In today’s economy college is obsolete. Luxuriating in their Ivory Towers the Academics have driven the price of “reading, writing, arithmetic” beyond any sensible cost-benefit justification. College tuition, books, materials, room and board runs $20,000 to $50,000 per year, plus the “lost opportunity” cost of not making money or developing specific employable skills for the four years dedicated to college. That lost opportunity runs at least another $100,000 in addition to the $80,000 to $200,000 invested in a college degree, a degree which 2/3 of all graduates never use for employment within the field of their major.
What is the Alternative?
Everyone says a college education is critical to a good job and a secure career. For better or worse, in this day and age, everyone is wrong! Education is important and should be pursued throughout one’s life for a variety of both economic and non-economic reasons. Hard skills are more immediately critical to making a good income. Skills and education should be pursued vigorously; college, not so much.
There are a wide variety of skills that can be acquired in six months to two years that lay a strong foundation for future additional skills development and provide an immediate comfortable income, skills and programs we will detail in future articles, but, first, how does the pursuit of skills over college make one wealthy?
$20,000 Today Becomes $1,000,000 Tomorrow
Any healthy, hard-working 18 year old high school graduate (who makes the fateful decision to live at home one extra year) can accumulate $20,000 in a year or so. Learn to invest your own money, and you can turn that capital into $1,000,000 or more by retirement– even if you never add to your initial capital. At 10% average compounded interest, money doubles every 7 years. TIME and DISCIPLINE are the keys to building wealth. The “Miracle of Compound Interest” takes care of the rest:
20 years of age: $20,000; 27 years: $40,000; 35 years: $80,000; 42 years: $160,000; 49 years: $320,000; 56 years: $640,000; 63 years: $1,280,000; 70 years: $2,560,000
While one does not need to be a brilliant investor, it would be more useful to study “how money works” than, perhaps, sociology, psychology, or astronomy, in order to build one’s wealth. The KEY, however, is the advantage any healthy, hard-working young person has over most multiple degreed, ivy league educated older person: TIME !
If you begin building your wealth at age 20, you can easily accumulate over $1million by age 63. If you begin at age 30, you will have only half that amount by age 63. Is college worth its high initial cost PLUS the $500,000+ capital accumulation that can be built by alternative path?
Though college is obsolete, lifelong experience proves the following is equally clear:
- Disciplined saving and and investing at an early age is critical;
- “Hard skills” learning to obtain a good income early is critical;
- Studying “how money works” is critical;
- Taking time out to improve and add to one’s “hard skills” is critical in fast-moving, ever-changing world;
- Lifelong learning provides one with a broader perspective, better insight, and the information to take maximum advantage of opportunities that come along;
- Thinking independently, acting independently, and unceasing attention to one’s “game plan” is critical.
While life is not all about money, life without money is life with less freedom. Life without money is less opportunity to learn, create, explore, and to develop new skills. Life without money tends to limit one’s opportunities to contribute to your family, your community, to the world at large.