If your goal in life is to earn as much money as possible, then you need to determine before you graduate high school what high-earning career path is best for you. You’ll need to weigh your skills and aptitude to decide the collegiate degree that provides you the best chance for professional success as well as a quick return on the money you (or your parents) invest in your education. You’ll need to get your foot in the door of your industry early, during college or even during high school, perhaps for little or no pay at first.

It’s undeniable that your first job out of college, and the salary that goes along with it, will set the course of your career. Start with a high salary and you’ll consistently be further along than others throughout your life. If you start your career at 25 years old, earning $30,000, you’ll retire at 65 having earned almost $850,000 more in total income over someone who started at the same time earning $23,000, if you’ve both received the same 5% annual raise. (This example is from Free Money Finance.)

With higher starting salaries in a fast-paced career like investment banking, the gap will be much larger.

Managed well, more money means more flexibility to do more things with your life outside of your job—if that career doesn’t work you to death or drive you insane.

However, there are a number of reasons why these tactics might not be the best option.

• It requires an early decisions at a stage when someone might not be fully aware of their talents and aptitude.
• A decision to embark on a life-long career requires a level of maturity that a number of students in high school—and even college—just don’t have yet.
• Chances are good that careers will change once or more throughout a lifetime, sometimes requiring a salary reset.

Some time ago, I polled Twitter users to determine who find themselves in a career related to their original major or college degree. The results were about half-and-half. Here were some responses (keep in mind that Twitter responses are limited in length):

Mmmeg: Majors were classical studies (Latin) & Spanish linguistics, minors linguistics & foreign lang. ed. I work at a fashion site. I was also a jazz performance major for a semester.

frugalbabe: degree in psychology, minors in math and econ… working in the health insurance industry.

PenelopePince: B.A. in Interdiscplinary Studies: Linguistics, Spanish, French, Madarin & German; Minor in Music. I own a pet clothing business.

uppervalleymom: BA in Government, MS in Evaluative Clinical Sciences (public health-y) working PT at business school now, but was in nonprofit exec dir

guppie: B.S. in biology, working in web development

The point is that there is a good chance the decision you make as a high school student or college freshman might not have as much bearing on your career path as you hope. I prefer this advice from author Dan Kadlec, on the occasion of his daughter’s recent departure for college:

Don’t get caught up in talk on campus about which majors are the best stepping stones to financial success. You’ll hear plenty of that from kids who want or may be under pressure to get a quick return from their education. Forget them. Many of those kids will end up disliking their jobs and muddling through so-so careers.

You can make a great living doing almost anything, as long as you love it. So take risks. Explore. Switch majors. Get your head out of the books and do something surprising. There’s time. But find your bliss and pursue it.

Go ahead and get fluent in Spanish and study abroad if that makes your heart sing. Your knowledge and experience will pay off later on, I promise – just as you’ll be rewarded for the joy you bring to tasks that excite you.

It’s good to see advice pertaining to education and career choices that isn’t focuses solely on “financial return.” You can try to analyze your return on investment (ROI) but a good education is about more than just earning power.

A letter to my college-bound daughter, Dan Kadlec, Money Magazine, September 4, 2008.

Fourteen years ago this month I was nervous about what was about to transpire. At this time. although I had been away from home for extended periods of time, I was about to leave for college. Honestly, I thought I might be biting off more than I could chew. Rather than living at home and attending a local college like a number of my high school classmates, I was preparing to live on the campus of a major university in another state.

I should have known that I had little to worry about. But there are a few things I wish I had known—or at least thought about—before entering college.

Pay attention to your expenses. For me, my expenses were fairly controlled. On campus, I had a meal plan. My breakfasts, lunches and dinners were paid for in advance and rolled into my tuition and board expenses. In order to eat in one of the many dining halls, all I had to do was flash my student identification card. This meal plan entitled me to a certain number of meals per week in addition to an allotment of “points” which can be used to purchase snacks at other times.

The meals and points expired at the end of each semester, and the college reminded students that “It is [their] responsibility to budget [their] points over the course of the semester/session.” I don’t recall doing any budgeting. I may have known at the time how many meals and points were available to me, but I didn’t do any planning. I ate when I felt like it and bought snacks and other things at the university’s shops when I desired. There was an option to add points to the account, and I’m sure I did this as needed.

Who is paying for college? My undergraduate education was paid for by my parents, a partial scholarship, and loans in my name. If your parents are paying for your education, be careful not to fail any courses. If you fail a class required for your degree, you will have to take that class again, paying for it twice. It’s not worth it, particularly since it’s usually difficult to outright fail a class. Paying for college yourself supposedly gives you ownership of your academic decisions while in school, but if you’re in a situation where you don’t have to worry about affording your own tuition, then consider yourself lucky.

Work shouldn’t interfere with studies. I am quite grateful I didn’t have to pay for most of my undergraduate education. It allowed me to focus on my education and extracurricular resume-building activities in my field rather than focusing on earning income to afford tuition. I did find a few jobs, however. I stayed on campus for winter and summer sessions to take more classes, but with a lighter load during these in-between semesters, I worked in the department library to earn some extra money. I also served as a web consultant in my department, designing their first departmental web site and teaching professors how to publish their own sites for a measly ten dollars an hour.

These jobs provided me with a little extra cash. I probably spent it just as fast as I was earning it, however.

Open a Roth IRA. I wish I had known about Roth IRAs when I started college. It would have been impossible for me to do so without a crystal ball or some other form of premonition. These retirement accounts were brought into existence while I was enrolled in the university, but I did not hear of it until a few years after I had graduated. If I had known that I could put money away for retirement in a tax-advantaged account while I was in such a low tax bracket, I might have taken advantage of the opportunity. Then again, I might not have. It’s hard to imagine retirement before you’ve officially begun a career, but it’s harder to argue with long-term investing in the stock market. If I had invested $1,000 in the S&P 500 index on October 11, 1996, it would be worth $1,825 now (not including reinvested dividends) and much more by the time I retire.

Like many, I played the “stock market game” in elementary school. By the time I entered college, I probably knew only a little more about investing, but my interests lay elsewhere so I did not particularly think about having a secure financial future.

Avoid credit cards. The credit card companies are vultures on college campuses. I remember when I first arrived on campus as a freshman for orientation, one week before the upperclassmen. The companies set tables outside the dorms with applications and free tee-shirts, enticing subfashionable freshmen like myself to sign up. Although I escaped relatively unscathed, having a credit card without a job is asking for trouble.

One particularly sneaky aspect of college-geared credit cards is the introductory offer. The 0% APR on purchases deal sounds great, but what they don’t explain is that you must pay off your entire balance on the card before the promotional period ends, otherwise you could owe back interest as if the 0% APR promotion never existed. It’s always explained in the fine print, but if you have an appointment for orientation, chances are you just want to sign the form and grab the tee-shirt.

Forbes offers these thirteen financial tips for students entering college for the first time.

• Use credit cards sparingly
• Pay all credit card balances in full
• Get the best deal on a checking account
• Start saving
• Keep track of your spending
• Set a limit on entertainment
• Shop at second-hand stores
• Keep an eye out for free money
• Get a part-time job with tips
• Walk or ride a bike—don’t drive
• Avoid the tax on stupidity
• Look for student discounts
• Don’t eat out all the time

Tavis Smiley has a number of similar suggestions. He suggests making a budget, shopping smart, and learning to cook.

Had I known what I know now about compounding interest and the tendency for the stock market to increase over time, not just theoretically but from experience, I’d be in a better financial position right now. And it’s not about having more money, it’s about having more options for doing the things I like to do.

Photo credit: Éamon
13 Financial Tips For College Kids, Scott Reeves, Forbes, August 30, 2004
Financial Advice for College Students, Tavis Smiley

While I haven’t decided whether I’m making a habit of this, earlier today I asked Twitter users whether their current job is related to the field in which they earned a bachelor’s degree. The unique thing about Twitter is that responses are limited to 140 letters and spaces, so it’s a challenge to condense a full thought into one repspose.

Since I am assuming that those who responded publicly are fine with me posting their answers with attribution, here are some of the responses.

• Mmmeg: LOL! Majors were classical studies (Latin) & Spanish linguistics, minors linguistics & foreign lang. ed. I work at a fashion site.
• frugalbabe: nope. degree in psychology, minors in math and econ… working in the health insurance industry.
• ericyng: No. I work in IT.
• PenelopePince: B.A. in Interdiscplinary Studies: Linguistics, Spanish, French, Madarin & German; Minor in Music. I own a pet clothing business.
• nodebtplan: in Bus. Management—working as a recruiter now… so I’m in the business world. Kind of a broad degree. Working on MBA as well.
• Gingerlatte: BA Criminal Justice Yes. I work with women who are on post release by providing psychotherapy and group counseling.
• TheHappyRock: Yes, Comp Science. Although I do have an MBA now too.
• bripblap: have a BA in math, MBA in accounting and working in accounting – so half and half
• Private: I have a B.A. in Art History. I got an M.A. in the same field, then an MSLS. I’m back to working with art history now, but in a library.
• conedude13: Kind of. have a bs in ee but am programming c++ code but am considered an engineer in my dept. Confusing, but was doin civil eng b4.
• MrsMicah: English a field? i mean, English lit and libraries kinda go together…
• SunFinancial: BS, MS, and PhD all in EE, am working in that field.
• uppervalleymom: BA in Government,MS in Evaluative Clinical Sciences (public health-y)working PT at business school now, but was in nonprofit exec dir
• guppie: B.S. in biology, working in web development
• hank_MiB: BA in studio art. currently IT manager, but still do a bit of art on the side
• BurgBarbL: I majored in history and English and use skills from both of those in my field (publishing), if not in lit or history directly

By my count, there are seven polled whose work does not somewhat relate to their bachelor’s degree while ten who are employed in roughly the same field. There is a lot of pressure for high school juniors and seniors to choose a school and their career path or a “major.” Should there be so much pressure when students are still trying to determine their long-term goals and discover their talents?

I decided my career path early on in high school, without much pressure, but I eventually steered my life in a different direction, like a good portion of the people who responded to the poll. While my major remained constant throughout college, my minor floated from computer science to psychology to music management/music business, but during that time I was interested in at least two others.

This poll will tie into an upcoming article. Thanks to everyone who participated. Follow me on Twitter to participate in future polls.

If you have variable rate student loans, mark July 1, 2008 on your calendar. After that date, you can lock in interest rates 3 percentage points lower than what’s available now. I’m not eligible for lowering the rates on my student loans because I’ve already consolidated and I have no new student loans to add into the mix. But if you haven’t consolidated yet, you may be able to benefit from rates as low as 3.62%.

I have about $11,000 left to pay on my student loans at 4.25%. As savings interest rates have decreased recently, I’ve been increasing the amount I’ve been paying to eliminate this debt. This loan is the only debt I have that requires interest payments, and I’ll be happy to pay it off.

Earlier this month I sent $750 to student loan repayment. That payment is up from $500 the month before, $250 earlier this year, and about $150 earlier than that. In July, I’ll either maintain my $750 payment or increase the amount to $1,000 depending on my June financial results.

Update! There are a lot of questions being asked already, so here are some details.

• Since many lenders no longer perform student loan consolidation, you may be better off starting your search with the U.S. Department of Education who will.
• Only variable-rate student loans are eligible. All student loans initiated after July 1, 2006 are fixed-rate loans, so these loans will not qualify for the lower interest rate, but you can still consolidate multiple loans to reduce your number of payments, your minimum due, and extend your total repayment duration.
• If you’re still in school, you are not eligible for the lowest rate. If you’re in the six-month grace period, you can receive the lowest interest rate on the loans that are over two years old (usually from your freshman and sophomore years). If you’ve waived your grace period you’ll only qualify for a higher rate.
• If you’ve already consolidated your student loans, you won’t qualify for the lowest rate.

Note: The Department of Education’s loan consolidation application will not indicate the new, low interest rate until July 1. Consolidation applications are on hold until that time.

3.6% student loans: Consolidate now, Liz Pulliam Weston, MSN Money, June 23, 2008.

College graduation like when you beat Ganon, the resilient bad guy at the end of the classic video game, The Legend of Zelda, for the first time. You’ve been through many levels of challenges, perhaps even used a few “cheats” along the way, and did anything necessary to grow your knowledge and skills, many of which were necessary for the final test of strength.

You’ve saved Princess Zelda and were rewarded by watching one final scene and reading the names of computer programmers as they parade up the screen. You were relieved that your journey was finally complete, but before long, you realized there was more to the game.

Suddenly, you were presented with the option to begin your next journey. Your character, Link, displayed a new sword to indicate the completion of the first journey. This newly brandished sword is like your degree. With your degree in hand, it’s time to face a new world, one that is uncharted. (The map to this “second” Zelda adventure did not come with the video game.)

After graduation, it may take a moment for some to realize that you are now in control of your life and the decisions you make can have a profound effect on your future. Here are some ideas to help you, the graduate, make solid financial decisions.

1. Actively manage your expectations. You may have friends who have already graduated. They’ve provided you with endless entertainment as they talk about the “real world.” By now, you will have heard about new cars, new houses, new weddings, new kids, new relocations, new implants, and new gardeners, and you’re looking forward to sharing similar experiences.

With jobs, they have been receiving a steady income, probably sizable, and have been spending their money almost as quickly as they have been earning it.

Actually, they have probably been spending their money faster than they have been earning it, but that piece of information will be curiously missing from their stories. What your friends didn’t tell you about is debt. Ask them about their retirement plan and IRA. Ask them about their budget. You’ll likely receive blank stares, and not just because you’re being a stick in the mud.

It’s best to ignore these types of stories because the danger comes when you expect that this is how one must live life as an adult. This is actually quite expensive and detrimental to your future. By managing your expectations, you won’t be disappointed when you can’t find a management position earning $100,000 with no experience right out of college, even if your friends tell you that’s what you should look for. You won’t be disappointed when you have to settle for sharing an apartment with several strangers or moving back in with your parents until you are able to afford your own bills and establish an emergency fund.

Simply, don’t try to keep up with the “Joneses.” This hypothetical family’s perceived wealth is mostly an illusion and it’s best to focus on yourself rather than others.

2. Choose your first job carefully. Your first job sets the tone for your future earning power, particularly if you expect to stay in the same career until retirement. Earning more in your first job out of college not only allows you to save more and be flexible with your budget, but it also makes it easier to negotiate better salaries when future opportunities arise.

That being said, don’t select your first job with money as the solitary driver. It’s quite possible that the path you’ve chosen starts out without much opportunity. If the job that interests you is not in high demand, then you will have to settle for what is available. Like a professor told me as I was pursuing music education in college, “If there’s any other career that could possibly make you happy, consider changing majors.” If you are pursuing your calling, be prepared for a bumpy ride as you progress, mentally, physically, emotionally, and financially.

3. Pay off debt. Many college graduates leave school with credit card debt. While in school, education is your first priority, so depending on your course load’s aggressiveness, you may not have had a job. However, you still had expenses, and your parents may not have provided for you. This is perfectly normal, but it must be attended to immediately.

Unless you are starting in an industry where image is important, it’s time to pay down your debt. With newfound income due to your first job, put any available funds into paying off your credit card balances, and do not add new credit card debt under any circumstances. The debt avalanche is the most mathematically pleasing solution to paying off credit card debt.

Chances are you have student loans to pay off as well. Consolidate these when possible to take advantage of lower rates, but don’t slow down your repayment. You may decide to get your master’s degree, and it’s best to do so without compounding more student loan debt.

4. Automate your savings. Automation is the key to creating habits without having to change your behavior much. If you have a new job and your employer is somewhat familiar with twenty-first century technology, they will have direct deposit available. This will allow you to deposit your paycheck directly into a checking or savings account (and a high-yield savings account is preferable).

From the savings account, you can decide how much you need for spending money each week and how much you need to pay your bills each month. Transfer only what you need and leave the rest in the account earning interest. Work with your bank to create instructions for these transfers so they take place automatically.

This is probably the biggest component of building an emergency fund.

5. Investing basics: Open an IRA and 401(k). Once you’ve automated your savings and are in control of your bills, you may have noticed you have money left over. Rather than buying a new car for $4,000 down and monthly payments of $300, you started with a used car for $8,000. With your saved payments, you can open a Roth IRA to take advantage of what will probably the lowest interest bracket you’ll ever be in.

If your employer offers a 401(k) or its cousin the 403(b), take advantage of this option as soon as possible. In many cases, companies offer “employer matching” contributions; for example, for every $1.00 you contribute, your company may thrown in an extra $0.50, you to one-eighth of your salary. This is free money, and you should accept it without question. Invest in your 401(k) at least to the limit of your employer match.

Your 401(k) may have some confusing options. If an index fund is available, that should be your first choice. Otherwise, your company may offer an automatic rebalancing plan based on your age or years until retirement, or a mutual fund that does the same. That may be a good choice for the novice investor.

6. Develop a plan, but be flexible. Your friends’ stories were missing something. While they spoke of all the exciting things they are buying and doing, they didn’t mention to you where they’d like to be in 5, 10, 25, or 40 years. Perhaps they have some vision of what their future might hold, but they don’t have a plan, something that will explain how they will get to that point.

If you haven’t already, decide where you want to be with your life in the short-term and the long-term. Think about not just the size of your bank account, but about all aspects of your life. For each goal, determine what you will need for its achievement. This doesn’t have to be exact, and without much experience in the workplace, you shouldn’t expect it to be.

Now that you have your plan, expect obstacles preventing you from reaching your goals, but also expect things that will require you to change your expectations, much like the first point above. It is said that people fall in love when they least expect it. Suddenly your own plans must incorporate someone else’s. It’s important to be flexible, because life has a habit of finding its own course.

7. You only live once. It’s important to think about the future and make the wisest financial decisions. But this is your life, and it’s the only one you get. Balance your future plans with making the most out of today’s experiences. Remember that money isn’t the most important thing in the world, but it does let you do some amazing things.

This article is part of the Money Blog Network group writing project for June, focusing on graduation. Here are some participating articles: Welcome to the Real World, Pay Yourself First, My Money Advice, A Fully-Funded Roth IRA, Graduates Might Be Shocked and Four Tips for Recent Graduates.