Did You Make The Most Of Your College Experience?

I remember it happening like it was yesterday. Years of hard work and dedication have led up to this final handoff. I look ahead as I watch others dressed in cap and gown cry, laugh, and smile. Just five more steps left. Only one more second until that diploma is mine. As I look back on my final moment as a college student, was it everything I wanted? 🤔 

As I wait in line, I start to reminisce about my college journey at Cal Poly. Leaving my home in Hawaii to move into the dorms. Walking into my first 7 a.m. class. Going to the weekly farmer’s market for dinner. Traveling to San Francisco to tour startup companies as part of the entrepreneurship club. Sharing my love for cooking with newly made friends. “Wow, I did a lot,” I think to myself as all of the memories start to come back.

Inching closer to the stage, I can’t help but think of my two roommates next to me. The one in front is returning home to Hawaii as a civil engineer while the one behind will be moving to Chicago to pursue his master’s degree in biomedical engineering. As for me, I would be returning to Cal Poly for another year as a blended Engineering Management master’s candidate.

Four years ago, we were the naive freshmen who stepped onto campus with hopes and dreams for our ideal college life. As we go our separate paths, I wonder… what did I accomplish? Did I do all of the right things?

The Law of Compound Interest

As the culmination of your college experience, graduation is a time of celebration and reflection. We can look at this milestone through the lens of compound interest. Compound interest is the future value you receive based on your investments in previous opportunities. Just like people invest money into the stock market to obtain wealth in the future, our time and energy spent in college leads to the final payoff of graduation.

The Exponential Power of Compound Interest

We can model compound interest with the simple formula below. For those who prefer to keep their letters and numbers separated, keep on scrolling 😁 

Here’s how these variables translate to life.

• Present Value (PV): Existing opportunities in your life

• Interest Rate (r): The rate of growth on these opportunities

• Number of Compounding Periods (n): How often you can grow these opportunities

This formula reveals a few insights about compound interest.

Focus on your present before your future

Compound interest cannot benefit us if we are unprepared for the gains ahead. It’s important to remember that growth is an intentional choice that starts today. This means putting our physical, mental, and social health first before we engage in opportunities that compromise it.

Consistency before optimization

The most influential piece for growth is the number of compounding periods (n). The more frequently we can grow, the greater our returns. 1% every day is better than 10% on some days. Our world is full of amazing opportunities, but they are all worth nothing if we can’t frequently capitalize on them.

Now that we understand the math behind compound interest, how do we use this knowledge in practice?

The Key To Compounding Your College Experience

In college, we often find more of two things, time and decisions. Although manipulating time seems to be common for our favorite TV and movie characters, it unfortunately doesn’t work in this world. However, every decision we make does affect our future. If we are looking to achieve that ideal college experience, how do we maximize our time and make the right decisions?

Discover Good Opportunities

Successful investing relies on the ability to identify good opportunities as early as possible so that we can capitalize on them. These experiences can be discovered or created.

Find new opportunities through diversification

In college, we have the opportunity to try many different things for the first time. We owe it to ourselves to experiment and discover who we truly are. Leaning into experimentation often creates new knowledge and connections. When in doubt, go out to that event, take that one fun class, and join that club. Say yes more and embrace the unknown.

Maximize “mandatory” opportunities to yield a positive return

Additionally, we also have responsibilities that we might not enjoy but have to do. It just sucks to show up to that dull class or work that boring job. However, just like stocks tend to yield a positive return in the long run, we can turn the present into an opportunity for growth. In class, find ways to connect topics to your personal life and get your know your classmates around you. During work, practice skills that will become valuable in your future. Every opportunity can become a better one with the right mindset.

Compound Valuable Opportunities for Exponential Gains

Once we’ve found these good opportunities, the real magic begins. We double down on what works by investing more time and energy, expanding their potential return. One of the most powerful investments is your relationships. What starts as a brief introduction can lead to engaging conversations and eventually evolve into creation and collaboration. With every continuing interaction, relationships progress further, blossoming into future partners, mentors, and friends.

How To Achieve The Life You’ve Always Dreamed Of

So, how does all of this money talk lead to building our everlasting wealth? Here are the takeaways to keep in mind.

Multiply Opportunities for Out-of-This-World Returns

If we can create opportunities that build on each other, their potential is limitless. Think about some of the most life-changing companies from Apple to Boeing to Netflix. Their success was the result of combining talented people with great ideas to accomplish innovative things. In what ways can you pair your existing opportunities for multiplicative, exponential growth?

It’s Not the First Double that Matters, But the Last

This classic investing story showcases the principle of compound interest with the penny yielding over $5 million over the course of 30 days. However, it takes 15 days to reach even $100 with the penny, over half of the total month.

We have to remind ourselves that it’s the last double that generates the most return. Trust the process and continue to put time and energy into valuable opportunities. Doing so will lead to inevitable returns. Seek the next double. How can you compound your opportunities today and then compound them again?

The key to a positive return is to invest early and often. It starts with the awareness of potential opportunities and relies on commitment toward a future payoff. College is just one of many arcs that contribute to the return on the ultimate opportunity, life. While it can seem like we’ve missed out on our opportunity for high gains, it’s never too late. The best time to start investing is now. What relationships and experiences can you invest in today so that you can say that life was truly worth it in the future?

As part of our community, we would love to hear about the steps you will take to achieve a positive return on investment. Feel free to share your story with others by commenting below.