Is It Better to Study Economics or Finance to Become Rich?
It's widely believed that the path to building and growing wealth lies in the field of study one pursues. In reality, the true determinant is not what you study, but what you do with the knowledge gained. As a retired BSc Computer Science graduate, I have firsthand experience that proves the importance of real-world application over academic credentials. Here, I'll explore the nuances of choosing between economics and finance, and provide insights on how to truly build wealth.
The Truth Behind Education and Wealth
Studying cannot guarantee wealth. Yes, having a degree can provide certain advantages, but it's the practical application of knowledge that truly matters. In my case, I was financially free by the age of 53, but this wasn't due to my degree in computer science. It was the combination of strategic financial planning and real-world experience that set me on the path to financial independence.
Majoring in economics or finance can be a stepping stone, but it's not a magical pathway to riches. Academicians and economists often don't match the financial status of high-ranking business executives. Therefore, choosing a business-related field might open more doors to opportunities, but it's no guarantee of pile-high wealth.
The Value of Practical Knowledge Over Theory
While both economics and finance offer valuable insights, the true wealth of knowledge lies in how you apply what you learn. My experience suggests that focusing on practical outcomes is more important than theoretical knowledge alone. Finance, being a branch of economics, is related but not as universally applicable in daily life as one might think.
As a finance major, I still find it enjoyable to learn about financial strategies and investment tools, but avoiding the business world's pitfalls is a crucial lesson. The business world can be a minefield of ego and pressure, which can sometimes hinder rather than help one's financial growth.
In today's fast-changing world, flexibility and adaptability are key. If you're pursuing a double major in finance and economics, you'll have the advantage of knowing both fields, but the real value lies in your ability to translate that knowledge into tangible wealth-building strategies.
Exploring Broader Fields for Wealth Building
While economics and finance offer solid foundations, exploring other areas can provide a more holistic approach to building wealth. Law, language, history, ethics, political science, and psychology can all play crucial roles in your journey to financial independence. Knowledge in these areas can offer insights into market dynamics, societal trends, and long-term strategic planning.
Another path to consider is playing the startup lottery. Engineering skills combined with entrepreneurial spirit can lead to immense wealth, but this path involves significant risk. However, for those willing to take the risk, the potential rewards can be substantial.
Conclusion: The Path Less Traveled
The path to financial wealth is multifaceted and involves more than just choosing the right field of study. It's about applying what you learn in practical scenarios, being flexible, and continuously learning. Remember that becoming a "professional student" can be expensive, both in terms of time and money, and the opportunity cost of a traditional academic path can be high.
Ultimately, the key to building wealth is the application of knowledge. Whether you choose to study economics, finance, law, or engineering, what matters most is your ability to translate that knowledge into real-world actions. Focus on creating meaningful, practical value, and you'll be well on your way to achieving your financial goals.