Financial Intelligence is basically about knowing the ins and outs of a financial situation, be it your personal finance (an individual) or your company’s (a director) or a company you work for (an employee), and making the best out of it.

Financial Intelligence, luckily for us, is an intelligence that can be leaned and improved upon. No one is born with it! Money without financial intelligence is money soon gone.

Habits of Financially Savvy People include the following:

1. Plan and Budget

If you want to achieve your financial and wealth-building goals, you must have a plan and a budget. Your plan encompasses both long and short-term goals, and it includes leisure and purchase goals (such as holidays, house, and a car) as well as investment goals.

2. Living Within Means

Related to no.1 above, this means living within your financial capacity, or income. If there are items that you really need to purchase, you can check on other cheaper alternatives or wait until you have more money to use for it.

3. Finding Additional Sources of Income

Since we are talking about increasing purchasing power, how about finding more additional income sources.

4. Save a Fixed Percentage of Your Income

Save for a rainy day by putting away 5%, 10% or more of every income received.

5. Get Advice When You Need It

Financially savvy people also know when to get advice when they need it, whether it’s consulting a tax expert, accountant, or financial planner.

6. Prepare for Risk

Financially savvy people plan for the unexpected events in life to protect themselves and their family, so they are not easily overwhelmed by the sudden unexpected downturns in life.

7. Plan for Retirement

People who are great with money know that it’s never too early to start planning for retirement.

8. Apply Money Mangement Insights

Financially savvy people never stop educating themselves and are constantly investing in their financial education.

9. Keep Emotions Far From Your Money

Money and finances are an emotional topic for most people, and financially savvy people have learned to keep their emotions in check when making financial decisions.

10. Not Delaying Maintenance

Financially savvy people care for their possessions and if there are things that need to be fixed, they do it immediately to avoid paying more in the long run.

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