Wealth Creation: The Education You’re Not Getting Is Costing You More Money

In your quest to create wealth, it is important to realize the importance of education.

There are 3 important types of education:

  1. The first type of education is a very important and basic education necessary for survival today called Scholastic Education. School education provided in elementary, middle, and high schools teaches students to read, write, do arithmetic, etc.
  2. The second type of education is a professional or specialized education. This education is necessary for career success to learn the skills taught at a university, business school, trade school, medical school, law school, etc. to become a doctor, engineer, lawyer, teacher, etc.
  3. But it’s the third type of education that most people aren’t getting that is costing them the most money and that’s financial education (money management skills, like how to balance a checkbook; understanding basic accounting principles, to distinguish, and be able to define, assets from liabilities, good debt from bad debt, linear income from passive income, etc.). Unfortunately, this education isn’t really taught in schools (they don’t even teach simple personal finance skills like how to balance a checkbook); most people learn their financial skills either by trial and error (an expensive and often painful way to learn) or from financial skills they learned from their parents, most of whom have bad money habits (because they never learned , so the cycle is perpetuated). In fact, to make matters worse, many college students learn their (bad) money habits from all the credit card offers and incentives they receive on campus, prompting them to sign up and use bad debt credit cards. I’m speaking from personal experience on this one!

(Side note: This is another difference that sets the rich apart from everyone else: They pass down these critical skills and lessons about money and finances to their children. Is it any wonder why the rich get richer?)

Too many people are never taught this when they leave school and have no idea what a financial statement is and usually only realize its importance when it is too late in life, when they want to stop working. but they can’t afford it, once they’ve lost their job, they’ve lost their retirement, etc. And unfortunately, they have to learn the hard way because their financial statements are in bad shape!

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