Sunday, December 11, 2005

Higher Education or House?

Lately, I've been steering towards the idea of saving for the higher education fund instead of a house downpayment fund.

I might change jobs in the next five years and that might mean I would follow where the job is. I definitely don't want to restrict my options to just Orange and Los Angeles County. That is still possible even if you own a house, I know, but it'd be one more hassle to deal with.

If I start saving for a higher education degree, it would be a long way off in the future for anything involving buying a house. So, what do I want and need more of in the near future? The rational answer is education, which will, hopefully, help with career advancement....opening up new job opportunities that are now closed to me. Which, I hope, will increase my net worth....Eventually. I don't really need a house in the near future, except to inform people I associate with that I, too, have joined their lovely club of home ownership.

So long, dreams of a home ownership, won't be tasting you at least for the next five years.

Hello, decisions on which degree to pursue! A degree which will make me excited...or a degree which will allow me to earn big bucks? So far, I've followed my heart with my career decisions....maybe, it's time for the brain to take over?

1 comment:

  1. You might want to consider this as a purely investment decision. That is, investigate the potential payoff for the degree vs. the payoff for a house. You need to include non-monetary factors such as security, satisfaction, and such. For example, as you've indicated that you wish to remain in your area, fixing your cost of living might have a substantial payout over time.

    Or, if your degree is at all specialized you might be forced to move to take a decent job should the opportunities be limited in that field in SoCal.

    I might mention that I invested over $40,000 in Graduate education and the net payoff has been.....zero, and.... it wasn't even very much fun, so my own experience has been that a good long look before I lept would certainly would have done me better than just going for a degree because I could. I just don't think about what the extra 40K in my investments would mean at retirement....

    B

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