School Cant Teach You How To Make Money
Like all typical parents would say “Study hard so you can get good grades and a good job Afterwards” most of us grew up with the notion that a good job after school is the key to the good life we have always dreamed off.
A lot is been taught during ones schooling days on our various choice of disciplines and schools often go extra mile to ensure their graduates are the best among their peers with slight advantages so as to ensure they fare well in the ever combative war zone called the labour market.
After all these education and preparations many individuals with excellent degrees and good jobs still struggle financially and are often covered in debts before it is time for the next pay check.
Formal Education is of great importance especially in this information age but does it necessarily guarantee a successful life?
Many school graduates leave their schools with excellent professional and scholastic skills but are mostly financial illiterates with little or no knowledge of how money works apart from just working for it.
This is because the topic money is never taught in schools and many educated individuals go into the labor market working for money not knowing how to make money work for them.
How Rich People Think
A large percentage of middle class and lower class citizens engage in what multiple award winning investor, entrepreneur, author and financial educator Robert T Kiyosaki called the “ rat race ”.
This term is used to describe people whose expenditure is equal with their income or even more. This he described as a financial situation caused by a low financial ineptitude due to the individual’s low understanding of the science of money or wealth acquisition.
The poor and the middle class often spend their income on liabilities instead of acquiring assets like the rich do. Liabilities can simply be put as things that take money out of your pockets, while assets are the opposite. The difference between the rich , the middle and the poor class is the ability to tell the difference between an asset and a liability.
The poor and middle class knowingly or unknowingly go about acquiring liabilities which in turn drain their income and invite debts, while the rich put all they can into the acquisition of assets which increases their cash flow instead of expenditure.
The poor and middle class live with this illusion that a raise or a promotion which often comes with an increase in income would put an end to their financial struggles but this never really happens because of their often poor financial know how which leads to their inability to differentiate between an asset and a liability .
Due to this fact, an increase in income is often followed by an increase in expenditure so that the raise or promotion has no significant change on the person’s financial status.
This is what is called the rat race, working so hard just to survive with barely anything to save. The rich folk on the other hand might not be as educated as his peers but have a better financial knowledge which he exploits to get ahead.
An increased acquisition of assets results in a situation Robert T Kiyosaki described as “financial freedom” when the individuals assets generates a cash flow that adds to the normal income leading to an increased income. Here the rich man’s income supersedes his expenditure by a large margin due to the additional source of income created by his assets. Example of such assets are stocks, bonds, mutual funds, shares, real estate and any type of business that produces steady income.
In conclusion, we should all Endeavor to increase our financial IQ and background regardless of our line of work. You can do this by reading financial educational books mostly written by world renowned investors and entrepreneur example the Rich dad series by Robert K Kiyosaki, The Warren buffet way by Robert .G Hagstrom and many other proper books on the art of wealth acquisition or make use of the good old internet to research on many available information pertinent to this subject matter.
Hope I did not bore you out with the money talks.
Nothing is pleasurable about money. The only pleasurable thing about money is spending it.
Making it or managing it properly is the hard part. So brethren next time you just got paid and u are about to go cop that designers watch you have been drooling over or that new gadget which you know you don’t really need you might like to think twice so u don’t fit into the popular expression that says
” A fool and his money is one big party ” .
Written By Michael Ndu-okeke