Friday, September 27, 2013

Future Income Risk Management

I believe that income risk management has undoubtedly shaped many of the decisions I have made throughout my college career, but other factors definitely have played a role in those decisions. To begin, I transferred to the University of Illinois as a sophomore from the University of Iowa. At Iowa, I had a very high GPA and was on an accelerated track in the business program. However, I was not very happy there. While doing really well in school was important to me, I made a decision to transfer for my own happiness and ambition of a different college experience. Part of my decision to transfer to the University of Illinois was influenced by the fact that my sister was attending the school and was an economics major, but also because the University of Illinois has a much better reputation than the University of Iowa and having a degree from here really made me think about how that would look when it came time to apply for jobs after college. Furthermore, I believed that I would be a stronger applicant for jobs because of the quality of education, which gives the University of Illinois its reputation. 

After getting accepted into the University of Illinois as undecided, I now was faced with the choice of picking a major. Before coming to Illinois, a friend of mine was in the aviation program and wanted to be a pilot. He talked to me about how fun and different it was than many other majors. While flying had always interested me, I really was not sure what to do with that interest until I met a friend of my father who is a captain at FedEx. His described his job as great and when researching the income of veteran captains, which is pretty high, I decided to give flying a try. However, while choosing to join the aviation program here at Illinois, I still wasn't sure how valuable a degree in Aviation would be, especially if my health were to fail and I was no longer able to fly. It is primarily for this reason I decided to major in Economics. While there were many other majors to choose from, knowing that people in the business realm often made salaries that they could survive on as well as having a sister who would soon be entering the job market with an economics degree made me decide that economics was right for me. While many of these major decisions seem to be influenced by the here and now (not being happy with another school, needing a major), I believe that the life after graduation is what drove me to be on the path I am today.

For instance, if I had chosen to become a theater major and my health had failed, the probability of making enough money, or at least the an amount that I could see acceptable for the amount of tuition I pay to come here, is very low. There are many other majors that have this sort of high level of competition for a decent paying job. With economics, where the concentration is perhaps undefined, I felt as though I could hopefully fit in somewhere if I need to.

There are also many decisions I have made during college that I believe were made with the future in mind. For instance, I have done a small amount of research (on Egypt and the role economics played in the Arab Spring), as well as joined the University of Illinois flight team. I also am currently employed as a flight instructor here at the University and hope that will grant me at least more experience. 

One thing that I found surprising from my sister who had to enter the jobs market was the amount of things the told me that she wish she had done in college, both with her future in sight and without. For instance, she tells me to take advantage of the university facilities that can help you get a job, build a resume and work experience. She notes that while you may not want to do them at the time, in the end they really can help you make an excellent candidate for a job. She also notes that you shouldn't make everything about your future and experiences may only come once, especially in college.

4 comments:

  1. I don't know that I've ever had a student who became an airplane pilot. So that is an interesting skill set you have that might very well be a leg up you have over your classmates.

    Transferring is a challenge, no doubt. When I transferred to Cornell, my younger brother was going there, so that helped a bit, not from a career perspective, just in making the move a little easier.

    I do agree that not all of college is about preparation for the future, or at least not explicitly. There are opportunities at College to take advantage of that make you grow as a person. Those may have down the road payoff as well, but one should enjoy them for what they provide for you now.

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  2. I also went through a similar search in finding a major. I was looking for something practical that would lessen my future income risk. I never really thought about it as someday being incapable of doing a job (health problem and theater or aviation major example) but rather thought about the accessibility to jobs and applicable skill set I could gain.

    Having the ability to fly is indeed a unique opportunity. It would have been very cool if you had been able to double major with economics and aviation. I think that may be common thing for students nowadays. Double majoring with something practical as well as something that really sparks there interests. That way future income risk is managed but the student is also intellectually satisfied.

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  3. You brought up a very important point in choosing major that I've never thought about. I never thought about the relationship between health and career path before I read your post. I agree that your evaluation among majors is necessary and effectively reducing income risk in future.

    I also appreciate that you didn't abandon your interest after you choose Economics as major. You still involve in the flight team and accumulate some experience on the area you like. Taking advantages of resources and facilities in the university can be really helpful in the career preparation and personal development, even though sometimes it might not be really helpful in future career. I play in a band from junior year. Even if it might be nothing for my future career, I still enjoy it because college is almost the only period that I can have resource and band members.

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  4. I think perhaps the health aspect of managing income risk may only be a larger factor in some career decisions. For instance, performing your job at a desk job may not carry the same risks as having to fly an airplane. I think it is also interesting to think about how the interests we take up in college may in fact be playing into how we want to define ourselves in the jobs market as well as prepare other qualities for ourselves such as work ethic and well rounded knowledge.

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