7 Reasons Why Most Educated People End Up Poor
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 7 reasons why most educated people end up poor.
If you are new to these posts, welcome. We aim for all-round education of young Africans. Consider joining 19000+ others in subscribing to AfterSchoolAfrica on Youtube to continue exploring opportunities and watching videos like this one below:
RECOMMENDED VIDEO: 25 Things That Are Not Worth Your Time in Life (Watch)
- The Numbers Game
There are two common ways to create consistent wealth: one way is to serve lots and lots of people; the other way is to serve people who serve lots and lots of people. As unfair as it may seem, the reason a footballer earn ridiculously more money than a school teacher is because, the entertainer is offering value to millions of people at a time, while the teacher offers value to a few people at a time. Most educated people only focus on the depth of value whereas highly successful people focus on the depth but most especially, breadth of value. This is why you see an average guy with average idea become wealthy while the intelligent and academically educated guy barely gets by. In the game of money, it’s not enough to be intelligent. You must either have access to the numbers or you have access to the people with the numbers.
J.K. Rowling became a billionaire from selling over 400 million copies of the Harry Porter series. That’s the number game. Interestingly, teachers are now making a fortune by using the internet to reach a large number of people. Are you playing the number game?
- Instant Gratification Vs Delayed Gratification
You get poorer or richer one decision at a time. If you own an iPhone but can hardly pay for internet subscription, you are making yourself poorer. The richest black man in the world bought himself a private jet worth $45 million at the age of 53, but he was worth over $10 billion and it took him 30 years to get to that status. Now think about this; what is the faction of the price of his jet to his net worth? Well, it’s equivalent to someone worth $10,000 spending $45 on a toy. Not so extravagant right? Now you see why it’s not smart to spend $750 on a phone, when all you are worth is $2,000?
There are two paths we can take in any given situation; the path of avoiding pain in the moment and the more difficult path of delaying pleasure for a bigger purpose in future. According to researchers at Temple University, and several other research institutions, the ability to delay gratification is one of the most effective personal traits of successful people. Educated people end up poor or coast a little above poverty when they cannot delay pleasure for future benefits.
- Responsibility Vs Irresponsibility
I applaud that you stayed through the rigor of academic work to acquire your qualification. But I’m sorry to tell you this; your degree in itself is for you alone. It does not benefit anyone. Really, what difference does yet another qualification with acronym make? None. It is what you bring to the table that matters. The problem is that most educated people develop a false sense of value, and expect everyone else to see it that way. The market is driven by value not by level of academic sacrifice.
As sad as it may seem, after your four or five years in the university, and more qualifications to follow, you are still responsible for your life’s outcome. And this will be influenced by how much value you bring to the market and to whom you bring the value to. The ball is in your court my dear educated one. People who break out to the life they desire believe that they are responsible for their success or failure regardless of circumstances; And they make the choice to succeed, one decision at a time.
- Poor Financial Education
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.
- Rich People Collaborate. Schooled People Compete.
Who is better between Messi and Ronaldo? This is one of the most common arguments in sports entertainment history. There are several versions of such arguments among celebrity fans on who is better. Interestingly, while the fans are arguing, these people are collaborating to give them the next thing to debate about. Rich people are always looking for ways to collaborate.
Our school system is generally designed to encourage competition. It’s not surprising, that most educated people are consumed by the desire to compete rather than seek to collaborate. Nobody cares if you succeed alone, which is unlikely. When you collaborate with other people, you leverage their knowledge, skill, resources and network to achieve greater result. Like the saying from the Holy Bible, “One will chase a thousand; but two will chase ten thousand”.
RECOMMENDED VIDEO: 8 Practical Things You Must Do To Escape Poverty (Watch!)
- Low Consumption to Production Ratio
Each time you spend watching your favorite show on TV or YouTube or any other media outlet, you are consuming other people’s product. There is nothing wrong with consuming people’s product. But, how does this increase your value? And What are you creating for other people to consume? Most educated people can afford to be distracted because they don’t think in terms of value creation versus consumption. Does the time you spend on social media add to your personal, career or business growth? Wealth is created from offering value in exchange for monetary value. To increase your ability to earn, improve the value you offer.
- They mistake Schooling for Education
Schooling is a destination to certification. Education is not a destination; it is the process of seeking and acquiring the knowledge and skill to navigate your environment. Education isn’t what you get in classroom. It is what you learn in your daily life. The last time most people read a book was to write an exam and not for the sake of education.
Whatever fields of endeavor you are in, you need to understand necessary skills to get the job done. Failure is often the result of reaching for something without having the necessary education to make it happen. If you are educated but cannot get your financial life together; that means you lack the education to make that part of your life to work. The problem is that most educated people are too arrogant to learn what they don’t understand.
While most educated people rely rather too much on their academic qualification to get through life, people who become successful continuously invest in themselves to know what they don’t know.
Finally, remember this saying from Jim Rohn, Formal education will make you a living; self education will make you a fortune. You choose. What’s one lesson you are taking away? Let us know in the comment section. If you are yet to subscribe to After School Africa channel, this is likely a good time to subscribe.
Until next time, YOUR SUCCESS MATTERS!