Many people often search online for the best ways to build wealth, hoping for profitable stock market tips or good retirement plans. But here, we’re going to take a different approach and discuss how you can build wealth by being smart.
Being smart can mean many things. In this article, we’ll explore whether investing in a college education is worth it, why well-educated people generally earn more than less skilled workers, and the role supply and demand play in the job market. Additionally, we’ll touch on how reading books on investing, business, and the economy can make you smarter, leading to smarter investments and, ultimately, building wealth. Let’s get started!
### Invest in College
Education can significantly impact your earning potential. While college is expensive, with an estimated cost of around $100,000, not attending could mean missing out on higher income opportunities.
Consider the average annual salaries:
– High School Diploma: Approximately $35,000
– College Degree: Approximately $68,000
Over a lifetime, someone with a high school diploma might earn around $1,400,000, whereas a college graduate could earn about $2,720,000. The numbers speak for themselves, making college a worthy investment as you effectively double your monthly earnings.
### Invest in Books
Reading is another smart investment. Warren Buffet, a successful businessman, and author, highly praises “The Intelligent Investor” by Ben Graham. Books can cost around $10-15 each but can provide invaluable knowledge that leads to better financial decisions. This kind of investment—spending money on books to gain knowledge—can yield significant returns over time.
### Supply and Demand in Jobs
The job market follows the basic principle of supply and demand. If a profession has a lot of available workers, like kindergarten teachers, the pay is generally lower. Conversely, fields with fewer qualified workers, such as chemical engineering, offer higher salaries. Being highly educated often means qualifying for jobs with less supply and higher demand, leading to better pay.
The bottom line is straightforward: investing in education and continuous learning can significantly impact your financial future. The more you learn, the more you earn.