Starting Out?
Your mindset for money has a greater chance to grow when you are young. A good mindset for money can put you in a good place, “your zone”.
My first opportunity to earn money came when I was about 12 and got my first bike which needed some repair. I painted it black with red and yellow flames on the bar behind the front wheel. That allowed me to deliver papers quicker. I delivered Grit, a weekly newspaper. I know you’ve probably never heard of that one. Just ask your grandparents.
These days, your first experience making money may be related to yard work or food service. However, whatever it is, the small pile of cash you earn will come with temptations.
I was mad at myself for losing $1.23 playing Royal Rummy at a friend’s house, that summer. That was a week’s wages for Grit deliveries! I learned to be cautious about gambling.
Yes, it was a different time and money has changed a lot in value.
Entertainment or Accumulation?
You will have a choice on what to do with your money. I knew a couple of guys that were patient and hard-working. They learned to save. They always had enough to go to the occasional movie with friends. However, before leaving high school, they were able to buy a used car that would provide transportation to and from the college campus.
“Don’t Spend the Whole Dollar!”
Jim Rhone was a motivational speaker and businessman, that I found later in life, who had many quotable phrases. One of my favorites had to do with teaching your children about money. He said to tell them, “Don’t spend the whole dollar!” And, if they do not believe you, then, take them to the poor side of town and ask them, “Do you want to live like this?” When they say, “No!”, then, say, “Don’t spend all of what you make. Learn to save for the future. Don’t spend the whole dollar!”
Go to College!?
I have a college degree. And I think you should, at least, try it. Maybe, get an Associates (two-year) degree.
That would be a challenge to your mind that could broaden your view of the world and how you fit into it.
However, in recent years, with college graduates having difficulty finding jobs in their field of study, I think you should do a “cost to benefit” analysis, of your own, before making that commitment.
“Cost to Benefit” Decisions
“Cost to benefit” is a business term, usually tied to the accounting department. They help management consider business decisions, like a plant expansion or adding another retail outlet. They ask, “Will we benefit from the addition enough to cover the cost over a reasonable time?”
You are capable and should learn this process, especially for every major purchase or job move over your lifetime!
Questions to ponder, related to getting an education, how much is tuition and how many years will it take to get my degree? When I graduate, how much can I make in my first job in that field? How many years will it take to recover my investment in education?
When you include housing and meals to attend college full-time, the cost can add up quickly. So, I offer the following summary for you to consider as a basis for your analysis:
Tuition over 4 years $120,000
School Loans $100,000
First Job Salary $ 40,000
At first, you say that the payback is three years. That is, the tuition is divided by your salary. However, your pay has taxes, health insurance, etc. taken from it. And you must start paying the School Loans shortly after graduation. That will be another drag on your net pay!
That looks overwhelming to me! The option to learn a trade or sell insurance would start to look pretty good.
However, there are thousands, if not millions, of college students who did not consider the “cost to benefit”. I am sure parent’s encouragement contributed to their decision to get started.
Just so no one thinks I am against education, I believe saving and getting scholarships, and, possibly, the GI Bill are better ways to fund that noble effort. However, it takes time to research and apply for grants and scholarships, or commit to a service obligation which involves learning a military occupation.
Enjoy the process of learning and earning a degree, but do not kill your career with DEBT before you start! Reminder: Bankruptcy excludes school loans!
I have an MBA, a master’s in business administration, which I earned while working full-time for over two years! And it paid off! I incurred some debt because I pressed my timeline. However, my reasons were sound since that degree helped me compete for better paying jobs.
Reflections to Ponder
Looking back, knowing what I know now, I could have done more with the knowledge I gained getting that degree. I let my imagination go into dormancy. I failed to look for better opportunities. I just worked hard and worked long hours when I should have worked smarter. I never looked for options.
I have since found speakers and authors who have helped me get a better mindset for managing my time and my money and for finding opportunities.
Choices and Opportunities
We have choices. And not all choices require a degree. To stimulate your thinking on this subject, I suggest you add 48 Days To The Work You Love, by Dan Miller, to your reading list.
Income is earned in a variety of ways. It may be a job where you exchange a perceived value over time for a regular paycheck. Or it may be as a business owner trying to make a profit. There are more responsibilities and risks, which is why many avoid that option but it can be very rewarding. Or you could grow into an investor, with returns that make a job optional. How cool is that?
These are choices. You choose what to pursue. You can use your imagination better than I did. You can develop “your zone”.
“Your Zone”
My definition for “your zone” would be the working environment that utilizes your skills and talents and that you find satisfying.
Most jobs, businesses or investments have some things you might consider drudgery, like a budget, forms to complete, or meetings to attend. However, if there is enough that you do like, to offset that boring stuff, then, getting up to go to work every morning will be much easier. You will be in “your zone”!
With a better mindset for money and investing opportunities and managing your time, you will get to “your zone” and enjoy your financial life much faster!