where others don’t, an endavour that it begins with financial literacy.

Importance of financial intelligence

By and large, financial Intelligence is one component of financial resources discovery, acquisition and management that anyone interested in wealth Creation must possess.

It has become most important currently because earning potential is daily shrinking. Prices are high and employers are ill-disposed to increasing salary; so whatever money available must be very judiciously spent

The Holy Bible lets us know that money answers all things and that money is a defence. Not only is it important to have money, but also to have wisdom in handling it.

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Also, like Olayemi Oni argues in Bitnob, the life of man revolves around money; knowing how to manage money therefore, is a necessity.

Financial intelligence is therefore your instrument of understanding and managing finances to meet targets regardless of income level.

Key elements of financial intelligence

Spending plan through budgeting

Budgeting is a key component of financial planning. You are able to cut your coat according to material available.

Avoiding wastage

There’s nothing as disruptive of the business plan as impulse buying. On the other hand, financial intelligence, enables effective resource utilisation which includes the conservation of financial assets.

Business stability

Businesses are more stable with wise application of financial intelligence. This is because all financial resources for example, are available and deployable wherever and whenever the need arises.  This brings stability to the enterprise and the persons that run it.

Life has improved value

There is a peace of mind that comes with wise application of resources. Everyone is able to meet their expectations and fulfil their obligations.

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Application of financial intelligence

Budgeting: in business management generally, budgeting is important. It is one of the weapons of financial intelligence. Budgeting allocates resources, making accommodation for even eventualities that could lead to financial bankruptcy.

Budgeting is essential irrespective of the size of the project or programme.

Investing: No good entrepreneur is an impulsive or sentimental investor. Those are antithetical to business sustainability. There is however, a dispassionate assessment of investment opportunities to avoid loss of capital.

Service of obligations: Businesses enterprises usually would need capital, especially for production expansion or assets acquisition. Whatever obligation this brings on the entity must be serviced but wisely too. In fact, discerning mangers sit down first to estimate the total costs of obligations and how best to service them.