Education: The Overriding Factor between Rich and Poor

Most of us like to think that anyone can succeed or fail monetarily depending on how much effort they put forth towards making themselves do well. Unfortunately, that is often not the case. Statistics have shown that the amount of formal education that a person has impacts the amount of wealth that they are likely to bring in throughout their lifetime. In fact, education level is a leading factor in determining someone’s likely earnings potential.

Logically it makes sense that those who are comfortably rich tend to have had more educational backgrounds. They have been well trained in how to function in the workplace and how to move up the ladder. They are also given better opportunities based on the education that they have received. Those who come from poorer backgrounds are less likely to have the same level of education and are therefore less likely to be comfortably rich at any point in their lives.

There are a number of factors that contribute to these findings. Lack of resources in the schools in more disadvantaged areas is a major problem that holds a lot of people back. There is also often a lack of personal motivation to go along with the poor quality of education. Those two factors combined can lead someone to drop out of school earlier and pick up a low paying unskilled labor job. Once this has happened, it becomes difficult for them to move up the pay scale in any very significant way.

There are of course exceptions to this rule. Some who do live comfortably rich have not even finished a college degree. It is often pointed out that Bill Gates (the wealthiest man on the planet) just recently finished his college degree. He made his billions before he had even tried to finish college. Unfortunately, situations like his are very rare. Generally, the averages show that the more education you receive, the more money you will be making.

The largest pay difference is between those who have just a high school diploma and those who have a college degree. By getting a bachelor’s degree, the average person increases their earnings potential through the roof in comparison. If you have dreams of living comfortably rich, then it is a wise first step to get as much formal education as possible. Every step up the education ladder is a step up the pay grade.