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It has become a trend that the most educated people remain poor. Though it is not fair, is it? Our world is systematically capitalist, and the education system is training our minds instead of educating us.

Educated people seem to live a more decent life, yet this is not the truth; they suffer the most because rich people use them as their slaves and hire them to work for them instead of being who they are!

Illiterate build up their empire by earning more and more, whereas so-called highly educated people end up being employees on uneducated.

Once Bill Gates said like this:

I failed some subjects in the exam, but my friend passed in all. Now he is an engineer in Microsoft and I’m the owner of Microsoft.

Bill Gates

All they know is to do homework on a piece of paper and rush here and there for a job after graduation. Some entrepreneurs feel that the education system is wrong and they drop out of school for their own self-study like Gates.

Not only this, but employees also have to face financial abuse in their daily life. The tax system is well-known now; it favours businesses to lower their bills. The firms can pay $0 tax, but an educated, hardworking has to pay tax, of course. 

Let’s have a look at all the reasons why educated people are poor?

1. Poor financial education

Education draws our minds to the word school, and schools should teach the subjects with every perspective of life. How did schools get restricted from practising the syllabus and nothing more? It is the point where the problems start.

Students doing MBBS know everything about medicine. Lawyers cram the law books, but what about financial education? Why are money skills not being taught in school

There are three essential skills when it comes to creating wealth.

  • To make money
  • Keep money
  • Grow money

When you take a look at the life of the rich people in the world, you will learn to find the solution to poor financial education. In my experience, one of the most popular books “Rich dad Poor dad” written by Robert Kiyosaki explains more about why educated poor dad getting poor.

what is financial education and what does school teach

Also, there are many sources to get financial education:

  • Books were written about money management
  • YouTube channels related to entrepreneurs
  • Blogs like this

It can be possible that the rich run out of cash, yet still, he would be rich because of his investments. They have grown assets, and it is one of the most influential money skills (to build money) not taught anywhere.

Rich use money to build their assets while educated people spend all their money in daily life earned by their jobs. They compare their financial assessment depending on the job making money. 

Financial education for the poor plays a significant part in their life. Whenever they get money, they just quickly spend it on their expenses or try to be in the race of elite class standards.

No matter, education is necessary, but financial education is even more undeniable to survive the world.

2. Stop learning after college

Education is not a name of a certificate or a degree; it’s the name of learning every day, every hour! It doesn’t matter that you have done your graduation and got your degree; you always continue learning after college. You will learn until you die so don’t refuse the learning.

Educated people, after degree, throw away the books and corrosion their minds. But once Kiyosaki said…

Your education begins when you leave school. Not when you are in school.

Robert Kiyosaki

Experiencing more in practice is what teaches you about life. So, don’t corrosion your brain and keep learning even after college. Education is like water that you have to consume every day to survive.

3. Those who believe they are educated are arrogant

It has become a normal thing to feel smug about every little thing, though it is not something to be appreciated, right?

Pride and arrogance kill the rich. Educated people with degrees feel superior to others and try to spit out everything they learn in front of others to show arrogance. It is not that those who do not finish high school don’t know anything. 

No matter how intelligent you are, if someone else knows something you do not know, be humble enough to absorb his knowledge even if he is younger than you.

It might happen that a person can’t get an education due to some reasons, though it does not show he is not intelligent. He might have a lot of knowledge about what’s going on in the world more than ordinary educated ones!

An average age person can learn everything about making money from the internet. On the other hand, old-school people with masters might not know how to use the internet. One should never stop learning from next generations because time doesn’t remain the same and everyone’s knowledge get older. There is nothing wrong with learning about advanced technologies and new ways to make money and investments.

If you are educated but arrogant, you are not educated and you will definitely fail the poor!

4. Waste Money on Liabilities

Another major reason why educated people are poor is that they waste money on unnecessary liabilities. People usually think that a person wearing branded clothes, sitting in an expensive car, eating in a 5-star hotel is the richest man in the world. Though, the truth is the opposite of it. According to the secrets of the millionaires, we talked about earlier, the rich avoid the lifestyle creep.

If a person earns $5000 monthly and grows expenses up to $4900, he is not rich. What does he invest for himself?

You must know the difference between an asset and liability, and by assets. An asset is something that puts money in my pocket. The liability is something that takes money out of my pocket.

Robert Kiyosaki

Being rich is not the name of having a mansion, expensive clothes, extravagant accessories. Being rich is the name of investing, growing assets, consuming for the future, yet it doesn’t mean that one avoids fundamental needs and serves money in investments. But keeping balance in investing and spending is the key to making money and assets.

The difference between the rich and poor when buying luxuries. That's why some educated people are poor.
The difference between the rich and poor when buying luxuries

Those who lower their expenses and invest more, investing in companies, investing in shares, etc. are the rich ones who do not Waste Money on Liabilities.

5. Instant Gratification

It’s up to you whether you want to get rich or not. It’s your one-time instant decision that can change your life, yet success is not something gained overnight.

If you want to get an expensive car but hardly constantly pay for petrol, then you are not rich because of that expensive car. You make yourself poorer with this mindset. Making bad choices makes you poor.

All you need to do is to delay your pleasure for the future and seek it once you get established and RICH. This mindset is what leaves a poor remain poor, and even an educated person remains poor. Schools do not teach children about instant gratification or delayed gratification. It is why they can’t make the right choice for themselves when it comes to making money. It is not that they can’t earn, yes, they do, but they spend it instantly to get their instant gratification and become poor again.

millionaire advice to remain rich without poor even those are educated

Successful people choose delayed gratification and invest their money to seek long-time pleasure. Even Temple University and many other institutions’ research declares that instant gratification is one of the biggest reasons why educated people remain poor. 

Of course, spending on luxury and getting out of your standard to MAKE STANDARDS won’t make you successful rich!

6. Low Consumption to Production Ratio

Most of the educated generation spend their time on social media or watching tv or any other media platform, but they don’t realize that they are consuming someone’s else product. Though, it is not so bad to employ someone’s output. But the question that arises here is, what are they utilizing for themselves?

If you do so, stop doing it because you must increase your value instead of just consuming others. Create something for yourself that increases your worth and helps you make money. In this advanced era, it has become convenient to get distracted by social media and stuff, but you can also do something entertaining plus grow your career. There are so many reasons why other businesses need your attention through social media.

There are a lot of content creators are in social media so you can follow one of them. Following is not doing what he or she does. Learn from everyone, follow no one. Pick ideas, strategies, concepts then create your own one by adding your extra value to it. People will definitely embrace that better than you thought.

Isn’t it annoying that educated people remain lower due to such distractions? Simultaneously, it is wondrous that one can grow assets by improving whatever one offers. Grow yourself by proposing value to your offer and let people consume your product and increase your worth.

7. Fear of taking the risks

Fear is what never lets you grow. Those who are scared of slumping can never get anywhere in their life because life is the name of taking risks and facing challenges. You know what are the main risks you should take as an entrepreneur.

educated but poor people are fear to take a risk

Successful entrepreneurs are never afraid of taking risks. They don’t have WHAT IF in their dictionary. The founder and CEO of Amazon once stated that they would never regret whatever they do in their life. Trying should never be converted into regrets. But educated people end up being poor because they don’t have much time to take risks.

The biggest risk is not taking any risk.

Mark Zuckerberg

All they have to do after their degree is support their families. They work to fulfil hand-to-mouth needs. They have no time to spend money. They would not take risks and always be afraid of what if it doesn’t work out? They won’t think what if it works out? It is one of the significant reasons for educated people’s poverty.

Some have resources but no time. Some have time but no support. 

Time is for uneducated people who don’t waste it in getting a piece of paper (degree) and change their mindset to become established!

8. Irresponsibility

We admire you for working hard to get a degree, but unfortunately, only the degree is nothing in itself and won’t increase your productivity. It is sad to say about the education system that a degree is just a piece of paper and nothing else for an academic career, isn’t it?

After studying hard for 4 to 5 years, you are the one who is responsible for your life’s outcomes. You have not created your net worth during this educational period, and after completion of your degree, you submit CVs and waste 2 years waiting for your desired job. Who is responsible for wasting 5 to 7 golden years of life just for the sake of a single piece of paper named degree?

People used to say back in the time that education is the key to making money, absolutely Not. It should be correct to Knowledge is key to success. Because there you will find many things that are not relevant to your purpose in education and some of them you will have to learn even if you do not like them. That’s why many millionaires recommend self-study.

The ball is in your court when you get to understand the importance of career and growing assets

You are responsible for your career’s success or your career’s outcomes. It is you who have to understand the value of productivity and choose to succeed regardless of circumstances.

Take a break and plan your way instead of blaming others for your outcomes. Make yourself responsible enough for right or wrong decisions and have enough courage to own them.

9. Loving the job instead of business

One of the oddest mindsets is working hard for someone else and not getting as much regard as an employee should have. But as per the Cashflow Quadrant those who love to work 9 to 5 to establish others, can never make assets and they don’t have leverage.

The reason is as we mentioned previously, Instant Gratification. Many educated people waste their money as well as time on graduation and soon find a way to make money to regain all that they lost. For that purpose, the best choice is the job. That’s why most people love to job. No matter how educated you are, wages will keep you poor.

If you put bananas and money in front of monkeys, they will choose bananas because monkeys don’t know that money can buy more bananas. In reality, if you offer job and business to people, they would choose a job because most people don’t know that business can bring more money than salaries. Profit is better than salaries because salaries can make you a living but profits can bring you a fortune.

Jack Ma
the difference between job and business
Difference between job and business

Even a small business can make more money than a job person. But the educated people want to cash their degrees and never understand this perception like monkeys to do business instead of working for other establishments.
Being their own boss is what gets them assets!

Related: Difference between entrepreneur and businessman

10. Many highly educated people do lose their jobs

Although people lose their business too, usually the loss of income has to face by the job persons. Degrees can help you to take a job, but you can never predict your future in the job output; anything can happen at any time. 

What if a pandemic occurs and you have to render your job? Or many other reasons indicate you no safety for your job. People think that they will get the desired position in a profession and then get promotions and promotions, but the question that arises here is how do we interpret fact from fiction?

Why educated are poor because they love to job instead business

A business person can decide everything for him, yet a job person does not have this opportunity. Employees have to accept every decision of their boss and have no control over their job decisions. Therefore, the probability of losing jobs is what commands educated people to survive.

11. Taxes are made for them

Warren Buffett wrote a clause in the New York Times about his 2010 Federal tax rate of 17.4% compared to 36.0% on average paid by the twenty other workers in his office in August 2011. How come the rich ones pay less tax than the poor ones?
Is it fair that tax law is only for the employees? No matter how much money educated people make, the government has a right to seize it accordingly.

Also, there are many reasons to gain taxes from the poor than the rich. Because the rich use secret tactics to reduce taxes that the poor cannot afford.


Financial education is always helpful and should be given to every generation. Self-education is needed if you want to make a career and desire to be established. Education does not always make you humble but arrogant sometimes, and then you will face ugly consequences. Don’t just make your mind utilize your education to make a career but explore your mindset towards knowledge and self-education.

These are not only reasons that educated people being poor, there are tons of differences between Rich people and poor people so these are also will help you to gather more information.

However, let us know what the important fact you got from this?

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