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Financial Samurai

Slicing Through Money's Mysteries

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My SUV Will Beat Up Your Hybrid & Save The World!

Updated: 01/14/2021 by Financial Samurai 51 Comments

Range Rover Evoque Black
RR Evoque Black Edition ~$68,000

My SUV is sweet. Why is it that some hybrid vehicle drivers eventually start looking down at non hybrid-owning drivers in disdain? 

Is the “holier-than-thou” complex too hard to contain during flights of fuel sipping passion?  It’s natural to feel that whatever you purchase is the right purchase. 

After all, if I overpaid for a hybrid vehicle (zing!) in hopes of saving the environment when a similar non-hybrid vehicle will do, I’d defend my decision and look down on others as well!  Don’t be mad, let me explain.

THE FINANCIAL SAMURAI VEHICLE

For those of you who have been following this site for a while, you’ll know that I’ve had plenty of cars over the past 10 years, and I now drive a 9 year older beater SUV which is MAYBE worth $6,000. 

I love “Moose,” my SUV, as I affectionately call him, because he adeptly takes us up the snowy mountains during the winter with its 4-wheel-drive capabilities. 

Moose can conveniently carry up to 5 people with plenty of storage space, which is especially helpful when our parents visit.  Too bad Moose only gets 15mpg in the City, and 19mpg on the highway.  I can hear the hissing and booing now!

I bought my SUV for $8,000 three years ago, from a woman who was in a hurry to dump her car before relocating to Amsterdam.  Special brownies anyone?  The hybrid craze at the time was dizzying, where seemingly rational people would spend $25,000 for a Prius vs. $15,000 for a comparable Toyota Corolla. 

If people did the calculations, they’d realize the premium price paid for the car is much greater than the gas savings over an average 7 year ownership period.

Consumers weren’t adhering to our “1/10th” rule either, as I knew plenty of sub $100,000/yr income earners spending $25,000 for these hybrids.  I must repeat here again that it is absolutely financial destruction if you are spending more than 1/10th your annual gross income on a car.  Multi-millionaires follow this rule, why shouldn’t the rest of us?  Don’t give into your weak desires!

MOOSE GETS DISRESPECTED, I FIGHT BACK

Moose and I lived in harmony with the hybrids for a couple years until we encountered an evil man on a bike one day.  The bicyclist rides up to Moose, gives him a “thumbs down”, and rides away.  After five minutes, we see the same bicycllist in a parking lot loading up his bike onto his Prius!  Annoyed by the encounter, I drive up to him and explain his hypocrisy.

“Hey you, with the spandex, and shaved girly legs.  You got a problem with us?” I ask.

“Uhhh, no problem.  How can I help?” he answers in shock.

“You dishonor Moose here,” I say as I pat the dashboard. “Let me tell you why your hybrid is worse for the environment than Moose.  You think you’re all enviro friendly and cool just because you have a Prius, but you’re wrong.”

“Uhhhh?”

“By buying a new hybrid, you do more damage to the world than any second hand purchase car can do.  You see, unless you destroyed your old vehicle, you ADD to the world’s pollution when you buy new.  You encourage car manufacturers to pump up their production volume, emitting an incredible amount of waste in the process.  Your Hybrid has higher emissions than zero, compared to zero incremental emissions from my second hand car!”

“Hmmmm, I see.  Please don’t hurt me.”

“So quit with your superiority complex Steve, and hand me a beer!”

“Ok, Sam, you win.  I was just fooling with you!”

We hug it out and go for a ride together.  We’re actually not strangers, but buddies!

My SUV Is Great For My Family

Good for you for owning a hybrid, just don’t look down on us who don’t.  We may not be able to afford a $30,000 level 4 Prius because we don’t make $300,000 a year like you. 

More scientifically, now you know that if you don’t lead your old car to the slaughter house, hybrid owners are doing more damage to the world than us poor second hand vehicle user folks. If you’re considering a car to save the world, then ALWAYS buy second hand, and preferably make it a hybrid if you really care!

Don’t be a vegan who wears leather shoes.  It’s just not right.  Let us all continue to co-exist peacefully.  Ahhh, I feel better now.

Related:

The 1/10th Rule For Car Buying Everyone Must Follow

Safety First: Finally Bought A New Family Car

RECOMMENDATIONS

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Updated for 2021 and beyond. My SUV is now a Range Rover Sport HSE and I love it!

I Saved $2.1 Million On Lunch – A Sit Down With Warren Buffett

Updated: 02/16/2021 by Financial Samurai 17 Comments

If I could have lunch with anyone, it would be Warren Buffett. His financial journey and investing prowess are inspirational. Alas, I don’t have any direct connections to Warren Buffett. Nor do I have enough wealth to buy a lunch meeting with him. But thanks to CNBC, I felt like I did in a great interview they featured with him and Bill Gates.

I thoroughly dislike watching CNBC for investing purposes due to all the noise. When the markets are up, they bring on every single pundit to talk about how the market is going higher. Then, when the markets are down, they bring on all the bearish pundits to tell you why the world is coming to an end. 

I remember when the S&P hit the ominous 666 level earlier this year, they brought in a “famed” technical analyst who said to expect S&P 200 by year-end. What was her name again? I forget. Anyway, I watch CNBC for entertainment purposes mainly, and a little bit of learning. Don’t watch CNBC to get rich.

An Interview With Warren Buffett And Bill Gates

Sometimes though, CNBC puts together something great. And that great feat was bringing Warren Buffet (Columbia B-School Alum) and Bill Gates together in a town hall with all their business school students to ask them questions.

Here are some of the most memorable lines paraphrased from the show:

“Work for someone or an organization you admire. When I moved from Nebraska to New York to work for Ben Graham, I didn’t care what my pay was. I had no idea. All I knew was that I admired Ben greatly, and was happy to be working for him.”

Warren Buffett’s response to what advice he has for anybody who doesn’t know exactly what they want to do?

“Buy and hold is not dead. This financial crisis has not deterred our investment philosophy at all. I don’t care about what happens tomorrow, next week, or even a year from now. Invest in the long term as good businesses are going to be worth more over time.”

Warren Buffett’s response to whether this financial crisis has changed his buy and hold investment philosophy.

“Run this business like this is the only business you can run for the next 100 years. Understand the motor of the business and its competitive advantages.”

Warren Buffett’s annual letter to his 70 managers when asked how he continues investing for the long term.

“Everybody says cash is king, but it is not. Cash is a terrible investment and will likely lose value over time. By the time you see the Robins sing in Spring, it’s too late.”

Warren Buffett’s response to whether he believes the latest rally is for real and whether investors should hold cash instead of invest in the market now.

“It’s 50 years of preparation and 5 minutes of decision. The good big decisions don’t take any time at all.  If they take any time at all, you’re in trouble.”

Warren Buffett’s answer when asked how he can make such quick and massive capital deployment decisions.

“There are a few magic moments where you have confidence in yourself. You have to have brash self confidence. Trusting yourself, and saying yes. These opportunities don’t come a long very often, so seize them while you can.”

Bill Gate’s answer to what one of his defining qualities are as a person to make him such a success.

“I’m good at making money, however, if you read Adam Smith’s book, it’s all about the specialization of labor. I know that Bill & Melinda, as well as my children are better than giving money away and helping others than I am.  That is why I entrust them.”

Warren Buffett’s answer to discussing his $30 billion charitable donation to the Bill & Melinda Gates foundation.

“If any student wants to sell their future stream of income, come see me after the show. I’ll buy them now for $1,000,000, or 10X your estimated yearly earnings. If you improve your communication skills, I’ll pay you 50% more!”

Warren Buffett’s answer to how he see’s value investing and the value of an MBA education.

“You bet!” and “On Margin!”

Bill Gates and Warren Buffett’s response to whether they’d buy the United States if it were a stock.

Conclusion

I can see now why someone bid $2.1 million to have lunch with Warren Buffet in 2008. He’s a smart, humble, and inspirational man. Bill Gates, you’ve changed from a tenacious business titan to a great philanthropist, so you ain’t so bad yourself. Thanks to both of you for your inspiration!

Questions for Readers:

* Warren Buffet went to business school and is the greatest and wealthiest investor of all time. Do you think business school has anything to do with his success? I ask because Bill is even wealthier and didn’t even finish college.

* Do you think Columbia business school students, and business school students in particular have a competitive advantage due to the access they receive? If so, why don’t more people apply to top business schools if they want to make more money?

* Who are other inspiration leaders and business men you follow and why?

Here is the full transcript of the Warren Buffett and Bill Gates town hall interview, “Keeping America Great” from 2009.

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Planning for retirement when paying for private grade school
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A Weak US Dollar Doesn’t Matter Folks!

Updated: 09/24/2018 by Financial Samurai 79 Comments

People have been freaking out lately by a weak US dollar.  I’m here to tell you it doesn’t really matter.  Did you know that 60% of Americans have never left the country and less than 25% of Americans own passports?  Most of the 40% who leave come back, so it’s only a temporary amount of time when their purchasing power may be relatively hurt.

An even better statistic states that only 20% of Americans speak a foreign language.  Hence, where the heck are the 80% of Americans going to go if they can’t communicate with the locals?  Ok, so they may understand what “I want a double quarter pounder with cheese please” in English means, but we aren’t going very far if we can’t speak another language.  Sure a vacation is fine, but it’s not like we Americans are suddenly going to relocate overseas and establish roots.

If you are an American who makes a US$ denominated salary, buys US$ denominated assets like property, consumes Levi’s jeans, and never plans to leave the country, what are you freaking out about? The US Dollar can depreciate by 90% against the Euro, and it still wouldn’t really matter.  The government is crushing our currency on purpose and you know the government would never, ever, ever do anything to harm the people they serve.

Read More…

And The First $1,000 MBA Giveaway Winner Is………..

Updated: 04/06/2021 by Financial Samurai 5 Comments

I’m very excited to announce the first $1,000 MBA giveaway winner today. I recently discussed some interesting facts about getting an MBA. And am using my first hand experience to help someone in need of some advice.

Congrats To The $1,000 MBA Giveaway Winner!

The first $1,000 MBA giveaway winner is Eric, a senior from UCLA! Eric commented sincerely about his concerns post graduation. He’s unsure if it is a good idea to go to a “2nd tier” business school or just work for whatever company that hires him first.

We’ll be working with Eric to strategize a plan after UCLA and coach him through the process of finding a job in his desired field of finance, or applying to business school.

Thanks to everyone for participating in the contest.



Read More…

Financial Samurai $1000 Giveaway & Your Chance To Make Millions Over Your Career!

Updated: 04/06/2021 by Financial Samurai 18 Comments

I have some exciting news to share. We’re hosting a $1000 giveaway to a lucky reader who is seeking an MBA. (note: this giveaway is now closed) “It’s not whether you have your MBA, it’s where it came from,” writes John Micklethwait, Editor-In-Chief of The Economist.

I’m sure on at least two levels, he’s upsetting people. On one level, those without MBA’s are going to find it presumptuous that getting an MBA is a foregone conclusion. On another level, there are thousands of MBA grads who didn’t attend the top tier schools who will take offense as well.

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John is smart to be so opinionated because after all, the people who will be buying his magazine are those who have always wondered whether getting an MBA is a good idea. 

He forces the assumption that if you picked up his magazine, you must get an MBA. And not just any MBA, but one of the top schools from his polls like Harvard.

I don’t entirely agree with John, but let’s face reality. Getting an MBA is gradually becoming the new standard for newcomers to the world of finance. Why? Because some go-getter decided it was the right thing to do and succeeded to get others to follow. 

The MBA is also too expensive to not try and go to the best school possible (although it’s not the end of the world).  The inertia is too strong to reverse now!

Interesting MBA Statistics

Here are some of the takeaways from the magazine:

1) The average MBA graduate from all schools in the world earn about $90,000. European MBA graduates earn $107,000, compared to $70,000 in Asia.

2) The Top 10 US MBA schools have an average salary + bonus figure of $120,000 – $125,000 post graduation.

3) All six of the American schools in the top ten have average GMAT scores of over 710 (out of 800). In contrast, students at London average 693, at IESE 685 and at IMD just 675.

4) The rankings are based on what the students want: increased pay, to open new career opportunities, develop a larger network, and personal development.

5) “Cheap” programs regularly cost well over $100,000 after accounting for lost wages, tuition, books and living expenses. More emphasis should be put on part-time programs and their benefits given the costs.

Samurai $1000 Reader Giveaway

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I think it’s pretty clear by now there are enormous monetary benefits of getting your MBA from one of the top schools. 

We highlighted last week those with graduate degrees have net worth levels 160% higher than those with only bachelor degrees. If you want to make more money, know that an MBA helps your cause tremendously.

I’m proposing a $1000 giveaway of consulting advice to give you the highest chance of getting into your dream school! Getting into a top tier business school could mean the difference of making millions over your post grad career. 

Go to any MBA consulting service, and they often charge much more. In fact, I was surfing the web and found that a site called “Personal MBA” charges $1,500 to coach someone 2 hours a week for a month for someone to get a “Personal MBA!” That’s not a real credential, but a great service and good idea!

What We (Editor and I) Are Going to Do For You:

Here’s what’s included in the $1000 giveaway

* We are going to be brutally honest and tell you whether your application has a chance or not.  Your parents and friends are nice, but can’t be trusted to tell you the whole truth!

* Good or not, we will optimize your resume, essays, and overall application.  You need as many objective eyeballs reviewing your application as possible!

* We will conduct two mock interviews and provide communication tips you need to work on, because frankly, communication is one of the key deciding factors.

* We will will be as involved as you want us to be and are committed to spending up to 8 hours just on your application.

We Think We Are Qualified Because:

1) We both have MBA’s from a couple of the top 10 school listed in The Economist’s rankings above.  We’ve also been accepted to several other business schools and have a proven record for success.

2) We have interviewed over 150 MBA candidates in our careers post grad and more than 400 candidates if you include undergraduate candidates.  In fact, I (FS) was just at a Haas Berkeley recruiting fair last month for 3 hours.  We are the end game (a post MBA employer), and have a solid grasp of what an ideal candidate looks like.

3) We know how the admissions process works and what they look for.  How?  We have developed friendships with senior people in the admissions department.

We might be small fish in the personal finance blogosphere, but believe me when I tell you one of us, was a very senior executive at a major Fortune 500 firm, and I am no dog chow either.  We genuinely just want to help and are not driven by money as evidenced by the lack of ads on the site.

Maybe you’re not interested in getting your MBA, but you have a friend who does. Please feel free to let them know.

To Participate Simply Do One or More of The Following:

* Provide a comment as to why exactly you want to get your MBA and why you disagree or agree with The Economist’s ranking.

* Twitter this post and let me know you’ve done so.  Our address is @FinancialSamura

* Tell someone at a major media publication about our giveaway and let us know who.  Frankly, if this post gets picked up by The New York Times, you win!

* Invite friends to Financial Samurai by highlighting this post, or any post in our archives on your Facebook “What’s On Your Mind?” box.  Have them comment “(Your name) sent me” and any other thoughts as evidence.

Winners Will Be Announced on Sun,  Nov 8!

There will be one main winner, and one minor winner based on who are the best publicists.  Maybe nobody will be interested, but maybe the internet will work its magic and find people who believe in the degree, and care about their careers, especially since round 1 applications are due in November.  It will truly be interesting to see how this promotion evolves or not, and will be the topic of a future post.

People are spending thousands of dollars on GMAT courses as well as personal consultants. High GMAT scores alone aren’t good enough.  In fact, I’ve seen plenty of sub 600 GMAT scores and poor undergrad GPA candidates get into top schools. The difference is your overall application, communication skills, and whether you have a connection helping you succeed.  This is our attempt at evening the odds!

If you build a relationship with us, by the time you graduate, you’ll have some of your biggest champions introducing you to various people in the private equity, investment banking, management consulting and start up arena.  How much is your future worth?

Related Posts:

“Get A 3.9 GPA and 1,300 On Your SAT’s And You’re Set For Life!” (a first chance at school)

“Go To Grad School, Get Rich Or Die Trying” (a second chance at school in case you messed up the first time)

“To MBA or Not To MBA” (what went through my head when I was deciding whether to go)

“The First $1,000 MBA Giveaway Winner Is…..”

Keigu,

Financial Samurai – “Slicing Through Money’s Mysteries”

If you were forwarded this post, you can subscribe to my newsletter by clicking here. 

The Latest “Did You Know” Video for Fall 2009

Updated: 08/05/2021 by Financial Samurai 8 Comments

It’s crazy how fast time flies. I originally wrote this post in October 2009. It features an intriguing Did You Know video down below about predictions for the future. Fast forward to today and it’s funny how we’re already in the future that the video talks about. And a lot of the predictions came true.

This fascinating Did You Know video is about the progress of technology and social media. It’s definitely something that everybody should know about. This is my first attempt at posting up a video, so I hope it doesn’t blow up my site. Thanks Gen Y Investor for the tips!

For all those who don’t know how to put up a video from YouTube on your site, simply go to YouTube video, copy the HTML code on the right, past it into your HTML tab in your WordPress, click back to Visual, and edit accordingly!

Tomorrow we will reveal our $1,000 giveaway for those aspiring to get their MBA. Even if you don’t want to get your MBA, you might know someone who does so stay tuned!

Did You Know Video, Version 4.0, Fall 2009

Learn More, Make More Money

Here are some additional resources I’ve put together that will help you on your financial journey to earn more, save more, and hopefully double or triple your income!

  • Take advantage of free online financial tools: Free Wealth Management
  • Explore my top financial products recommendations
  • Learn how much you should aim to have saved in your 401(k) by different ages. The numbers could surprise you.
  • Look beyond your salary and start earning passive income. Here are the best passive income streams I recommend.

Further Reading

  • Confessions Of A Protester Trying To Make Things Right
  • “We Are Wall Street” E-mail Fights Back Against Main Street
  • What Percentage of My Income Tax Is Spent On National Defense?
  • First Republican Debate Makes President Obama A Winner in 2012
  • Debt Ceiling Debacle’s Bright Side: Standing Up For What You Believe In

Readers, are you ready for the next 5 years?! What did you find the most interesting in the Did You Know video?

Keigu,

Financial Samurai – “Slicing Through Money’s Mysteries”

If you were forwarded this post, you can subscribe to my newsletter by clicking here. 

Ouch! Sam Bradford & New College Academic Polls

Updated: 02/04/2021 by Financial Samurai 7 Comments

How’s it going everybody! Sam Bradford is no longer in the NFL. This is an old post I’m updating 12 years later.

1) Sam Bradford of Oklahoma got injured and his then #3 Oklahoma Sooner’s LOST to BYU (#20).  What does this mean?  He may never play up to his potential again, thereby losing $20,000,000 in guaranteed money by not going to the NFL last year.  Perhaps just as painful, Oklahoma will not be considered to play in the national championships again this year.

Oh well, that’s life.  Who needs the money anyway when you can have so much fun in college and get your degree?  However, all you prospective pro athletes, please feel free to shoot us an e-mail for advice.  We’ll look out for you, even if the Sooner faithful won’t look out for Sam by telling him to stay!

Related Post: “Forgoing $50 Million For The Love Of Football”

2) The September/October issue of Washington Monthly come out with a new type of college ranking.  I thought it was intriguing because they basically bash US News & World Report’s methodology, due to the blatant cheating by some faculty at Clemson and University of Florida to manipulate the results.

Washington Monthly’s believes that “America’s colleges are those that work hardest to help economically disadvantaged students earn the credentials that the job market demands.  They contribute new scientific discoveries, and they emphasize the obligations students have to serve their communities and the nation at large.” Hence, they offer three broad rating categories: Social Mobility, Research, and Service.

The 10 Best Universities in America

1. UC Berkeley (#21 in US News)

2. UC San diego (35)

3. UC Los Angeles (25)

4. Stanford University (4)

5. Texas A&M College Station (64)

6. South Carolina State University (NR)

7. Penn State (470

8. The College of William & Mary (32)

9. University of Texas – Austin (47)

10. UC Davis (44)

Several observations: 1) California schools dominate.  2) There’s only one private school in the Top 10.  3) The traditionally perceived elite schools are not there except for Stanford.  Is spending $50,000/year to go to private school in the east coast worth it?  Hard to say after reading the report!

Related post: “Survey Says: Get 1,300 On Your SATs & A 3.9 GPA And You’re Set for Life!”

Hope everybody is having a great weekend!  Upcoming posts will be about Net Worth, The Right Sports, and How Everything Is Relative.

Related: The Implications Of The College Admissions Scandal

Free Wealth Management

Keiju,

Financial Samurai

Slicing Through Money’s Mysteries

What Will August Bring…

Updated: 02/08/2021 by Financial Samurai 1 Comment

Ah the end of summer is quickly approaching. What will August bring this year? I had lunch today with one of the co-founders of BuzzLogic. We caught up on life and discussed the world of online social media.

If you don’t know about BuzzLogic, the company is one of Silicon Valley’s great start ups. They got into the blogging world early. BuzzLogic developed a unique technological platform and a fantastic premium display ad network. It maximizes the returns of advertisers and publishers alike. If you’re an advertiser or publisher, it’s definitely worth a look.

Related: How To Start A Blog: Insights Into Building Your Own Website

What Will August Bring?

The funny thing is, my friend and I have been playing poker together for the past couple years, and I had no idea what he did. I just assumed everybody was a poker junky.

Anyway, I did my best to blend in. Often times I tried to beat the lowest denominator on the dress scale. My go-to was raggedy sweats and a soiled baseball cap.

Perhaps they’d have mercy on me given my appearance, or perhaps they’d smell blood and bulldoze me over! Both strategies have their strengths and weaknesses. But after a while, they all figured out I’m one of the tightest players at the table.

At any rate, it just goes to show you how small the world is. So be nice to everyone, especially in a big city. While you’re at it, work on improving your emotional intelligence. You’ll make more friends, and get farther in your career and life.

Let’s Make A Difference This August

My friend shared with me many great tips for Financial Samurai, one of which I will implement today. At the end of every month, I will produce an “Editorial Calendar” with a theme for the following month.

Given that it’s only a matter of time before the unemployment rate breaches 10% nationwide, many of August’s entries will be related to the intricate world of employment.

From interview tips, to maximizing your chances of getting your foot in the door, to getting ahead in your career, I’d like to share some of my strategies and experiences.

In addition, I want to highlight posts from the personal finance community to analyze and discuss. I’m confident that we can collectively help make a difference.

“How High Can Unemployment Go Before We Derail?”


“To MBA Or Not To MBA”


“Do Rich People Try Harder?”

Increase Your Knowledge And Make More Money

Here are some additional personal finance resources I’ve put together. I hope they will help you on your financial journey. With more knowledge you can earn more, save more, and have a comfortable retirement!

  • Take advantage of free online financial tools: Free Wealth Management
  • Explore my top financial products recommendations
  • Learn how much you should aim to have saved in your 401(k) by different ages. The numbers could surprise you.
  • Look beyond your salary and start earning passive income. Here are the best passive income streams I recommend.

Have a wonderful weekend everybody and stay frugal!

Keigu,

Financial Samurai – “Slicing Through Money’s Mysteries”

Survey Says: Get 1,300 on Your SAT’s and a 3.9 GPA And You’re Set For Life!

Updated: 02/06/2021 by Financial Samurai 12 Comments

I came across an intriguing article with a secret on getting set for life. Study hard, get good grades, nail your SATs, and get into one of the top 20 schools. Or if you weren’t scared off by the college admissions scandal, you could bribe your way in. But of course only you can decide if taking that level of risk is worth it.

The New York Times highlighted PayScale’s survey of 1.2 million college graduates. They reported how much money they made right out of school and 10 years after graduation. Would you feel set for life with these salary ranges?

Set For Life Graduate Salary Statistics

If you look at the picture, it’s interesting to note that the majority of schools are: 1) Private Schools, and 2) Highly Ranked in US News & World Report and other popular college rankings.

The average SAT and GPA scores of these 20 schools are roughly 1,300 and 3.7, respectively. Hence, one could argue that the key to making a six figure income 10 years out of school is simply high test scores and good grades!

As such, it behooves all incoming 9th graders to recognize their grades accumulate from 9th to 12th grade. Don’t mess up your child’s chances of getting into Dartmouth, UPenn, and Yale if you want them to be set for life.

Set For Life In The Long Run

I really used to think education was not very useful since we forget much of what we learn. But, as I grow older, it becomes apparent that many of the most successful people we know have been very well educated.

Barack Obama went to Columbia for his BA, and Harvard Law School. George Bush Senior went to Yale, and even Bush Junior went to Harvard. Say what you will, but anybody who becomes the President of the Free World is successful in my eyes. In the long run, the cream rises to the top, be it whip cream or sour cream.

For the sake of argument, let’s say elite schooling is the only way to a healthy six figure income. The trick is to manipulate little Johnny and Emily to recognize during middle school or earlier they can goof up all they want. But, once the 9th grade hits, they’ve got to buckle down.

I remember when I was in 7th grade, my buddy’s older brother told me exactly this. He said, “Squirt, you can be a goofball all you want and annoy me on our bus ride to school, but you better not mess things up in high school or else you’re going to be a loser.”

His words are still quite clear in my mind 20+ years later. He scared the hell out of me, and I stopped trying to be cool and sit in the back of the bus with him. I also stopped shooting spitballs through straws which was a nice milestone.

Help Your Kids Get Set For Life

Any parents out there, I would just tell it to your kids straight. There’s only one chance at life so they might as well work as hard as possible to get the best perceived education one can afford.

The reason why private education costs so much is simply because parents are willing to pay for it. College tuition is essentially inelastic. The preceived value of a Harvard degree is tremendous.

Whether you learn something more or not is not the debate. All the text books are generally the same. It’s all about perception, and the admission into a club which will open doors for you or your children. The perpetual motion of education has already been set, you just have to play the game.

With tuition at these schools hitting $30,000+/year, there is often an unfair advantage for already well to do families. The good thing is that many of these schools have hefty endowments with need base scholarships, and more often than not, rewards will be given to bring this cost down.

There’s No Shame In Getting Financial Aid

Hence, don’t be deterred from applying to schools out of your price range. You never know what type of aid you will receive and if you don’t apply, you’ll never know whether you’ll get in. It’s even possible to get financial aid with a multiple six figure salary!

When I was in HS, I felt so guilty for my parents that I just applied to the local state schools. They were government employees, and didn’t make a lot of money. I sometimes wonder whether I would have been able to get in.

The article also goes on to highlight that the degrees with the highest salaries include: Aerospace Engineering, Chemical Engineering, Computer Engineering, Electrical Engineering, Economics, and Physics.

Coincidence these majors don’t sound easy, probably not. It really is too bad that Social Work, Music, and Education are at the bottom of the list for salaries. If I were President, I’d pay these professions the most!

Related: Bankers, Techies, Doctors, And Lawyers: You’ll Never Get Rich Working For Someone Else

Nothing Is A Guarantee

Sure you want to be set for life and want the same for your kids. But, alas nothing is guaranteed. You could go to the top school in the nation, quit your job and end up broke and alone. On the other hand, there are countless examples of people who didn’t go to any of the schools in the survey, who’ve done incredibly well for themselves.

Heck, I went to public school for High School and College and turned out ok… I think. But, when people from these schools continue to dominate the senior management positions at many of America’s leading firms, we may be at a disadvantage if we want to reach the very upper levels of the firm.

Look around at your managers. It’s not a coincidence that if Boss X went to Cornell, Boss Y right under Boss X also went to Cornell. You can take this analogy further to people in terms of sex and race. People like to be around people who are most similar to them. Just look around, and you’ll notice the “coincidences.” It’s just human nature, and it is what it is.

Many of us who are already working and didn’t got to a top school may ask, “I can’t rewind my life and go back to 9th grade, RB, so what now?” The good thing is that once you enter the work force, your success is largely up to your own performance (see “Rich People Try Harder: True or False?”)

Get Set For Life With An MBA

If you feel that performance alone isn’t good enough, look into part-time graduate programs (see “To MBA or Not To MBA“) or full time graduate programs.

No question many of us have had different economic upbringings and different maturity profiles while growing up. The way I view grad school is that it’s a second chance to try again if you’re unsatisfied with the first go around. You’ve got your entire life to work, contrary to the title of this blog!

Another thing to note is that going to a local grad school may often yield better dividends than a higher ranked school e.g. going to UCLA if you work in LA may carry more weight than going to Columbia, same thing goes for going to University of Wisconsin if you live in Madison and so forth.

Nobody really knows how successful one will be in their careers. All we can do is work hard, work towards harmonious relationships, and arm ourselves with as many weapons possible to combat in the work jungle.

Related: The Secret To Your Success

Readers, what are your thoughts on the relationship between expensive elite private schools and your ultimate success in your career? I especially would like to hear stories of triumph proving all these survey’s wrong.

Recommendations

Learn More, Make More Money. Here are some additional resources I’ve put together that will help you on your financial journey to earn more, save more, and hopefully double or triple your income!

  • Take advantage of free online financial tools: Free Wealth Management
  • Explore my top financial products recommendations
  • Learn how much you should aim to have saved in your 401(k) by different ages. The numbers could surprise you.
  • Look beyond your salary and start earning passive income. Here are the best passive income streams I recommend.

Refinance your student loans today. Check out Credible, a student loan marketplace that has qualified lenders competing for your business. Credible provides real rates for you to compare so you can lower your interest rate and save. Getting a quote is easy and free. Take advantage of our low interest rate environment today!

Regards,

Sam

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