Bill Gates Shares the 'Best' Investment for Getting Rich If You're Earning $100,000 or Less – But Wall Street Might Not Agree

When you think of traditional ways to build wealth, it's usually stocks, bonds and real estate. But Bill Gates? He's got a different playbook – and it's not exactly what you'd hear about in a boardroom full of suits.

In a 2014 Reddit AMA, Gates was asked what financial advice he'd give to people making under $100,000 a year. His response was simple: "Invest in your education." And this wasn't just a motivational sound bite; it's a philosophy he truly believes in, one he backs with real money through his foundation's billion-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 sees education as the best way to increase your worth before focusing on financial wealth. Here's why Gates' advice is so on point – and why it might be worth taking even if you're not a software tycoon.

Guarding Against the Future

With automation on the rise and AI edging its way into industries across the board, many jobs aren't exactly "safe" anymore. Gates has been predicting changes like these for years, so he insists on future-proofing through education. In his GatesNotes blog in 2023, he wrote, "The risks are real, but I am optimistic that they can be managed."

Learning new skills keeps you relevant. It's like adding armor in a video game – each new skill you pick up gives you a better shot at facing whatever the economy throws your way. 

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Increase Your Worth to Boost Your Wealth

Gates is the type of guy who believes in getting the basics right. Step one is increasing what you're worth if you’re trying to build wealth. And that's what education is all about. Gates isn't necessarily suggesting you go get a Ph. D. – unless, of course, you want to! Instead, it's about continuously building up 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 champions education is that he's seen firsthand how life-changing financial literacy can be. Understanding money – budgeting, saving, investing – is a skill set all its own and yet it's not something everyone learns in school. Gates argues that gaining this knowledge is one of the smartest financial moves you can make.

If you understand the basics of managing money, you're in a much stronger position to build wealth and ahead of the curve. 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 pivoting to a new field, launching a side business or exploring a passion you've always wanted to follow. Education lets you keep your options open and as Gates sees it, options are worth more than gold. They're priceless.

Imagine this: each skill or piece of knowledge is another key on your key ring and with enough keys, you're equipped to open pretty much any door that interests you. 

Investing in Yourself on Any Budget

Starting small? Explore affordable ways like community college courses, online platforms or free YouTube tutorials.

Gates isn't saying skip traditional investments – consulting a financial advisor can help you balance skill-building with classic options. But in his view, betting on your growth is the one investment that truly pays off.

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