When you spend money on college, you invest in your future.
According to “Want to earn $650,000 more? Go to college,” an article that Justine Rivero wrote for Forbes, college grads earn an average of $650,000 more over their lifetimes than people do who earned only school diplomas. She also writes that certain college majors do far better than that. Engineering majors, for example, can earn $1.9 million more over the course of their careers.
That’s why the dollars that you spend on education are actually investments in yourself. When you spend a dollar on gasoline, it burns up and goes away. When you spend money for a new pair of jeans, they will wear out and you will toss them away. The dollars you invest in your education are different. They pay you back day after day and year after year.
How to Use Leverage to Get a Better Return on Your College Investment
Because your educational expenditures are an investment, why not use leverage to get an even better return on them?
Leverage means that you spend less to earn more – it’s a principle that successful people have been using for years. One example? If you’re starting a business, you can get other people to invest in it instead of using only your own money. In that way, you’re leveraging more value out of every dollar of your own money that you spend.
You can apply a similar strategy when financing your education, simply by spending less money. If you can spend about $60,000 over four years to earn a degree at a state school instead of $80,000, for example, you are leveraging more return from every educational dollar that you do spend. If you’re majoring in engineering, for example, you will enjoy $1.9 million more in career earnings (to use the statistics from that Forbes article) while investing $20,000 less. The same principle is true if you are going to spend $150,000 at a private college instead of $200,000.
How to Save Money and Earn More from Your Educational Investment
It’s not unrealistic to expect that kind of return on your educational dollars. You can slash your educational spending in several ways. You could start college at a community college, and then transfer to a state school. Or to save even more, you could invest in StraighterLine’s Freshman Year of College for $1,299 program and cut the cost of your college education by 25%.
Please stop for a moment and think about it. When you spend less on your college education, you are maximizing the return from the investment that you are making in your future.
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