The Cost of Education
In today’s paradigm, if you grew up like me, we are taught to go to school and get good grades so we can get into a good College so that we can in turn get a good job. I was that person. Honour student. Went into the International Baccalaureate program and into a Bachelor of Commerce program straight out of high school. As I always wanted to be in business for myself it made sense to me. However, I quickly came to the realization that all the professors that were teaching economics, or other aspects of business were literally teaching straight out of a textbook. Why was I paying thousands a year for somebody to read from an overpriced text book? It was at this point that I realized this was not the educational forum for me. I needed to go and seek out people that had actually accomplished what I wanted to achieve. Now don’t get me wrong. If you want to be a lawyer or a doctor or any profession that requires certain institutional education requirements you can’t skip this step and just find a Dr. or a lawyer to mentor you.
The average cost of a post-secondary education in Canada is approximately $14 500 per year. United States is even higher at approximately $23 000 per year. For a 4 year degree that works out to $58 000 and $92 000 respectively. Those numbers are increasing year over year. In addition, you can add cost of living to those numbers and lost income during that formal education period and you can see how students are graduating with tens of thousands of dollars of debt before they even make $1 in their career. My wife and I were at a friends wedding and one of the people that was sitting at our table was going to school to be a doctor. And not just any doctor, but a Diagnostician. For those of you that don’t know what this is, if you’ve ever seen the television show House, that’s what he does. Long story short in total he would have attended 14 years of post secondary and would be well into his 30’s by the time he started his career and being well into 6 figures in debt. If that’s your passion, fantastic, but I’m sure we all know tons of people of people that spent a great deal of money on an education just to graduate with loads of debt and on top of that with no guarantee of finding employment in that field.
Unemployment rates amongst university grads are now only 1.7% lower than high school grads. And even worse if you have a degree in fine arts when you factor in educational costs the earnings are 12% lower than high school grads.
Doesn’t look like the formula for success that it used to be. The world is a much different place now.
Now I’m not saying to drop out of school or give up your dreams of working in a career that you are absolutely passionate about. But don’t do it just for the sake of that is what you are supposed to do. But whatever you do don’t put you’re financial future at risk by just relying on your job as your sole source of income. At this very time there are hundreds if not thousands of people that were used to making 6 figures a year in the Canadian oilfield that are finding themselves dusting off their resumes or taking significant pay cuts. Just like back in the Great Recession in the U.S. where unemployment sky rocketed, and home values and 401K values went the opposite direction.
It is irresponsible to put your head in the sand and just hope that things will work out. If you don’t take the time to take care of your financial future who will? You need to be the person that cares most about this. If you don’t, then who will? The bank definitely won’t. The mutual fund or 401K fund manager definitely won’t. They make money regardless of whether your investments grow or contract. At a fraction of the cost of a post-secondary education I chose a different path. I went out and sought mentors in areas of wealth creation. People that had built multi-million dollar real estate portfolios, professional traders, and just some bad ass people that created a life on their own terms. Now this has resulted in us building a 7 figure real estate portfolio that makes us thousands of dollars a month, making 7 figures in building a home based business, investments in precious metals, and actively managing our own investments in stocks and foreign exchange that are getting us substantially better returns than we’d ever get from the bank. If this sounds like something you want to create and you want to take the next step and take ownership of your life reach out to us. We would love to connect and help you create a life unchained.
We rocked out a video a while back for you on Saving and Money check it out.
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