Is a college degree still worth it financially?
I'm going to graduate with $40,000 in student loans. I'm making $32,000 at my first job. My friend who skipped college and learned a trade is already making $45,000. When does a degree actually pay off financially? Should I have gone to community college first? I feel like I was sold a bill of goods.
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4 Answers
My parents told me the same thing and they were right. But everyone's situation is different. Run the numbers for your specific situation before making a decision. There are good calculators online that account for all the variables.
The simplest advice I ever got was: spend less than you earn and invest the difference. Sounds obvious but most Americans don't do it. Track every dollar you spend for a month — you'll be shocked where your money goes.
Pay off your highest-interest debt first — that's almost always credit cards at 18-22%. There's no investment that reliably beats paying off an 18% credit card. It's a guaranteed return. Knock that out before you even think about the stock market.
Taxes are the part everyone forgets about. Whatever you're planning, factor in what you'll owe Uncle Sam. Talk to an accountant — a good one saves you more than they charge. H&R Block is fine for simple stuff but get a real CPA if it's complicated.
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