Becoming wealthy is an aspiration that can be seen across the board, with the young as well as the old. This aspiration is higher among the middle-class and low-income groups considering the higher number of obstacles they face in life due to financial difficulties.
While there is a case to be made for extravagant wealth emerging out of successful business ventures, the numbers are lower than required for a methodical generalization.
So, the question that arises is – what is the constant among individuals who emerge out of the middle-class and low-income groups to be wealthy?
1. The education factor
Formal education is a constant that can be seen far and wide among such individuals who emerge as financial successes.
The path to financial success surely passes through lanes of formal education which then springboards them to lucrative jobs and promotions.
Unsurprisingly, better education has often led to greater chances of financial success.
For instance, students who study in top-ranked institutions around the world have greater chances of financial success than others.
A remarkable proof of this fact is the large salary packages offered to graduates from top universities in India and abroad.
The IITs in India are often in news for the highest salary packages offered by MNCs to their students – something that’s increasing rapidly year after year.
2. The catch-22 of education expenses
If formal education is the way to financial success, and if tuition costs are rising to levels of unaffordability – how then would students be able to afford the education that affords them financial liberation?
This is a question that does not have one answer. There is an argument to be made about the legislature that should ensure that the cost of education never goes beyond the reach of low-income households.
But that is a change that is going to take time and time isn’t a luxury that parents can afford, so what are the other options?
3. Planning ahead to combat education inflation
Parents now have the ability to plan ahead for their children’s education. The education inflation today cannot be combated any other way but by careful planning and early investing.
An education cost calculator can tell parents exactly the corpus that they might need to send their children to the university of their choice.
The second step is to utilize available platforms like EduFund to start investing systematically to let the power of compounding propel your savings to the amount your children might need for their education.
There is no sure path to financial success but this has to be the one with the best odds.
4. Is just formal education enough?
While formal education can get you to a place where you can make a good regular income, financial success requires financial discipline.
Living on less than you make is perhaps the first and obvious step. This should be followed by careful saving and responsible investing to ensure that your money is working for you and creating wealth.
FAQs
What are 7 tips for financial success?
7 tips for financial success:
- Adjust your expenses based on your income
- Start saving and investing early on
- Stick to the budget
- Create an emergency fund
- Avoid loans
- Create multiple streams of income
- Pay your credit card pills on time
How do you achieve financial success?
The best way to achieve financial success is to set financial goals and invest systemically. For starters, you should have an income that allows you to fulfil all your needs, save money for emergency and use the spare for investments.
What are the side effects of chasing money?
Chasing money can be mentally exhausting and can lead to a burnout. Its important to relax, destress and enjoy the process of making money as you grow.
Conclusion
Getting wealthy has plenty to do with making the right decisions but the good news is that there are enough and more examples of people out there who have made it happen.
The first step is getting the right education and upskilling.
