Lets talk about how you can earn an extra $100,000…by not going to college? Watch until the end for some out-takes and bloopers - enjoy! Add me on Snapchat/Instagram: GPStephan
Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and exactly what you can do to begin taking your career to the next level…these strategies took me to $120,000,000 in sales volume: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Back to the video: Here are the numbers, and this is the math behind my calculations. There will always be extremes on either side, high school graduates making millions and college graduates working minimum wage…so I picked the average for everything:
Average college degree:
Average cost of a 4-year education: $56,840
Average amount of student debt - $37,172
Average interest rate - 4.8%
Average income - $50,556
Average lifetime earning potential - $2,268,000
Average high school degree:
Average high school Income: $35,256 pre tax
Average lifetime earning potential: $1,304,000
This appears to be a difference of $964,000 earned over a lifetime between a high school and college graduate.
With our average college graduate, they begin working at 22 years old earning $50,556. After taxes, that’ll be more like $42,000 per year. If they pay down their loan by $10,000 per year, by the age of 26, the loans are paid off entirely. Now after this, lets assume that now at the age of 27, the college graduate invests 25% of their net salary and invests it at an 8% return. We’ll average this at $15,000 per year overall - we can assume salaries will go up over time and investing remaining consistent. That’ll leave $3,569,118.32 in net worth by the age of 65 years old.
But with the High School Graduate: They’re making just over $35,000 per year but no debt. Plus they can start working and investing immediately. Lets assume after taxes, they’re left with $30,000 per year and they invest the same 25% of their income, or $7500 per year. And lets assume this remains consistent over the course of their entire career. Even though they’re making an investing less, they have an extra 4 years of work and saving over the college graduate, while also having zero debt. Even though they’re earning and investing less, by the age of 65, they’re left with $3,668,491.23.
That just happens to be $99,373 dollars MORE than the college graduate at the age of retirement.
Lets then say the college graduate pays for college outright without any debt, and begins investing $15,000 per year from the age of 23 vs 27, so that’s an extra 4 years. Do that until the age of 65, you’ll now have $4,928,745.08. Just incurring debt early on, and postponing investing just a few years made a difference of nearly $1.3 MILLION dollars over the course of the career. That’s huge.
Then lets also say that the high school graduate just invests the cost of a college degree at 18…actually, we’ll go even further to say he just invests the average college debt of $37,172 at the age of 18, then just invests $7500 per year after that by investing 25% of their income. By 65, that person will have 5,052,479.59….that’s a $123,734 difference in net worth at the age of retirement of 65 between a high school graduate and college graduate.
That’s an extra $123,000…just by not going to college?
Now of course, I’m making this video more so for entertainment purposes to run the numbers behind the real cost a college degree, and also to show that purely from a financial perspective, college doesn’t always make sense. In terms of wealth, it really boils down to is two things: 1. How long you invest your money for 2. How much of that you invest. It’s that simple.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and exactly what you can do to begin taking your career to the next level…these strategies took me to $120,000,000 in sales volume: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Back to the video: Here are the numbers, and this is the math behind my calculations. There will always be extremes on either side, high school graduates making millions and college graduates working minimum wage…so I picked the average for everything:
Average college degree:
Average cost of a 4-year education: $56,840
Average amount of student debt - $37,172
Average interest rate - 4.8%
Average income - $50,556
Average lifetime earning potential - $2,268,000
Average high school degree:
Average high school Income: $35,256 pre tax
Average lifetime earning potential: $1,304,000
This appears to be a difference of $964,000 earned over a lifetime between a high school and college graduate.
With our average college graduate, they begin working at 22 years old earning $50,556. After taxes, that’ll be more like $42,000 per year. If they pay down their loan by $10,000 per year, by the age of 26, the loans are paid off entirely. Now after this, lets assume that now at the age of 27, the college graduate invests 25% of their net salary and invests it at an 8% return. We’ll average this at $15,000 per year overall - we can assume salaries will go up over time and investing remaining consistent. That’ll leave $3,569,118.32 in net worth by the age of 65 years old.
But with the High School Graduate: They’re making just over $35,000 per year but no debt. Plus they can start working and investing immediately. Lets assume after taxes, they’re left with $30,000 per year and they invest the same 25% of their income, or $7500 per year. And lets assume this remains consistent over the course of their entire career. Even though they’re making an investing less, they have an extra 4 years of work and saving over the college graduate, while also having zero debt. Even though they’re earning and investing less, by the age of 65, they’re left with $3,668,491.23.
That just happens to be $99,373 dollars MORE than the college graduate at the age of retirement.
Lets then say the college graduate pays for college outright without any debt, and begins investing $15,000 per year from the age of 23 vs 27, so that’s an extra 4 years. Do that until the age of 65, you’ll now have $4,928,745.08. Just incurring debt early on, and postponing investing just a few years made a difference of nearly $1.3 MILLION dollars over the course of the career. That’s huge.
Then lets also say that the high school graduate just invests the cost of a college degree at 18…actually, we’ll go even further to say he just invests the average college debt of $37,172 at the age of 18, then just invests $7500 per year after that by investing 25% of their income. By 65, that person will have 5,052,479.59….that’s a $123,734 difference in net worth at the age of retirement of 65 between a high school graduate and college graduate.
That’s an extra $123,000…just by not going to college?
Now of course, I’m making this video more so for entertainment purposes to run the numbers behind the real cost a college degree, and also to show that purely from a financial perspective, college doesn’t always make sense. In terms of wealth, it really boils down to is two things: 1. How long you invest your money for 2. How much of that you invest. It’s that simple.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
It’s a good thought provoking video. Also consider that the lifestyle is not the same throughout life because income levels are different (using the averages only as you did here). That’s a massive difference!
Hi Graham. I love your videos. I'm turning 40 and no one ever told me how to invest. Can you please make a video for people my age who are just starting to invest. Or if you already did can you send me a link. Thanks again.
Nobody crunching numbers for the HS dropout???😂
@grahamStephan what happens if the college student invests while in college? Will they end up with the same retirement as a no college graduate?
In my country college loans are interest free, and once you start working they deduct 12.5% of your earnings to pay it off so you can still be saving, and the value of the loan gets less overtime due to inflation.
This video seems pretty far from the truth, at least with what I’m facing.
Ironically, I feel like a bum for going to college lollll
hey graham to be a real estate investor should i become a real estate agent?
People forget about certifications… I finished highschool did one year of college, hated it, then got a practical useful certification
( personally I did AutoCAD, others I know did IT certifications) at the same college and in 2 months (haven’t even finished the class) the professor recommended me to an employer. Starting pay 42k a year at 19 years old. All that income is free to invest as I still live at home with parents. Saving for my first investment property.
Great video. I think the biggest issue is that realistically very few people in their 20s, regardless of their education or income level actually invest. Most don't start until their 30s, which is easier when you have the potentially higher income of a college degree.
Hey Graham, I'm gonna be getting my real estate licence soon. Just wondering will your course help pass the tests or is it more for after you get your licence? Thanks man
Hey Graham, money aside. How about personal relationships when not attending college ? how do you go about making more friends 🤔
Great overview Graham. I'm not bias one way or the other, but for me personally college has paid off. At least in my opinion. I realize it doesn't pay off for everybody. College has gotten extremely more expensive since I graduated in 2010. If I were starting over knowing what I know now I would need to do a greater analysis before starting. I think people who want to do well financially will find a way to do well whether or not they go to college. My advice would be to try to figure out what you want to do before starting college. See if you what you want to do even requires a college degree. It might not. I think college can be a good investment if you are pursing a very technical profession. I'm a CPA for example. To become a CPA where I live you have to go to college. So it just depends on what a person is looking to do. If I were doing marketing I would not go to college knowing what I know now.
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Graham where is the source(s) in the description?
Love this tipe of videos
Graham, this might not be the best video to comment on about investment, but I did go to a university (it was free for me as I'm Lithuanian) and I'm currently 24 and still a junior in IT, and even though I've seen quite a few of your investment related vids and a lot of other ones too, compound interest stuff etc, googled some info on it and read some general savings info, only a few days ago I was approached by someone in that field (Vienna Insurance Group) but I'm not entirely sure if their stuff is worth it and whether I even have options as good as americans do for savings? Any light on this topic from a non-american perspective?
Wait…you don't care about my brother's friend? DISLIKE! I see both sides. Student loans are truly painful to repay. I really feel for these lawyers that graduate with $150k-200k in debt and are finding difficult to find actual legal practice jobs. I almost went this route, but the analysis of the cost with the opportunity costs included made it impossible to go through with this plan.
Hey Graham,
Not sure if you are going to see this but I have a question I would love for you to answer.
I have aspirations of becoming a real estate agent and succeed in my job. Being 16 im not yet old enough to get my licence so I would love to plan out all of these things in advance.
I live in a small rich town with about 18 000 people, beside another lower end town of about 100 000, and beside the border. Living here makes it seem like there wont be much business. My main question though is if I should move to the Greater Toronto Area where there would be many more houses along with higher end ones with the population of 6 million or just stay in my hometown?
Thanks,
Reuben
I failed college twice and still manage to become a millionaire at the age of 30
smh 14 people disliked. 14 people triggered
Make sure to watch until the very end, threw in some bloopers when I forget to turn my phone on silent 😉