The Education You Won’t Get in School: Building Wealth Through Financial Literacy
Most of us grow up hearing that getting good grades, securing a job, and earning a high salary is the formula for success. But here’s the truth: financial success isn’t just about earning more; it’s about learning how to manage, invest, and grow your money. Let’s dig into what traditional education misses and how you can take control of your financial future.
1. Traditional Education vs. Financial Education Traditional education is great for teaching us how to be good workers and earn a paycheck, but it’s not designed to teach financial independence. Think about it: wealthy people don’t rely solely on a paycheck. Instead, they focus on owning assets and generating income from capital—money that works for them. Schools teach us to spend, not to build wealth. That’s why financial education is so important. If you want to succeed financially, you have to seek out this knowledge yourself. Books, online resources, and platforms like YouTube are your best friends in this journey.
2. The Capitalist System and Wealth Building In a capitalist system, there are two ways to make money: through labor and through capital. Most people are stuck earning money only from their labor. Wealthy individuals, on the other hand, earn more from their capital, like investments in real estate, stocks, or businesses. To build wealth, you need to transition from solely working for money to having your money work for you. This means converting your income into assets that generate passive income. It’s not something we’re taught, but it’s the key to financial freedom.
3. Importance of Financial Education Financial education is not just about investing; it’s about understanding money—how to earn, save, spend, and grow it. Parents should talk to their kids about money early on to reduce fear and insecurity around the topic. Remember, money is just a tool. If used wisely, it can amplify your ability to achieve your goals. Start small: learn how to budget, invest, and manage debt. Financial literacy isn’t a one-time lesson; it’s a lifelong journey.
4. Saving and Investing Strategies One of my favorite strategies is the 75-15-10 rule: Spend a maximum of 75% of your income on living expenses. Invest a minimum of 15% into assets that grow over time. Save at least 10% for emergencies. But here’s the catch: saving alone won’t make you rich. Inflation eats away at the value of your savings, so you need to invest in assets like real estate, stocks, cryptos, or even physical gold. Different investments come with different risks and returns, so diversify wisely.
5. Long-term vs. Short-term Investing Building wealth requires patience. Long-term investing—often over decades—is the way to grow substantial wealth. While short-term trading or flipping might bring quick money, it’s not sustainable for the long run. Think of investing like planting a tree. It takes years to grow, but the fruits it bears are worth the wait. Stay the course and let compound growth work its magic.
6. Credit Cards and Debt Management Credit cards are tools, not traps—if you use them wisely. Here’s the deal: Pay off your balance in full every month to avoid interest. Use credit cards for their perks, rewards, and fraud protection. Never carry a balance. The interest rates will eat you alive. Treat credit cards as a medium of exchange, not a source of debt. That way, you’ll maximize their benefits without falling into financial trouble.
7. Financial Products and Services by Briefs Media If you’re looking for resources to improve your financial knowledge, check out Briefs Media: Market Briefs: A free financial newsletter offering easy-to-read updates on the economy, stock market, and more. Market Briefs Pro: A deeper dive into financial analytics and trends. Briefs Academy: An educational platform to build your financial literacy. And stay tuned—they’re launching an app in 2024 to make financial education even more accessible.
8. Cultural Attitudes Towards Money Different cultures approach money differently. For example, Asian households often emphasize saving a large portion of income. While this is great for security, it’s important to also understand investing to combat inflation and grow wealth over time. No matter your background, the key is to balance saving and investing. Financial health comes from understanding the dynamics of money and making informed decisions.
9. Personal Experiences and Lessons Growing up, I experienced strict parental expectations and learned the value of hard work early on. But the turning point came when I realized financial education was my responsibility. Platforms like YouTube made this knowledge accessible, and they can do the same for you. The journey to financial independence starts with taking the first step. Don’t wait for schools to teach you—seek out the resources and start building your future today.
Conclusion Traditional education might set you up for a job, but financial education sets you up for life. By learning how to manage, invest, and grow your money, you’re giving yourself the power to achieve financial freedom. Take control of your financial education, seek out resources, and start building wealth today. Remember, it’s not about how much money you make—it’s about how much you keep and grow. Let’s make it happen.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence
