Most People Don’t Get It (Wealth That Is)

Dec 13, 2012 3 Comments by

Why is it that the majority of the population dreams to get rich but never do. Why is it that university educated people may spend 10+ years struggling to repay their student loans and never see the fortunes promised to them which is why they went to school in the first place.

The bulk of my generation thinks that getting an education is the way to wealth. Yes, you might end up with student loans but your salary should be enough to repay them. In exchange for a good education, you’ll have a higher salary, afford a mortgage, buy a house, own a car and finance the kids. You’ll save for your retirement and that will be the end of your life.

In reality, you will have spent 16 years in school as a top student, 18-22 years if you pursued additional degrees. You will have worked a minimum of 35 years. If you spent your earnings on nice cars, travelling, and nice things in life (after all, we are an entitled generation), then you will have little retirement savings to show for. This is the typical path that educated people, second generation immigrants and non educated Canadians go through. If you actually accumulated your $1M for your retirement, then you probably worked hard, saved a lot, and became frugal to reach your savings goals. If you pursued a trade, you probably didn’t struggle to pay off your loans. If you pursued no education and were stuck with low paying jobs, you probably had a hard time to make ends meet.

My immigrant friends are the ones that taught me the most about money. I saw them work really hard, sometimes 2-3 low wage jobs at once. They saved for their education, they helped their kids get educated and sacrificed a lot to do so. They looked up to successful members of their community on models of how to create wealth. They invested in properties, started their own business and adapted to their new world. They got it.

My many friends and acquaintances on the other hand are on the path of a university educated life path. Not to say that this is the wrong path, but this path doesn’t make you wealthy and doesn’t reduce your time to retirement.

I’m following the same journey of my immigrant friends. In order to do so, I took on 2 jobs while I attended a difficult bachelor’s full time. I saved all of my earnings, lived frugally. I rented a room and rode my bicycle to school and work. My knowledge came from talking to many *successful* people on how to invest in real estate or start a company. I surfed the internet for clues, specifically other personal finance blogs.

One of my tenets is that I willl only take financial advice from someone who’s successful. The many financial advisors that I’ve met weren’t better off than I was so why should I take their advice? Spending time with my diversified friends has been one key to wealth building.

Frugality, Goldeneer's Story, Investment, Savings

About the author

Clara Cannes, the chief author from Goldeneer is a Canadian that works as a full time employee in the engineering field. Her passion is real estate, entrepreneurship and sustainability. Clara has finally reached financial independence in her late 20's and is on the path to a comfortable retirement by 35.

3 Responses to “Most People Don’t Get It (Wealth That Is)”

  1. Call Me What You Want Even Cheap says:

    I love this and I feel the same way. I use to get advice from my broke friends when I didn’t know better.

  2. Lena @ WhatMommyDoes says:

    This advice is golden! It’s a pet peeve of mine to hear friends and family repeat “advice” they received from someone who obviously doesn’t have any business giving that advice.

    Have you read The Millionaire Maker by Loral Langemeier? If not, I highly recommend it. I guarantee you’ll like it. It’s all about finding the right circle of advisors and putting your income into a wealth cycle instead of spending your earnings.

    • Goldeneer says:

      I haven’t read The Millionaire Maker but will add it to my list of books to read. When someone gives me conventional investment advice or tells me I should consult with a financial adviser, I smile and nod.