Some folks are born with a silver spoon in their mouth. Daddy buys them into private schools, gives them a job and money and it automatically grows from there. Some fortunate sons become masters of industry; others end up as national politicians. For an understanding of how this happens, watch “Succession” on HBO, the tale of the Murdoch (Fox) clan.
We poor souls in the 99% are not so fortunate. It’s up to us to make our own way.
My father and all of my grandparents were all immigrants (legal and illegal) who came here with nothing. I was the first one on either side to ever go to college (UGA and GSU). My wife and I built what I’ve got financially on our own, retiring to Jackson Lake at 55. Along the way, I learned a few things that I’d like to pass along to younger Americans about making it in the USA:
•A College Degree
Yes, you should be passionate about your major and can be successful with any degree. However, certain degrees will give you a stronger base from which to build your career. If you get a social sciences undergrad degree, like me, your job prospects are much more limited unless you go to grad school (as I eventually did). An unmarketable degree means you will have to work harder to make a higher income.
Which degrees are “hot” right now? What are average starting salaries? Michigan State/CERI finds:
- Engineering-low $60s;
- Computer Science-high $50s
- Business management-low $50s
- Economics-low $50s
- Math-low $50s
- Multi-Media/Graphic Design- around $50
- Nursing-almost $50
- Physics-almost $50
- Biochem-mid $40s
- Paralegal-mid $40s
•Your jobs
Yes, find a job that you really enjoy. But remember that it’s called “work” versus “play” for a reason. You may not always like everything about your job. No one does. Evaluating your job is a process of balancing liking what you do (including the effect on your family) and being financially rewarded.
•Building a nest egg
Americans don’t save nearly enough. First, they start too late. Second, they don’t put enough away. Third, they invest in the wrong vehicles.
When I graduated, I had no one to guide me and I’m guilty of not starting to save soon enough. It wasn’t until I was in my thirties that I consistently put money away. Even then, I didn’t put back enough and, at the beginning, invested poorly.
My advice, easy to give but hard to do, is to start investing at least 10% of your earnings ASAP after you graduate, even if it means cutting your lifestyle. Learn what savings “matching” programs your employer offers and take advantage of them.
People with a big ego (i.e. me) often make the mistake of investing in individual stocks. Unless you have special knowledge in a particular field, you are taking an unnecessary risk.
Instead, invest in indexed mutual stock funds (sectors or broad based) which have very small management fees. As you grow older, move more of it into bonds or CDs. (Note: In one column, I can’t cover all investment opportunities (like real estate LLCs) and will not try. If you have specialized skills, this may be another route.)
In summary, making it financially in America is a combination of picking the correct field to go into; getting the right jobs/performing well; and investing correctly. For those of you who say: “what about luck?”, I remember what my father told me: “the better my choices and the harder I work, the luckier I am.”
