My son is a sophomore at a local college, and he wants to transfer to a very prestigious university. If he did this he would incur more than $100,000 in student loan debt, and that’s with us picking up half of the cost. What do you think I should tell him?
I’d have a hard time telling anybody that one school is $100,000 more valuable than another one. The fact is that unless he has $100,000 lying around somewhere, he shouldn’t go to that other school for one very simple reason — he can’t afford it!
We hire people every week at my company, and where they attended college is a very minor blip on the radar screen. There will always be a few corporate types out there who play games and try to turn the office into some kind of snooty country club, but the fact is most employers don’t care where you went to college.
Here’s the deal, Will. It’s what you learn and being able to use that knowledge in the marketplace that’s really valuable. Knowledge is king, and we live in a knowledge-based economy. If you can’t retain and apply what they’re teaching, then the only thing more worthless than a college degree is a college pedigree.
This is a kid who needs guidance from his dad. Step up and explain it to him. Letting him walk out of school with a six-figure debt around his neck would be a huge mistake!
My husband just finished school and is now a dentist. He can either build his own practice, which would involve start-up costs of about $500,000, or he can work for a company that would take 30 percent of what he makes. We also have $250,000 in student loan debt. What do you think he should do?
I don’t think those are the only options. But I do think that you guys going another half-million dollars deeper into debt when you’ve already got $250,000 hanging over your heads is a really bad idea.
Why couldn’t he find an established practice to work in that offers the chance for him to eventually become the owner? Lots of dentists sell their practices every year. Plus, working as an associate instead of just a hired hand offers a lot more chance to gain valuable experience and opens the door to even greater possibilities.
So what if it takes 10 years or even a little longer to become the owner of a practice? That’s a whole lot better than starting out your professional life a million dollars in debt!
I’m single and make $20,000 a year. Hopefully, this amount will increase to $30,000 next year thanks to a promotion I’m in line to receive. Do I really need $1,000 in my emergency fund or is $500 enough? I also have about $38,000 in debt right now, including student loans. I’m just wondering how to keep up with bills while trying to establish an emergency fund.
The best way to stay current on your bills and manage your money is by doing a written monthly budget. Give every dollar you make a name on paper before the month begins. That way, you’re controlling your money instead of it controlling you.
For instance, if you know you’ll get two paychecks during the month that are $750 each you plan how you’ll spend each of those checks before you get them. Take care of necessities first — food, shelter, clothing, transportation and utilities. After you’ve taken care of that, make sure you’re current on your debts then put every remaining penny you can squeeze out into your emergency fund. Make sure you keep all spending to necessities only!
You’re at a point where you really should have an emergency fund of $1,000. It will be a little tough, but that will be your first big goal. And do all this with a sense of urgency — like in a couple of months.
Remember Murphy’s Law, and how anything that CAN go wrong WILL go wrong? If you keep living without a plan and no emergency fund, Murphy will hunt you down and move into your spare bedroom!
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