Go back to school ?

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nubs101
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Joined: Tue May 06, 2014 5:22 pm

Go back to school ?

Post by nubs101 » Tue Feb 13, 2018 2:55 pm

In a little tough situation and looking for some outside advice. Currently at my job my position tops out at around 75k a year which will take me another 7 years to do so. After the next 5 years I have the opportunity for a promotion and of course nothing is guaranteed but feel I have a good chance. Once promoted my topped out pay is around 85ish. On the other hand I can go back to school part time which will take me roughly 5 years and at the cost of 40k to get my degree. After having that I have the opportunity to apply for a new position which I will take a 15k pay cut but after the first 5 should be upwards of 90k with yearly raises. I am perfectly happy at my current job and unsure which is the right move. As of right now the only debt I have is my home which I have about 130 left on it. All basic finances are covered but the school loan would take me quite awhile to pay off. Which do you feel is the right move ?

Jack FFR1846
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Re: Go back to school ?

Post by Jack FFR1846 » Tue Feb 13, 2018 3:04 pm

There are no guarantees.

The safe bet is to go nights, part time. This is especially good if your employer will pay some of the cost. The fact that you like your job puts you up on about 90% of the working population.

Worst case scenario: You quit to go back full time. You get the degree and the job they promised you only to find they've gone out of existence.
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nubs101
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Joined: Tue May 06, 2014 5:22 pm

Re: Go back to school ?

Post by nubs101 » Tue Feb 13, 2018 3:09 pm

I may of typed that out wrong. I meant to say I would be going to school part time and still work full time at my job. I think worse case scenario for me is taking on that debt not getting the new job or promoted. I feel like then I may of just wasted a good chunk of change. But that could be a really negative way to look at it.

N10sive
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Re: Go back to school ?

Post by N10sive » Tue Feb 13, 2018 3:12 pm

How old are you?

Those 5-7 year time frames are quite long and a lot of things can change in that time. What schooling do you need? Can you get a certificate or something similar? Can you go to a cheaper school?

To take an initial paycut with a degree seems to be backwards. Depending how old you are would make a huge impact on whether or not I went for more schooling.

nubs101
Posts: 6
Joined: Tue May 06, 2014 5:22 pm

Re: Go back to school ?

Post by nubs101 » Tue Feb 13, 2018 3:19 pm

I am 29 years old and still early in my career. The reason the schooling will cost me around that is I have to do online courses through a certified college (IE not phoenix online). I will have to get my bachelors degree and can't do classroom setting because of my work schedule. Currently also planning for a wedding and could see a new addition to the family in the next two years. The reason for the initial pay cut is it will be starting over with a new company and not just a promotion through my current one.

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saltycaper
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Re: Go back to school ?

Post by saltycaper » Tue Feb 13, 2018 3:25 pm

If you didn't do it and you plowed ahead in your current positions and everything otherwise worked out as you currently anticipate, do you think you would regret not doing it? If you said you were going to quit your job to go back to school full time for a position you expected to top out at 40K, yeah, maybe the financial considerations would be the overriding factor, but aside from making a really obviously poor choice, at some point you have to ask yourself what it is you want.
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LiterallyIronic
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Re: Go back to school ?

Post by LiterallyIronic » Tue Feb 13, 2018 3:41 pm

nubs101 wrote:
Tue Feb 13, 2018 2:55 pm
In a little tough situation and looking for some outside advice. Currently at my job my position tops out at around 75k a year which will take me another 7 years to do so. After the next 5 years I have the opportunity for a promotion and of course nothing is guaranteed but feel I have a good chance. Once promoted my topped out pay is around 85ish. On the other hand I can go back to school part time which will take me roughly 5 years and at the cost of 40k to get my degree. After having that I have the opportunity to apply for a new position which I will take a 15k pay cut but after the first 5 should be upwards of 90k with yearly raises. I am perfectly happy at my current job and unsure which is the right move. As of right now the only debt I have is my home which I have about 130 left on it. All basic finances are covered but the school loan would take me quite awhile to pay off. Which do you feel is the right move ?
So you're making something less than $75k right now but should be at that point in seven years? And then five years later be at $85k? So that's where you'd be in twelve years?

If you went to school, then you'd be out $40k. So now you're at -$40k. Then your income goes down by $15k for five years ($-15k * 5). Now you're at -$115k. Then you start making "upwards of $90k with yearly raises". Since the schooling would take five years, but the raise to $75k would take seven years.

I'll just spitball it and say you're making $65k now and the yearly raises would be $5k? But you can plug in the real numbers.

2018 $65k vs $65k (salary same while in school): Currently at -$8k (one year of school)
2019 $65k vs $65k: Currently at -$16k (two years of school)
2020 $65k vs $65k: Currently at -$24k (three years of school)
2021 $65k vs $65k: Currently at -$32k (four years of school)
2022 $65k vs $65k: Currently at -$40k (five years of school)
2023 $65k vs $65k-15k (now with a $15k paycut for five years): Currently at -$55k (school + paycut)
2024 $65k vs $65k-15k: Currently at -$70k (school + paycut)
2025 $75k vs $65k-15k: Currently at -$85k (school + paycut)
2026 $75k vs $65k-15k: Currently at -$100k (school + paycut)
2027 $75k vs $65k-15k: Currently at -$115k (school + paycut)
2028 $75k vs $90k: Currently at -$100k
2029 $75k vs $95k?: Currently at -$80k
2030 $85k vs $100k?: Currently at -$65k
2031 $85k vs $105k?: Currently at -$45k
2032 $85k vs $110k?: Currently at -$25k
2033 $85k vs $115k?: Currently at +$5k

Numbers will be a little different if your salary doesn't just jump up after seven and five years, but instead would slide up year-by-year. But it looks like a really long time to break even. Expensive school and five years of a paycut are pushing the break even way out there. Like sixteen years.

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