Financial Acumen

Some people are naturally smart in managing finances and many others are not, though them may be really good in many other things. What makes a person really good at managing finances? This article will focus on looking at the “Financial Acumen” from “Multiple Intelligence” perspective.

It is imperative to write about what is Multiple Intelligence (MI) for the readers to appreciate the same. Howard Gardner in his book titled “Frames of Mind” later updated with title “Intelligences Reframed” has put forth a theory of Multiple Intelligence, thereby stating that every human being has eight types of intelligences. 4 on left brain and 4 on right brain (to be precise there are 10 intelligences, 5 on each side, but 2 are clubbed, I will tell about this in detail some other time).

Left Brain

Right Brain

Intrapersonal Intelligence -

Rational Thinking, Executive Planning, Coordinating, Controlling, Self-Achievement

Interpersonal Intelligence -

Leadership Interpersonal Skills Goal Visualization Intuition, Self Esteem Determination

Logic & Reasoning -

Logic & Reasoning, Analysing & Computing Process, Numeric, Linguistic, Grammar Concepts

Visual Spatial Intelligence -

Imagination, Idea FormationVisualization,3D Recognition, Visual/Spatial Ability

Linguistic Intelligence -

Language Ability & Understanding, Hearing, Identification, Word Formation, Word Memory

Kinesthetic Intelligence -

Gross motor & fine motor skills

Naturalistic Intelligence -

Visual Identification, Reading, Interpretation, Observation, Skills, Nature Love

Musical Intelligence -

Music, Sound, Rhythm, Tone, Voice Identification, Listening Skills, Emotions & Feelings

Every person has all the intelligences in different proportions. Top three intelligences play important role in shaping the person’s behavior, career, decision making, hobbies and of-course long term financial success as well. 

The intelligences responsible for good financial decisions are 

1. Logic & Reasoning, 

2. Intrapersonal  

& 3. Visual Spatial 

(there is no specific order of rank) 

but these 3 together will shape the long term financial success to a great extent (sudden surge in Income due to jackpot in any form is excluded).

These 3 intelligences act as support, weakness in any one or more of these 3 will create imbalance thus, affecting the decision making particularly related to finance. There are various methods to identify each person’s intellectual profile as well as various ways to improve upon the weakness or have alternate arrangements to minimize the impact of weakness in 1 or more areas, if critical.

Apart from the 3 intelligences mentioned above there is one more intelligence which will have significant impact in the long run and particularly during rough patches. Kinesthetic Intelligence is such intelligence which not only defines a person’s energy levels but also defines the ability to hold on or fight through during difficult times.

This topic is vast and it is difficult to cover in brief. Though, I will cover various aspects in future. Any reader interested in knowing more may contact me and/or follow the blog.

CA. Avinash Shukla

Email: caaashukla@gmail.com,

Mo: 9890184190

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