If I Were 18 Again, Here's What I Would Do

Summary

The video analyzes whether going to college or skipping college to start a career is the better path. It examines data on costs, income potential, and more for each route. The host reveals his unconventional path and success in business without formal higher education. Ultimately, the video concludes that the choice depends on individual factors like financial aid eligibility and career goals. It argues that the key for either path is continuously investing in developing in-demand skills versus just earning money.

Takeaways

• 😲 The cost of college has doubled in recent decades while median starting salaries have stayed flat
• 😰 Student loan debt now exceeds $1.76 trillion, more than the GDP of every country except the top 10
• 😀 More education generally correlates with higher lifetime earnings, but costs must be weighed
• 🤔 College outcomes vary greatly by field of study and individual circumstances
• 🎓 Elite colleges can provide strong returns through branding and networks
• 😕 Many would succeed with or without college if they have high test scores and family wealth
• 😀 First generation and minority students tend to benefit more from college
• ⚖ For most paths, focus on continuous learning over short-term earnings
• 🎉 College provides a unique social environment, but has distractions from learning
• 😃 Either path can work with discipline, initiative and the right mindset

Q & A

What factors contribute to the high cost of college tuition?

The main factors are: tuition costs have doubled in recent decades while median starting salaries have stayed about the same, resulting in a widening gap between costs and returns.

What are the downsides of taking on large student debt?

Downsides include: high interest rates, inability to bankrupt out of the debt, payments and interest drag during peak earning years in your 30s and 40s when starting a family and buying a home.

How do lifetime earnings compare across education levels?

Median lifetime earnings range from under $1 million for not finishing high school to $3.6 million for professional degrees, with each level of education bringing moderately higher earnings.

What determines whether added education increases income?

It depends on the industry. Education makes less difference in earnings for personal services, blue collar, sales etc. But it increases earnings more substantially for science, technology, healthcare, management etc.

What are some pros and cons of the college experience?

Pros: May add earnings value depending on your race/ethnicity background, provides social experiences and networks. Cons: High cost and interest payments, earnings require a long time to materialize.

Should everyone get a college degree?

No, it depends on your personal socioeconomic background and what career you want. Formal education matters more for science/technical careers but less for others.

What are some alternatives if you don't go to college?

Focus on gaining work experience in your desired field, continue self-education using books/videos/courses, pay experts to learn high-value skills, and build up your abilities and network.

What mindset is most important when skipping college?

You must stay disciplined, make learning the priority over income, accept humility and being doubted, and invest in continually developing your skills over time.

How can you maximize the value of going to college?

Take heavy course loads, graduate faster, meet tons of people and build your network, get work experience via internships/activities, and focus on learning over partying.

What one metric best predicts your future earnings?

Your zip code where you grew up. Those from wealthier areas tend to have access to more opportunities for higher lifetime earnings later on.