When you think of traditional ways to build wealth, it’s usually stocks, bonds and real estate. But Bill Gates? He has a different playbook – and it’s not exactly what you’d hear in a boardroom full of suits.
In a 2014 Reddit AMA, Gates was asked what financial advice he would give to people making less than $100,000 a year. His answer was simple: “Invest in your education.” And this wasn’t just a motivational soundbite; it’s a philosophy he really believes in, a philosophy he backs with real money through his foundation’s multibillion-dollar commitment to public education.
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So why is one of the richest people in the world recommending something that doesn’t sound like a traditional “investment”? Gates views education as the best way to increase your value before focusing on financial wealth. This is why Gates’ advice is so timely – and why it may be worth following even if you’re not a software magnate.
Protect against the future
With automation on the rise and AI making its way into industries across the board, many jobs aren’t exactly “safe” anymore. Gates has been predicting these kinds of changes for years, so he insists on future-proofing through education. In his 2023 GatesNotes blog, he wrote: “The risks are real, but I am optimistic that they can be managed.”
Learning new skills helps you stay relevant. It’s like adding armor to a video game: every new skill you gain gives you a better chance to cope with whatever the economy throws at you.
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Increase your value to increase your wealth
Gates is the type of guy who believes in getting the basics right. Step one is increasing what you’re worth when you’re trying to build wealth. And that is what education is all about. Gates isn’t necessarily suggesting that you get a PhD – unless, of course, you want to! Instead, it’s about continually building skills and knowledge that make you more valuable.
Even a certification, an online course, or dedicated self-study time can make a big difference. For Gates, this is the “human capital” that is your true foundation for success. The more skills you have, the more opportunities open up and the more you can earn over time. Think of it as an investment in ‘you, Inc.’ – before you even consider investing in stocks.
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Financial literacy = financial freedom
A big part of why Gates advocates for education is that he has seen firsthand how life-changing financial literacy can be. Understanding money – budgeting, saving, investing – is a skill all its own, and yet it’s not something everyone learns in school. Gates states that gaining this knowledge is one of the smartest financial moves you can make.
If you understand the basics of money management, you will be in a much stronger position to build wealth and lead the way. It may be surprising, but 57% of Americans can’t even score 50% on a financial literacy test.
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Education means freedom of choice
Gates isn’t just talking about stability; he’s talking about freedom. Education opens doors and not just to ‘safe’ jobs. It gives you choices – whether that means entering a new field, starting a side business, or discovering a passion you’ve always wanted to pursue. Education can keep your options open and according to Gates, options are worth more than gold. They are invaluable.
Picture this: each skill or piece of knowledge is another key on your keychain, and with enough keys, you’re equipped to open virtually any door that interests you.
Invest in yourself with any budget
Start small? Explore affordable ways like community college courses, online platforms, or free YouTube tutorials.
Gates isn’t saying you should skip traditional investments; Consulting a financial advisor can help you find the balance between skill building and traditional options. But according to him, focusing on growth is the only investment that really pays off.
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This article Bill Gates Shares the ‘Best’ Investment to Get Rich If You Make $100,000 or Less – But Wall Street May Disagree originally appeared on Benzinga.com
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