Measure How You Handle Your Income

Everyone has heard of IQ, intelligence quotient, and EQ, emotional quotient. They measure the power of the brain and the maturity of the emotions, respectively. But shouldn’t there also be an MQ, or money quotient, that measures how well adults handle their income? Maybe someday the term will start showing up in psychology studies, but for now we’ll have to make do with our own official definition. There are numerous ways to measure MQ, including a working person’s ability to save on a regular basis, invest in education, stay on top of financial news, know where every penny of their paycheck goes, and willingness to seek professional advice when necessary. You might have a high MQ if you do the following things.

Automate Savings

It’s one thing to save money on a regular basis. Anyone who does so already has a commendable MQ. But genius level are reserved for those who automate savings with things like payrollsavings plans, direct deposit of a percentage of each paycheck to a special account, or auto withdrawal from checking to savings of a fixed amount on a set day each month.

Invest in a Degree

Getting a degree and paying for it represent two of the wisest actions anyone can take in their adult life. First, it’s because education is forever, which means that once you earn a degree, you have it for life, regardless of health, the economy, or other life circumstances. Second, paying for a degree takes financial savvy, which is why so many prospective degree earners take out student loans from private lenders. If you want to get your degree and pay for it the smart way, private lenders offer flexible terms, competitive interest rates, repayment periods that make sense for working people, and the chance to cover all education expenses under one roof.

Know Where Your Money Goes

Having a high MQ is unrelated to income level. Instead, it’s about understanding how to use the money you have in a wise way. A key part of that concept is knowing where every dollar of your income goes each month. People who can tell you, off the top of their heads, how each cent of their income is used are already in a powerful financial position, no matter how much they earn. Knowledge is power, and when you are familiar with all your line item expenses, it’s easier to rein in overspending, keep an eye on variable costs that rise unexpectedly, like utilities, and have full control of your financial destiny. To get this process off the ground consider using an app to assist you. As you build your skills you will rely on the app less and less and have all this info basically become second nature.

Stay Informed

People with a high MQ stay up to date on key economic news that has the potential to directly affect their wellbeing, like the inflation rate, housing prices, changes in the stock market, new government tax laws, retirement account news, and more.

Get Professional Advice

Smart people know when to get professional help. This fact pertains to financial matters as much as to health-related conditions. When you think you might be ill, you see a doctor. Likewise, when you need assistance with taxes, investing, career guidance, or debt counseling, find a licensed professional and get your financial world in order.