90% of People Mess This Up When It Comes to Finances
Hey what’s up everyone. Davey Pockets here, man of the financial frontier. Here to help you increase your financial IQ, grow your passive income, and increase your net worth. Today we are going to talk about something that 90% of people mess up when it comes to finances.
So what is that almost all people get wrong? It’s School IQ vs. Financial IQ and which is more important.
If you don’t believe me on the numbers ask yourself these following questions-
How many people do you know are saving up to send their kids to college?
How many people do you know are saving up to send their kids to financial seminars, programs, and classes?
If you had to choose which would you rather have- A child who was a high school valedictorian, college graduate of Harvard with a Master’s and Doctorate degree but with NO MONEY.
Or a child who started buying assets right out of high school, that has an inexhaustible monthly passive income and can choose to work or not.
If the previous financial example sounds a bit extreme it is meant to be. However, just realize that it is not unrealistic. In fact all across the US today there are people stashing money away for college and tons of graduates stuck with a mountain of BAD debt from student loans.
At the same time we have a record number of millionaires and young entrepreneur’s who are financially set for life due to their high financial IQ.
So which is more important? School IQ or Financial IQ?
As a former high school teacher, I must say one of the biggest flaws in our school system is that it teaches you to be an employee. If you want to be rich, school is not the place to learn. Being an employee you will fall into a very unfavorable tax situation and even worse the more money you make via a pay raise, the more money the government will get from your taxes. More about how to save money on taxes here.
So what if you did learn about money in school?
Most schools do have a few basic courses- You may learn how to balance a checkbook or budget your rent, but you won’t learn how money actually works.
So you aren’t really increasing your financial IQ when learning these things. At best you are just honing your calculating and math skills.
Another problem with only being school smart is that we start out being told what to do and are rewarded for complying. This makes for a simple transition from a school to a job where someone else tells you what to do. That leads us to automatically trusting the government and the bankers who handle things such as a 401k. If you want to know more about why a 401k is such a bad idea click here.
The top 10% use their financial IQ to make themselves richer and richer. While the bottom 90% think they are getting richer by investing in their school IQ aka higher education. But then they complain when gas prices go up, turn to extreme couponing for groceries, and
The journey to financial freedom and a higher financial IQ starts with the ability to think and act for yourself.
So have you decided? Which would you rather have?
A very high financial IQ or a very high school IQ?
Be sure to share your thoughts in the comments section.
As always thank you for reading and subscribing and stay tuned for more money and mind expanding tips!