When we start building our skills it is usually because there is a reason behind our efforts. In the case of financial intelligence, the final goal of developing this quality – this skill – is to achieve financial freedom. Today I will talk a little bit about the evolution of financial intelligence and how improving financially intelligence automatically starts to lead you into financial freedom. This quality is therefore not only important to handle your current finances but its culprit – its major goal – is to achieve a points where you no longer have to exchange time for money : financial freedom.

What is the first thing you need to do if you want financial freedom ? You need to increase your financial intelligence. Most of us start this journey at a point where we do not have a lot of financial skills. Through some of my last posts I have talked about how financial intelligence is a home acquired skill and how most of us – not coming from financially intelligent parents – inherit bad financial skills and habits.

To get to the point where you no longer need to work for money you need to embark yourself into a journey where you will ultimately learn how money works and how you can produce money without having to work for every cent. The ability to be extremely efficient when you work is a very important aspect of financial intelligence.

Maybe the clear goal of financial intelligence, that ultimately leads you to financial freedom, is to learn exactly how money works and specially how the production of capital works. Most people don’t realize that the worst and most inefficient – yet the easiest – way to produce money is by working (time = money) and that breaking this paradigm is what ultimately leads people towards financial freedom.

The realization that working for every cent is extremely inefficient and that the best thing you can do is work so that an hour of work will bring an endless amount of capital is the greatest thing you can do. Learning however how to exactly do this is what separates those who work by the hour for a yearly salary or a monthly paycheck and those who work one day and earn for a life time. Of course, the goal of financial intelligence is to make you grow an increasingly better understanding of money, its relationship with time and how it is most efficiently exploited to give you a very large income that will start to be independent of your working time.

My advice here is pretty simple, the first thing you need to do if you ever want to achieve financial freedom is to achieve financial intelligence. Once you start understanding how money works and how you can produce money more effectively you will start to get into a clear cut way towards financial freedom. Focus your time on thinking about ways of producing money and not ways to spend it !