How to Invest and Build Wealth Without College
- For many young adults, parents emphasized the importance of receiving a college education when wanting to obtain a high-paying job.
- Although there is a correlation between higher education and higher pay, going to college is not for everyone, and it is possible to receive a high-paying job.
- To become successful without going to college, the most vital thing that needs to be done is to develop specialized skills within the industry you desire to work in.
Growing up, many parents emphasized getting a college degree after graduating from high school. Their main train of thought was a college degree would improve the chances of landing a high-paying job and begin wealth building.
Although this method is still used today, and there is a correlation between the level of education and the compensation a person receives, college is not the only option for building wealth and becoming successful. For example, some of the wealthiest people in the world did not graduate from college, yet they defied the odds and became highly successful.
Successful College Dropouts
Some of the most recognizable companies, such as Apple, Microsoft, and Facebook, were all created by college dropouts who became successful. Their founders, Steve Jobs, Bill Gates, and Mark Zuckerberg, stopped pursuing their college degrees because they felt they could use their time more effectively on other things.
Due to their leap of faith, they were able to build businesses that are known in the United States and worldwide.
What to Spend Your Time on
These billionaires did not become successful without dedication to their craft. It can be challenging to determine what to do with the majority of your time, especially since before, the bulk of your time was spent dealing with completing academic assessments.
Develop Specialized Skills
Specialized skills that you learn can help you secure a steady income now and in the future.
College aims to help people gain skills and knowledge to secure a higher-paying salary for the rest of their working lives. However, you can still learn a skill if you decide not to attend a traditional college or university.
Instead, consider fields where training or certificate programs will help you increase your income. For example, tech is a great space that doesn't yet require a degree for many available jobs. A plus is that if you decide to pursue school later, you may be in a better position to have your employer help you pay for your tuition.
Employers pay higher for more specialized skills and knowledge. There is no point in working harder for less money. You deserve to get paid appropriately for the expertise you bring to the table.
Write Down Your Goals
The majority of people who go to college have a long-term goal in mind and are taking classes in a field they are interested in working. Similarly, it is important to write down your goals to know what you are working towards and not get sidetracked.
What to do With Your Money
If you skip college, you skip out on one of the most significant financial burdens holding back millennials — student loans. But remember, just because you may not have to take out any student loans, stay cautious of taking out any debt. When you begin making money from the skills you acquired, here are some things to look out for when using your money that could negatively impact your financial position.
Beware of High-Interest Rates
High-interest debt hurts your pockets because it's expensive, and it takes longer and more money to pay off the high-interest debt. Therefore, when you use your credit cards to purchase items, it is important to make sure that you only buy things that can be paid off within one month.
If you fail to do so, your credit score could get lowered, which could have repercussions down the road when you need a financial institution to give you a loan for a mortgage.
Image Credit: Vitalii Vodolazskyi / Shutterstock.com
Save Money into an Emergency Savings Fund
One of the most common money mistakes people make are they lack putting money aside for a rainy day. When beginning to make money, setting aside a portion of your income is essential if an unexpected emergency occurs. The money in your emergency fund should equal three to six months' worth of living expenses, allowing you to pay for your living expenses in times of an emergency.
Invest your Money
As Albert Einstein once said, “Compound interest is the eighth wonder of the world.” Keeping most of your money in a bank account is not good since there is inflation. Thus, the constant inflation will make the money in your bank account worth less over a long time.
However, by investing in the stock market, due to compound interest, over a prolonged period, your money will be worth exponentially more than what it would have been if it remained in a bank account. Therefore, investing in various ways such as the stock market, real estate, and government securities is crucial. These investments, over time, will help improve your financial status and provide generational wealth.
Nowadays, it has been proven consistently that college is not necessary to become successful. Though pursuing higher education helps with developing crucial skills and landing more prestigious positions, this educational path is not suitable for everyone. Regardless of a person's educational path, as long as they put their mind toward their goal, they will become successful.
Main Image Credit: enciktepstudio / Shutterstock.com