There are many definitions of intelligence. To me, the most practical definition is as follows: “Intelligence is the ability to solve problems.” If you can solve math problems at school, you are considered smart. Outside of school, if you can fix a car, it is assumed that you have automotive intelligence. When it comes to money, it is thought that the more you can solve bigger financial problems, the higher your financial intelligence is.
Today, the world is facing a number of serious financial problems. Many of these are linked, while some are independent problems. Some of the most urgent problems are:
- The fall in the value of the dollar
- Increase in national borrowings
- The exponential increase in personal debts
- Increase in oil prices
- The widening gap between the rich and the rest
- Salary drops
- Export of jobs and workers
- Melting of savings
- And the most important of all is the lack of financial education
The questions that need to be answered urgently are as follows:
- What can we do?
- What are the solutions?
- Is our Financial IQ high enough to solve these problems?
- How can we avoid being the victim of these problems?
- How can we protect our families and loved ones suffering from these problems?
Many of today’s financial problems still exist because they were not resolved when they emerged. Unfortunately, instead of raising the Financial IQ of the population, people were taught to wait for the state to solve their personal financial problems.
“We need to look after those who can’t take care of themselves.” you might say. I agree with this. As a civilized society, we must care for the needy. However, many people may be able to take care of themselves if they are trained. For this, the Financial IQ of the societies should be increased.
Due to the low financial IQ solutions found in the past, the demographic structure of today is the impoverishment of the people except the rich; even though more people earn more money. Unfortunately, the United States is not the only country moving in this direction. Many of the world’s economies are transforming into two-class societies: The rich and the poor… The upper class or the masses…
Simply put, the world is on its way to becoming a well-educated place of rich and poor people. The middle class is endangered. The real problem is that the world is beginning to consist of people who are good people, well-educated, hardworking, but still expect the state to take care of them when they retire.
Apart from these, there are two other problems: The first is that even Ponzi Scheme is not known what it is, since nothing related to monetary matters is taught in schools. The second, most of the people now deserve to be paid because they have made all their retirement payments.
However, if each of these people in the US starts receiving only $ 1,000 per month under Social Security and Health Insurance, the government will have to allocate an additional $ 75 billion per month for salary payments. This amount is equivalent to the cost of Hurricane Katrina or the Iraq War. The good news is we still have time to prepare for the impending financial hurricanes.
You can feed a person for a day by giving fish. And this is what we have been doing as the world for a long time. This is the thought that underpins Social Security and Health Insurance Services.
I want to encourage you to get rich because the world is turning into a two-class society; only rich and poor.
The middle class in Western nations is slowly but surely disappearing. If you want to stay in the middle class, you may need to consider living in China or India. These two countries are making their middle class bigger, rather than destroying it. But keep in mind that middle class members in China or India generally don’t live a better life than many poor Americans. This is because the middle class is too crowded in these countries.
The rich will always spot opportunities, while the poor will bury their heads in the sand and pretend nothing has happened.
Let’s think a little bit. Let’s consider how we can take advantage.
Can you identify the opportunities that may arise from this economic order?
Let me know what you think in the comments below.
You can also read WHY YOU NEED TO INCREASE YOUR FINANCIAL IQ if you are interested in. In this post, I have outlined how to improve Financial Intelligence.
You may also be interested in these posts:
You can access all my categories here:
- Book Recommendations
- Financial Attitudes
- Financial Independence
- Financial IQ
- Getting Rich
- Investing Money
- Stock Market
- Understanding Money