Why do Smart People fail to become Rich?
Million-dollar question if you want to become Rich!
One of the reasons many smart people fail to become rich, even though they have a very high IQ and did well in school, is because they lack the emotional intelligence required for financial success and wealth accumulation.
I am giving you four signs of low financial IQ which help you to become successful:
- They get rich too slowly because they play the money game too cautiously. They often, because these people are in job quadrant, pay a higher percentage of income in taxes, they fail to invest wisely, keeping their money in the bank, earning very little in interest, and the little they do earn in the interest is taxed at the highest taxable rate.
- Try to get rich too quickly. As we all know that become rich is a gradual process because with money responsibility and management play a vital role, but this urge to become rich too quickly lacks the person’s emotional intelligence known as patience. This person often goes from job to job or new idea to hot new ideas. They start something, get bored, and quit.
- Spends on impulse. Most people if they have money they thought we are happy and can able to spend quickly. for example, a person's favorite form of exercise is going shopping. They shop until they drop. If they have money they spend it on a whim.
These people used to have a famous dialogue “Money seems to run through my fingers.”
4. Connot stand owing anything of value. In other words, this person only owns things or works at things that make them poor. For example, I have met several people who have invested in investment real estate. The moment they own it, they sell, take the earnings, and pay off credit bills or student loans or they buy a new boat or take a vacation. In other words, they hang on to things that have very little value and sell anything they have real value.
Many of these same people, rather than build a business, feel better working for someone else and working hard at something they will never own. The emotion of fear is so high that they would rather work for security rather than work for freedom.
Types of Intelligence
- Mental Intelligence: Generally, IQ is measured in schools and colleges.
- Emotional Intelligence: It has been said that emotional intelligence is 25 times more powerful than mental intelligence.
- Financial Intelligence: Your financial intelligence is measured by how much you make, how much money you keep, how hard that money works for you, how many generations you can pass on the money.
Emotional Intelligence is Essential to Financial Intelligence
The reason I started the interview with a young man who was out of control emotionally. He was obviously very bright mentally, but his emotions were causing him to think irrationally. If you are out of control emotionally, your chances of solving your financial challenges are reduced.
Simply said, in the real world, emotional intelligence is more important than mental intelligence if you want to become rich. Having a high emotional IQ is essential to having a high financial IQ.
A person that cannot manage their emotional intelligence cannot manage money and financial background
With control over your emotions, you can able to improve your marriage, business skills, and investment skills. This is a reason why I am re-emphasizing emotional intelligence.
How to improve Emotional Intelligence?
Step 1. Admit I need to improve it. Keep your attitude and ego aside and try to learn from scratch.
Step 2. Try to deal with people who quit, people who lie, overcoming your fears, your disappointments, your frustrations, and your own impatience to become a better person.
Step 3. Hinder your emotions to come on your face and try to solve the cause of emotion.
Step 4. Repeat these 3 steps and you can analyze that there is a gradual change in your personality.