Think college is it? Not really; formal education is just the beginning. It’s time to learn about real life.
I always laugh when I hear someone say, “I can’t wait to get out of school.” Really? If you are not always learning, then you will not meet any of your goals let alone your financial goals.
Learning is a lifetime journey. Whatever the method, whatever the experience. A wide variety of learning is necessary. School is only just scratching the surface.
Formal Training
Formal education of some sort is needed to get one started on a career path, as this is the very foundation of one’s ability to earn an income and live one’s life. Your fastest way to wealth is your income: what you earn and how you manage those earnings. Let’s build that education path for success.
High School
Let’s begin here. What happens when you graduate? What path shall you choose? College? Trade school? A full-time job? A business of your own? The entire world is yours for the taking, choose carefully. There is no right or wrong answer. What excites you?
This is where more education is needed. Research is likely necessary. With the use of the internet, you can uncover information on just about anything.
A Full-Time Job
This is a potential path one may take for several different reasons. Getting a full-time job to earn some cash to perhaps pursue another path is one reason. Or, perhaps you do not know what you want to do but think you may want to try something out and see if it is for you. You certainly have heard the story of the CEO who began in the mailroom and worked their way up. It can happen.
College
There’s a lot to consider here. First, how will it be paid? My advice is to stay away from student loans. They will drag you down. There are scholarships, and a job could help as well. Many organizations are willing to help pay. Hunt them down. Then, choosing a school will be important in the cost. A couple of years at a community college is an option to get things started.
What type of degree will you pursue? Will that degree set you on the career path that you wish? What is the potential return of any degree? In another words, if you get a certain degree, what is your earning potential? Where can you be in 10 years? Twenty years? What is your path to success?
Trade School
Do you like working with your hands? Maybe working as a plumber, electrician or carpenter is what you enjoy. A mechanic, welder or some other trade may suit you. Any of these can provide you with a good income.
How will you pay for these? Perhaps you can get a job in construction and maybe they will send you to a trade school. Be creative.
Own Your Own Business
Don’t want to work for someone else, want to call your own shots? Do you have an entrepreneurial spirit? What type of need will you fill? What value will you bring to potential customers?
Can you develop a business plan? If so, great. If not, more education is needed for you to learn how to write one. Perhaps this is where you want to end up after you have gone down one of the other paths outlined above.
Career Path Chosen, Now What?
You may think with your career on track, your education is complete! Think again. It has only just begun. Whatever your career choice, make sure it is something you enjoy and that you will do for a long time and your success will be beyond your imagination.
Now, let’s explore the real-life education you will need to be a success in your financial life.
Real-Life Education
Think college is it? Not really; formal education is just the beginning. It’s time to learn about real life. If you are all set in your career with a nice job, what’s next?
Home Buying
If you want to buy a house, you need to learn about real estate, mortgages and all other home-buying tricks of the trade. When considering home repairs, how are your skills? Can you make the simple repairs?
Budgeting
We discussed budgeting in an earlier article. You can read it here, (https://quadcitiesbusinessnews.com/how-to-create-a-budget-for-success/). This is another life skill. if you do not budget, you will not likely be successful in financial planning.
Retirement Planning
Get a jump on retirement planning. Learn about 401Ks, 403Bs, IRAs, Roth IRAs and other tax-saving retirement instruments. Should you use tax deferral or tax-free strategies? How much should you fund? What about funding an HSA? Then, there is the education about Social Security and Medicare. The learning keeps on coming. Early retirement planning will ensure a comfortable retirement.
Taxes
Everyone’s favorite topic is taxes. We all need to pay our taxes, unfortunately. Learn enough to only pay what you owe. Never overpay. Don’t let the government hold your money. Remember, a tax refund is not a gift from the government, it is your money. It’s better to have it in your pocket than theirs.
Investing
What will you do with your money? How will you make it grow? What do you know about investing? More learning. A key to growing your wealth is getting your money to work for you. Where will you invest? What level of risk will you take? Will you be able to sleep at night?
Risk Management
Now that you have a solid financial plan, you need to protect your assets. How much insurance do you need and what types? Using insurance will protect both your family and your assets. Life, disability, health, auto, homeowners, renters and an umbrella policy may be in your cards. What do you need? What assets do you need to protect?
Estate Planning
Creating a solid financial plan will allow you to achieve success. What will you do with your wealth? You cannot take it with you, so more planning is necessary. What will you leave to whom? Did you name beneficiaries on all your assets? Do you have a will? Have you reviewed your intentions with your loved ones? Don’t make this a treasure hunt, tell them where the treasure is buried.
Wrapping It Up
In the final analysis, education is an important ingredient to one’s financial success. If you thought you were done once you got your formal education or training, you can now see that it was only the beginning. Use paid experts in the disciplines you do not understand or need help navigating. Make sure they teach you, not tell you. It is your money and your life. You need to make the decisions.
Good luck!
You work hard for your money make sure it stays your money! QCBN
By Steven Calabrese
Steven Calabrese, CPA, is the CFO of Polara Health. He also is the owner/operator of a website known as thebiweeklyadvisor.com, where topics such as budgeting, investing, paying off debt and goal setting are discussed.
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