A Fool and His Money Are …..

A Fool and His Money Are …..

If the words “soon parted” just came to mind you’re on the right wavelength for today’s message.

School went back last week for another year and tens of thousands of Aussie kids are now back in their daily routine of (hopefully) being educated.

Education

Education is one of the essential keys to prosperity and it would be a foolish parent who took no interest in their child’s education and allowed them to drop out as soon as they reached the lowest exit age possible without further training in mind. That would be a recipe for disaster!

I was listening to a conversation the other day and heard the comment “foolish people do not become wealthy!”

To me that put an entirely different twist on the saying “A fool and his money are soon parted”. I had never even thought about how a fool could come to have money in the first place! Clearly it would be because of a lucky lottery outcome or an inheritance and nobody would be surprised when that wealth quickly disappeared!

There is a story in the bible about the son of a wealthy land owner. The son decided he could not wait for his inheritance so he asked for the money there and then. His father reluctantly obliged and the son went off and blew the money on partying and shallow relationships. It all ended abruptly when the money ran out.

Emotional Intelligence

Financial intelligence and emotional intelligence are very closely related! The son in the story lacked emotional intelligence. He could not see beyond “I want it now” and it cost him dearly. He was a fool who learned a very big life lesson the hard way!

Wanting non-essential things before you can afford them and going into debt to have them (especially when the repayments leave you with no room to move) is a clue that you may be lacking in emotional intelligence. It blocks out your common sense and can potentially lead you to a life working for a bank, but not as an employee!

You need to work on improving your financial AND your emotional intelligence to avoid making foolish financial choices.

I suggest you go on a mission to train and educate yourself. You want to develop your emotional intelligence so you find it much easier to make rational rather than emotional decisions.

Some Tips

Jogging or walking on your own will help your fitness levels but if you decide to do it regularly with a friend you are using your emotional intelligence because you have put in place a way to overcome the temptation to not bother when you don’t feel like it.

If you’re really hooked on the idea of borrowing money to buy a new car or some other expensive item like that, use some emotional intelligence and find out what the repayments will be and start making ‘pretend’ weekly repayments into a savings account for a few months and see if you are comfortable with that. If it works OK you have built up a small deposit which will give you lower repayments; a double benefit!

Reading books or attending seminars to improve your financial education will help your financial intelligence and the more you know the more likely you are to NOT make decisions drawing on a lack of emotional intelligence. I.e. people generally only make poor decisions based on their emotions when they do not have enough knowledge to make smarter rational decisions.

Educational events that are coming up soon:-

1. Advanced Property Conference in Brisbane and Sydney this weekend (better hurry if you want to come to either of these) and Melbourne on March 1st . (Use your emotional intelligence and bring a friend for fr`ee). I am one of 4 speakers at each event and not surprisingly I am speaking on the topic of CashFlow planning.

2. Succeed With Money workshop on March the 29th.

If you know you have a tendency to make emotional decisions that are not always in your best interest and you have made some poor financial decisions in the past, ask yourself if they were because of a lack of financial intelligence or emotional intelligence (or maybe both).

At the Succeed With Money workshop one of the areas we look at are the financial decisions you have made in the past and how emotions have influenced those. We also look at a range of other areas that impact your success with money and we look at strategies you can use to become the successful person you really want to be.

The day is also a chance to get some hands on training in using the Simply Budgets software.

Board Meetings

Interestingly, all really successful people have enough emotional intelligence to know that they, on their own, are not smart enough to make big decisions and they put other people around them to help. That is why companies have boards of directors who meet regularly to make decisions collectively.

You also should meet regularly with your other half and have a board meeting to review your last week and plan for the next week (and beyond).

That’s all for today.

Have a great week-end!