Let’s talk about the people who we meet daily. Think about a successful real estate agent. There are plenty of real estate agents who have become millionaires and billionaires from their careers, and you wonder which real estate degree they have. Then the Hotel owners. How many seven-star hotel owners have a degree relating to hotel management.
Now, let’s talk about world-famous billionaires who are school dropouts.
Bill Gates, dropped out of Harvard to focus on Microsoft full-time, Mark Zuckerberg dropped out of Harvard to move to Silicon Valley and start his Facebook empire, Steve Jobs is a college dropout too, Ellen De Generes left the University of New Orleans after just one semester to work full-time at a law firm as well as doing stand-up on the side.
Are you still thinking that you can’t be rich just because you are a college dropout, and you don’t have a fancy degree…? or else do you think that you are not smart enough to become successful in your field just because you didn’t go to university?
You will definitely change your mind at the end of this talk.
Let’s find out the reasons Why Most Highly Educated People End Up Being Poor.
Lack of financial education is one of the major reasons. If you have read the book Rich Dad Poor Dad, written by Robert Kiyosaki and Sharon Lechter, you will see the truth behind this point which is our education system does not provide enough knowledge about money. You may have a medical degree. But how many lessons were there that taught about make money, save money, and grow money.
Another thing is, they are reluctant to listen or read something else other than their subject related materials. Or else they don’t like to take any advice or idea from a person who does not have the same or similar education level. But there are so many financial advice books, YouTube videos or Blogs which give good money management advices. You don’t have to find out the education levels of the people who wrote those books. You just need to grab the core message that books give and apply your intelligence to think whether that advice is practical or not. If they are good, apply them to your financial management.
Being highly educated is a reason to be proud of, but not to be egoic minded.
Secondly, they love to do a 9 to 5 job than establishing a business. As per the Cashflow Quadrant, those who love to work 9 to 5 to establish others, can never make assets and they don’t have leverage.
Jack Ma says “If you put bananas and money in front of monkeys, they will choose bananas because monkeys don’t know that money can buy more bananas. In reality, if you offer jobs and business to people, they will choose a job because most people don’t know that business can bring more money than salaries. Profit is better than salaries because salaries can make you a living, but profits can bring you a fortune.”
One of the reasons they tend to choose a job over a business is perception. As we all know, higher education is expensive and most students have to take student’s loans to finish their educations. Therefore, they choose wages as the most secure income method. Not only that but also after graduating, they have to support their families since they spent lots of time and money on their education. Therefore, they are afraid to take a risk and invest in a business. Once Mark Zuckerberg said that “The biggest risk is not taking any risk”.
In New York Times, once Warren Buffett has mentioned his 2010 Federal tax rate of 17.4% compared to 36.0% on average paid by the twenty other workers in his office in August 2011.
Another disadvantage of doing a job rather than doing a business is, you can lose your job at any time. Pandemic time is the ideal example for talking about losing jobs. It doesn’t matter how many degrees you have, there is a high possibility that you can lose your job at any time. Your job security is depending on the decisions of your higher management. However, if you lose your business, you know how to build up again since you built your business from the scratch and you are experienced in that area.
Therefore, being highly educated is not the only qualification to be wealthy. But education is an added value to the journey of being rich and successful. If you are a college dropout don’t regret that. You have a fair share to become rich or become a millionaire as much as the people who are well educated in universities. The most important thing that you need to do is, get financial knowledge by reading or listening to a good podcast.
Money management is not that easy. It’s always a tricky subject. If you want to survive you don’t have to know everything about money. However, if you want to live your life, of course, you have to know how money works and how to grow money.
Rich Dad Poor Dad is a good book to start your being a millionaire journey. Once Jim Rohn said, “Formal education will make you a living; self-education will make you a fortune”. As per the book The Magic Of Thinking Big by David J. Schwartz, “Knowledge is power – when you use it constructively”.