IQ Is A Thing Of The Past, It”s Time For FQ

Posted on July 4, 2012 in Business and Economy

By Pallavi Dani:

Financial management in India has largely been an area of concern for accountants, bankers and those closely involved in the Financial World. A common man would hardly ever bother about the nitty-gritty of the complex financial matters. This is astonishing, keeping in mind that we trade in money in its various forms – cash, loans, credit, and stocks – with people around us every single day. Yet most of our knowledge about money comes from sources just like us, from our families, friends, through random tips etc. And without the right information, we keep struggling to make our ends meet. In this increasing volatile world economy, the need to have financial intelligence has been felt like never before.

Financial Quotient (FQ), just like intelligence quotient or emotional quotient is a measure of financial intelligence. It is your FQ that helps you to make informed decisions about your money and lowers the risk of loosing it in a stumbling global market. It opens up a whole new world with numerous opportunities to increase our wealth. While care has been taken by our education system to improve our IQ and by the rising business setup to develop our EQ, little has been done in the area of FQ.

When it comes to money, a vast majority of population in the country is still ignorant. The concept of saving is still foreign to most of the people, nor have we ever been taught how to manage our finances when growing up. In such a case, a growing number of youngsters with access to money through well-paying jobs still struggle financially when its time to take up responsibilities.

On one side, a subject with so much significance in our day-to-day life is being ignored and on the other, there is huge outcry over harsh economic conditions, rising prices and drowning bank balances. We lament over the Euro crisis and cry when stock market crashes, cursing our luck; but miss out on the most important aspect- developing our know-how on managing our personal finances. Only the person equipped with financial intelligence will be able to glide through our turbulent economy. Now is the time to develop your FQ.