In the FIRE community, many people discuss topics like “ How to invest in S&P 500 from Australia ” or “ Should I invest to buy a home? ”. However, spending money on skills and education is an investment too. It may not feel as tangible as owning something, but it can provide returns just like any asset.

A lot of Australians clearly see the value in higher education; about one-third of Aussies have a uni degree. But here's the big question: is a university degree worth the money? Or are there alternatives to building wealth?

Just to be clear, we aren't claiming to have all the answers about what is and isn't inherently valuable to people. That’s your call. But we love hashing out different ways to reach Financial Independence . This is why we are digging into popular opinions on this topic, and exploring multiple angles to a life-changing decision.

Popular opinions for why going to university is worth the money

Advantages

1. Higher income over time

Many of us hear that going to university means earning more money over time. We pay for education now, but it’s an investment that pays off later. For jobs in fields like medicine, law, and engineering, this rings true. Study hard, earn the degree, and you’re more likely to land a well-paying job in your chosen industry. The idea is that the money spent on education will return to you as a higher salary in the future.

2. Building a wider network

Networks matter, more than we often credit them for. When people study at university, they often and bond with meet like-minded folks who will pursue careers in a similar industry. In the future, proponents argue, these contacts can help you find job opportunities or collaborations. Even so, the value of these networks depends on our field and how much we engage with others.

Interestingly, the value of networking also applies where a degree isn't strictly necessary. Here, who you know can matter just as much as what you know.

3. Job stability for specialised roles

The usual spiel is that the more educated you are, the safer your job is. And in some cases that's true, because it’s tougher to replace specialised skills. Then again, it’s worth noting that this stability can vary with industry changes. Technology, especially Artificial Intelligence (AI), is advancing at such a pace that it's inevitably reshaping the job market.

Throughout history, technology has always been a double-edged sword; some jobs fade away while new ones emerge. We have gone through many cycles of adaptation and change, and this one’s no different.

We can only speculate about AI's impact at this point (we doubt it’s going to replace human experience and ingenuity, which has made giant leaps for humanity even until now). However, as we know it, roles that mostly involve repetitive tasks are the first ones to adapt to this cycle.

Now, it’s worth mentioning that not all stable jobs require a degree. In fact, manual jobs, like tradies, are proving to be secure and earning beyond average wages even as industries change. And that’s for a good and fair reason: you’re paying for at least a decade of human judgment, job experience, and physical presence. You need a real person, with real tools, who can show up at your door and get their hands dirty.

Challenges

1. Take on debt and (possibly) take longer to build wealth

When we look at the traditional path of education, it seems almost ironclad. We've been taught to value a university degree as the golden ticket to a successful career. Yet, we often don't see many mentions about what it means for you if you’re after Financial Independence.

First off, unless you pay upfront, going to uni means you're likely going to accumulate debt. With HECS-HELP , the debt doesn’t need to be paid back right away. Regardless, it’s still an obligation you’ll have to deal with later.

You’d also have to consider that starting salaries for many graduates aren't very high. It could take many years for your salary to catch up to where you want it to be. This delay may mean you’d need to be comfortable waiting to reach some financial goals, like buying a home or saving for retirement.

On the flip side, if you skip university and go straight into work, you could start earning money right away. Some jobs, especially in trades, can pay really well, even from a young age. In fact, this survey suggests that many 25-year-olds in these roles are able to find full-employment and earn better wages than university graduates.

(Of course, despite what the surveys and anecdotes tell us, not everyone wakes up in the same bed and plays the same hand of cards. This is to say: one person's success story is not a guarantee for everyone else.)

2. There’s a risk you won’t end liking your industry/job anyway

We all know folks who got their degree, started the job, and then... they didn't like it. All that effort, time, and money spent, and they end up in careers they never wanted. It’s so common that it makes you wonder: how can anyone be sure at 18 what they want to do forever?

Sometimes, the person in question may not have really decided for themselves. Society pretty much ushers young people straight from high school into higher education, as if it's it's the only path forward. Hayden hits the nail on the head when he says may of us are setting our kids up without giving them a real say.

Some people may find it hard to find the motivation to do things they are not interested in

This brings us to a big factor: motivation. When you’re doing something you're genuinely interested in, you're more likely to put in the effort and stay committed. That energising feeling can lead to real success and happiness.

But if you’re signing up for a course without that spark, university can feel like more of a trap than a launchpad. It becomes a place where you’re just clocking time, accumulating debt, and putting off earning an income.

A lot of young folks are going to college because of pressure or expectations

There’s also this heavy weight of expectations – either from family, friends, or just the pressure you put on yourself. Seeing peers who seem to have it all figured out can make you question your own choices and feel a bit lost.

But, let us reassure you: figuring out your life isn’t a race, and it’s perfectly fine to take a moment to explore your options. Give yourself permission to explore, to question, and even to make mistakes. That’s how you find your own way in this world.

3. Struggle to cope with the rigid structures at a job

The typical university lifestyle has its flexible schedules—you can sleep in, skip a few classes and still make it through. It feels like freedom, but in Hayden’s case it set him up for a tougher transition later. Once university ends, it’s like learning to be an adult overnight to fit into rigid structure and unpredictable work hours. And many others find the transition triggering a sort of “quarter-life crisis”.

Why some folks think getting straight to work is the better choice

Advantages

1. Start earning straight away and build real-world skills

Not everyone is cut out for the traditional classroom scene. For some folks, getting out there and starting work right after high school just makes sense. In the process, they learn to manage time and money, negotiate workplace situations, solve real-world problems and see the direct results of it. All of these skills can help to build a solid financial foundation. Arguably, these are things that schools often can't teach.

To be clear: this isn’t a knock on education. University is great for someone who knows what they’re getting from it. But, for others, they might not see good enough return on the time and debt spent on a degree.

So they figure the earlier they start working, the earlier they can figure out what they are good at. By then, they can start saving for their goals without a massive student debt slowing them down. And in their world, that’s what success looks like.

2. There’s less pressure to pick something and commit

On that note, when you jump directly into a job, there’s precious flexibility that comes along with it. If you didn’t enjoy a gig by a few months in, what do you do? Simple: you pivot. You try something new, and there’s hardly any fuss about it. You’re free to explore other trades or roles without the heavy baggage of a massive debt for a three-year degree.

On the other hand, signing up for a degree is a big commitment. If halfway through, or even after you graduate, you realise it's not for you, it can feel like you're stuck. You’ve invested so much time and money, and that can make it feel challenging to just walk away.

And so many of us who are unsure about what we want to do still end up at uni, thinking it will sort itself out. But what often happens? We finish our degrees, and we're still not sure, only now we're also tied down by a hefty debt.

So, even if the alternative might not have the prestige of a uni degree, it does give you something invaluable: the freedom to experiment and define your own success.

Challenges

Usually lower long-term earning potential

The thing about this path is that, at first, it will be hard. There are enough Reddit stories of folks who had tried many low-paying jobs before they could say they “made it”.

Even so, most folks who skip university end up around the middle income range, which isn't bad. But shooting up to those really high salaries? It’s a lot harder without certain qualifications.

Sure, there are exceptions, but they're just that – rare and hard to count on. They’re usually the ones who give up a lot of their time and make heavy sacrifices. If pulling in $400k were the norm without a degree, we wouldn't hear so many stories celebrating the small percentage of tradies who make it big.

Financial and non-financial considerations for deciding whether university is worth it

1. The time it takes to reach a certain financial amount

First, it really comes down to what you're after in life – money, job perks, or maybe a bit of everything. Second, figure out your timeline for achieving your financial goals. How long do you want to wait before you could afford, say, a house deposit?

If someone goes to uni, then yes, they might start working later than folks who went straight to work after high school. This might mean their salary kicks off a bit slow. But over time, if they are in specialised jobs that often require a degree, they might see their pay rise faster. In fact, it might rise much higher than the 3% average annual salary increase in Australia .

Now, someone who skips uni and starts working right out of high school might not see their salary grow that fast. Maybe it might grow at the 3% rate we mentioned (though this is completely arbitrary because it entirely depends on your industry, skills, working hours, etc). However, they've got a big head start on earning and saving. So, by the time they’re 35, for instance, they may have a solid pile of cash saved up.

Now, it’s around this age that things get interesting. By the time they're both around 35, they might have the same amount of money saved up. Let’s call it the ‘crossover age’. This is when the faster-growing salary of the hypothetical uni grad may match and surpass the total earnings of the hypothetical high school grad.

Then again, we only talk about this in terms of the money earned over those years. Catching up on earnings doesn't automatically mean catching up on wealth (or net worth— assets minus liabilities ) .

Even with smaller pay packets, the high school grad has probably had more time to save and grow their wealth through all those years of compounding interest. In contrast, the uni grad is making more money than the high school grad did at the start, but they’re playing catch-up. Not only do they start saving and investing later, but they’ve also got student debt slowing down. And as their salary grows, it usually means they qualify for a bigger income tax rate.

Of course, as we mentioned, the above example is purely hypothetical, and doesn't accommodate a range of crucial factors. So, when we talk about a random crossover age, we only do so to illustrate our point about income increase. Yet, income alone does not equal wealth, so don’t worry about some made-up scenarios. It’s all about how much you can keep and grow, not just how much you earn.

That said, the idea that your career path alone dictates your financial future is oversimplification. Whether they're university-educated or not, many can meet their financial goals with structure and consistency. Besides, in most cases, those who see their income rise in a short timeframe can chalk it up to fantastic amount of luck.

2. How you handle peer pressure and expectations from society

When you pick a career, it's kind of like deciding whether to join a football game where everyone is super competitive. Or, alternatively, a friendly match where it's all about being you and enjoying the process.

So, if your family and friends have strong opinions about what a successful career looks like, it’s like having a crowd watching and shouting from the sidelines.

If you really care about making those sideline cheerleaders proud, you’d be forgiven for prioritising their wants. On the other hand, if you can brush off those shouts from the sidelines, you might just be fine picking a career that interests you, regardless of the prestige or pay.

So, ask yourself: Am I picking this path because it’s what I really want? Or is it because I feel pressured to live up to someone else’s expectations?

Peer pressure and expectations don’t stop there, though. Regardless of what you choose, you’re suddenly supposed to live a certain way. Society tells you there’s an invisible checklist everyone is supposed to follow.

For instance, it’s pretty common for doctors to ramp up their spending as they climb the career ladder. It’s not so much that they want to; they may simply feel pressured because all of their colleagues are doing it.

Now, if you’re someone who feels this pressure, you can probably think about how your career choice will stack up financially. You’ve got to ask yourself: Can this job help me keep up with the lifestyle I see my peers living? Or am I okay with going at my own pace?

3. Interest in entrepreneurship/running your own business

We often focus on promotions and salary raises, but those who go into trades often find themselves in a great position too. They get practical experience, and sometimes, they even end up owning a business. We’ve seen tradies who are absolutely doing well financially because they run their own operations.

Like all things money-related, though, it comes with its own set of risks. Owning a business sounds rewarding, and you could do really well. Equally, you could find yourself in a tough spot financially if things don’t pan out.

Regardless, there’s a valid point worth doubling down here: going to uni – or not – isn't going to seal your fate. It really comes down to the choices you make and what you do with the opportunities you find.

Final thoughts

We've done our best here to weigh both sides fairly. Hopefully, you find the scales as even as we aimed for.

The real trick, though, is turning whatever income we make into lasting wealth. It's one thing to pull in a decent salary. It's a whole different ball game to grow that into Financial Independence down the road. That's a skill we all need to master, regardless of the path we pick.

And if university isn't for you, that's totally okay! There’s a whole world out there with limitless potential, as long as you’re willing to go after it.

However, if you’re spending your days in lecture halls and aren't sure what’s next, don’t sweat it. Universities are packed with resources and folks to talk to. Dig in, ask around, and you can pretty much chart out your next moves from there.

We hope you found this episode useful. If you've got any topics or questions you want us to dive into next time, just shoot them over. You can email us at hello@aussiefirepod.com , or hit Dave up on his socials at Strong Money Australia . Hayden's also around on Pearler socials if you want to reach out there.

Catch you in the next one, and happy investing!

Dave and Hayden