I decided to hypothetically put two people seeking professional careers, including a prospective student, the candidate of another school truck driving, against each other in a comparison of vocational training, the annual salary, the accumulation of debt, and investment capacity, while comparing the timelines for similar goals. Assuming that we start this time with the student to enter college and the driver of the truck to enter Truck Driving School. The student is looking for one of the top paid career with a degree in one of the following: marketing, business administration, mechanical engineering, management information systems, civil engineering, electrical engineering, computer science, accounting, finance or economics. The truck driver is just looking for a job as a good driver who has the house all day with a good salary.
To be fair, we base the cost of tuition for students on an average of $ 16,000 to a university in the state of the public, and about $ 33,000 for a private school each year for 4 years. These costs include tuition, fees, books, room and board and other expenses.
The cost of the training school of the truck driver is $ 1,500 to $ 3,500. Most schools pay for room and board and some company schools pay the salaries of students during their training. The Company will pay training schools if the student agrees to work for them for a year.
Now we will move rapidly to three months from our point of departure: The student is learning and acquiring debt. The truck driver has finished school and was making money from driving for a company to break because of $ 35,000 per year. The driver just got enough experience to get a job with a company career and he does.
One year and three months after the starting point: The college student is still learning and acquiring debt, somewhere between $ 20,000 and $ 41,250. The truck driver had several pay increases, and grossed over $ 65,000 his first year with his new company. He put $ 15,500 in his 401k with company match fine. He also put money into an IRA of $ 4,000 and buy shares. He goes home every day at the new house he just bought, and enjoy the freedom that driving has to offer.
Two years and three months: The total student debt is about $ 36,000 to $ 74.250 dollars, but he learns. gross wage The truck driver was $ 70,000 dollars, again at the top of his 401k and IRA for a new balance of $ 43,000 dollars with interest. He made additional payments to his home and he was assessed at a value of $ 4,000 more than the original purchase price. Three years and three months after the starting grid: Our student begins to realize how long it will take to repay student loans. It's a good thing, he chooses one of the majors high starting salary or he could be in difficulty. Its total debt acquired to date: $ 52,000 to $ 107.250 dollars. And the value of homes, the driver of the truck increased to a total of $ 8,000 dollars above the purchase price. Its total balance of the investment account is $ 66,250. 4 years and 3 months later: Congratulations to our students! Happy graduation! Your debt is $ 68.000 $ 140.250, plus interest. Your starting salary for electrical engineer is $ 54,599. Our truck driver has won $ 78,000 dollars this year and his home value is up to $ 12,500 above the purchase price. Its investment portfolio balance is approximately $ 91,000 dollars.
A year later: The following year, our students work and loves his new job. He is on the market for a new home, but it is very limited because of the debt he has acquired. A work from $ 55,000 seemed a lot of money when he started school, but with student loans that has limited him to a home below previous expectations. If the student wishes to save for retirement, it can not find the extra money to invest. To furnish his new house, he did what most Americans he encounters these credit cards. Sound familiar?
Our truck driver could not be happier. He has a lot of time at work to study and learn all the things he finds interesting. The house retains the discretion and stocks are doing well. He has nearly $ 130,000 balance in its portfolio and enjoy all his spare time driving on the road listening to audio books on investing. He is preparing to build a new custom home, and with only about five years in the industry, he can see an early retirement in sight.
Now if you look at the debt $ 68,000 $ 140.250 students in relation to drivers to pay $ 130,000 more home equity, we have provided the $ 300,000 difference in about 5 years. The student has the power of the interests of working against him, while the driver has the power of compounding interest working in his favor!
Being happy or successful in life is not a title or a piece of paper. It is about making sound decisions that can make your life smooth and stress free. Whatever the reasoning, the debt is not a good plan if you want to achieve financial independence or experience true freedom in a timely manner. This is the debt ratio of a person income, and what they do with their money that counts. In this and most scenarios, the student can never catch the truck driver financially. If a person can go to university for free, great! I have not seen anything that is 100% free. Even if the student does not attend school for free, he graduated with a balance of $ 0. The truck driver has a beautiful home and investment portfolio, with the opportunity to live and work freely in the country enjoying all the freedoms that the truck has to offer.
There is a truck that is missing in this country that grows each year. There is no shortage of people who take on the acquisition and the debt to go to college. Too many people just go to university, regardless of the cost, because they have been led to believe that the right thing to do. The percentage of students who did graduate and get a degree that they would have a starting salary of $ 55,000 is extremely low. Many students do not finish, but the student loans anyway. Over 30% of college students leave after the first year and nearly 50% never graduate, according to the Ministry of Education, 2006. For more information on careers go trucking trucking career