Forget Grades, Chase Assets: Why Financial Literacy Beats a Fancy Degree
Hey there, future millionaires!
Terezie Dikeledi here, ready to drop some knowledge bombs about money that your school probably never taught you.
I’ve got a friend—let’s call him Dr. Debt—who graduated top of his class, went to a fancy medical school, and now makes a fat salary as a heart surgeon. Every year, he gets a big bonus, buys a shiny new car, and boasts about how much money he’s making.
Sounds impressive, right?
Here’s the problem: Dr. Debt is drowning in debt. Every time his salary goes up, his spending goes up even more. He’s got a giant mortgage, a mountain of credit card debt, and his kids are going to graduate college with more student loans than I have TikTok followers. It’s a mess.
And it happens because Dr. Debt doesn’t understand one simple thing: the difference between an asset and a liability. He’s spent his life chasing high income, but has no idea what to do with it once he earns it.
Dr. Debt vs. Uncle Mothusi: The Tale of Two Money Mindsets
Now, let me tell you about my Uncle Mothusi.
He never finished high school, but he understands money better than almost anyone I know. He buys small apartment buildings, rents them out, keeps his costs low, and reinvests the profits. He drives a beat-up old truck, lives in a modest house, and never brags about how much money he’s making.
But he doesn’t have to.
Because Uncle Mothusi is quietly getting rich.
- Assets: His little apartment buildings are assets: every month, they pump money into his pocket with rent payments from tenants, who also pay for the water and electricity.
- Liabilities: Dr. Debt's house and new car are liabilities, draining money with mortgage payments, maintenance costs, and depreciation.
That’s financial intelligence. It’s the skill that Dr. Debt spent his whole life ignoring.
Why We Get Financial Education Wrong
Now, let’s talk about why we get this so messed up in the first place.
When I was a kid, all I heard was, “Terezie, study hard, get good grades, so you can find a safe, secure job with a big company.”
I believed it. In fact, I wanted to be a cotton candy maker, because—let’s be honest—what could be better than getting paid to make that sweet fluffy stuff all day long? I’d eat it all day, my friends would be impressed, and I’d be rich!
Or, at least, that’s what my nine-year-old brain thought. But that’s the problem: School doesn’t teach you about money. Schools focus on scholastic and professional skills, but not on financial skills.
We spend years learning how to write a resume so we can find a good job. But nobody ever teaches us how to write a financial plan so we can buy those good jobs.
And that’s why Dr. Debt is struggling, despite all those fancy degrees. He’s never learned the most important lesson about money: It doesn’t matter how much money you make if you don’t know how to manage it.
Awakening Your Financial Genius
So what’s the answer? How do we wake our financial genius up?
First, forget that old idea of “Get a good job.” Instead, get good at understanding money. Learn the difference between an asset and a liability. Start building an asset column that puts money in your pocket, whether you have a job or not.
It’s a skill that will serve you for life, and one that nobody else will teach you.
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