What Separates the Wealthy from the Majority – Education

Do the wealthy know ways to make money that are unknown to everyone else? You better believe it!

John D. Rockefeller, one of early America’s richest tycoons, once said, “I have ways of making money that you know nothing of.” How does that make you feel? Shouldn’t everyone know the best ways to make money and create a prosperous future?

But the fact remains that there are wealth-building principles that are common knowledge to the wealthy but are largely unknown by the majority of the population.

So why is the average citizen in the dark?

How money works is simply not taught in schools. I originally bookmarked this article about states lagging behind in teaching students about money in 2014. At the time, only 4 states required high school students to complete a personal finance class to earn their high school diploma. Has the situation improved in the past 6 years?

Well a little but not much. While 21  states in the U.S. include personal finance in at least one high school class, only 6 now require it for graduation.¹  And even if you’re fortunate enough to have enrolled in one of these classes, who’s to say whether or not you got a qualified educator. According to a study done by Fox News, teachers are often not trained in personal finance themselves so they’re “afraid that students will ask questions that they don’t have the answers to” and steer clear. ²

Interestingly, all 50 states teach a class on sex ed. So the one thing you can learn on your own, they teach. And the one thing you’ll never learn on your own, they don’t. Go figure.

Actually, it does figure.

Think about it. If the financial industry were to educate consumers about money savviness, people might stop socking away so much of it in low-interest savings accounts that earn less than a 1% rate of return. And before you leave the branch do they offer you a brochure on financial concepts to help you get out of debt, avoid money missteps, and start saving like the wealthy?

Pfff—yeah right!

No. It’s like, if you’re dumb enough to open a low-interest savings account and take the free lollipop (it’s like their sucker litmus test), then they’ll try to sell you a car loan at 6% interest³ . What a deal. You earn less than 1%—they earn 6%. It’s like a lose-lose for you, but you still thank them on the way out.

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Hard to fathom there are that many suckers? It’s true…

The financial industry thrives on customers who are stuck in the “Sucker Cycle” of foolish spending. While consumers are binging on Netflix, shipping on Amazon, and ordering from DoorDash, institutions are quietly leveraging the power of compound interest to make their customers’ money work for themselves. While consumers live paycheck-to-paycheck, financial institutions and shrewd businesses build profits sucker-to-sucker.

For most people, earning (and spending) a paycheck is the extent of their experience. But the wealthy know the real deal. To become financially independent, you must know the concepts and strategies to save, protect, and grow your money. You have to have a sound financial eduction.

Did this article make you mad? Hopefully, it did.

So what do you do about it? You stop taking the sucker and you stop being the sucker. You learn how to take control of spending, protecting, saving, and investing your money. How? step1 – You read the book, “HowMoneyWorks, Stop Being a Sucker.” It will only take about an hour.

Don’t have a copy? Contact me and I’ll help you get one.

Step 2 – Use that anger to fuel action.  Attend the next How Money Works master class, Part 1. Announcement coming soon!

Afterwards, reach out to me and say, “Now that I know the ways of making money Rockefeller spoke of, I’m ready to chart my own course to financial independence.” We have a clear action plan for you to follow called “The 7 Money Milestones.” I’ll help you check off each one.

Let’s do it together.

(1) https://www.councilforeconed.org/survey-of-the-states-2020/

(2) https://financialeducatorscouncil.org/financial-literacy-statistics/

(3) https://marketwatch.com/story/new-car-loans-hit-highest-interest-rates-in-a-decade-2019-04-02/

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