MoneySmartsU

Career Risk

Phil's drawing of a risk graph

Episode 8: Career Risk

What’s important to realize is that your ability to become successful will require you to take some risks…and that how much risk you can take depends on how much you have in student debt upon graduation.

Fun fact: we want you to be successful in life.

Of course everybody’s definition of what successful is differs, but we know you came to college with the idea that this would be a stepping stone towards you being your version of successful.  What’s important to realize is that your ability to become successful will require you to take some risks…and that how much risk you can take depends on how much you have in student debt upon graduation.

There is no better time in your life to be able to take risks than right after graduation.  This is because at that moment there is a good chance you have less obligations in your life - no mortgage, no kids, no homework (hooray!) – and less to lose since your bank account is probably pretty dry and you’re young enough that you can always start over.  Without these obligations and the fear of loss, you can take risks and try things you’ve always wanted to; be an entrepreneur; travel to a far away exotic land (Detroit, perhaps); move to where you want to be because you don’tneed to be anywhere.

But all of this depends on your ability to be financially smart during college and avoid excessive debt, because debt is an obligation.  And the higher the level of debt, the less likely you’ll be able to take risks.  And that’s no fun…because: 

Fun fact: the ability to take risks is awesome