When it comes to financial success, everything is relative. When you’re graduating from high school, the average person probably isn’t even thinking about money. I’m here.
The average net worth of today’s high school graduates (and nearly all millennials) is negative? yes negative…
But above-average high school graduates have their sights set on college and successful careers and don’t want to be negative. Here are her five money tips for graduates who want to be in the top 1%.
1. Know all the slices of pie you need to pay for college
The average person who graduates from high school and goes to college sees a financial aid letter, accepts it, and takes out a student loan for the rest of the bills. Above-average students realize that paying for college is like a pie, and that there are many different “slices” they can use to pay for college.
we are talking:
Many average students dismiss many of the options on this list, including scholarships and grants. I know.
for example, Ramit Sethi In I Will Teach You To Be Rich, he shares how he received over $100,000 in scholarships to pay for college.
But too many people don’t take advantage of it. Side Hustlin’ Student Scholarship only accepts approximately 100 entries per year. And about 70% of entrants fail to follow instructions and are quickly disqualified. So there are only about 30 people applying for the $2,500 scholarship. That’s great odds! And if you talk to others who run scholarships, the stats are very similar.
2. Borrow wisely with college loans
Most high school graduates going to college, even above-average graduates, need to borrow money through student loans. According to her, 54.1% of students take out student loans to pay for college tuition. educational data.
But when it comes to borrowing, there is a big difference between average and above-average students. Any above-average high school graduate looking to pay for college borrows smartly.
That is, they have calculated how much it will cost to go to school, they know what kind of job they want after graduation and how much it will pay, and they see a clear path to return on investment. can do.
A good rule of thumb for borrowing wisely is to never borrow more than you expect to earn in your first year after graduation. This allows you to manage borrowing costs and keep them at levels that are economically viable.
When borrowing, maximize federal loans first. After maximizing them, you can see your private loans. Look for private loan options that offer flexible repayment terms and interest rate discount opportunities.
3. Working in college is good
The average high school graduate thinks they should focus on school and not work. ”that would be too much”. They may be overwhelmed by the thought of studying or working, or simply think they should focus on school instead of work.
But above-average high school graduates know better. Working in college is one of the best things he can do for his future career.
Talking about someone who has hired a lot of college graduates before, I can say directly that there is a big difference between those who worked all the way through college and those who didn’t. People who didn’t have much trouble interviewing were rarely hired by my organization, and when they did, they struggled to succeed.
Above-average graduates who want to work in college benefit from acquiring stronger communication skills, workplace problem-solving skills, and other soft skills that cannot be learned in a classroom.
Not only will this help you earn more in school, but it will also increase your value and earn more after you graduate.
4. It’s important to be financially organized
One of the biggest reasons people fail with money is lack of organization. They don’t know what’s coming in, what’s going out, or how much they have. Also, there is no system in place to track it.
Above average high school graduates are diligent about being financially organized. Track your money using free online tools like Mint and Empower, or by maintaining a journal or spreadsheet.
Organizing your finances will give you a clear picture of your income, expenses, savings, and student loan debt.
The financial organization is what distinguishes above average graduates from the average.
5. Start investing to maximize your time on the market
Finally, above-average high school graduates are ready to start investing in college and make the most of the time their money is on the market. You may have started investing.
I started investing when I was in high school, and continued to invest even during college. This allowed me to start growing wealth early on and put me on the road to financial independence much sooner than most people realize what’s going on with their money. (see Financially Organized above).
Maybe you have some graduation money that you can invest in? Maybe you are working and want to start investing with that money?
No matter where they find their extra cash, above-average graduates will put their money to work instead of buying random items that lose their value over time.
Graduating from high school is a big step forward with many changes. For those looking to be “above average”, there are simple steps you can take on any occasion to help set yourself up for a comfortable financial future.