TJ Trent says the pundits are wrong. College and debt do not destroy your life.
—
College and debt are two boiling topics lately. I hear someone opining about the inherent evil of debt and college every day. Specifically, whether or not, college is worth the cost and whether one should take out loans to pay for college. The same pundits declare that all debt is evil, and everyone needs to eschew credit. Ad nauseam they focus on all the people that are suffering because of their decision related to debt and college.
Both of these topics are subjects near and dear to my heart. I have suffered from poor credit decisions and benefited from higher education. I am also acutely aware others are suffering as well. However, our suffering is not because of the inherent greed surrounding higher education or lending practices. We suffer or we succeed because of our decisions. Both higher education and the credit card industry are businesses, and they provide services that remain hugely popular.
We live in a market driven economy based on supply and demand. These services are being provided because they’re in demand. Meaning many Americans choose to use the services being offered. The problem, therefore, lies with the circumstances surrounding our decisions. No matter how dire our circumstances we have the power of choice. To suggest otherwise perpetuates the victim mentality and results in feelings of powerlessness.
Many Americans are thriving because of higher education and many are successfully using credit. Instead of hyper-focusing on why so many are unsuccessful, let us change our train of thought. Let’s, focus on why so many are successful.
Here are four tips that will help set you up for success.
1. Make a Plan
Whether you’re considering borrowing money to purchase a new car or send your kids to college, you need a plan. It is necessary that you sit down and conduct an in-depth review of your finances. How does this purchase align with your retirement planning? Does this investment negatively impact short-term goals? What is the impact upon our discretionary cash flow?
For those of us preparing to go to college or send our children, we need to ask some additional questions. What is the purpose of pursuing this course of study? Take time and study what employers are looking for in new recruits within your field. What about return on investment? If a degree is not required (and does not affect compensation) working while going to college might be a better option.
2. Accept Responsibility
No matter how dire our circumstances, no one forces us to go to college, take out a loan or use credit. We may feel like we have no options, but ultimately we do. If we don’t accept responsibility for our decisions, we will never learn and grow.
3. Have a Plan B
I have a lot of experience planning and executing complex operations. When it comes to execution, nothing ever goes perfectly. Being able to adjust to dynamic events is a must. Having a plan “B” forces us to consider alternatives and helps us to maintain momentum when Murphy raises his ugly head.
4. Stop Defaulting to the Negative
If you want to be successful, stop focusing on those who are struggling and focus on those who are thriving. Surround yourself with those who are successful and learn from their successes and failures.
The bottom line is this. In our current market climate, people are capitalizing on people’s fear regarding college and debt. They’re making money on our fears and also reinforcing our fears. A much better alternative is to become an informed consumer. One who understands how they can make the best decision based on their situation.
Are you prepared to take responsibility and accountability?
—
Photo: Flickr/Chris Potter