College Degrees Won’t Make You Rich But This Will


Becoming financially free is not an easy task. It takes a lot of self-discipline, ambition, determination, and patience. So many people get discouraged on the road to financial freedom because of the time it takes to obtain it. They let instant gratification and their fear outweigh their desire to succeed, but they only fear what they don’t know. They are fearful because when you are not financially intelligent, you are afraid to invest and you let the ignorance persuade you from ever venturing out to find more sources of income.

Purely relying on college degrees won’t make you rich because you are relying solely on the income from the jobs you are able to get with them. Many people stick to the well-worn path of getting a college degree and then getting a job once they graduate. After they graduate and get a job, they begin to make a certain amount of money that starts to cap because they only have a bachelor’s degree at this point.

So, they go back to school to get more degrees to increase their pay. They go get their master’s degree and even their Ph.D. People go to school for the sole purpose of getting more degrees to be able to climb up the corporate ladder of their career path, or to get a better job in order to make more money and become financially free.

Well, if it were really like that, then everyone with their Ph.D. would be financially free, but that is not the case. College degrees won’t make you rich or financially free and this article will share with you some keys things college degrees can’t help you do, and what will help you become rich.

Obtaining College Degrees Won’t Help You Become Financially Intelligent

In a book by Robert Kiyosaki called Rich Dad Poor Dad, Kiyosaki talks about two people that he learned a lot from. One person had many college degrees and high academic success, but was financially instable. The other person had no degrees and high business success, and was financially free.

The second person with no degrees had successful businesses and enough financial intelligence to produce passive income through his businesses, while the first person with many degrees had hardly any financial intelligence to put himself in a position to never have to worry about money. This first dad had acquired so many degrees, but the formal education that he got from acquiring these degrees taught him nothing about his personal finances, investing, and how acquiring passive income will make you financially free. The formal education you get from getting degrees does not teach you anything about your personal finances.

In order to become rich you need to become financially intelligent and learn how to make money work for you through investing and acquiring assets that produce passive income. The biggest reason many go to college is to obtain financial security and financial freedom, but this is the biggest misconception.

Obtaining college degrees will not make you financially stable, rich, or financially free, but gaining financial intelligence will. You have to learn how to maintain your finances and build enough passive income to support your lifestyle and future.

The Cash flow Quadrant

Robert Kiyosaki also talks about the cash flow quadrant in one of his books, which has been modeled by many. This quadrant states exactly where all the money is and what you need to be doing to be a part of the rich. There are two halves to the quadrant, one side is the rich, and the other side is the middle-class and poor.

He explains that the side with the rich is composed of two types of people, the business owners and the investors. These people control 99% percent of all the money. The other side, which is the poor and middle-class are the employed and self-employed. These people only control 1% of all the money and these are the people who are usually struggling financially.

College degrees are there to help you with one purpose, and that is to become an employee. Solely depending on a paycheck from your job will not make you rich because you are trading time for money. You only have so much time in a day to make a certain amount of money, so you can never get rich just from having a job, you must find other sources of passive income. The rich don’t trade all of their time for money, they also invest their money in assets and building a business that provides passive income.


This Will Make You Rich

Increasing your passive income to a level that surpasses your lifestyle and learning how to manage your money are the biggest factors that determine how rich you become. You do not see the guy with the most degrees on television as the wealthiest guy in the world, you see the investors and business owners who have learned to manage their personal finances and have increased their passive income to a point that have surpassed their lifestyle. So, if you want to be rich, you have to learn to learn to manage your money and increase your passive income to a point where it surpasses your lifestyle. You do not need multiple college degrees to do that, but you do need financial intelligence.

Here are some possible solutions to increase your income:

  • Investing in stocks
  • Investing in mutual funds
  • Investing in certificate of deposits
  • Investing in real estate
  • Building a business
  • Building an online ecommerce business through ebay, etsy, or you own site
  • Building an online website with affiliate marketing and advertisements

Take Away

Acquiring degrees will not make you rich, but do not let that persuade you from getting any. Solely relying on college degrees to produce income for you by getting a job will not make you rich, but an education is always important. You can use a job to produce income for you that will allow you to invest in cash-producing assets or a part-time business in order to create passive income. Do not rely on college degrees to make you rich. Rely on your financial intelligence and your creative efforts to create passive income, only through this can you truly become financially free.

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I am an entrepreneur, philanthropist, and the founder of As a graduate from Michigan State University, for the past 4 years I have dedicated my life to personal development, studying what it takes to become successful, understanding psychology, and how to stay motivated in order to achieve anything in life. I believe and most certainly have a passion for reaching my full potential, and I want to inspire others to do the same.

Discussion2 Comments

  1. Hi Lawrence,

    Unfortunately there is a lot of valuable information that school doesn’t teach, that I think they should. Certain important life skills and not just the text book stuff. In the UK the majority of people with university degrees are not in jobs that are even closely related to the degree they have.

    In reality being a entrepreneur is all about thinking outside the box, looking at something differently from the masses, creating an original idea and you just don’t achieve this in a classroom.

    Most famous entrepreneurs did’t even fit in the traditional classrooms and many failed at school. Richard Branson headteacher said to him on the last day of school that he will either become a millionaire or be in prison!

    There is no teaching for originality, you have to live life and want to help people solve problems. But school is still so important and I would never encourage anyone to not attend.


    • Hi Naomi,

      You are absolutely correct in the fact that there is a lot of valuable information that schools don’t teach. Most of what they don’t teach comes from the way the educational system is set up in most countries. In the United States, the educational system focuses in standardized tests and not creativity and financial intelligence. One of the main reasons we go to school is to obtain enough information to become financially independent and happier within our lives, but schools don’t teach anything about personal finances and entrepreneurship, or happiness. I feel as though schools focus more on making employees to work for large companies.

      I am not saying don’t go to school either, because you can definitely enhance your skills and learning abilities in school, but I am saying that college degrees won’t make you rich or financially free, but studying financial intelligence and honing your creativity will.

      Thanks for your very thoughtful comment.

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