Home / ENTREPRENEURSHIP / Don’t Pay For University If You Can’t Afford It. Invest Your Hard Earned Money Instead.

Don’t Pay For University If You Can’t Afford It. Invest Your Hard Earned Money Instead.

Unauthorized Copy Of This Post Is Highly Prohibited

Gone are the days when the word ‘graduate’ carried huge value.
Today, graduating from the university, even in developed countries, is a mere norm.
But you don’t have to follow the norm if you can’t afford it.
You don’t have to enroll for studies at the University just because all of your friends are in the university.

University education is not a job guarantee.
There are lots and lots of graduates waiting in the job enrollment queue.
So why spend your hard earned money to pay for tertiary education and even get in debt, when you have no financial security?
Unless securing a job is not your ultimate goal, university education is not the key to making money in life.
If you can’t afford it, don’t pay for it.
Invest the money instead, and enroll for studies in the university later in your life time, if you just want to go study and acquire a certificate to hang in your gallery.

Speaking of investments, there are so many ways to make your money work for you; from treasury bills, to bank fixed deposits, to real estate investments, running a small scale business etc.
This is applicable to every country but allow me to share some practical examples, using a developing country like Ghana:

Scenario 1:
Kofi gains admission to the University at age 19.
Kofi is from somewhat a poor background.
Kofi’s folks can’t afford the University fees of about 2,200 cedis(around $510) a year, making a total of 8,800 for four years,
alongside paying for Kofi’s groceries and giving Kofi pocket money for books and upkeeping, which would cost about 3,500 cedis for the 4 year period.
This amount is even for when Kofi is economical in his expenses.

So, it would cost Kofi’s folks around a stipulated total of 12,300 cedis(around $2,857) for 4 years to see Kofi through tertiary education.
All of Kofi’s friends have enrolled for studies at the University.
Kofi also wants to attend a university at all cost because of peer influence.
So Kofi’s folks try their possible best from borrowing, to applying for loans, to selling properties, to see Kofi through University.

After the graduation ceremony, the parties, pictures and congratulations, Kofi comes back home to where he started, to go job hunting just like the millions that graduated before him.
A year, two, three, four, bypasses but Kofi can’t secure a job, despite sending cvs to hundreds of companies.

The family looks up to Kofi now, but Kofi doesn’t have a job.
There is no money at home.
Paying the bills at home is a problem.
Kofi is frustrated because he can’t help.
Kofi is now 27 years old.
Kofi has become a burden to his family.

Scenario 2:
Kofi gains admission to the University at age 19.
Kofi is from somewhat a poor background.
Kofi’s folks can’t afford the University fees of about 2,200 cedis(around $510) a year, making a total of 8,800 for four years,
alongside paying for Kofi’s groceries and giving Kofi pocket money for books and upkeeping, which would cost about 3,500 cedis for the 4 years.
This amount is even for when Kofi is economical in his expenses.
So, it would cost Kofi’s folks around a stipulated total of 12,300 cedis(around $2,857) for 4 years to see Kofi through tertiary education.

Kofi feels pressured as all of his mates are in the university.
But Kofi stays headstrong, knowing there is no money at home.
Kofi however has a vision, so Kofi tells his folks: “I know there is no money at home, so paying for my university fees would be a struggle.
I want to invest that money instead, over 4 years.
Whatever you can afford as university fees and pocket money for university groceries and miscellaneous, give it to me to invest in my future.
After all, I am only 19 and I have a lot of years ahead of me.
Let us pretend I am in the university now.
You are going to give me money every semester for fees and the like.
The difference with this and real life is you would not be pressured by the school authorities to pay the fees. You would have ample time to gather some money and pay me every semester.

I am in turn going to invest this money with banks that have good investment plans.
There are some banks with investment plans of 24% to 30% ROI annually.
So let’s say Kofi’s folks are gradually able to raise 2,200 cedis for Kofi every year, plus an additional 1,000 Cedis every year for pocket money, making a total of 3,200 Cedis every year.
This would yield a ROI around 768 Cedis for Kofi annually, minus compound interest even!
(Calculating with the 24% ROI).

Also Read: 7 WAYS TO MAKE MONEY IN GHANA

So Kofi for an investment period of four years would make a ROI of 3,072 cedis, minus compound interest.
At the end of the 4 year investment period, Kofi would have a total of 12,800+3,072=15872( around $3,686), still minus compound interest. Let’s assume the compound interest is 1,300 cedis over the 4 year period, Kofi would have 17,172 Cedis at the end of the period.

Back to scenario one, Kofi has graduated from the University with 0 Cedis in his account.
And after 4 years sitting at home and probably getting a contract job like packing cartons in a factory, which is not suitable for a graduate, Kofi can’t boast of 200 Cedis in his account.
Kofi in scenario 2, who is also now just 23 years, is in a better position.

Kofi in scenario two, can now decide to enroll at the university and fend for himself by investing the profit made from his investments, in a small scale business which could easily fetch him around 500 to 1,000 cedis a month, like setting up a barber shop, selling of groceries (provisions)-because people eat everyday, or finding himself a busy and good spot to sell mobile recharge cards(airtime), alongside running a mobile money business.
If others are doing it, so can Kofi.

Investing in food wouldn’t be a bad idea, if only it is prepared well.
All Kofi needs is to pay rent for a good spot, set up a hut for a start and start selling.
Kofi doesn’t have to sell himself if he is going to be busy on campus.
If Kofi wants to run his business himself, Kofi could apply for a distance program, where Kofi would have to attend lectures only on weekends.
If others did it and succeeded, so can Kofi.
KFC started as a small scale business.
Colonel Sanders started selling his unique fried chicken in his community!

Let’s divert the radar back to Ghana.
Take a look at Hunch jollof rice in Tema community 4, the favourite jollof joint for all residents of Tema, and even beyond.
She started years ago, on a smaller scale?
Today, Hunch has hundreds of customers daily, more customers than most of the huge restaurants in Ghana.
Same applies to Aunty Muni waakye.
These women may not be ‘dollar millionaires’, but they are well to do, and can at least afford to purchase expensive four wheel drives.

Now back to the subject matter,
Kofi’s(second scenario) business would flourish if he manages it properly.
Kofi would still have about 60% of his principal in the bank.
Kofi could choose to gradually set up two or three more of the business that is flourishing.
Before Kofi could say Jack, he would have opened several branches of his flourishing small scale business, which might eventually grow to become huge franchises.

Kofi would then graduate from school, already being a CEO.
Kofi would just use the knowledge acquired from school, to manage his business!
Kofi wouldn’t have to go around sending cvs and going for interviews.

Kofi in scenario one by then, might still be struggling and might even end up as an employee in Kofi’s(scenario 2) franchise!

Academics is not the only way out.
Education is not a race.
Plan your future properly.
You don’t have to go to school to be rich. Get rich, then go to to school later to acquire knowledge.
Sad truth is the richest people in the world are not employees.

I am aware there may be some barriers in my suggestions and business advice, but believe me, it is highly feasible, if you put your mind to it.
Back in my University of Ghana days, there were students all the way from remote parts of the country catering for themselves by selling recharge cards only.
You too can do it, be an entrepreneur!

If this information was helpful, subscribe to smart income office’s updates using the form below:

Don’t also forget to leave your comments about this article at the end of this page.

Name
Email

About karisma

Emmanuel Osei aka Karisma, is a blogger, a/an network/online marketer, and a content creator. Emmanuel studied Public Administration at The University Of Ghana Business School. After four years working experience in the shipping industry, Emmanuel finally decided to throw his certificate under his bed, and pursue his entrepreneurial ambitions. He is also an online business coach. Contact: smartincomeoffice@gmail.com

Check Also

16 Year Old Forex Trader Turns £160 Into Over £60,000

Unauthorized Copy Of This Post Is Highly Prohibited Edward Ricketts, who says he learned his …

6 comments

  1. Very true. It’s sad how so much emphasis is placed on education. I’m in the field and I can clearly see children who are ‘not cut out’ for school. The big question is, how do you advice parents of such children? On Careers Day 70 percent of pupils are dressed as doctors. It’s very funny seeing some of ‘those kids’ also in their white coats. Hmmm I rest my case

    • Spot on.
      It has become some sort of ‘ritual’ so ‘one’ would be demonized if they attempt to deviate from the norm by parents. It only takes Parents who look at the broader picture.

  2. You make very good points but am sorry but I feel you made some superficial assumptions. What is the guranteee that his business will flourish? Also as you talk about investing the monies in the bank and going to school later, you should also consider cost of inflation when going to school later years.
    Your points are valid but it doesn’t hold for everyone poor kid out there. Some get “lucky”.

  3. This is a wise counsel. I’m currently in university of Cape Coast, level 100, taking care of myself and still in business. There are a lot of problems around us. Each of such problems is a huge opportunity waiting to explode. For me, it is an inditement on once intelligence to be in school for 4 years, complete and be jobless. What did you learn in the school then?
    Let’s start doing something on our own and for ourselves, no matter how little.

  4. Like I’m super happy someone has also observed this. People merely think that graduating from the university and being called a graduate is the ultimate thing to success. When I read the story I was like, this is exactly what happened to me. When I graduated from high school four years ago, I was priviledged to gain admissions into the university of Ghana with most of my class mates but I looked at myself and where I’m from and I knew for sure my parents can’t afford my fees and other stuffs for my upkeep. I so wanted to go to school so badly especially my life-long dream school; UG but then I decided to venture into another business and now I don’t need to go to people and interviews in such of a job. In fact I give employment to others including graduates ‘sef’. I now comfortable do my degree online with a foreign university.
    Thumb up to this story.

  5. Bello Muhammed Shola

    Bro can you please chat with me on this number +2349083353153

Leave a Reply