If I Were 18 Again, Here's What I Would Do
Alex Hormozi・2 minutes read
The cost of college has skyrocketed, leading to massive student loan debt. While higher education can boost lifetime earnings, the value of formal education is being challenged by experience and skills in the job market.
Insights
- The cost of college has significantly increased over the years, leading to a rise in national student loan debt that surpasses the GDP of many countries, creating lifelong financial obligations due to the inability to discharge student loans through bankruptcy.
- While formal education can result in higher lifetime earnings and certain industries benefit more from advanced degrees, the speaker highlights the importance of practical skills, experience, and networking, advising against attending college without a clear plan, and suggesting continuous learning through real-world experiences and skill acquisition for career advancement.
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Recent questions
How has the cost of college changed over time?
The cost of college has doubled in recent decades while starting salaries have remained relatively stable. This increase in college expenses has made higher education less accessible for many individuals, leading to a significant rise in student loan debt. As a result, students are facing financial burdens that can impact major life decisions, such as buying a home or starting a family.
What is the impact of student loan debt on individuals?
Student loan debt has reached 1.76 trillion dollars, exceeding the GDP of most countries. This debt cannot be discharged through bankruptcy, creating lifelong financial obligations for borrowers. It can hinder financial progress until late 30s or early 40s, delaying important life milestones. While higher education can lead to increased earnings, the burden of student loan debt may offset these potential gains, affecting individuals well into their careers.
How does education level affect lifetime earnings?
Statistical analysis shows that median lifetime earnings increase with higher levels of education, with professional degrees yielding the highest earnings. While pursuing higher degrees may require more time to reach peak earning potential, the likelihood of earning more with increased education levels is evident. This emphasizes the importance of formal education in certain industries for financial success and career advancement.
What is the speaker's perspective on attending prestigious universities?
The speaker acknowledges the benefits of attending prestigious colleges like Harvard or Ivy League schools for personal branding and career advancement. These institutions offer valuable networking opportunities and a strong alumni network that can enhance one's professional prospects. The potential lifetime earnings disparity between degrees from different schools highlights the advantages of obtaining a degree from renowned institutions for long-term financial success.
What advice does the speaker give regarding college attendance?
The speaker advises against attending college without a clear plan or purpose, suggesting that individuals explore real-world experiences and relevant skills for career advancement. Prioritizing education outside formal institutions through continuous learning, work experience, and skill acquisition is recommended. The importance of gaining practical skills and experience over formal education for certain professions is emphasized, along with the value of networking and investing in education wisely to avoid accumulating debt.
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Summary
00:00
Rising College Costs Impact Future Earnings
- The cost of college has doubled in recent decades while starting salaries have remained relatively stable.
- National student loan debt has reached 1.76 trillion dollars, exceeding the GDP of most countries.
- Personal experience of attending a prestigious university and achieving success in business without relying on formal education.
- Emphasis on experience and skills over academic credentials in today's job market.
- Student loan debt cannot be discharged through bankruptcy, leading to lifelong financial obligations.
- Median lifetime earnings increase with higher levels of education, with professional degrees yielding the highest earnings.
- Student loan debt can hinder financial progress until late 30s or early 40s, impacting major life decisions like starting a family or buying a home.
- Higher degrees require more time to reach peak earning potential, potentially offsetting increased earnings with debt obligations.
- Statistical analysis shows the likelihood of earning more with higher education levels, favoring formal education for increased income.
- The impact of education on earnings varies by industry, with certain fields benefiting more from higher education levels.
13:31
"College vs. Business: Networking and Success"
- The speaker contemplated starting a business with $250,000 instead of attending business school, believing it would provide more valuable learning and financial success.
- Emphasizes the importance of networking in college, but questions the value of paying $50,000 annually for it, suggesting investing in a network directly.
- Discusses the social experiences and networking opportunities in college, highlighting the potential fun and connections made, especially for those seeking a resort-like experience.
- Mentions the possibility of obtaining financial aid, grants, or scholarships to attend college for free or at a bargain, which could be a significant advantage.
- Acknowledges the benefits of attending prestigious colleges like Harvard, Princeton, or Ivy League schools for personal branding and career advancement due to the alumni network and reputation.
- Points out the potential lifetime earnings disparity between degrees from different schools, highlighting the advantages of degrees from renowned institutions like Harvard.
- Encourages a nuanced approach to decision-making regarding college attendance, considering factors like financial aid, family background, and career goals.
- Advises against attending college without a clear plan or purpose, suggesting exploring real-world experiences and learning relevant skills for career advancement.
- Recommends prioritizing education outside formal institutions, advocating for continuous learning through work experience, online courses, mentorship, and skill acquisition.
- Encourages humility, willingness to learn, and adaptability in career choices, emphasizing the importance of gaining practical skills and experience over formal education for certain professions.
26:22
"Maximize college experience, prioritize learning over earning"
- Join social clubs, sororities, and fraternities to expand your social circle and expose yourself to diverse opinions, enhancing your college experience. Focus on learning and treating college as a job, investing in education to avoid accumulating debt and graduate efficiently.
- Take on a rigorous course load, consider summer school, and prioritize learning over earning, whether as a professional student or one who gets paid for it. Make independent decisions about your education, understanding that college is about acquiring relevant skills and discipline, not just partying or seeking immediate financial gain.
