George Kamel - 7 Ways to (Actually) Boost Your Financial IQ

Starting point is 00:00:05 This video is trash. Not this one. This one. Here are 15 ways to increase your financial IQ. Remember, when in doubt, always follow the money and you will get your answers. Embark on your analysis by perusing the company's income statement, by juxtaposing these figures with industry benchmarks or competitor data. And there you have it, Elexer, these are 15 ways that you can increase your financial IQ. Okay. God bless whoever on our team had to watch that hot AI garbage for 34 minutes.

Starting point is 00:00:41 This video is super weird and it feels intentionally complicated, like your resume, when you're trying to hide the fact that the only real job you've ever had is a sandwich artist's subway. But hey, technically you can tell your employer you are using your art history degree. But the concept of the video is good. I mean, who doesn't want to improve their financial IQ? You bet I do. So we sifted through this oddly robotic financial advice and pulled out the good nuggets to save you the agony of having to sit through this interminable dross.

Starting point is 00:01:07 I used AI to come up with that phrase. So today we're going to share seven ways to boost your financial IQ, a.k.a. be smarter with money, all so that you can make great financial decisions and reach your money goals faster. But before we jump in, the smart thing to do is to like this video, subscribe to the channel, and share this with all of your sandwich artist friends out there on the front lines of fast food, filling America's stomach, one foot long cookie at a time. Seriously, they now have foot long cookies, or as I like to call them, Fookies. Get the fookie out of here. You like that? Edgy. That's beyond dad joke. That's uncle. That's some uncle

Starting point is 00:01:45 territory. No, no. It's a hard note. Okay, here we go. The first way to improve your financial IQ is simple, but it can spare you so much regret. Did you know that two-thirds of impulse shopping happens in our beds and on our smartphones? So if you're not careful, you can click and tap your way to broke before you even finish an episode of Grey's Anatomy. And there's a lot of seasons. You wouldn't be starting a conversation about my personal life, would you? this comes down to is we've got to be more intentional with our money and our spending. When you see something you really want, sleep on it. Give yourself a day or so to calm down before you click Add DeCart and ship it to your door.

Starting point is 00:02:18 And then once you have a cool head and a fresh perspective, ask yourself if you'll actually use this thing and if you can pay for it right now with cash. If the answer is yes and you've budgeted for it, then go ahead and buy that big dumb cup. I really do need it. This is called the 24-hour rule, and it can help you avoid impulsive decisions and financial regrets. and avoiding those impulse purchases is a sign of high financial IQ. Dave Ramsey's always said personal finance is 80% behavior and it's only 20% head knowledge. So the first thing you can do to increase your financial IQ is to start using the 24-hour rule.

Starting point is 00:02:50 And remember, this mainly applies to large non-essential purchases, but also to investments as well. The more money that's involved and the less essential it is, the longer you should wait. All right, the next thing on the list is huge and it could make or break your retirement savings. Let me explain. Back in 2022, the stock market. market ended the year with its biggest annual drop since 2008. The only thing bigger that dropped in 2008? Low by Flowrida featuring T-Pain.

Starting point is 00:03:18 Big year. Anyway, in 2022, the S&P 500 dropped over 30%. This caused four in 10 investors to pull money during that 2021-22 stock market volatility, and a recent survey shows that almost half of them regret doing so. Meanwhile, the people who stayed the course and kept their money invested have seen a big boost in their retirement accounts. So remember, the stock market is like a roller coaster. You got to be mentally prepared for the ups and the downs.

Starting point is 00:03:42 And if you try to jump off early, you're going to get hurt and get a lifetime ban from Six Flags over Texas. Steve, I know it was the teacups ride, but someone could have gotten hurt. Anyways, my point is, people with a high financial IQ understand that building wealth is a marathon, not a sprint. You got to be the tortoise, not the hair. Which brings us to number two on the list. Invest for the long haul and resist reacting to short-term dips. Because it's not about timing the market. It's about time in the market.

Starting point is 00:04:09 All right, before we get to the next one, here's a lot. a bonus move to increase your financial IQ, and it has to do with protecting your wealth and your information online. You see, data brokers are selling your info, causing lots of spam and identity theft. And every villain must face its hero. And that hero is Delete Me. And they're a sponsor of today's episode. They remove your personal info from hundreds of data broker websites, keeping you safe on the worldwide web. And with my handy-dandy link, you can get a one-year plan for less than $9 a month. So if you want that 20% discount, go to joindeletme.com slash George, or click the link in the description. Okay, the next thing

Starting point is 00:04:41 on the list was mentioned in that painful AI video, but it's also something I've been preaching for years, and I've talked about on this channel before when it comes to making a plan for your money. And it's this, use zero-based budgeting. This is the kind of budget where you've got to give every dollar a job. Income minus expenses equals zero. Every dollar coming in needs a purpose. That way, nothing gets mindlessly spent on fancy pans coffee or digital frogs or big dumb cups, unless it's in the budget, in which case, go with the clean slate quencher and warm, serene brushstrokes. So a zero-based budget is the smartest best way to budget, and it's another sign of a high financial IQ. All right, the next one is something you're probably not doing a lot, but it can be super valuable.

Starting point is 00:05:21 And when you think about it, it makes so much sense. So next way to increase your financial IQ, learn from the successes and failures of others. A few years ago, Ramsey's Solutions conducted the largest ever study of millionaires. We gathered info from over 10,000 of them, and here's some of the things we found. Eight out of 10 millionaires invested in their company's 401k plan and said that that's simple step was a key to their financial success. Three out of four millionaires said that regular consistent investing over a long period of time was the reason for their wealth. And lastly, 68% of millionaires said they used a financial advisor to help them achieve their net worth.

Starting point is 00:05:55 So if you want the financial IQ of a millionaire, do what the millionaires do. Invest consistently over the long haul and proven things like a 401k and work with pros when you need them. And if you want to learn more about that millionaire research, you can check it out using the link in the description below. Okay, the next one on the list might be my favorite for a couple of reasons. Number one, because it's easier to do than ever, and number two, because you're kind of already doing it right now. And it's this, learn from personal finance podcasts, videos, and books. They can take complex financial concepts and make them more engaging and fun, which is not so secretly the goal of this here channel. And if you're more of a bookworm, let me tell you about this book

Starting point is 00:06:30 called Breaking Free from Broke, and it's an easy to read but thorough personal finance book that will help you level up your financial game. Oh, and I wrote it, by the way. Hey, hey, and if you don't like looking at words, you can listen to the words with the audiobook version that I read myself. You can get your copy with the link in the description below. Okay, next thing on the list is a big one. And if you're not doing this, you can end up in a lot of trouble. You know those Instagram ads and TikToks and clickbait headlines

Starting point is 00:06:55 that say things like, The Secret Wealth Building Tool of the Rich, or Motley Fool Issues Rare All In Buy Alert, or Florida Man predicts Gator Teeth will be the only currency by 2028. You got to watch out for stuff like that. And when it comes to money advice, If it sounds too good to be true, it probably is. And if the headline starts with Florida man, he's probably on bath salts, 100% of the time.

Starting point is 00:07:15 Now, learning to read any financial information critically will help you make good decisions with your money. Which is why the next thing on the list is, don't believe everything you hear. I mean, if I believed everything I heard, I would think that lizard people at the Department of Education use chemtrails to keep the Bigfoot population down long enough for Joe Rogan to write a book about how aliens are encoded machines in Georgia. So here's the deal. Make sure your advice is coming from a trusted source with a proven track record. And always ask yourself, what does this person have to gain by me taking their advice or clicking their link or affiliate link? And if you need to, do a little bit of research and investigating to make sure the person or company is credible and that the information is accurate. And pro tip, if they think birds aren't real, maybe don't take their advice seriously.

Starting point is 00:07:55 Wait, are they? All right, time for the last one on the list. And this is something that will help you save time, minimize human error, and help you stick to your financial goals. And it's automate your finances. This is basically putting your money on autopilot in the best ways. And here's what it looks like. Set up an automatic transfer so money comes directly out of your paycheck

Starting point is 00:08:14 into that 401k or Roth IRA. And set up direct deposit so the rest of your paycheck goes right into your checking account. From there, put all of your utility bills, insurance premiums, and your mortgage on auto pay. You can even automate your giving, whether it's to your local church or your favorite nonprofit. And here's a pro tip. If you've got a mortgage, you can automate extra payments to the principal.

Starting point is 00:08:33 and this can help you pay off your house way sooner and save you six figures in interest. Now, automating as much as you can will help you make progress toward your money goals without burning as many brain calories. And that is a sign of high financial IQ. I mean, we like to burn actual calories, but when it comes to our brain, you kind of save those up. Need those brain proteins. Give me that raisin brain. It's funny, except it's not. All right, I don't know what your financial IQ was before you watched this video, but hopefully now it's at least, I don't know, 130? That feels high?

Starting point is 00:09:00 I don't know why they didn't just do the scale from zero to 100. but I'm also not smart enough to know why they did it that way. So, if you think you're pretty good with finances, check out this video for three signs you're above average with money. And make sure you're subscribed to this channel so that you can keep improving that financial IQ. And while you're at it, like this video and share it with all your dumb friends and all of your smart friends.

Starting point is 00:09:20 Just don't tell them which one they are. Thanks for watching. We'll see you next time.

George Kamel - 7 Ways to (Actually) Boost Your Financial IQ

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