E-mail :

Password :

Forgot Password? | Sign up for Free

Why Spending Money to Earn Your Degree Should Not Be Seen as an Expense

Posted by : Premraj | Posted on : Friday, March 24, 2017

student
SHARE THIS
FACEBOOK

When it comes to our finances, we put things into one of two categories – expenses or income. Usually it’s clear what category an item fits into, but once in a while something will pop up that isn’t as cut and dried. Schooling is one of those areas. If you’re considering pursuing your masters in business administration online, but aren’t sure it’s an expense you want to incur then it may be time to re-examine which category it actually belongs in.

The Cost Doesn’t Paint the True Picture

In terms of your online MBA degree and the cost associated with it, it’s easy to get caught up in the tuition and cost of books. People look at that total and automatically slot it into the category of expenses where their finances are concerned. While this isn’t exactly false, it’s not entirely true either. Yes, it will require you to pay a sum of money, but what will you get in return?

Sometimes Debt is Okay

As of 2014, here in the U.S. the outstanding student loan debt stood at over $1 trillion dollars. That’s a rather significant amount of debt, but was that good debt or bad debt? Typically, the rule of thumb when you look into college or university is that you shouldn’t take on more debt than you will make in salary the first year in a career. This means if you expect to make $50,000 in your first year on the job, your debt should be below this amount.

When you know you will be setting yourself up to have the financial means to pay for your debt, suddenly that debt doesn’t seem so scary or bad.

It Won’t Depreciate Over Time

Unlike items you buy that depreciate over time, meaning you owe more than what the item is worth, your university degree isn’t something that will depreciate. It will be just as valuable when you leave school as 10, 20 years down the road. In fact, there are studies that show you can expect a 15% return on your bachelor’s degree.

When you think about the cost of tuition and that it can equal that of a car, what is going to be worth more two or three years down the road? The car will be worth less money, whereas you will have the peace of mind knowing you’ll get a return on your education in the form of a higher salary. Of course there’s also the fact that having a degree will give you more variety where jobs are concerned, which equals more job opportunities in general.

A Sound Investment

There aren’t many sound investments out there and most are an expense. In terms of your university education, it is definitely more of a grey area that deserves careful thought and consideration. In the case of schooling it’s important to look at its future benefits rather than just focus on the current cost involved.

Comments : Post a Comment | Category : Personal Finance | Tags :
binary-options

There are people who have made a fortune trading on the stock market. Warren Buffet and a few others are good examples. It does not mean that this investment option is better than any other. It only refers to a general trend that occurs throughout. There are people who have struck it big in retail, [...]

Read More >>

teens

Expensive college tuition fees and the ever-rising cost of living mean that many students are graduating with huge amounts of debt. This means, even for those graduating with a high-class degree, going straight into a high earning career and spending the first years of your working life paying off your student debts. However, there are [...]

Read More >>

money transfer

  Investing is one of those tricky things that people just sort of do but don’t talk a lot about. Tech start-ups and aspiring entrepreneurs often understand how to get investors but don’t really think much about how to do their own investing. It’s important to understand the best approaches to investing and not wasting [...]

Read More >>

medical

One of the question which is being constantly faced by all the Americans today is whether they are saving enough money for their medical bills and children’s education.As of late, the prices for the medical services have been raised. Moreover, due to the cancellation of Obama Care, it has become very difficult for people to [...]

Read More >>

Relax2

The benefits of an Individual Retirement Account (IRA) cannot be overstated. If you’re unfamiliar with the concept, sit back and relax for a quick and informative overview. Individual Retirement Accounts exist because governments know that not everybody has access to a retirement account through an employer. Employer-sponsored programs like the 401(k) are tax-sheltered, and often [...]

Read More >>

Finding the Best Contractor for Your Remodel

As soon as the subject of money is raised and talk turns to what you should do with it, there is no shortage of so-called financial sages who have an opinion to share on how your hard-earned cash should be used. It can be confusing to know which tips and pearls of wisdom are worth [...]

Read More >>

savings

With 15 million people in the UK alone struggling to save any money at all, something needs to be done to rectify both spending and saving habits to ensure a stable financial future. Especially if you’re on a low salary, saving can seem like an almost impossible task and, if not rectified, can leave you [...]

Read More >>

Financial Solutions

One of the things that young adults learn to realize pretty soon after they leave the roost is that they need to manage their own finances. This can be challenging and even scary at times, but with a bit of guidance everyone can take control of their life in terms of finances and prosper as [...]

Read More >>

DUI

Each US state has their own DUI laws, convictions, penalties and fines. In addition to serving jail time and performing community service, many people may be surprised to learn there are also financial implications, if convicted. We are therefore reviewing the financial impact of a DUI offense. Fines and Court Costs Driving under the influence [...]

Read More >>

Budget for Baby

Regardless of the responsibilities that you may have held up until now, nothing will ever prepare you for the adventure of parenthood. While pregnancy and birth are exciting times, they can also be dogged by worry – particularly of the financial kind. Can we afford a baby? What will happen while I can’t work? Will [...]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video