How did “Grow Up and Get a Job” ruin everything?
It is really the easiest path if you think about it.
Everyday we teach kids to get good grades in school. Why do we teach them that? So they can get into a good college and not have to pay right?
Well, let’s assume something for just a second. Everyone did get good grades. Schools would still only have the same number of scholarships. Last time I checked they give out pretty much all of the free money they want to give out. There would still be something that would separate our best, and brightest; from our not so best and brightest.
So we would still have the exact same number of kids reliant on student aid, and government backed loans.
Why bother? Because people that have degrees make more money.
But how much does it cost?
My wife tells me I am over analytical and I ruin everything. Well step back. I am about to ruin your college education.
Your college education left you broke for life!
Let’s follow our two students, we will call them Johnny Drop-out and Billy University.
Johnny Drop-out decides college isn’t for him. So since we are catering to averages, he leaves school at 18 and gets a job making $31,539.
Billy University got a job out of college and makes $56,078. Can you believe it? Billy is out earning Johnny by a ton! Good thing he went to college right?
Well Johnny wasn’t stupid. He started investing his money. Because he read my book and knows how to invest. Well Johnny invested his money. Half to be exact. Because he and his parents agreed an 18 year old shouldn’t live by themselves, and he did this for 4 years, and eventually moved out.
Meanwhile Billy University, earned no money, and he racked up a huge debt of about $42,393 due to outstanding student loans. So even though he got the job making more money… he will need it to pay it back.
Johnny doesn’t live above his means and he starts investing $272 a month toward his retirement (for this example the amount that Billy is having to pay).
Billy also starts investing… but essentially is 4 years behind.
Long story short… Billy and Johnny both invested, Billy all the extra income he made, and Johnny the amount of the loan payment that he didn’t have to make.
Billy ended at age 42 with $1.7 million
Johnny ended at age 42 with $1.1 million.
Good thing Billy made all of that extra money he could invest right? Because $600,000 is a lot of money right.
The Story is What isn’t Told
It only cost Johnny $128,358, but it cost Billy $490,790.
Johnny had 2 things in his favor time, and no debt.
PLUS he had a savings account.
The first thing a kid needs is savings, not good grades!
I went through literal hell… but I made good grades in school. The funny thing is my power company didn’t take the “A” I made in college Pre-cal as payment, and they cut my power off.
If I would have had a huge savings account, my biggest problem, wouldn’t have been a problem.
This Idea Isn’t Original
Before you think I have struck gold with this thought process, think again. Robert T Kiyosaki came up with this idea a long time ago. He was a “C” student, and is now a multi-millionaire. That hangs out with people like Donald Trump.
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