This is a guest post from Manu at StockManny.com enjoy!
Many of us wonder and google about the best ways to build wealth… expecting a very profitable investment advice in the stock market or some good retirement plans… But here we are not going to tell you nothing like that, here we are different, so we are going to talk about how you can build wealth by being smart.
The concept of smart is very broad. In this article we are going to review some points as: invest in college education, is it worth it? How well-educated people get more money that low-skilled workers and why, a little bit of supply and demand (at the jobs). But also, I am going to talk about is on how reading books (investing, business, economy,…) can “make you smarter” and this entails to “make smarter investments” and hence, build wealth. Let’s go!
Invest in college
This is the point of how well-educated people get more money that low-skilled workers and why. I recently was researching about investing in college, and here we have some points you want to consider.
- College is so expensive. The estimate of a college education is about 100,000$
- While you are in studying you are not working. That means you could be generating income, but you are not.
So, before we talk about whether this is a smart investment or not, let’s take a look at the average salary for people with a high school diploma and for people with college degrees.
- High School Diploma = 35,000$ per year aprox
- College Degree = 68,000$ per year aprox
And now, time for make some calculations…
And, as a final fact, all the money you are going to earn in your lifetime if you have a high school diploma is around 1,400,000$. While if you have a college degree you are going to get around 2,720,000$
You can get your own conclusions, but my answer is YES. It is more than worth it. You are earning almost double every month.
Invest in books
One of my favorite businessman and book authors talks about this a lot; Warren Buffet. Warren has written some books, but, he talks specially about one… “The Intelligent Investor” by Ben Graham. I want to quote Buffet here… “I read this book in the early 1950 and I thought it was the best book ever about investing. Nowadays I still think it is.” We have to take something out from here, if you want to be better you have to look at someone better than you.
And, think about it. How much can cost you a book? About 10-15$ on Amazon and you may find all the investing, economy, politics books you desire. And that 10-15 bucks can give you so much more money in return.
That is what an investment is about, you put some money on something and after a while get some benefits. And here we are not talking about investing in the stock market, we are talking about investing in knowledge.
Supply and demand on jobs
How many kindergarten teachers there are? And, how many chemical engineers? As we all know, the rule of supply and demand is that if there is a lot of something (A), the price is low. And if there isn’t a lot of other something (B), the price is way high.
So, this is rule is the same for jobs. If you are high educated you are more likely to get jobs that don’t have too much demand. And. hence, earn more money.
And this is all for this article, I hope you liked it, and I want to finish it with one of my favorites quotes…
“The more you learn, the more your earn.”