I am sure we have all read and listened to numerous arguments regarding investment towards higher education. How this leads to potential increase in future income. I do realize the potential but that potential is only valid if the degree being pursued is chosen wisely.
It seems like "investing in education" is more or less similar to "investing in stock market." It has come to the point that one cannot decide from one's heart. Just like choosing a winning stock can change one's fortune similarly choosing an education towards a winning field can be rewarding.
Let me try to enunciate this with example in my life. My bride has an undergraduate degree in accounting. It seems like unless one has CPA and/or Masters, undergraduate accounting degree by itself can lead to no higher income generating jobs or potential. If one has to confine to the minimum wage job then why bother wasting 4 (four) years of time and 4*$10,000=$40,000 on public school education for any degree. There is certainly no benefit that can come from this investment.
Now, lets turn around towards Nursing Degree. Two years Associate degree can help one land nursing jobs that pay at least $15/hr. which would increase in wage earning capability. in this case whopping $7/hr higher i.e. $7*2000hrs= $14,000/yr which basically paid for itself.
simply put its worth it if one picks up the winning horse in this case degree and marketable concentration otherwise its definitely like being a sore loser.
Thursday, June 14, 2012
Budget, Income and Plan
We are two member family. Let me start with my bride since her debt load seem to be lesser amongst us. We will try to separate our finances and see if that would be easier to handle. This would also give responsibility to my bride ;) .
Since, my bride recently graduated from school she has been actively looking for job related to her education. here is the sticky thing based on usnews accountant is ranked #21 in the best jobs for 2012 but she being a recent graduate i guess cannot find any opportunity.
Central Valley is not a good place for jobs (outside of trucking) and i made the treacherous decision of moving here in december of 2010. This fact has not helped much in her job search at all.
Luckily, at this moment she has been able to land a part-time sales associate job in a retail outfit for $8.25/hr. She will have to drive about 25miles one way to get to this job. This also gave me enough courage to start this blog where we might be able to write our struggle i.e. which is the struggle of probably all middle class working family.
based on part-time situation she will have to go to work about 4 times a week.
so, here is the easy math.
based on that i have an estimated income for the month of june.
Since, she has to drive 25 miles one-way and our car toyota camry gives about 25mpg not 26mpg mentioned here. But who is gonna argue about that right?
This leads to the dreaded part of expense.
Our plan at this time is to stick to this budget and see if we can/are able to work through it. Hoping that all goes well we are planning to pay the balance as follows:
This leads to the approximate estimated balance as mentioned below:
So, based on this plan this is what we are planning to do. Pay off the credit card first and fast then move to the student loan while still making the minimum payment to the student loan.
Since, my bride recently graduated from school she has been actively looking for job related to her education. here is the sticky thing based on usnews accountant is ranked #21 in the best jobs for 2012 but she being a recent graduate i guess cannot find any opportunity.
Central Valley is not a good place for jobs (outside of trucking) and i made the treacherous decision of moving here in december of 2010. This fact has not helped much in her job search at all.
Luckily, at this moment she has been able to land a part-time sales associate job in a retail outfit for $8.25/hr. She will have to drive about 25miles one way to get to this job. This also gave me enough courage to start this blog where we might be able to write our struggle i.e. which is the struggle of probably all middle class working family.
based on part-time situation she will have to go to work about 4 times a week.
so, here is the easy math.
| Job | pay/hr | hr | total pay |
| Retail Associate | $8.25 | 20 | $165.00/wk |
based on that i have an estimated income for the month of june.
| Date | pay/hr | hr | total pay |
| Pay Day of 2012.06.08 | $8.25 | 20 | $165.00/wk |
| Pay Day of 2012.06.15 | $8.25 | 20 | $165.00/wk |
| Pay Day of 2012.06.22 | $8.25 | 20 | $165.00/wk |
| Pay Day of 2012.06.29 | $8.25 | 20 | $165.00/wk |
| Month of june | $8.25/hr | 80 | $660.00/month |
Since, she has to drive 25 miles one-way and our car toyota camry gives about 25mpg not 26mpg mentioned here. But who is gonna argue about that right?
This leads to the dreaded part of expense.
| Date | Expense Type | Expense Amount | |
| 2012.06.03 | Gas | $32.00 | |
| 2012.06.10 | Gas | $32.00 | |
| 2012.06.17 | Gas | $32.00 | |
| 2012.06.24 | Gas | $32.00 | |
| Month of june | Total Expense: | $128.00 | |
Our plan at this time is to stick to this budget and see if we can/are able to work through it. Hoping that all goes well we are planning to pay the balance as follows:
| Date | Description | Debit | Credit | Balance |
| 2012.06.03 | Gas | -$32.00 | -$32.00 | |
| 2012.06.08 | Pay | +$165.00 | +$133.00 | |
| 2012.06.10 | Gas | -$32.00 | +$101.00 | |
| 2012.06.15 | Pay | +$165.00 | +$266.00 | |
| 2012.06.17 | Gas | -$32.00 | +$234.00 | |
| 2012.06.22 | Pay | +$165.00 | +$399.00 | |
| 2012.06.24 | Gas | -$32.00 | +$367.00 | |
| 2012.06.24 | Education Loan Pmt | -$150.00 | +$217.00 | |
| 2012.06.24 | Credit Card Payment | -$217.00 | +$0.00 | |
| 2012.06.29 | Pay | +$165.00 | +$165.00 | |
This leads to the approximate estimated balance as mentioned below:
| Date | Type | Amount Owed | Apy | Min Pmt. | Total Payment | Interest Payment | Principle Payment | New Balance |
| 2012.06.24 | Credit Card | $1,808.93 | 11.15% | $38.00 | $217.00 | $17.13 | $199.87 | $1,609.06 |
| 2012.06.24 | Student Loan | $13,772.95 | 6.80% | $150.00 | $150.00 | $79.54 | $70.46 | $13,702.49 |
| $15,311.55 | ||||||||
So, based on this plan this is what we are planning to do. Pay off the credit card first and fast then move to the student loan while still making the minimum payment to the student loan.
Inspiration and Start to Life without Loan
inspired by http://nomoreharvarddebt.com/ i am working towards no more loans of any kind. now this is going to require strict planning and definitely hard work. This will need not only planning but support from family as well. I, by myself would have easily forced myself into this but apparently i am married hence of course its not going to be as easy. Since, she will have to also buy into the frugality of this task. This also means putting your finances and life-style in the web. Let's see if we can really live with this.
i was fortunate enough to avoid loan for my school. and my graduate degree was also paid-for-by-assistantship :).
I will add more about my background and family later but now to the main thing which is how we are going to get out of this debt.
now here is the real deal:
i was fortunate enough to avoid loan for my school. and my graduate degree was also paid-for-by-assistantship :).
I will add more about my background and family later but now to the main thing which is how we are going to get out of this debt.
now here is the real deal:
| Type | Amount Owed | Apy | Min Pmt. |
| Credit Card | $ 1,808.93 | 11.15% | $ 38.00 |
| Student Loan | $ 13,772.95 | 6.80% | $ 150.00 |
| Total | $ 15,581.88 | $ 188.00 | |
I also happened to buy into american's dream and have accumulated more debt during the process and the period via home-ownership. I also managed to accumulate debt for vehicle by befalling into an accident :(.
| Type | Debt-Obligation | Amount Owed | Apy | Min Pmt. |
| Credit Cards | BAC-Cash Rewards | $ 6,363.58 | 0.00% till 2012.07 | $ 63.00 |
| Capital One Venture | $ 868.79 | 13.90% | $ 25.00 | |
| Car Loan | 2010 Toyota Camry | $11,396.75 | 1.99% | $335.51 |
| Mortgages | Mortgage | $ 240,452.69 | 3.875% | $1,173.67 |
| Home Equity | $ 63,900.00 | 5.74% | $878.40 | |
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