Considering going to college out of high school or starting or continuing college to advance your career? Considering an advanced degree? Consider some of these points that I have put together and weigh your decision carefully.
Most successful entrepreneurs did not attend college or they dropped out of college. Bill Gates, Steve Jobs, Mark Zuckerberg, Richard Branson, Michael Dell, and Jeff Bezos are the most notable people who jumped out into their businesses and left academia behind into the history books of success.
These people are the mega millionairess that did well without higher education. I’ve read that the majority of billionaires do not have degrees.
Not all of us will be the next Zuckerberg. Let’s think positive it could happen. The statistics show there are many successful small businesses are owned by people who do not have college degrees. Think about of some of the business owners you may know that do not have a degree and are successful. If you don’t know any business owners, ask around. Someone you know is connected to someone that is doing well financially with a small business and no college education.
Here is some information to back up my statements that show that the majority of small business owners do not have a college education.
Here is information from Small Biz Trends on Education:
- High School / GED: 33 percent;
- Associates Degree: 18 percent;
- Bachelor’s Degree: 29 percent;
- Master’s Degree: 16 percent; and
- Doctorate: 4 percent
The naysayers will say that business failure rates are too high to take the risk of becoming an entrepreneur and getting a job is a more secure route. Not necessarily true. A job or career is a great way to support yourself; however, with a job you can be fired, downsized, or outsourced at a moment’s notice. You have no control over what happens other than seek employment again.
Here are some very encouraging statistical information compiled for anyone thinking about jumping off to do their own business. Here is the latest information on failure rates of new businesses. Source: from Small biz trends:
STARTUP FAILURE RATE STATISTICS
- Of all small businesses started in 2014:
- 80 percent made it to the second year (2015);
- 70 percent made it to the third year (2016);
- 62 percent made it to the fourth year (2017);
- 56 percent made it to the fifth year (2018).
Consider starting a business with your money earmarked for college will provide you with much more valuable skills than setting in a classroom burning through your tuition money or going deeper into student loan debt for higher education. College education in majority of cases is no guarantee of employment or higher wages.
If your goal is to become a doctor, which takes years and around 200,000.00 USD for tuition or some other specialized field that is not being outsourced or downsized then great go for your dream. Keep in mind while you are pursuing your dream in college, you will be racking up debt. If you are unsure of your major and the job prospects long term for that field, I would recommend doing some in depth research and consider all options before pursuing your degree.
Studies show that since the year 2000, there is the wage gap between college graduates and high school graduates are shrinking. 25% of college graduates now earn the same amount of money as a high school graduate. The reason is everyone is promoting the concept of go to college get a good job. This logic has created an over abundant supply of college educated people burdened with student loan debt that would be better off just moving forward in life with out higher education and the debt load it brings. To follow the herd mentality is very foolish in any decision you make in life.
When evaluating higher education you should consider the time value of money “ Idea that money in the present is worth more than some amount in the future due to its’ earning capacity because money now in the present is worth more than in the future due to interest and investing.“ You forgo earnings for higher education along with the debt assumption with hopes you will recover your costs and repay the debt with interest later.
To go into student loan debt with hopes of a brighter future are not as years before when a degree meant upward financial mobility. From this interesting article in Nerd wallet, the average student loan debt for a bachelors degree is $28,000.00. Imagine what your business could do with that amount of money to grow and expand?
If you are a new start up business with no track record, no lending company would loan you 28k to start the business you want to open. Most people are savvy enough to be very cautious about taking a business loan on credit cards for 28k to start a business. You should take this same view point when considering college, your major, and student loan debt.
Student loans can not be bankrupted out regardless of your situation. According to a CBS News article, many older former students and graduates are still paying on their student loans years after leaving their universities. Their student loan debt effects the amount of their social security checks they can collect because the government will garnish their checks to pay their debts and some don’t get a social security check because of their student loans. All of their income is taken for payments.
Lots of businesses can be started now don’t need very much start up capital to get the business up and running. Get creative and do your research on what you want to start as a business.
Starting a business is a 24/7 job. Risky, but well worth it.
Even if you fail in your first business or subsequent businesses, you will learn amazing lessons about life and business both positive and negative that a classroom can not teach you. These experiences do not come from a lecture or reading the required assignments. They must come from the “the school of hard knocks”.
College and a job are not where you will find the ability to have more control over your life, finances, have more fun, and the ability to shape your destiny. The only way you will have these options is to choose becoming your own boss.
Go pursue what makes you truly happy without fear. College and school kills your creativity and decision making ability which molds you into conforming into a worker in a cubicle that can recite information. Holding useless information in your head takes up space that is needed for more practical important things. Besides, we now have Google and other search engines that can provide us with an answer rapidly on anything we need to know.
Carefully weight the pros and cons of going into debt for an education that may not get you a job that pays enough to cover your living expenses and pay back your student loan debt. Think bigger, dream, and do.
Author: Bria Harper