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The three most common questions i get day in and day out from people that send me emails is should i go to college should i drop out of college or should i send my kids to college these are three of the most common questions i get day in and day out all the time from people and it’s such a complex issue people just want me to say yes or no and it’s somewhere in
Between there guys so i want to fully break down everything here today i want to do this video as a video i can send to people in the future that asked me this type of question and break it down so you can make that judgment call for yourself and i’m gonna break it down in a way that pretty much no one ever has okay so the first way you got to look at is you got
To look at if i go to college what what am i spending on this and i’m not just talking about money i’m talking about other things okay so if you didn’t make the decision to go to college as far as the cost of colleges talk about the cost well first off there is obviously the financial cost we’ll talk about that first so there’s a financial cost of some time we’ll
Just do fc4 that a financial cost of some kind this might be $5,000 a year might be $10,000 a year if you go to a super expensive school and you got to pay it might be $50,000 a year also you could potentially get a scholarship but for most people they’re gonna have to pay okay so there’s some type of fee in there let’s say the average you know tuition over the
Course of you go there four years or five years and then you graduate is let’s say forty-five thousand i think that would be about realistic here in the states around forty five thousand okay financial cost so first of all you don’t obviously have to pay back that debt okay over time unless you’ve got a lot of money in the bank or unless your parents can pay that
For you you’re going to pay that over years and years so basically once you get a job once you actually get a job let’s assume you want to get a job there’s money that’s gonna have to come out of that you know your paychecks every single week that you will have to follow up here to pay off this forty five thousand which is probably accruing interest by the way and
That’s gonna take money out of your paycheck for a long time to come unless you make a lot of money if you make a lot of money you can obviously pay this back in a very quick amount of time so if you’re you know 28 years old and you’re making 100 200 300 a year from your job then you’re gonna be hell to pay us off in no time you can pay it off in like a year’s
Time right however if you’re a little bit struggling out there you’re making 50k a year obviously your living expenses are going to be something that’s gonna take you a long time to pay that 45,000 off that’s the first cost desk the other cost we got to kind of think about this is if you’re paying off this forty five thousand that obviously that’s less money to
Invest so we’ll say l.i here so it’s less money to invest okay because let’s say two hundred dollars out of every paycheck of yours is going up here to this forty five thousand dollars to pay off well obviously that’s less money you have to invest because if you let’s say had an equal job you’d never went to college or you didn’t have to pay this bill back because
Your parents paid for or you got a scholarship or something like that obviously you got two hundred dollars more per time to go ahead and stick to investing then you add up what that would mean over the course of a year what that would mean over the course of a lifetime and it’s dramatic especially let’s say it takes you ten or twenty years to pay off this forty
Five thousand like we’re talking abouts a lot of money in the end right so that’s kind of the first way you’ve kind of got to look at it the other costs would obviously be time you’re gonna stick a lot of of your time into college okay so this is gonna take up if you’re getting just a bachelor’s degree for most people it’s gonna take about four to five years of
Your life we know you know let’s say you say my generation let’s say we’re blessed enough to live to a hundred years old so if you’re taking about five years there then essentially you’re taking about five percent of your life okay and that’s if we live to a hundred who knows maybe we’ll just only live to be 80 on average or 90 on average let’s say we all lived
To be a hundred right you take you can 5% of your life span and you’re spending it in this college okay you’re doing school so there’s definitely a time you’re putting into this right now that time we could say what if you invested that in something else what if you would try to build a business in that time what if you would try to build something on social media
Passive income streams you know a lot of different things you know you could say that you could be doing with all that time because obviously this is going to take up a great deal of time because you’ve got to go to those classes or if you’re taking online classes you’ve got to do the homework you got to do the test you got to do all the stuff that even you know
The prior to even school starting right you got to go to the administration office and do all these things that usually take up hours and hours and hours of your time okay that’s kind of a negative okay that’s kind of what you have to give to get this education type experience okay this is the main cost here you’re gonna probably accrued debt more unlikely for if
You’re a most an average person and you’re obviously gonna have to give up massive amounts of time but let’s talk about this on the flip side what do you get out that’s because you absolutely do get some things out of college that can potentially benefit you into the future okay so the first thing i like to think about is it can kind of give you some motivation
And focus in life college can a lot of times okay so as far as what we call the other one costume you thought of will you call this game so what do you gain from going to college like i said first thing is kind of focus will put f here for focus and can kind of give you you know what path you want to go down you can kind of find yourself because a lot of times
When you’re coming out of high school like you you may you might not even ever had a job you’re not really sure what you want to do most people in that situation like not sure which route you want to go out doesn’t kind of give you some focus and kind of lead you down whatever path you want to go down you can kind of experiment with some classes and whatnot where
Sometimes if if you don’t go to college and you just come out of high school then you get a job working at a fast-food place or whatnot you’re not really doing anything else you’re a little lost at that point in time right you’re a little lost college come sometimes can give you some focus and you know the pathway to where you want to go so that’s one thing you
Can gain you can also gain obviously the education they give you okay now this is different for different industries okay so for instance if you if you’re gonna be a doctor you’re gonna need to go to college there’s no other way around other than going to medical school use no other way around if you want to be a doctor you need to get you need to go to college
And get an education right if you want to be a lawyer you obviously need a college degree you like is these are the type of things that are non-negotiables there’s no way other way around okay you want to be a nurse you need to go to nursing school all these types of things okay so there are certain industries you have to go to college for you have to there’s no
Other way around it there’s not like some back loophole or whatnot and these are those type of industries are phenomenal for this because guess what a lot of those type of industries don’t really change very often okay the same way to do heart you know heart surgery five years ago was probably the same way to do it ten years ago was probably the same way to do it
15 years ago which will probably do the same way to do it five years from now okay these things don’t change as much as when they do change they can get those adapted into school very quickly okay same thing with a lot of stuff that has to do with law right these things don’t change very often generally the law is the same this year versus next year versus a year
After so these changes come very slow however if you’re wanting a study business okay if you want to study business and marketing and a lot of things that are related to business right and you want to be your own business i don’t recommend this college a lot of times for you because what you’re gonna gain an education sometimes is actually detrimental to you it’s
Sometimes it’s actually detrimental because things change so fast in business things change so fast in marketing it’s like a snap of a finger okay what worked last year what worked five years ago might not even work one percent of the time now okay what used to work a hundred percent of the time might not even work one percent of the time now okay things change
So fast when you think about marketing okay let’s talk about marketing if you were gonna market a product five years ago it was it’s dramatically different than if you market a product now okay if you were gonna market a product 20 years ago it was dramatically different then now okay if you’re talking if you’re doing 25 years ago you want to be in magazines if
You were marketing this product you’re gonna want to be on billboard’s and things like this if you were marketing 15 years ago you obviously wanted to be on google adwords and kind of doing that thing that was a huge opportunity if you’re marketing let’s say 10 years ago you’re more into email marketing and things like that if you’re marketing you know five years
Ago it’s even a little bit different than that if you’re marketing today it’s more like facebook and instagram and youtube and a lot of the new huge platforms that have emerged over the last five to ten years it’s always changing in a few years from now it’s gonna be very different than it is today okay business changes constantly and it changes so fast especially
Because of technology today it’s amazing guys so for that reason a lot of what you’re gonna learn about business if you’re going to business school and you’re growing a marketing school is outdated information that will lead you down the wrong path that you will think you’re being successful by going down this route because you learned it in college when really
That’s the different way of doing things okay i can’t guarantee you most colleges are not even talking about personal branding like personal branding is a new phenomenon that’s really taken hold in a big scale way over the last couple years right i can almost guarantee you no college is talking seriously about personal branding and really the way to do it in all
The new platforms you can do it on and whatnot they’re just missing a huge opportunities for you there so but you do learn education in there are certain industries that you have to get that education for so that is something you can gain another thing you can potentially gain is connections okay so there’s a lot of connections you can make in college that will
Come much more natural to you in a college experience rather than in real life at all i guess colleges real life but i take it as a it’s a different way and it’s different way you can interact socially and things like that college is much more you know laid-back you get to know somebody in college it’s very different vibe than once you’re in in the real world
You’re actually got a job and whatnot because what happens a lot of times once you get further along these people look at you in and you say are you just trying to use me for something here are you just trying to use me in college it’s not really like that it’s just chill vibe it’s just let’s go the party let’s do this let’s do that together let’s have fun so you
Have to make much more natural connections if you’re going to a really prestigious school some of those connections can be unbelievably powerful because of sometimes those people’s parents okay sometimes there’s some people’s parents out there that go to especially if you’re going to some of these prestigious schools that are that can help you so dramatically that
Can open up doors and blow open doors for you that you would have never ever had the opportunity to even you know get through or even try to get in that door just because you know this person you’re friends with them and you know their parents and their parents can hook you up with that inside job that you would have never had the opportunity so the connections
Is very powerful also you can build some business connections in there you know you might know somebody that knows how to code really well they’re really into coding you hate coding but you have this great idea to build this app or this website maybe even make a connection there you become friends then you decide after the college you’re gonna build this business
Sometimes there’s some business connections you can actually build in there that that will help you out greatly right so they can really give you some focus it can really give you some education as far as you know some industries like i said business and those type of industries is not as not very good in my opinion and it can also give you some connections okay
The last thing it can give you is it can give you better opportunities to get a job okay it can give you better opportunities to get a job we know a lot of workplaces look at your resume as far as what college we went to there’s a ton of them out there the time jobs that it’s a requirement they even put on their their applications right requirement bachelor’s
Degree requirement master’s degree if they don’t if you don’t have that on it they’ll just throw it out right away right there’s some there’s some workplaces that will overlook that but the majority of it is if you don’t have that bachelor’s degree you don’t have that master’s degree we are not even considering you okay guys so those are kind of the four things
You have to gain there so for everyone out there it’s really what industry do you want to go to do you know what industry you want to go to now if you don’t really know okay and you’ve got a kid out there who doesn’t really know or you are that kid that’s coming out of high school you’re not really a hundred percent sure what you what you want to do in life then
I say community college is a great thing community college some people call city college as different names out there i call it community college i went to community college for two and a half years when i graduated high school i wasn’t really sure what i wanted to do i wasn’t really sure so i went to community college and i wanted to run track and those kinds of
Things so i got a half scholarship on track that i ended up while i was on the team that was great that was kind of my focus and while in college attending like business came to me more and more and i was more interested in that and also investing was more interesting to me so as those things came to me it was just like an eye-opening experience for me and then
Now why would you want to go to community college versus going to university well generally the cost of it is gonna be much lower it’s gonna be dramatically lower okay also many times most community colleges you can actually transfer those credits over to a university okay you can actually transfer those credits so it’s not like you’re just wasting time in community
College because a lot of times you’ll take basic classes more basic classes and then you can go ahead and transfer those credits if you decide you want to go to university and you’ve done this all at about 1/4 of the price so when i went to community college i literally added up the numbers it was 1/4 1/4 of the cost as if i went to university to take some of those
Very similar classes ok now there also is you know the perception that community college is easier the classes are easier than at a university level especially if you’re talking about the higher universities i don’t know if that’s true because i never went to a university so i don’t know if that’s 100% true or not but that can be a very beneficial thing because in
The end all that’s gonna say is if you do get that you know degree from a university there’s nowhere in there it’s gonna say oh you went to community college for 2 years what no it’s not gonna say that it’s gonna say you graduated from asu you graduated from usc or wherever ok so that’s great and you get to spend much less money let’s say those classes are easier
Well then you get to funnel more time into working okay you can follow more time into working at that that point you go from more time into learning about investing ok you can you can focus more time into personal branding if that’s something you want to do passive income if that’s something you want to do you can funnel more time if these classes are easier you’re
Gonna follow more time up into these other things versus if you took 12 credits at a university maybe you have to spend double as much time on the homework and all those type of things right in these tests and whatnot and then over here you might spend half the time at a community college level then you get to funnel all these extra hours into these things which
Is a beautiful thing guys and you’ve done it all at a much less now if you know me you know my story i’d ended up dropping out after my halfway through my third year so i basically went for two and a half years i think i completely sixty three credits or something ah the reason i dropped out is i just felt like it was time for me to move on to the next thing and
I did not feel like like college you know going because next thing for me was gonna be if i if i want to keep going i was going to go to university level at this point i like i felt like for me i’m done like i’m good now i’m ready to start my life i’m ready to be ready to go after getting a job in toward the end of that that second of that third semester i ended
Up getting a job at a company named quick trip okay they started me out pay me about $40,000 a year as an overnight assistant manager and that was all the money in the world i was i was right before my 21st birthday and 40,000 a year like that’s way more money than i have ever made and so i was ready to get started in my business life i was already investing and
Having success and investing and already been looking into it all those type of things so for me it was time to move on otherwise i was gonna have to say no to this opportunity and i was gonna have to obviously say no to investing because all my money would have been going straight toward university at that point there would have been no money to invest so i would
Have said sayonara you know 40k year bye-bye investing and i’m just going in in college and i’m very happy for me i made that decision does it mean for everybody it’s gonna you know all work out for you it worked out for me a hundred percent but that doesn’t mean it’s gonna always work out for you and to the people that are thinking about dropping out in your last
Year i think and you’re already at a university i think that’s a really hard decision to make i would say for most people if you’re in your last year you’re going into your last year at university i say at that point just finish it out even if you’re you you’re pretty sure you want to go into something unless it’s like dire nead you need to be in that right now
Like you’ve found the next facebook and you need to go on that right now like just finish out that last year that way you just have that degree then just has something behind you and then you can go explore and do those kinds of things guys so this is my perspective on college should you go to college should you send your kids to college and what not i think you
Got to take all these things into account the cost the game you know kind of what their focus is if they have a specific focus if they want to do something out there guys this is kind of way i view it and i hope this video helps tremendous amounts of you guys out there thank you for watching and have a great day
Transcribed from video
Should I Go to College? | Should I Dropout of College? By Financial Education
