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Post-Secondary Education: Choose Wisely

Regardless of which path an individual takes in education, the amount of motivation behind that choice is directly correlated to the amount they learn. This correlation can guide us in our decision-making regarding which path to take, and it drives to the core of the “why” of the decision. When we look at our paths through the “why” lens, it provides clarity on our motives.

In my case, I obtained an undergraduate accounting degree simply because it ensured a post grad job and the ability to support myself financially. Did I do this because I wanted to learn everything there is to know about journal entries and Generally Accepted Accounting Principles? Hell no. I did well in the classes by memorization and doing as much as I had to do. At no time, in any accounting class, did I go above and beyond to learn the subject in-depth. It was a problem of motivation and lack of passion.

In my next educational venture, I pursued an MBA (Masters of Business Administration), which covers a far broader scope of topics and is more grounded in actual business cases that occurred. To me, the variety and the grounding in reality, rather than textbook regurgitation was much more motivating, interesting and applicable to the real-world. Which, in turn, drastically increased my motivation to learn from the course work and expand my mind.

Choosing an educational path often leads to an idealistic conversation, but the reality is that every adult or aspiring adult’s life is laced with rent-mortgage, car note, loans, insurance, clothing, food, and a multitude of other costs. The follow your dream path is attainable, but it is typically realized after many years of due diligence, strategic planning and sacrifice. This is why so many of us (Including me) initially focus more on the outcome of the learning rather than passionate mastery of the subject itself. You may, as I did, obtain that outcome and stability that you were looking for. But the lack of mastery and passion for continuous learning in that subject matter will cause you to plateau in the industry that you chose. I will never be a master accountant because I do not care to be, there is no burning curiosity or drive in me to deep-dive the subject. Sometimes we win and look back on that decision and realize it was flawed from the start. Once you can support yourself, then think more broadly and build a life based on passion and curiosity. And remember, nothing worthwhile is built overnight, be doggedly persistent and strategically manage risk.

Below we will discuss the pros, cons and limitations of the current educational avenues in the U.S.

College / University

Pros: Earnings potential, more likely to obtain health and retirement benefits, social growth and soft skill development, broad learning over several different disciplines, career counseling and interview preparation, networking opportunities with current students/alumni, career fair opportunities to meet prospective employers

Cons: Inflated tuition rates, student loan debt and interest payments, no guarantee for lucrative employment, delaying financial independence, broad learning may not provide sufficient mastery of a skill set, paying for non-essential content (i.e. General Education credits), opportunity cost on missed income over degree period

Limitations: Lack of hands on training and practicality, typically not conducive to the entrepreneurship mindset, tunnel-vision can occur, difficult to pick a subject career path at age 18-20

Master’s / Professional Degree

Pros: High earnings potential, likely to obtain health and retirement benefits, social growth and soft skill development, coursework that is specific / hands on / in-depth, provides subject matter expertise and or certification, networking opportunities with current students/alumni, more likely to be nationally / globally recognized credentials, tuition can be funded by an employer, part-time programs can be completed while earning a full-time salary

Cons: Inflated tuition rates / student loan debt / interest payments (self-funded), no guarantee for lucrative employment, likely delaying financial independence (self-funded), opportunity cost of missed income over degree period (full-time students)

Limitations: Must complete an undergraduate degree prior to application, very high tuition rates, may have to take entrance exams (up to 6 months of pre-work prior to the program)

Skilled Trades

Pros: Low barrier to entry (Usually GED / High School Diploma), mid to high entry-level earnings, hands on training and certification, high demand for job skills (Electrical, Plumbing, HVAC, Etc.), access to unions to fight for fair pay and treatment, compensation for overtime usually built into contracts, ability to transition to your own business / practice, satisfaction of seeing immediate work results, training provides mastery of skills

Cons: Physically demanding work, income depends on hours worked (can lead to a lot of overtime and time away from family and friends), usually on call / sporadic schedule, work can be dangerous (i.e. lineman, electrician), pension / retirement / health benefits dependant on a negotiated contract (could change over time)

Limitations: Job responsibilities may not be as broad, earn your keep culture – long path to obtain a management role, ongoing education training often required, skills can be less transferable to other industries (Niche)

Entrepreneurship / Certification / Licensing

Pros: Low barrier to entry, be your own boss / set your own schedule, earning potential often uncapped, can learn many skills when building a business (Accounting, finance, Marketing, Sales, Advertising, Manufacturing, etc.), ability to create your own culture or niche, pride in ownership

Cons: Starting pay is low and dependant upon building a client base, macro-economic conditions play a large role – income depends on consumer discretionary spending (i.e. pay for rent before paying for a personal trainer), not typically unionized, must pay for your own benefits and fund your own retirement, continuous education credits often mandatory for certification or licensing, sporadic schedule to meet the needs of clients

Limitations: Can be geographically limiting if dependent on a client base, certification skills can be less transferable to other industries (Niche)

Action Request:

Do the research up front and keep an open mind. The correct education is probably a combination of at least two of the options outlined above. Start with what you can, there are options with high barriers to entry and low barriers to entry. If you can swing earning an income while being educated that may be the most risk averse option. If you create value for others, the money will follow. Stay true to your personality throughout the journey.

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