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I know people do this: Take a financial risk that involves getting into debt with a specific plan to earn more money in the future. I'm not sure I know HOW!
If you go by my income, my two kids and I are right at poverty level. I'm pretty thrifty, own my home with decent equity, drive a paid off car, and try very hard to never carry a credit card balance. Right now I owe about 5K to the credit card, HELOC, and the bank of Mom, which I realize is not much relative to most americans. I have a good hourly job but prospects for promotion are minimal.
My income is almost doubled when ex pays his child support. Right now I'm barely breaking even, and an unexpected expense (such as last month's car AC repair) knocks me right back to where I started. I WILL be selling the house...sometime between 2015 and 2019. IF I buy another home at that point, which I doubt, it would be a much cheaper place than I am in now. I would rather put most of that equity into retirement.
Just found out about a continuing ed certificate program that will allow me to teach ESL at the community college for what is just over double my current hourly rate. The training will take one semester and cost just under $2K.
Is this a sensible, responsible risk to take? Are there any factors I'm forgetting?
Just found out about a continuing ed certificate program that will allow me to teach ESL at the community college for what is just over double my current hourly rate. The training will take one semester and cost just under $2K.
Is this a sensible, responsible risk to take? Are there any factors I'm forgetting?
Does the community college have openings for an ESL instructor, once you get the Cert?
What's a realistic income change post completion ?
Failure rate ?
2K loan would be from Sallie May, which is under 3%. There is also a possibility of a scholarship...I will find out on Monday if I qualify. If I get that, my only concern is loss of income from not being able to pick up extra shifts during the classes.
I would keep my current job with benefits and add hours teaching...if I teach 9 hours per week I have doubled my income. If I quit my current job and teach 20 hours per week, (not likely) I have doubled my current income.
failure rate for the certificate program? Plenty of people lose interest, but I won't flunk out. Worst case scenario, I get offered a better job or promotion and don't use the certificate, but I would still be making more money in that case.
Employment at the community college is almost automatic for everyone who completes the program, and since I'm already a certified teacher with a masters degree, I'm a very good candidate. They have a volunteer program that I've signed up for and student teaching is required.
I know people do this: Take a financial risk that involves getting into debt with a specific plan to earn more money in the future. I'm not sure I know HOW!
If you go by my income, my two kids and I are right at poverty level. I'm pretty thrifty, own my home with decent equity, drive a paid off car, and try very hard to never carry a credit card balance. Right now I owe about 5K to the credit card, HELOC, and the bank of Mom, which I realize is not much relative to most americans. I have a good hourly job but prospects for promotion are minimal.
My income is almost doubled when ex pays his child support. Right now I'm barely breaking even, and an unexpected expense (such as last month's car AC repair) knocks me right back to where I started. I WILL be selling the house...sometime between 2015 and 2019. IF I buy another home at that point, which I doubt, it would be a much cheaper place than I am in now. I would rather put most of that equity into retirement.
Just found out about a continuing ed certificate program that will allow me to teach ESL at the community college for what is just over double my current hourly rate. The training will take one semester and cost just under $2K.
Is this a sensible, responsible risk to take? Are there any factors I'm forgetting?
I know your situation feels tight as it sounds like your presently living paycheck to paycheck. However, being a homeowner, single parent, and having a total debt load of just $5K is doing pretty well (as far as debt is concerned).
In that vein, taking on a student loan for more training to advance your earning and career potential sounds like a very good idea.
Whether the program you are specifically looking at is worth the investment is harder to determine. Depends on the supply and demand for people with the same amount of training and no job experience applying the training looks like. I would work on that end of it, but do not be too afraid of a relatively small ($2K) student loan if job and earning prospects look very good.
Let's assume that you're probably going to be working at least another 20 years. I don't know your exact age, but that seems a reasonable number.
$2k/20 years means if this certification increases your yearly income by $100 a year(after taxes) then it's worth it. To me that is almost a guarantee from what you've said so far.
Honestly, people go into a lot more debt with a lot less potential for income. This seems like a no-brainer, especially at 3%(which is tax deductible so it's more like 2.25%).
This is low risk with a good deal of potential. The perfect situation to use debt for it's best purpose of increasing your income.
I'm already a certified teacher with a masters degree
Get the ESL certification. It makes a lot of sense in your case. If you don't get on at the cc for some reason, there are other jobs opening up in the gov't sector and public schools. I know the economy is on the skids in a lot of places, but ESL and special ed (reading and math) are areas where admins frequently "find" the money, plus don't forget private schools and personal tutoring (at $55 - $80/hour, depending on your area).
If you weren't already qualified, I wouldn't be encouraging the debt because those positions are on the brink of becoming competitive, but I think you're right on the crest of the wave and will get work immediately because you're not waiting to be certified (or finish the master's).
According to earlier posts, you gave up a better paying job for more flexibility so you could be available for your parents and kids when they need you. Now you're talking about committing a semester to earning this certification then tying up your evenings indefinitely to teach classes. Plus possibly taking on $2K worth of debt if you can't get a grant to pay for it.
So my question is, are you really gaining anything by doing this rather than just going back to your previous job? Maybe there's something I'm missing, but it's important that you at least ask yourself that question.
According to earlier posts, you gave up a better paying job for more flexibility so you could be available for your parents and kids when they need you. Now you're talking about committing a semester to earning this certification then tying up your evenings indefinitely to teach classes. Plus possibly taking on $2K worth of debt if you can't get a grant to pay for it.
So my question is, are you really gaining anything by doing this rather than just going back to your previous job? Maybe there's something I'm missing, but it's important that you at least ask yourself that question.
I can't go back to my previous job. It was a hellish experience, and when I attempted to address my concerns with my employer, I was ultimately told to quit or be fired. And there will be no pay raises yet again this year. I was working as many as 60 hours per week for the equivalent of $10 per hour. Clearly, not the job for me!
I would not be tying up my evenings indefinitely to teach ESL to adults. The classes are taught during the DAY, in multiple locations, including a church two blocks from my house. My brother pointed out that even if the classes were held in my own home it could not be more convenient because then I would have to clean up the living room!
Long range plan: when my kids are gone and I sell the house, I hope to teach overseas and do some traveling. My parents can't live forever.
2K loan would be from Sallie May, which is under 3%. There is also a possibility of a scholarship...I will find out on Monday if I qualify. If I get that, my only concern is loss of income from not being able to pick up extra shifts during the classes.
I would keep my current job with benefits and add hours teaching...if I teach 9 hours per week I have doubled my income. If I quit my current job and teach 20 hours per week, (not likely) I have doubled my current income.
failure rate for the certificate program? Plenty of people lose interest, but I won't flunk out. Worst case scenario, I get offered a better job or promotion and don't use the certificate, but I would still be making more money in that case.
Employment at the community college is almost automatic for everyone who completes the program, and since I'm already a certified teacher with a masters degree, I'm a very good candidate. They have a volunteer program that I've signed up for and student teaching is required.
Go for it.
Good luck
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