hordak Posted July 25, 2008 Report Share Posted July 25, 2008 My kids have reached the age where they will be going off to school (pre school) this year giving me plenty of free time. I'm trying to decide what to do with that free time. School: (Pro)Hire earning potential (Con) even more debt. Work: (Pro) lessen my debt (Con) low earning potental We have been counseled that both are important. Does one trump the the other? Anyone been in this boat and have some advice? Quote Link to comment Share on other sites More sharing options...
MarginOfError Posted July 25, 2008 Report Share Posted July 25, 2008 Congratulations on achieving your senior member status! If you want the financially minded answer, you have to consider how much your earning potential will increase if you complete your education. Will you be able to earn a dollar more per hour or 10 dollars more per hour? Will you work full or part time? Will your job after education provide benefits? If the cumulative sum of your increased earning potential is greater than the sum of the debt you will incur, then it's worth it to go to school. However, in matters like this, I don't think it's always best to think strictly financially. If getting a job now will lessen your debt while making you miserable at work, then it's probably better to get the education, and vice versa. So, I'd say consider the options, determine which one you think will give you the most long term happiness, and go for that one. Quote Link to comment Share on other sites More sharing options...
Listener Posted July 25, 2008 Report Share Posted July 25, 2008 So many choices, so little time. I don't know what you should do. I do wonder where your passion is...does the direction which education offers lead you to things which you are strongly committed to and wish to pour your energy into over the next twenty years? The right attitude will conquer your finances either way, but working at something you believe in is truly worth the effort. Quote Link to comment Share on other sites More sharing options...
Jbs2763 Posted July 25, 2008 Report Share Posted July 25, 2008 have you heard of Dave Ramsey?his whole "shctick" is be debt free, similar to what we have heard from salt lake, he just has a plan to get that way Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.i know what his ansewr would bework, save for school, then goto school Quote Link to comment Share on other sites More sharing options...
WANDERER Posted July 25, 2008 Report Share Posted July 25, 2008 Will it offer flexible time or can you work half-time in it? Higher salary jobs tend to overlap more into personal time and to get that family friendly edge (time off for special school events, sick kids etc) flexible time is a great thing to have. When doing your sums on financial aspects: work out when you start to make money and how long that will take in terms of debt payment...this is your break even threshold that you have to commit to. Store night packing does seem to be the job of choice for many students who need the extra money. Working for a good income does help. While work does take up a significant proportion of your life and may be a long career (twenty years etc)...it's not your 'real' life. Low income=...no money to spend on the things that you are passionate about outside of work....this can be dull. Quote Link to comment Share on other sites More sharing options...
Truegrits Posted July 25, 2008 Report Share Posted July 25, 2008 Anyone been in this boat and have some advice? (Long story short): after my divorce I had several jobs (low pay), a daughter in elementary school, and not liking where I was in life, nor seeing much hope for the future. I decided to go back to school. It was the best thing I could have done. I did go into debt to do it...however I was able, due to the better job, to pay off the school loan within two years. As a result of that decision I spent the next 20 years in a career that was both very rewarding and which I loved. So, it did work out for me.As has been said, I think you need to find what you will enjoy doing; what will make you happy, while also earning a living for your family. Money alone does not make one happy; you want to, at the least, like what you do... Quote Link to comment Share on other sites More sharing options...
NeuroTypical Posted July 25, 2008 Report Share Posted July 25, 2008 Get out of debt. Get out of debt. Get out of debt. Get out of debt. Get out of debt. Get out of debt. Get out of debt. After that, then save for things you want, like more education. You have never been counseled from anyone at this church that you should increase debt to get more education. LM Quote Link to comment Share on other sites More sharing options...
hordak Posted July 25, 2008 Author Report Share Posted July 25, 2008 have you heard of Dave Ramsey?his whole "shctick" is be debt free, similar to what we have heard from salt lake, he just has a plan to get that way Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.i know what his ansewr would bework, save for school, then goto schoolI think Dave underestimates the cost of higher education. Quote Link to comment Share on other sites More sharing options...
peanutgallery Posted July 25, 2008 Report Share Posted July 25, 2008 I'm a Dave Ramsey fan so I agree - Get out of debt first and pay cash for college. Quote Link to comment Share on other sites More sharing options...
peanutgallery Posted July 25, 2008 Report Share Posted July 25, 2008 I think Dave underestimates the cost of higher education. I am pretty sure he has kids in college now so he knows exactly how much it costs. Quote Link to comment Share on other sites More sharing options...
hordak Posted July 25, 2008 Author Report Share Posted July 25, 2008 I'm a Dave Ramsey fan so I agree - Get out of debt first and pay cash for college.It would take 2 and a half years to save enough for my undergrad assuming i save every penny , no tithing,gas, lunch, etc.Then assuming my undergrad got me a job making $44,000 and i could save every penny i could start grad school the next year. getting me where i want to be in about 9 years total.If i took out loans i would be where i want to be in 6 years and be about $80,000 in debt.I think it would be easier to pay back $80,000 in less then 3 years while making $70,000 a year then to save it up while making $7.00 an hour. Quote Link to comment Share on other sites More sharing options...
peanutgallery Posted July 25, 2008 Report Share Posted July 25, 2008 It would take 2 and a half years to save enough for my undergrad assuming i save every penny , no tithing,gas, lunch, etc.Then assuming my undergrad got me a job making $44,000 and i could save every penny i could start grad school the next year. getting me where i want to be in about 9 years total.If i took out loans i would be where i want to be in 6 years and be about $80,000 in debt.I think it would be easier to pay back $80,000 in less then 3 years while making $70,000 a year then to save it up while making $7.00 an hour. What if the economy gets really bad and you can't find work or you get sick and can't work? Could you afford to make the loan payments on your husband's salary? What if he gets laid off? Do you have enough in savings to meet your expenses in an emergency? If so, then I would consider it. Quote Link to comment Share on other sites More sharing options...
ruthiechan Posted July 25, 2008 Report Share Posted July 25, 2008 Do some research on this. Make a decision. Then take that decision to the Lord. Then see what happens. Also, you gotta have the support of your spouse above all else. Quote Link to comment Share on other sites More sharing options...
funkymonkey Posted July 25, 2008 Report Share Posted July 25, 2008 (edited) Hi hordak. :) I think education is a great thing, and employers recognize you being able to dedicate yourself to something. Nowadays it's really expensive though, and earning power depends heavily on your degree field. Earning power can also vary greatly depending on where you live. For example, a job in New York that pays $80K might pay $40K in Arizona. After reviewing the earning statistics for a higher degree, my husband went for his higher degree. Five years later, and a lot of debt, he just landed his first job and he's making just as much now as he would have if he had gone straight into work five years ago...and he's making not even close to what the statistics showed five years ago. We're also realizing that paying off that debt is going to be lot harder than we thought it would be. So I guess what we learned is that higher education doesn't magically open a bunch of doors. You still have to compete for work, start out at the bottom of the food chain, etc. My bachelor's degree made it easier for me to get work, but it didn't necessarily increase my earning power. I worked with a lot of people that didn't have degrees and the experience they gained while I was in school made them just as marketable as my four year degree. Also, when you first start your career out of school the employer is going to expect you to pay your dues for the first few years...depending on your field, that means that flexibility for time off (if jr gets sick for example) for those first few years will be very difficult to get, and not hurt your career. Depending on the field you are looking at, a vocational degree, or an associates, or a certificate program (nursing or physician's assistant, or business administration, etc) might provide the same result. Just something to think about. Good luck! Edited July 25, 2008 by funkymonkey Quote Link to comment Share on other sites More sharing options...
hordak Posted July 25, 2008 Author Report Share Posted July 25, 2008 What if the economy gets really bad and you can't find work or you get sick and can't work? Could you afford to make the loan payments on your husband's salary? What if he gets laid off? Do you have enough in savings to meet your expenses in an emergency? If so, then I would consider it.I am the husband. I know the taking care of the kids thing throws a lot of people off.My wife salary will be enough in 6 years.She isn't getting laid off unless the second coming occurs in the next 14 years. Quote Link to comment Share on other sites More sharing options...
hordak Posted July 25, 2008 Author Report Share Posted July 25, 2008 Hi hordak. :)I think education is a great thing, and employers recognize you being able to dedicate yourself to something. Nowadays it's really expensive though, and earning power depends heavily on your degree field. Earning power can also vary greatly depending on where you live. For example, a job in New York that pays $80K might pay $40K in Arizona. After reviewing the earning statistics for a higher degree, my husband went for his higher degree. Five years later, and a lot of debt, he just landed his first job and he's making just as much now as he would have if he had gone straight into work five years ago...and he's making not even close to what the statistics showed five years ago. We're also realizing that paying off that debt is going to be lot harder than we thought it would be.So I guess what we learned is that higher education doesn't magically open a bunch of doors. You still have to compete for work, start out at the bottom of the food chain, etc.My bachelor's degree made it easier for me to get work, but it didn't necessarily increase my earning power. I worked with a lot of people that didn't have degrees and the experience they gained while I was in school made them just as marketable as my four year degree.Also, when you first start your career out of school the employer is going to expect you to pay your dues for the first few years...depending on your field, that means that flexibility for time off (if jr gets sick for example) for those first few years will be very difficult to get, and not hurt your career.Depending on the field you are looking at, a vocational degree, or an associates, or a certificate program (nursing or physician's assistant, or business administration, etc) might provide the same result.Just something to think about. Good luck!I know a degree isn't necessarily a road to riches and you have to pay your dues but i think the bottom would pay better If i had a degree. With my wifes career we tend to move around allot so working my way up in a company instead of getting an education is not a good option for me.I've looked into the shorter roads but don't want to sell myself short.Not that there is anything wrong with those jobs but i don't want to waste 2 years getting a AAS then have to restart from the beginning.BTW a PA is grad school. Quote Link to comment Share on other sites More sharing options...
funkymonkey Posted July 25, 2008 Report Share Posted July 25, 2008 It looks like you've already weighed the benefits against the risks and what your situation requires. Best of Luck! Quote Link to comment Share on other sites More sharing options...
NeuroTypical Posted July 27, 2008 Report Share Posted July 27, 2008 I think it would be easier to pay back $80,000 in less then 3 years while making $70,000 a year then to save it up while making $7.00 an hour.In case you ain't been paying attention, the US is in a housing crisis because people wanted "easy" so much, they turned their back on "wise". Quote Link to comment Share on other sites More sharing options...
Jbs2763 Posted July 27, 2008 Report Share Posted July 27, 2008 you can make bank deliving pizza Quote Link to comment Share on other sites More sharing options...
WANDERER Posted July 27, 2008 Report Share Posted July 27, 2008 Ummm not quite 'easy' to pay off the education loan...after taxes, work-related and budgetting expenses and interest on that loan etc. Still takes a while. Realistically assess your disposable income after being hired and your self-discipline on sticking to living frugally when time is not at a premium (learning a new job). It always takes longer than you think. Quote Link to comment Share on other sites More sharing options...
Jbs2763 Posted July 27, 2008 Report Share Posted July 27, 2008 and you gotta figure that your taxes will double or triple with a higher income Quote Link to comment Share on other sites More sharing options...
skalenfehl Posted July 27, 2008 Report Share Posted July 27, 2008 Quickly scanning through this, my advice is this: Which will bring you the greater return for your retirement? That should be your focus. Start building your retirement/financial independence now. I've heard Donald Trump say "Work hard" to be successful. Bloomberg said "Do the hard things first." Hope my little bit of sage advice helps. Quote Link to comment Share on other sites More sharing options...
RadioactiveWolfboy Posted July 28, 2008 Report Share Posted July 28, 2008 We are counseled to get out of debt, but are we not counseled that when we die, all we have is our knowledge. I decided to take the risk at 38 and go to college. I'll finish up my degree in 2 weeks and move on. The cost,.....about 20 grand. But that is helping me to grow my business, and if that fails I'll have the degree to get a well paying job. Now I can work on getting out of debt, which besides my school loan is not much. I'm not saying that everyone should do what I did, but I would suggest pondering and praying. That's what I did. Rich Quote Link to comment Share on other sites More sharing options...
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