Why is it that so many well educated and talented people are unable to make a decent living for themselves?
Today, we share with you a write up by Ifeoma Chime on reasons why most educated people end up poor.
There are three money skills you need to create wealth; the skill to make money, the skill to keep money and the skill to grow money. Most of the people you consider as rich from their spending habits are only good at making money. Real wealth is created when you grow money. Unfortunately, these skills are not taught in school. Which is why most educated people know very little about the first and second, and almost nothing about the third.
When you read that Jeff Bezos is the richest man in the world, do you imagine him having access to over $100 billion in cash? You may be surprised to know that rich people can run out of money sometimes. But they have spent years growing assets that even if they lose all the cash they have, they are still rich because of the increasing value of their shares in companies, real estate, property rights and so on.
Educated people tend to equate their financial value based on the money they make from their job. The problem with this is that money, by itself, is designed to depreciate in value. Your academic qualification is also designed to depreciate in value. That is why you need to keep going back to get another degree to get a raise. While wealthy people see money as a tool to build appreciating assets; everyone else see money as a tool to buy things for pleasure and status.