By Arianna Reardon | Published September 19, 2022

We all want to prosper in life. And, let’s be honest: If there were some magic spell that could grant that, we all would’ve tried invoking it by now. Sadly, there is not. There is, however, some hidden key that you may not be aware of. This hidden key relates to the two types of financial intelligence: Money IQ and Money EQ.

If you feel like you’re struggling to prosper in life financially, you’ve come to the right place. According to Ken Honda, “Zen Millionaire” and author of Happy Money, connecting your Money IQ and EQ is the secret to creating and receiving more money in life. By learning both principles, you can connect them and manifest abundance. Keep scrolling to learn how to make peace with your finances like never before.

What Is Money IQ?

Money IQ (intelligence quotient) is a type of financial intelligence that refers to the practical side of finances. This includes earning a living, budgeting, protecting, and increasing your money.

The 4 Money IQ Principles:

1. Making Money: This refers to your basic ability to make money. It’s all about knowing where you want to go—running your own business, moving up the ladder at your current job, having the freedom to travel on a whim, etc. And it’s about formulating a plan and taking the right steps to get there.
2. Spending Money: People with a high Money IQ spend on things that make them feel abundant long-term, like investing in the stock market over buying new clothes. They also know when they’re spending on higher investments versus simple expenses, like groceries or medicine. That’s not to say that they never treat themselves—because they certainly do—but they prioritize accordingly.
3. Protecting Money: This is less about hoarding money and more about preventing unnecessary loss. If you receive money one minute and lose it the next, you’re ultimately not protecting it. Understanding your behavioral patterns with money can be helpful because struggling with this is often subconscious.
4. Increasing Money: Someone with a high Money IQ invests their money beyond the most obvious ways—like a retirement fund or personal investment portfolio—and increases it by putting it into what they believe in, like themselves, their relationships, or their career.

What Is Money EQ?

The second type of financial intelligence is Money EQ (emotional quotient), which ultimately assesses how healthy your relationship with money is. It’s a reflection of your personal beliefs about money and how your subconscious makes financial decisions. Having a high Money EQ is just as—if not more—important as having a high Money IQ. You can make all the money in the world, but it will be for naught if you have a low Money EQ.

The 4 Money EQ Principles:

1. Receiving Money: As a society, we’ve been taught to shy away from accepting money. However, being open to receiving money is just as important as knowing how to make it—and someone with a high Money EQ knows that. This is why they welcome it with open arms. They know and believe that true wealth begins once you finally accept and allow it into your life.
2. Enjoying Money: The ability to truly enjoy money directly correlates to the ability to live in the present moment. A person who can take the time to stop and smell the roses is a sign of someone with a high Money EQ. After all, being unable to enjoy the fruits of your labor is equivalent to never having accumulated them at all. Plus, when you’re living in a grounded and zen state, you naturally feel more abundant, which is key to receiving abundance.
3. Trusting Money: Not trusting the flow of money forces you to live in a state of constant worry and fear, creating a scarcity-based mindset. This mindset blocks you from creating and receiving more money in life. Someone with a high Money EQ trusts the flow of money and accepts that it’s fluctuating. They also have confidence in themselves and their Money IQ.
4. Sharing Money: The more generous you are, the more abundance will flow to you. Being stingy when you don’t have to be will negatively impact this cycle. Someone who enjoys things like inviting their loved ones on a trip or treating others to dinner has a high Money EQ. Of course, doing these things within reason is key, but I digress. When it comes down to it, it’s not really about the dollar amount. It’s more about sharing when you can.

How To Connect Money IQ and EQ

Connecting both Money IQ and EQ is key to developing a healthy relationship with money and manifesting financial abundance in your life. In addition to understanding the principles mentioned above, incorporating these practices into your daily life will help you prosper like never before.

1. Get clear on your money goals

Part of setting yourself up for financial success means knowing what you want. There’s no better time than the present to get clear on your money goals. Think about what success and prosperity look like to you. Once you’ve done that, you can then create a plan that will help you get there (think: budgeting, investing, updating your resume, letting your boss know you’re interested in moving up in the company, etc.).

2. Practice mindfulness

We live in a fast-paced world, which is why we need to take the time to slow down to stop and smell the roses. Create a flow of abundance in your life with practices like deep breathing, meditation, or journaling. Practicing mindfulness on a regular basis will teach you how to ground yourself in the present moment, recognize and appreciate the wealth you already have, and enjoy the fruits of your labor. Living in a more mindful state will also make you more clear-headed. This, in turn, will help you make better financial decisions and capitalize on existing financial opportunities.

3. Develop a positive emotional response to money

Money is a notoriously emotionally charged topic, so if you have a negative emotional reaction to it, you’re not alone. This response, though, only blocks you from creating and receiving abundance. Developing a positive emotional response to money is key. Allow yourself a moment to relish in the joy of being paid. View money as a tool. Be happy for the abundance of others. You can also try writing an open and honest letter to money to expel any negative feelings towards it.

4. Spend wisely

Learning to spend wisely will help you break unhealthy behavioral patterns with finances. The biggest way to ensure you’re spending wisely is by setting aside whatever money you have left over after paying for living expenses. Then, invest this money in things that bring you joy, things that can help generate wealth long-term, and things that improve and benefit your well-being.

Truthfully, spending wisely is subjective. It’ll look different for everyone. That being said, some general examples of smart spending are investing in a retirement fund, traveling solo or with others, or even treating yourself to a spa day. I’m a firm believer in having balance in all aspects of life, so after paying my expenses, I set aside 50% of my leftover money for “fun” expenses (think: dinner and drinks, skincare, a Sims 4 expansion pack, etc.), 25% for savings, and 25% for investments.

5. Let go of limiting beliefs

Our subconscious is a very powerful thing. Harboring feelings like self-doubt will only hinder you from making and receiving money. Let go of limiting beliefs by changing the narrative. Stop doubting what you’re capable of and reflect on all you’ve achieved thus far. Stop questioning whether or not you can make more money. Instead, look at how much you’ve already made. Grant yourself the freedom to receive wealth into your life. This will help you have confidence in yourself, allowing you to trust the flow of money and let go of limiting beliefs.

6. Live with an abundant and grateful mindset

The energy we put out into the universe is the energy we get back. Living with an abundant and grateful mindset will ultimately give you a life you feel worthy and deserving of. Start by taking a minute to zoom out and look at the bigger picture. Recognize and appreciate everything you already have. This will make you feel naturally more abundant, thereby attracting abundance into your life. Plus, this mindset makes it so much easier to be generous when you can and let go of limiting beliefs.

7. Recognize that money isn’t everything

Recognizing and understanding that money isn’t everything will allow you to let go, stop stressing and trust the flow of money. There’s absolutely nothing wrong with wanting to make a lot of money and be financially independent. However, putting money on a pedestal and making it the end-all-be-all will only bring you pain and suffering. It will only damage your financial intelligence. Yes, you need money to live. But you don’t need it to thrive.

Ultimately, this—in addition to everything else previously mentioned—will help you fully tie the principles of Money IQ and Money EQ together. You can now level up your financial intelligence like never before.

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