Others will quickly be in pursuit of their next degree. Law School. Med School. MBA. Masters in Underwater Basket Weaving. The works!<\/p>\n
Few will take a step back, think about the cost of this graduate degree, the time and effort they will put towards that degree, and what their lives will look like upon completion of that degree. Few will realize that the degree they are pursuing is significantly prolonging financial freedom and what they really want\u2014to live a happy life and provide for the ones they love. Read on so we can explore this together.<\/p>\n
Reasons for a Graduate Degree<\/h2>\n
Before we take a step back and decide whether graduate school is for us, I want to start by saying this.<\/p>\n
The decision ultimately depends on YOUR goals.<\/em><\/p>\n Do you want to spend countless hours each week litigating and writing contracts? Or do you want the paycheck that ensues?<\/p>\n Do you TRULY want to spend 50+ hours diagnosing sicknesses and prescribing medicine? Or do you want the paycheck that ensues?<\/p>\n Do you want to spend 100+ hour weeks in an Excel spreadsheet? Or do you want the paycheck that ensues?<\/p>\n My point is this: If you are truly passionate about the former of my last three points, start applying now! If you are doing it so you can make 6+ figures, if you are doing it to provide for the ones you love, close out of that grad school application and keep reading!<\/p>\n Related:<\/strong> Out of College, Should I Invest in Real Estate or Retirement Accounts?<\/a><\/em><\/p>\n Meet Jane, a 27-year-old law school graduate who just landed her dream job as a lawyer in New York City. Finally, all of her hard word has paid off! She makes $150,000 a year, rents a nice apartment in Manhattan, and frequently finds herself with her co-workers and lawyer friends enjoying a drink at the rooftop bar in midtown.<\/p>\n After five years of hard work and networking, Jane is now 32 and has risen up at her law firm. She has DOUBLED her income. Yes! She now makes $300,000 a year. She has married the man of her dreams (a lawyer as well), moved to the suburbs into a beautiful new home, drives a luxury car to work, and her first child is on the way. Sounds like a great life, doesn\u2019t it?<\/p>\n While this may seem great, what this American \u201csuccess story\u201d fails to reveal are the costs associated with such luxuries.<\/p>\n Jane has a mortgage of $800,000, student loans of $200,000, and a car loan of $50,000. Sure, Jane works a great job and has the ability to \u201cafford\u201d these things with the help of a bank. Her friends and family think she is well off.<\/p>\n In actuality, this lavish lifestyle has inhibited her ability to save. She saves a minimal amount into her retirement account each month as recommended by her employer. Even still, with her mortgage, student loans, and car loan, she actually has negative net worth.<\/p>\n Yes! The smelly, unkept man with an overgrown beard shaking pennies in a Dunkin’ Donuts cup is worth more. Who would have thought?<\/p>\n Jane is consistently working 100+ hours per week. She has no time to spend with her loved ones, and her stress levels are through the roof. She is stuck in this situation until a change happens. She either needs to scale back her lifestyle (psychologically draining) or increase her income by working harder (physically draining).<\/p>\n I wish Jane the best of luck!<\/p>\n Let\u2019s visit Jimmy.<\/p>\n Meet Jimmy, a 22-year-old college graduate who just landed his first full-time 9-to-5 position as a financial analyst at a Fortune 500 company. Jimmy makes $55,000 per year, has $60,000 in student loans, and quickly realizes there is more to life than working his tail off in a dusty cubicle to make his boss 10x richer.<\/p>\n He NEEDS to make a change.<\/p>\n He starts reading! After reading a few of the classic personal finance books<\/a>, Jimmy knows what he needs to do. He needs to purchase true assets\u2014<\/em>assets like real estate and high yielding dividend stocks that consistently pay him. In order to do this, Jimmy needs\u00a0to save.<\/p>\n In his first two years, Jimmy lives well below his means. He lives in a small apartment with roommates. He’s purchased a used vehicle. The purpose of this vehicle is twofold. It is used for his commute to his day job as well as driving for Uber in his spare time. Over the course of two years, Jimmy makes minimum payments on his student loans and saves $40,000.<\/p>\n Related:<\/strong> Why a College Degree is Overrated & Unnecessary for Many Americans<\/a><\/em><\/p>\n![\"tax-changes\"](\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/12\/tax-changes.jpg\" "\\"\\"")
<\/p>\nBachelor\u2019s vs. Graduate Degree<\/h2>\n
Graduate Degree<\/h3>\n
No Graduate Degree<\/h3>\n
![\"tenant-screening-tips\"](\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/11\/tenant-screening-tips.jpg\" "\\"\\"")
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