A Do Over! In PODCAST 008 I promised to discuss Five Steps to Make Sure Your College Education Pays. Unfortunately the audio cut off right before we it got to the 5 steps. Several people have brought this to my attention and have asked me for the file. In trying to fix it, we realized the best bet would be to just release this as another podcast. So … here it is.
Five Steps to Guarantee Your College Investment Pays (as covered in this podcast)
- Define your education goal.
- Research your increase in value.
- Do some reverse interviews to learn the right path to take for education.
- Find alternative ways to get the needed education.
- Calculate your Return on Investment (ROI)
ROI = (increase in salary over period - cost of degree) / cost of degree
Example 1: Working with $25k / year income
Engineering degree pays $60k – increase of $35k / year Cost of degree $30k
2 year ROI = ($35k*2 – $30k) / $30k = 40k/30k = 133%
Working with $25k / yr income
Liberal Arts Degree pays $35k Cost of degree $40K
2 year ROI = ($20k – 40k) / $40k = NEGATIVE
LAST POINT – do not borrow money for education!
Education Money and Debt – Key Links
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