 The Reason Why Many Educated People Are Poor When I was 15, I started dreaming of becoming an accountant. Though at this time, I had my own little business, since nobody in my immediate environment talked about entrepreneurship, I didn't even know that any poor boy like me could build a company. So, I wanted to work for a company as an accountant. Since I wanted to be a great accountant, I looked for a newspaper and cut out the image of one of the most successful bankers in those days. I pasted this photo in my room where I saw it every day. I also read about him and discovered that he was a professor of accounting and a professor of economics. Now I have a roadmap. Since my idol was a professor of accounting and economics, I started dreaming of becoming a professor of accounting and economics. I read like no one and nobody I knew was better than me in accounting and economics. I left high school and went to study accounting in what is similar to what many people know as college. I was still the best student. But one day, I asked myself, why is no one teaching me how to make money? You see, as an accounting student, I had learned how to calculate so many companies accounts, the balance sheet, manufacturing account, trading profit and loss account, accounting and a lot more. But I needed to ask, why are my lecturers teaching me just how to calculate money? Why is there no one teaching me how to make money? I later left school when I got no answer to my question. Or let me say, I got an answer but that answer was, here in school, we only teach you how to work for money, not how to make it. That's the reason why most educated people are poor, they were taught how to work for money. The science of money If you are a tennis player as you watch this video, to you tennis is not difficult. If you are a golfer, golf is fun. If you are a musician, music is life and even if you are a soldier, war is sweet. Yes, I have a friend who loved war when we were young, simply because he wanted to be a soldier. Now think about it, the reason why tennis, golf or even war may be interesting to you is because you've studied about it and practiced it. The same thing happens with money. Money is simple, getting rich is not complicated but like music and sport, money requires education and practice. The problem about our society is that we grew up without anyone teaching us simple mindset that produces money. As children, we were never taught that for every $10 we earn, one or two must be saved. As children, we were never taught that we shouldn't save money to spend money. We should save money to multiply money. As children, we were never taught that the material possessions don't define us. So when we grow up, we buy things we cannot afford simply because we want other people to think that we are rich. As children, what everyone told us was that if we can work hard enough, we'll be rich and that is a lie. Hard work doesn't make anyone rich. Leverage is what makes people rich. It doesn't matter how much education you get. As long as you don't understand leverage, you can't be rich. But what's leverage? Leverage is your ability to use what you don't have. Leverage is anything that gives you money while you don't work. This may be your employees who work for you, some technologies which work for you or your money which works to make you more money through smart investments. You can work as hard as you wish, but if you don't understand leverage, you don't understand money. The Deception of High Paying Jobs Another common problem in our society is that we were raised to run after good jobs. Well, these good jobs are not good because we like them. We consider them good because they give us much money. What an error It's an error because people don't get rich because they make much money. People get rich because they keep more money and make the money they keep to produce even more money. And even making more money isn't enough. To be truly wealthy, you have to love what you do and find pleasure in your labor. Do you know anyone who hates Mondays? It doesn't matter how much money he makes, he's a poor human. Many educated people are poor because even those who make a lot of money don't have any understanding about how money works so they earn a lot of money and spend a lot of money. Some earn a lot of money but they hate every minute they spend on their job. Some educated people who try to invest don't know anything about investment so they put their money on what they don't understand and lose it all. These are all reasons why many educated people are poor. BASICS OF FINANCIAL EDUCATION I think you don't have to be a genius to have financial freedom. With the understanding of a few money principles and self-discipline, most people can be financially fine. 1. Don't be materialistic 2. Understand leverage 3. Doubt jobs Let me explain all these. Materialism and Poverty One of my business teachers once taught me that the best people to market a book to are people who just bought a book in recent time. The best people to market a phone to are people who just bought a phone. The best people to market a car to are people who just bought a car. This doesn't make sense as we can all see. Ordinarily, the people we ought to market a phone to are people who have not bought a phone in the last one year. Right? Wrong. You see, there's this law of nature that says we want more of what we like and we can never get enough of it. So it happens that you cannot have enough of whatever you allow to rule your life. If for example, you're a phone enthusiast, you can never have enough phones. Every latest phone of your favorite brand must be yours. If you allow cars to rule your life, you will never drive a used car. What happens with materialism is that it makes your life center on things you will never have enough. When you get to this point, you are already on your way to everlasting poverty because you won't have any money left to save or invest, no matter how much you earn. If you want to be rich, be disciplined enough to buy things because you need them, not because they make you feel good. Understand Leverage As I make this video, I work hundreds of hours per day. It's not possible to work hundreds of hours within 24 hours of the day but I'm able to do it because I have different people and technologies working for me. Until you figure out how to make money while you sleep, you don't know how much money you want to earn to make you truly rich. What happens with many high-paying jobs is that you work too hard for the money. This is not how to be wealthy because wealth is not when you have to work 18 hours each day to make $200,000 a year. Wealth is when you have the liberty to work or not and still make money. Doubt Jobs The number one problem about jobs is that it takes away the time you need to invest on your dream. The second problem is, jobs take away your ability to use leverage. For example, you can't employ someone else to do your job and pay him less. You can't work 100 hours a day. You can't use technologies for your advantage. You can't make money while you're not working. Because there is no leverage in most jobs, you might want to doubt a job's ability to make you rich. Pick Up Some Books I know a few people who are well-educated but they have never read any book about money. They are accountants, lawyers or journalists. They know everything about what they went to study in school but outside that, they know nothing. If you want to master money, you have to study about money and learn the mindsets of the people who are already rich. In conclusion, the education you get in school doesn't guarantee your financial success. If you want to be rich, you have to get financial education, avoid spending all you earn and learn how to use different leverage to make you money while you're sleeping. Thank you so much for watching our videos. Are you between the ages of 15 and 40? Then, we invite you to join our new channel which was specially created to share with you inspiration and life's lessons to succeed in life. We call it Under 40 TV. Kindly look at the description box to join the Under 40 TV. We love you.