Going Back To School To Solve Money Problems?
Deciding whether or not go back to school?
Thinking it will help you get a higher paying job which will solve your money problems in return?
Making the decision to attend school is a big one. Specially if you are considering going back mainly to help you solve any of your financial problems. The price of higher education is …well…pricey. So before you rush into any decision that can affect your financial future for many years to come, we think it’s a good idea if you evaluate your options before making a final decision.
1. Consider the Investment
For many people, returning to school usually means taking on several student loans. So before you put yourself into a big debt, you need to make sure it’s for a good reason.
Going back to school should be seen as an investment for your future. It can lead to raises, new opportunities and personal growth, but you need to identify exactly what you are hoping to accomplish after you get your degree, before you even decide if it’s worth to pursue it. Do you need the extra training and qualifications? Are you switching careers to something more profitable? Do you know how much money can you be expected to make after you get your degree? Do the research before committing to a specific degree or career.
And once you have specific goals in mind, you can compare the price to what you will gain from the educational experience. Only you can judge and decide if you will get enough out of going back to school to make it worth the investment.
2. Assess the Impact
If you determined that the investment is definitely worth the cost, then it is very important to figure how returning to school will affect the rest of your financial life. If you will be returning to school full time, you may not be able to work full or even part time for that matter. With your income lowered, will you still be able to save for retirement? or would you have to dip your hands into the emergency savings fund to take time off work and return to school?
There are certain options you may want to explore, like night or part-time programs that will allow you to continue working while getting your degree. Either way, it is a good idea to try to figure out how the decision of going back to school will affect your overall financial life.
3. Cut Back
As easy and as hard as that sounds. If you are going back to school, it is key that you start cutting back and start saving as early as possible any way you can.
You may need to start by taking a good look at your budget and determine where you can cut back. That is… if you even work within a budget at all. If not, well you will definitely need to start living by sticking to one! Think about getting back into starving college student mode…less visits to the shopping mall, more thrift stores, less dinners out in the town, more ramen noodles!
IF you are living in a rental, then stay where you are. This will not be the right time for you to go and buy your first home, or make any other large purchases. Of course, if you start preparing early enough, you can aim to save enough money to maintain your current lifestyle.