You may be smarter than you think

Posted by neil on March 07, 2010
General

Greetings Everyone,

I am particularly interested in the topic that I am writing about today.

Today I am going to talk about,

Financial Intelligence a.k.a. Financial IQ

It is believed that in order to be successful as a real estate investor, you have to have real estate knowledge.

This goes without saying…You definitely need knowledge.

The more knowledge you have, the better you can become as a real estate investor.

Many believe that in order to gain more knowledge with regards to real estate investing, you need to join real estate investment groups.

This is a very good strategy to take as you are able to network and learn from the experience of other real estate investors.

However, you must be aware that real estate investment groups can be a trap.

These group can be a trap for many aspiring real estate investors because they serve as a ‘crutch’. Many wannabe investors join these groups and think that just because they have joined an investment group, they are magically going to become so much smarter with respect to real estate investment, and be able to instantly make, one million dollars…

My friends, this is not true.

Being associated with a real estate investment group, does absolutely nothing for you.*

*YOU are the one who has to be in control of you destiny. As such, YOU have to be in control of increasing your  financial IQ.  No investment group will do this for you.  You have to do this yourself.

You have to take the initiative to further yourself by increasing your financial IQ independent of these investment groups.

To quote Donald Trump,

“Good investing requires financial intelligence. Billionaires are often blessed with a high financial IQ. Most of them could be considered financial geniuses. But your financial IQ is not a fixed number, and you can improve it each and every day. My financial IQ is constantly improving as I watch over my many businesses and my staff. I work hard to make sure that they remain assets, not liabilities, and you should look at your holdings in the same way”

As straight forward and common sense as this concept may seem, it is not straight forward and it is not common sense.

The reality is that many people do in fact use real estate investment groups as their real estate ‘crutch’.

Just by being a member, they think that that is sufficient action required in order to become a smarter real estate investor.

I personally came to the realization myself that I was relying too heavily upon my investment groups for Financial knowledge.  I quickly realized that I was not putting in enough of my own time in order to increase my financial intelligence.  This is a fatal error.  Once I realized this, I made a push to increase my intake of real estate related materials.

Below I have listed the two changes that I have made, in an effort to increase my financial intelligence.  I recommend that you make 2 changes as well in order to increase your financial IQ.

Here are the changes that I have made:

1) I am going to focus more of my time reading The New York Times Business and Real Estate section.  Located on this site, there is great information on what is happening both in the real estate and business world.

2) I am going to spend more time reading the blog of John Fedro, a.k.a. J-Fed. John is a fellow blogger who invests in mobile homes. This is a concept that I am interested in and want to learn more about.

In summary, I realized that I was relying too heavily on my real estate investment groups for financial intelligence.

As a result, I am making sure that I take the bulls by the horn and proactively educate myself each and everyday in order to increase my financial IQ, just like The Donald recommends.

If you are serious about increasing your financial intelligence, and you are interested in investing in real estate, I encourage you to do the same as well.

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4 Comments to You may be smarter than you think

  • There’s really not enough investment groups a new investor can join if they don’t have the desire for knowledge – they will never find it, and will only end up wasting their money. Your goals for expanding your knowledge are interesting, Neil! Thanks for sharing.

    • Hi Mark,

      I know that you and I see this quite a bit. New investors who join investment groups, but have no desire to increase their knowledge or who have no goals with respect to investing. This is unfortunate. You are right, as this definitely ends up becoming a big waste of money…

      Thanks for your feedback Mark.

      Neil.

  • Hello Everyone;

    I agree. I find a lot of people just attend these meetings without a game plan on how to expand their knowledge or sometimes critically analyze what’s being presented to them. I guess that only comes with experience.

    Finally there are a lot of people that just simply enjoy the social aspect of meeting new people and sharing their stories.

    • Hi Ajay,

      Good point. I never really thought of your last point before. There are definitely people that just attend meetings for the sake of socializing.
      Also, I definitely agree with you…Not enough people critically analyze the information that they are being fed.

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