A person who is planning to undertake the risks and dangers of business should possess the knowledge on how to manage his money and other resources. He does not need to be an accountant. What he would need is knowledge about his financial intelligence on how to making more money, protecting his money, budgeting his money, leveraging his money and to improving his financial information.
(1) Making More Money - is all about spending less than what you earned.
Mr. Robert T. Kiyosaki’s advised, “If you want to become rich you need to find the way to become rich that best works for you.” In his book entitled “The Business School – For People Who Like Helping People” he mentioned Eleven (11) Other Ways To Become Rich. From the eleven ways that Mr. Kiyosaki has suggested, I added two other ways to make money (12 & 13). He said, “Because so many people do not have adequate financial knowledge, they come up with many interesting ways to become rich such as:
(1) By marrying someone for his or her money
(2) By being a crook
(3) By being greedy
(4) By being cheap
(5) Via hard work
(6) By being exceptionally smart, talented, attractive or gifted
(7) By being lucky
(8) By inheriting money
(9) By investing
(10) By building a business
(11) By building a network marketing
(12) Kidnap for Ransom
(13) Become a Drug Pusher
(2) Protecting Your Money – a businessman or any person should know who are the predators of his money. I mentioned some here and they are: (1) Bureaucratic, (2) Bankers, (3) Brokers, (4) Business, (5) Barristers and (6) Brothers-in-law. Take note of them. They will suck your savings.
(3) Budgeting Your Money – budgeting is a plan for consideration of resources and expenditures. Here you will learn to differentiate budget deficit from budget surplus.
Budget Deficit is the excess of expenses made by an individual over his income. While Budget Surplus is the excess of income of an individual over his expenses.
(4) Leveraging Your Money – leverage means is doing more with less spending. This is the secret of the rich people. The answer why the rich people had become richer, which is in fact can be duplicated by any person who has the interest to do the same trend of business. They are leveraging their money and time through other people.
An example for this type of business where the law of leverage is applied is the DXN – the first Direct Marketing Company to launch the “One World, One Market Concept”. It is a Multi-Level Marketing business where a DXN member or distributor is paid for promoting, endorsing and selling its wellness products and services to people.
(5) Improve Your Financial Information – it is everyone’s right to discover new trends of knowledge on how to improve his financial information. By reading books, attending seminars on financial education and surfing the net are some of the many ways to improving your financial intelligence.