Think about the math classes you have taken in your life.
Think back to elementary school through high school and into college. How did your math classes work? You probably started by learning how to add. Then the teacher got sneaky and threw in a twist to addition and called it subtraction. Shut the front door, where was she going with this? She was leading you into learning multiplication. Multi who? Then came division. Now things had just gone crazy. Where was all of this leading? Most likely it led you to pre-algebra, algebra, geometry, algebra II, pre-calculus, trigonometry, statistics, and calculus. Then, just when you think it is over, you hit college. You may have then been thrown calculus II, followed by III, differential equations and eventually applied calculus. Maybe you didn’t take those last few classes, but regardless, the principle stays the same- you started with addition and ended with something significantly harder. How would you be able to learn calculus if you had never learned how to add? How would you learn statistics if you had never learned fractions which you couldn’t have learned if you never knew how to divide?
Whether we knew it or not at the time, there was a method to the education system’s madness (believe it or not), which was to teach by building upon what we had already learned. Teach addition first, build up to subtraction, slowly add in multiplication and division, and eventually use those fundamental skills to venture into algebra and calculus. Makes sense if you think about it. Granted, lots of people still had trouble with math no matter what building blocks were in place, but that’s fine because it most likely meant they were better at language or history or art or something. We can’t all be fellow math nerds or we’d be living in a really, well, nerdy world.
So how does the math class sequence explain why real estate investing is so hard?
How to Learn Calculus When You Never Learned How to Add
Oh, oh! Now you are seeing it. Real estate investing has a prerequisite, which is money. If you don’t understand how money works, you can’t understand how to invest properly or even why you should invest at all. Ok, money is the prerequisite. Which grade did you learn money in? Oh, ha, that’s right, you didn’t. I went to school in Georgia, which was at the time ranked as having the 2nd worst statewide education system in the country, but I’m pretty sure we weren’t the only ones who weren’t taught about money. Not only did we not learn about money, we were never taught business or entrepreneurship either. Fan-tastic. Understanding money, understanding business, and understanding at least a rote level of entrepreneurship are critical components to being a real estate investor. We were never taught any of these, so where does that leave us? Other than screwed, of course…