Want to Earn $1 Million More Over Your Lifetime? Do This

I’ve been a certified public accountant for 40 years and started a registered investment advisory practice 25 years ago, now managing close to $1 billion. I deal in your basic markets, like the stock and bond markets. I also work extensively in the alternative space, including real estate, private equity and more. I share all of that to emphasize the importance of what I am about to say. When a younger person asks me, “What is the best investment?” they are usually shocked by my answer. Almost without fail, I respond, “Invest in yourself.”

If you invest in yourself by pursuing a college degree or a trade education, you will likely have a higher lifetime income, on average, for the rest of your life. That higher income can compound and ultimately help grow your own wealth faster than had you not invested in yourself.

The wage gap between high school graduates and those who went on to get further education is not just noticeable in the initial years following graduation but continues to widen over time. The median earnings of an individual with a high school diploma were $44,300 in 2021. In contrast, the median earnings for someone with a bachelor’s degree were $73,300, according to a study by the U.S. College Board called Education Pays 2023.

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That means someone with a college degree could earn $1,160,000 more over a 40-year working career — and that’s without adjusting for inflation or future raises.

The cost of education

Now, let’s factor the cost of education into that equation. My alma mater is Washington State University, where I received a bachelor's degree in accounting. Currently, I volunteer at the regional campus in Everett, Wash. I am proud to report that half of the students at our regional campuses have graduated with no debt because of scholarships and other financial awards. Those who graduated owing money had, on average, less than $25K in total debt.

By comparing the average loan balance of those who graduated with debt at this regional university campus to the average earnings difference, we have a 46X return on the average debt of these students. I don’t really need to adjust for inflation for that figure to make sense. To clarify, I’m writing about my experience and the cost of tuition at WSU, a public land grant institution. I’m not analyzing the value of an Ivy League or other expensive private school education.

However, getting an education is not just about the potential increase in income throughout life. It’s about stability and suitability. Consider the following as you ponder how to invest in yourself.

Personal suitability

An advanced education can help you break through any “barriers to entry” in the job market. If your skill set is hard to achieve and not easy to qualify for, you can become more valuable to others. You can’t apply for a job when you do not qualify.

Career advancement

A college degree often opens doors to a wider array of job opportunities and career paths. Employers tend to favor candidates with higher education credentials, associating them with a greater depth of knowledge, critical thinking skills and dedication.

Job security

College graduates generally enjoy greater job security. They are less likely to experience unemployment during economic downturns compared with those without a degree. The versatility of a college education allows graduates to adapt more readily to changing job markets, pursue further education or training if needed and shift to different career paths more easily.

Personal and professional growth

Beyond financial gains, a college education fosters personal and professional growth. It encourages critical thinking, problem-solving and effective communication — skills that are invaluable in any professional setting and, more broadly, life in general.

Networking

College provides a platform for networking, offering connections that can be beneficial throughout one's career. These experiences contribute to an individual's overall development. I met my best friend at WSU more than 40 years ago and continue to develop lifelong relationships due to my continued engagement from my collegiate experience.

Societal impact

While the upfront cost of a college education can be substantial, the long-term financial and personal benefits are clear. The over $1 million increase in lifetime earnings for college graduates compared with high school graduates illustrates the profound economic advantage of higher education. Beyond the numbers, the personal, professional and societal benefits further reinforce the value of a college degree.

Investing in a college or trade education is not merely an expenditure but a strategic move toward securing a prosperous and fulfilling future. There are certainly individual exceptions to every rule. However, as a country, I believe we need more young people trained in skill sets that are hard to learn. Just because something is hard doesn’t mean it should be avoided. Conversely, because a college education (or trade certification) is hard to complete makes it part of the reason it is worth the effort.

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