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I just had a quick question. Would you go back to school for a masters degree so that you can get a job where average salaries are about 10% to 20% more than what you currently make? I currently make around 100k a year and a person with a masters degree in my field usually makes 110k to 120k a year. The masters degree would cost around $50k and take about 3 years to complete. I'm 34 years old, my wife is 34 years old too. My wife works as well and make less than I do but still does good. No debt but our mortgage which is about 1/4 of our take home pay a month.
I'd only do it if I could still maintain my current full time job at 100k and even then it would be questionable if I wanted to put forth the time and effort of 3 years, 50k and a massive amount of free time for 10-20k a year possibly 3-4 years from now
Yup my thoughts exactly as well. I don't feel like it's worth it but then again it's an increase so doing the math I could get my money back after 2 to 3 years with that increase but I don't think it's worth it. Is there a rule of thumb with potential salary vs cost of education?
Yes I will be able to work full time while studying. It might drive me crazy though but I think I will manage.
i would look to network and possibly change companies for 20% or more before the master's task. Additionally you have to remember additional income means typcially additional taxation which means 10k isn't 10k
I just had a quick question. Would you go back to school for a masters degree so that you can get a job where average salaries are about 10% to 20% more than what you currently make? I currently make around 100k a year and a person with a masters degree in my field usually makes 110k to 120k a year. The masters degree would cost around $50k and take about 3 years to complete. I'm 34 years old, my wife is 34 years old too. My wife works as well and make less than I do but still does good. No debt but our mortgage which is about 1/4 of our take home pay a month.
edit: retaining the below because it's a mildly interesting intellectual exercise. That said, noticed you said you can work simultaneously. That will be three years of suck which might not be worth it but financially it's an absolute no brainer to get the degree at a cost of $50K.
Assuming a 30% total tax rate for simplicity (dunno what state you live in or what your wife makes).
$100K * 3 * 0.3 = $210K. + $50K = $260K net after tax real + opportunity cost.
Let's assume you'd get a $5K raise without the degree for the longer work experience and make an extra $20K with the degree (the first is low and the second is high, so these assumptions are aggressive).
$15K * 0.7 = $10.5.
Let's say you graduate at 37, find a job prior to graduation, retire at 65. So 28 more years working. We'll use a relatively low 3% discount because you'd reasonable expect some inflation of the degree premium. We also will not take into account the risk of death, disability, or you simply burning out. On the flip side, we'll also ignore higher social security payments. This implies a NPV of the extra income of 18.75x.
$10.5 * 18.75 = ~$200K.
So using aggressive assumptions (in favor of returning to school), you would be about $60K worse off going to get your masters. So basically it doesn't make sense just for the money, but given your high income / income potential if you wanted to go back to school for the sake of going back to school or if you thought it would give you a better chance of transitioning to upper management the net cost isn't so high that you can't afford it.
Alternatively, if you think the degree premium will grow equally as fast as invested capital and therefore discounting at all for time value of money is inappropriate then you are making 28 * 15 = $294K which is ~$30K in the black.
Really all the numbers boil down to that it will probably be somewhat negative, with the chance of being positive and unlikely to be a huge impact to your net earning either way over the course of your career.
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You need to get a 30% raise and have the company fund the EDU. Very possible, my company bought me 5 degrees. I worked nights so I could go to normal day classes and not have to deal with bosses at work. (Paid better too, and 10% less hours, no commute hassles).
Your method is not a winner. Look around. EDU is overpriced and over valued. do what will be right for YOU (10 - 20 yrs out)
I just had a quick question. Would you go back to school for a masters degree so that you can get a job where average salaries are about 10% to 20% more than what you currently make? I currently make around 100k a year and a person with a masters degree in my field usually makes 110k to 120k a year. The masters degree would cost around $50k and take about 3 years to complete. I'm 34 years old, my wife is 34 years old too. My wife works as well and make less than I do but still does good. No debt but our mortgage which is about 1/4 of our take home pay a month.
You used the words average and usually, which to me doesn't make it a guaranteed thing. Will your employer increase your pay if you have a master's? If yes, then a couple of years you will get your costs back. If no, then you need to look further down the road, how much will a master's degree up your chances of getting to the next level, or level after that. Is a master's a requirement for the next level, or is good work history enough to move you up?
IMO, there is no one size fits all answer. Some jobs have a built-in income increase based on added education. Others require a masters to move up an education- tiered food chain (ie; education, government).
In many cases, people stay in college and get their masters, simply to avoid graduating, finding a job and starting to pay back school loans. Some of these masters degrees are worth little more in the job market than similar undergraduate degrees.
Companies are more interested in productivity, hard work and initiative, than masters degrees. Without the former, going back to school to get an advanced degree is unlikely to gain one the advancement or financial gain one is hoping for.
I just had a quick question. Would you go back to school for a masters degree so that you can get a job where average salaries are about 10% to 20% more than what you currently make? I currently make around 100k a year and a person with a masters degree in my field usually makes 110k to 120k a year. The masters degree would cost around $50k and take about 3 years to complete. I'm 34 years old, my wife is 34 years old too. My wife works as well and make less than I do but still does good. No debt but our mortgage which is about 1/4 of our take home pay a month.
It really is a hard decision. I'm sort of facing the same myself, except in my case my employer would finance the education.
The free education seems like a no-brainer, but in my situation I also look at time as a resource, and I don't know how I'd balance being a good dad to my two young children with work and going to school.
In my situation I don't think I'd be guaranteed a raise, but it would open up opportunities for promotion. I know the level above me has a higher base bonus % and they get a company car (I work for an auto manufacturer). These are both significant incentives to advance.
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