Emotional intelligence is the capacity to identify, comprehend, and manage our own feelings and the feelings of individuals in manners that are positive. We may think that being book smart and having a high intelligence quotient or IQ will guarantee a happy, successful and fulfilled life. If we look around, there is an assortment of individuals in every area of the world who are brilliant academically but are inept at work or in their relationships and handling people. Academic intelligence isn’t enough on its own to succeed in life. And when we’re talking about our personal finances and our quest for financial freedom, it will be our emotional intelligence, not our IQ that will allow us to succeed. Although the term emotional intelligence is largely heard and used with regards to leadership and managing people, there are elements of IE that play a major role in how we look at, feel about and use money.
This is How Emotional Intelligence Affects Your Finances
When it comes to success and happiness in life, emotional intelligence makes it possible to reach your career and personal goals, succeed in work, and build relationships. People who are emotionally intelligent are able to recognize the emotional state of others as well as their own state to create a connection and form relationships.
For the purpose of financial success, it’s the ability for you to recognize your emotional state that needs to be the focus. Emotional Intelligence is made up of five elements; self-regulation, self-awareness, motivation, empathy and social skills. Focusing on and mastering the first three elements is what will enable you to have control over your finances.
“The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind.” – William James
Self-Consciousness is the capability to know which emotions you’re feeling and why. Self-Regulation is the capability to control your feelings and impulses and select the emotions that you would like to experience rather than being the victim of whatever feelings arise. Motivation is about utilizing your emotions to stay positive, optimistic and persistent as opposed to negative and pessimistic.
Some of these three elements may already come naturally to you. If they do, that’s great! If not, you need to work on them, because mastering these three elements will surely get you on the road to financial freedom. And there’s no doubt, that the conscious effort to master all five elements will enable you to live a better, happier and more successful and fulfilled lifestyle overall.
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