Does financial education cost or pay?
Does financial education cost or pay?
By Douglas Vermeeren
To often people forget that every purchase we make is an investment. Everything you buy gives a return as we mentioned at the beginning of this book. It will either give you increased quality of life, enable to you to create or allow you to contribute. The investment in your education will also give you the ability to progress in these three areas.
If you would be financial free you must learn what it will take for you to arrive at that destination.
Too often people look at the price of education both in dollars and time and become frightened that the burden is too big. I would strongly state that the price of ignorance is where the real cost is. Ignorance limits your ability to see things as they really are and to utilize tools that you may not yet be aware of. Often we forget how lessons early in our lives changed our lives. If you had never learned how to walk, tie your shoe or ride a bike your freedom and opportunities would be extremely limited. The same is true of financial education. the more you learn the more power and ability you have.
The more you learn the more you earn.
Education also allows you to become more resourceful. Resourcefulness is the key to making big deals happen. When you know how to play by the rules then you can start working on the stuff that goes beyond the basics.
All top athletes learn the basics before they learn the extraordinary stuff that makes them superstars. The same is true with wealth building. Learn as much as you can about the basics and suddenly you will begin to develop the ideas and skills that will grow your wealth in extraordinary ways.
What about school?
Now let’s shift gears for a moment. What about increasing your education in school or university? Does staying in a formal school longer hurt or help your chances for being more financially successful. I still remember my parents (and maybe yours did too) threatening that if I did poorly in school that I would be destined to a job that would leave me broke. They further added that if I wanted to properly take care of my family I would have to do well in school to qualify for a job that paid well. Has anyone else ever heard that?
Is it true? Is it necessary for you to do well in school in order to achieve success?
In my own personal experience it hasn’t been especially true. I did average and below average in most of my courses, yet I have been able to create a pretty good financial situation for myself. I have seen the same of many of my friends and it was very common among the business leaders I have interacted with and studied. I believe that this notion is a little old fashioned as well. In the past most people relied on their income streams to come from others. Today we live in a time when most people have access to tools and business opportunities to create income streams beyond the traditional work place. No longer do we have to prove to a boss that we are worth the raise. Many of us are actually our own bosses and our raises will come as we go out and get them. Street smarts seems to be the order of the day, not a college or university degree. We have all heard by now, the success stories of people like Mark Zuckerberg, Bill Gates, Steve Jobs and others who did not complete their schooling with flying colours, yet became highly successful. This trend is starting to become more common.
Before I leave this subject however, I want to stress that I am not against formal education. I am simply stating that not all of the learning happens in the classroom. And a grade of A+ is not required to become financially success. In fact, the most important learning happens outside of it in application. Most people who acquired less that stellar grades actually do quite well when the learning style is switched to real life application. Maybe our schools need to add more of that component to supplement the theory.
In addition, I want to leave you with the clear understanding that I am for education. Formal and informal. I personally, still attend training on a regular basis and I do courses through correspondence and continuing education through Universities across the nation. Education will expand everything about you. But what I have observed is that your street smart education will generally have a stronger influence on your financial future and that expertise only comes as you are in the real world practicing what you’ve learned in school – and then learning how to do it better.