Research Shows You Can Earn Way More Money by Boosting Your Emotional Intelligence

EQ can be a secret superpower to your financial success

Decades of research now point to emotional intelligence (EQ) as a crucial factor that sets apart the star performers from the rest. In fact, a 40-year study of PhDs at UC Berkeley found that EQ was 400% more powerful than IQ when predicting who would succeed more in their industry. Daniel Goleman, a prominent behavioral science expert, claims that 80 percent of adult success comes from emotional intelligence (EQ).

Emotional intelligence a.k.a. EQ has also become a hot topic in both psychology and business. You might’ve heard of emotional intelligence (EQ) before but disbanded thinking it as a new age fluff. But, actually, it’s a lot more substantial than that. In fact, EQ has got some real monetary value behind it.

How much money can EQ make?

Dr. Travis Bradberry, the co-author of Emotional Intelligence 2.0, recently help conducted a study on over 42,000 people of all industries, at all levels, in every region of the world using the Emotional Intelligence Appraisal. The research came up with some staggering results. It turned out that not only 90 percent of top performers are high in emotional intelligence, but also they earn an average of $29,000 more annually than people with a lower level of emotional intelligence.

That’s right. Emotional intelligence can raise your income by a whopping $29,000 per year. In fact, the connection between emotional intelligence and earnings is so direct that each point increase in EQ adds $1,300 to your annual payout. On top of that, research hasn’t yet found a single field in which performance and pay aren’t closely related to EQ.

But how does emotional intelligence make you more financially successful?

Dr. Travis Bradberry has a brief answer to this question. He states —

“The road to higher income is paved with the quality of your relationships. People earn more money as they become more emotionally intelligent”

To learn more deeply continue reading.

How EQ makes entrepreneurs more financially successful:

EQ is a must-have to succeed as an entrepreneur. In fact, according to an article by Indiana University published on Newswise.com, entrepreneurs benefit more from emotional intelligence than other competencies, such as IQ.

Emotional intelligence helps entrepreneurs…

1. …identify customers need more effectively which can bring in more sales meaning more revenue and profit
2. …managing and unifying team through enhanced leadership which bring out the best in their employees
3. …improve their self-awareness which leads to a deeper understanding of their strengths and weaknesses in particular scenarios and help them act accordingly
4. …better understand and share the feelings of others (empathy) which build and sustain stronger relationships with their employees and business partners

In a nutshell, entrepreneurs with high emotional intelligence can leverage empathy, maximize team efficiency through leadership, figure out solutions to problems through problem-solving and social skills, maintain strong relationships which ultimately leads to their business and financial success.

I think Gary Vaynerchuk said it best in his book while highlighting the significance of emotional intelligence,

“If I could sell a formula made up of gratitude, empathy, and self-awareness it would be my billion-dollar coconut water idea.”

Now, how does EQ help freelancers and individual creators to find their financial success?

How EQ makes freelancers and individual creators more financially successful:

Well, for freelancers and individual creators, while leadership and team management seem to not have any impact, other attributes like understanding customers’ or clients’ needs, self-awareness, and empathy do play a vital role in their financial success.

Increased self-awareness, on the other hand, leads them to a deeper understanding of their strengths and weaknesses in particular scenarios. A higher self-awareness also helps you to boost confidence and take criticisms as constructive feedbacks and learn from their mistakes.

Empathy for freelancers helps in developing strong long-term relationships with freelance partners and clients which clearly benefit them financially. Empathy also helps individual creators like online content creators or Etsy shop owners when dealing with customers and delegation partners.

Alright, how do I increase my EQ?

While some people naturally have high EQ, the good news is researchers believe it can also be improved by continuous training and practice. Trying to be more emotionally intelligent has to do with mastering all the attributes of EQ. According to Daniel Goleman, there are 5 key components of emotional intelligence.

1. Self-awareness

Self-awareness is the ability to recognize and understand your own emotions as well as their effect on others. To become self-aware, you have to be capable of monitoring your emotions, recognizing different emotional reactions, and correctly identifying and naming each particular emotion. You will also have to recognize the relation between the thing you feel and how you behave.

How to improve self-awareness:

1. Ask for constructive feedbacks
2. Pay attention to your thoughts and emotions
3. Reflect on your experiences
4. Set goals
5. Use positive self-talk
6. Practice mindfulness

2. Self-regulation

In addition to being aware of your own emotions and the impact, those have on others, you need to be capable of regulating and managing your emotions in order to become more emotionally intelligent.

How to improve self-regulation:

1. Find ways to manage tough emotions
2. Look at challenges as opportunities
3. Improve your communication skills
4. Know you’ve got a choice in how you respond
5. Work on accepting your emotions
6. Practice being calm

3. Motivation

Self-motivation is another important attribute of all emotionally intelligent people. People who have a high degree of EQ are motivated intrinsically. They are driven by things beyond external rewards like money, fame, respect, and acclaim.

How to improve motivation:

1. Be hopeful and focus on the bright side
2. Work with a friend or client to find accountability
3. Set and focus on small but measurable goals
4. Celebrate your achievements

4. Empathy

Empathy is the most critical element of EQ. It is the ability to understand and share the feelings of others.

How to improve empathy:

1. Put yourself in someone’s else position
2. Listen to other people carefully
3. Pay attention to their body language
4. Talk to new people

5. Social skills

Being able to interact effectively with others is another important attribute of emotionally intelligent people. It helps build a stronger relationship and understanding.

How to improve social skills:

1. Practice good eye contact
2. Show interest in others
3. Learn how to applaud others
4. Hone your communication skills

If you want to learn more, here are some useful links that will teach you how to become more emotionally intelligent:

1. How to Improve Your Emotional Intelligence (professional.dce.harvard.edu)
2. How to Be Emotionally Intelligent (nytimes.com)
3. 10 Ways to Increase Your Emotional Intelligence (inc.com)

So, are you ready to boost your earnings this year?