www.shortsalesdone4.me
Before I begin, I need to give you full disclosure. I attended college and
received a Bachelor's degree from Manhattan College. It certainly had a
positive impact on my life, but I also realize there are many among us that
don't necessary need to attend college. Now onto my thoughts...
Once upon a time, in an economy far- far away, a young person would study hard,
go to college and earn a good living with excellent benefits and a big fat
retirement account. Like most fairy tales, the reality doesn't quite live up to
the modern day expectation. Research conducted by PayScale.com has turned the
conventional wisdom of saving up for a college degree on its head. Not only is
college time consuming, expensive and somewhat exhausting...it's also not the
investment it used to be; in fact, the majority of colleges have a very low ROI
or return on investment when compared to those that only obtained a high school
diploma.
As dismal as this sounds, the research is actually supported by Bloomberg
Businessweek who found that an ever decreasing number of colleges will produce
graduates capable of earning back the cost of their college degree. There are
several reasons for the decline of value associated with obtaining a college
degree:
1. Declining earnings. Plain and simple, a college degree is no longer as
valuable due to the devaluation of labor in general. In the past, obtaining a
degree all but guaranteed a good job...those days are long gone. It's not
unusual to see college educated persons in part-time, temporary or otherwise
unskilled positions.
2. Credential inflation. Not all college degrees are created equal. What once
served as a store of knowledge has now turned into one more cog in the rungs of
industry, pumping out semi-illiterate graduates without the ability to read,
write or perform anything more than basic functions. Likewise, employers are
increasing minimum educational requirements without providing additional
compensation; for example, certification as a substance abuse counselor used to
require a high school diploma and certification but now requires a four year
degree --and soon to be Masters degree - in most states.
3. Economic instability. The gold watch, retirement accounts and steady
employment have gone the way of the booby...the few that remain would likely
qualify as an endangered species assuming they would come out of hiding long
enough to be counted. Even those graduates that obtaining a great job have no
assurance of keeping it over an extended period of time resulting in decreased
long term earning capacity.
4. Wasted time, energy and money. Perhaps one of the most devastating blows to
the total ROI is the impact of wasted time, energy and money on the lifetime
earnings of the average college graduate. Not only has the cost of college risen
but students are often not able to work as much as their non-college bound
counterparts. The loss of income, failure to invest and high debt create an
investment time-bomb that can take over a decade to correct.
So, what about short sales and investing in real estate? How does it stack up
against a college degree? While one doesn't necessarily replace the other, a
quick comparison does provide a bit of food for thought. On average, a college
degree provides some advantages including an average income of roughly 10% to
25%, increased personal flexibility and decreased economic dependence upon
government intervention; but notice, even one successful short sale transaction
per year could quickly yield the same results without the need to invest years
of time and effort into a college program with an uncertain outcome.