Why Educated People Still Struggle Financially
Going to college and obtaining a degree does not imply that the rules of money are known. There is a big difference between having a college degree and understanding how money works. The known sequence is to get a good education, apply for a good job, and financial security will be assured. Unfortunately, if you walk into a law firm or university campus, you will find professors, lawyers, and doctors silently struggling with debt, living from paycheck to paycheck, or retirement feeling unreachable. Being educated and having financial education are not the same and mixing them up is one of the most common and costly errors intellectual people make.
The recent statistics show that about 78% of Americans live paycheck to paycheck – high earners inclusive. Also, student loan debts by college graduate borrowers are estimated to be $1.7 trillion. Furthermore, 1 in 3 medical doctors reports significant financial stress despite high income. The school system is designed to produce college graduates, not financially independent ones. Thus, the school system was not built to teach how money works. The premise has always been that money education is something you learn at home.
Earning a high income is not the same as wealth. There is no degree that teaches the difference. This is what many educated professionals assume, so they postpone learning financial concepts, presuming it will be sorted out once their salary increases. Unfortunately, it does not. Being intelligent helps in obtaining a high-paying career. Learning financial concepts determines whether you keep the money you work very hard for.
The step forward is about deciding to learn the concepts to help you and your family in making an informed decision regarding finances. The most powerful step anyone — educated or not — can take is simply starting to learn one concept at a time, asking the questions that feel embarrassing, and treating money management as a skill worth developing with the same seriousness you gave your studies. You worked hard to build your career. Now, let’s make sure your money works just as hard for you.
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