We have placed too much emphasis of our education on going to college and getting multiple degrees. We are now telling ourselves that someone will show us how to make money and build our fortunes. Sadly, your degree is not going to help you get rich. It may get you a high-paying job, however. So what’s the difference?
First, let’s start with an example of something you won’t learn in school—how to use debt, taxes, and other people’s money. I recently conducted a cash-out refinance on my first house that is in Arizona. I extracted $80,000 from the house, completely tax-free. My house payment went from $1,500 to $1,700.
Most people would be scared of the rise in their mortgage, but not me. I then put the house up for rent using a local property manager. I asked for $2,000/month, enough to cover our new mortgage and the property manager. The military base out in Arizona contacted the property manager and asked if they could rent the home for some inbound contractors. They are willing to pay $2,500/month plus the property management fee ($1,250). My property manager accepted, happily.
Keep the Job, Quit the Mindset
Now let’s break this down. I used low interest rates to refinance my home, extracting $80,000 and investing it in the stock market. I am now receiving a fresh $600/month increase in revenue for the same property, plus I receive the dividends from the $80,000 investment.
If you could pull off a move like this every year, you would become rich in a brief time. How do actions like this make you rich? Ask yourself, how long would it take you to add $10,000/annual pay increase or roughly $800/month? And if you could add that amount, who would be in charge of signing off on your pay raise.
You see, my increase in income is all of my own volition. My wife and I talked and decided to refinance the house and then put it up for rent. Was it risky to take out $80,000 from the home and increase the monthly mortgage? Not to me. For me, it is riskier to have a lot of unused equity in your home. Unrealized gains can be taken from you at any moment in the event of a market crash. The old saying comes back, “Use it or lose it!”
Your college education will not teach you how to use leverage, debt, taxes, or other people’s money. I learned this mindset and these tactics from reading Robert Kiyosaki’s books, in this case, “Unfair Advantage.”
Our Kids Needs Financial Education and Assets
The more books I read, the more my view of the world changes and shifts. I also have children, two boys, that I have to help navigate through this new world. My oldest will attend high school next year, and I have learned one thing through his schooling—school doesn’t teach critical thinking.
Critical thinking is the art of making complex decisions that consider first, second, and third-order effects. That is purely my definition, but I know it to be true in my own life. I’ll be very clear; I have zero college to my name, not a single class. Yet, I can make tough financial decisions all day long. I have given myself the financial education to build an empire, all without college.
But I do not rest on my laurels; I keep learning every day. The book “Limitless” explains that we need to be lifelong learners, constantly challenging our brains to perform at a higher level. I tend to agree with these beliefs. The harder I push my brain, the richer I become.
How to Prosper During the Next Recession
Why do we go to college and get our Bachelor’s and Master’s degrees? To get a high-paying job, correct? Most of our jobs are not pushing our brains to the limit. The exact opposite, in reality.
You see, as we work our jobs, we are basically white-collar factory workers. We think that we have these fantastic jobs where we are climbing the ladder and learning new things. Not! Most of our jobs come down to the same thing: checking emails, attending meetings, and handling customers.
You will not realize how much your job constrains your thinking until you start a business. When you have your own business, there is no fat on the bone. There is no time to have a two-hour meeting with yourself or task out someone who will fail. Your time is invaluable, and you don’t want to waste it—being efficient is a top priority.
When I started my blog and book publishing, I realized I needed to learn how to write more clearly. So, I read the book “On Writing Well.” I had no idea how to run a blog until I read “How to Blog for Profit.” The same for advertising “Ca$hvertising” and design “The Non-Designer’s Design Book.”
To run a successful business, I had to upgrade the software in my brain by reading and writing. I had to cut through all the red tape and become better at my business, with no one else to blame.
What Would Your Life Look Like Without a Paycheck?
We will wait for the I.T. department to upgrade to the latest version of software at our jobs. Then it will have bugs, and our email will be down. We will sit by the water cooler and waste time and laugh. We are not being paid to be productive; we are being paid to be in the building.
It’s funny because the book “Sold” is about starting a career as a real estate agent. The author states that many people come into the real estate field with the same water cooler mentality. They think they are being paid by the hour, yet they are being paid for each closing. They fail at their careers in real estate.
But is it their fault that they don’t understand the dynamics of productivity and time? Yes and no. Our children are being taught to be employees and think like employees. Our kids are not being taught how to think critically at all—about anything.
When we were young (in the 80s and 90s), we would play football in the street. We would pick up and play with kids from the neighborhood. We created the rules—the street lights were the boundaries, the touchdown areas, and how the plays would end.
We were actually learning critical thinking, sportsmanship, competition, and teamwork. These were crucial times for our development and growth, both mentality and physically. We looked at each other and could tell who was in shape or not. We didn’t want to embarrass ourselves by being slow.
Minimalism: 7 Ways it Leads to Financial Freedom
Today, kids are driven to football by their parents. The parents wait there and pretend their kid is going to be a football star. The coaches decide all the rules of the land, with no input for the kids. They act like there is a competition at the games, but there are no winners and losers. We teach our children that there are no winners and losers; everyone is happy, all the time.
Well, if you haven’t heard it before, I’ll be the one to tell you in bold print: Life is full of winners and losers, mostly losers. The world needs you to be an employee, not an employer. It is far easier to control people who don’t think for themselves.
If you want to change your career, you will need to go back to college. Pay more money to get more degrees and certifications. Sit at an interview with some chomp who is 15 years younger than you as the interviewer reads your resume. Then they will tell you that you aren’t qualified.
Do you know why he can tell you that? Because there are a thousand more like you down the hallway. This chomp can treat you any way he can because you believe that the only way to earn money is through him and his job. You have a lot to learn.
Look at my example of making $800/month in about two months. If I can teach my son to be comfortable with leverage, debt, business, real estate, etc., who will be better off? Would my son benefit more from going to a college or learning the true principles of building wealth?
Yes, you are correct; if my son has no assets, he will need to get a job. There is no doubt about that. Most of us didn’t have a handful of stocks, bonds, and rental properties to start our life with. But my son will have these things, so which direction will I point him?
Mothers as Entrepreneurs
Will I send him to the workforce to be a nameless, faceless soul begging for a job, fearful of the future? Or will I teach him how to make real money? I can teach him topics such as starting a business, building an audience, using leverage and other people’s money, and adding value as an entrepreneur?
In the end, that is true education. I have nothing against college but understand what it is for—to make you a better employee. There is nothing wrong with that; just know what you are paying for when you attend.
Your self-education can teach you to print your own money. After reading 48 books and writing book reports on each, I have learned how to print money from thin air. I can create a $1,000/month income stream over the next six months. And not by working a job, but by leveraging my self-education.
If you can create a $1,000/month income stream in six months, then this article wasn’t for you. If you can’t, then you need to create yourself some homework and then complete it. You have a lot to learn about creating genuine wealth—hint; it is not in a classroom.
An excellent place to start would be “20 Books that Will Make You Rich” and “20 (more) Books that will Make You Rich.” I usually give my two recommendations, but pick a book that looks interesting to you. They have all helped my life progression and self-education. They are all great places to start your journey. Remember, there is no problem with being an employee until you discover how to become rich. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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