In this post I am going to explain why financial education is the key to income and wealth. As a general rule you have probably noticed especially in todays ever changing and volatile economy that the rich (5% of population) are getting richer and wealthier and everyone else (95% of population) is getting poorer! This is not by accident or by chance – there are many simple reasons why this is the case.
When I talk about education – I am not talking about the education that you will have found in schools for many decades. Schools are still teaching our children to read and write – and although these are obviously naturally fundamental skills to have, times have moved on. The reality is that more often than not we are typing rather than writing, we are listing to audio books rather than reading!
You Need To Eradicate Your Negative Preconditioning
Unfortunately many people have been massively influenced by advice from schools, colleges, universities, parents, friends and society to believe that the best thing to aspire to do in life is to get a good job, work for 45+ years and retire on a pittance of a pension.
A job paying an average salary of X per year. X then becomes an aspiration as this is the value that we seem to place on ourselves because we are told that is the norm.
We therefore also assume that we are not worth more than X to the marketplace because society and or our CV tells us so!
This is a classic example of negative programming and it has been going on for centuries. In my opinion, this is bad education. Almost all of us have probably experienced a significant amount of negative programming in our lives.
We have been taught to do what the generation before us were taught to do and so on and so forth. This is called consensus thinking and it can lead to a life of struggle and mediocrity.
The trouble is – this negative programming and consensus thinking that we have been part of will not help the entrepreneurs among us to realise our dreams and ambitions.
How many times do you hear people saying to others – “you will never do XXXXX because of XXXXX”. This type of constant negativity is damaging to our inner entrepreneurial instincts and it takes a real strength of character to step outside of the consensus thinking model that most people feel they are locked into and actually make your dreams become a reality.
If we truly desire to be financially free, rich or wealthy, then we need to understand the Cashflow Quadrant by Robert Kiyosaki below.
We Have 4 Fundamental Options To Create Income.
- We can become an employee – we can get a job. (Job stands for just over broke by the way!)
- We can become self employed – we can effectively own our own job.
- We can become a business owner – and own a system which will produce an income.
- We can become an investor – and own our own investment and take proactive control over our financial future.
As you can see from the diagram above – option 1 & 2 on the left hand side of the red line represents the path that 95% of the population are on, but only 5% of the populations wealth is created from option 1 or 2 combined.
However, option 3 & 4 on the right hand side of the red line represents the path that only 5% of the population are on, but this path is where a staggering 95% of the populations wealth is created from option 3 or 4 combined!
So I ask you – which side of the red line do you want to be on? The left or the right?! I’ll assume if you are an entrepreneur or someone who is keen to create true financial freedom that you would want to be on the right hand side of the red line!
If so – you are going to have to un-programe all of the negative bad education that keeps 95% of the population trapped on the left hand side of the red line in option 1 or option 2.
Just to be clear – jobs are absolutely fine as long as you truly understand why you have one!
In fact it is generally good advice to work hard full time on your job whilst working part time on your fortune.
The network marketing industry represents one of the very best and most popular ways to get yourself to the right hand side of the red line in Robert Kiyosaki’s Cashflow Quadrant and into option 3 or 4.
However, you need to understand that it makes perfect sense to already have a job from option 1 or 2 before you start your network marketing journey towards a life of freedom.
This is because in network marketing you will initially have to work hard for relatively little reward early on – with the benefit of being able to reap potentially massive rewards later on. Network marketing is therefore not a job.
Having a job to provide stability of income whilst building a network marketing business makes perfect sense. Your true wealth is your time and your freedom.
If you aspire to live a lifestyle of freedom and choices, then you are going to need to devote some time to re-educating yourself financially and allow time to actually make it happen.
Like many other leading economy analysts and experts, I truly believe that we are soon about to experience the greatest wealth transfer the world has ever seen.
We are all perfectly positioned in front of one of the greatest opportunities to create wealth that the world has ever seen, but only those who understand this opportunity and its timing will benefit.
Will you be one of them?
We all know that due to the state of the worldwide economy, paper money (known as currency) is being printed in vast quantities.
This quantitative easing is causing all currencies to lose their value. It makes sense if you think about it. If there is more of something – it generally becomes less valuable – this is certainly true for paper money.
So – our currencies are losing value every year and the cost of living is rising fast every year! This is not a good situation to be in!
The solution is simple. According to many leading analysts and experts, collecting precious metals like silver will become one of the best ways of protecting yourself from the effects of a highly volatile economy like the one in which we are living.
To make a habit of exchanging some of your paper money (which is always losing value) for solid silver (which has intrinsic value) is a very wise move indeed.
This is exactly where the greatest wealth transfer in the world is expected to take place.
We have shown you how you can get into the right hand side of the red line in the Cashflow Quadrant. It is an absolute fact that any paper money which is properly put to work positively for your advantage – creates wealth.
So, so true Tristan.
An academic education will get you a job where you will spend 40 to 50 years working away for somebody who self-educated. Far better to work hard on yourself for a couple of years and become one of the 5% than to work hard for someone else for all your life as one of the 95%.
Hi Richard – thank you very much for your excellent comment! You are exactly right in what you are saying – we need to share this information with others so that we can help people make a choice that they perhaps don’t know that they have available to them. This information is so simple but so incredibly powerful and liberating. 🙂