Hi Money Minder,
Money Minder,
Here’s the deal – I’m 23, pulling in about $62,000 a year in my IT job, and looking at a promotion that could bump me up to around $75,000 plus some extra cash from RSUs if I ace Q4. My rent is going up to $1200 soon, but for now, I’m splitting it with just one roommate in a city just an hour away.
My net worth is hovering around $25,000, all stashed in stocks, with only a few grand sitting in my 401k. I’ve got a rock-solid 745 FICO score, a paid-off car, and the only thorn in my side is a $3,000 IRS debt that I’m about to put on a payment plan (long story).
Now, here’s where I need your wisdom. I’ve got dreams of heading back to college to grab a degree in IT, but I’m freaking out about leaving my steady paycheck behind. I mean, I definitely want to snag that promotion first, right? But then there’s this nagging fear of missing out on years of saving for retirement or a sweet condo down payment – I’m eyeing around $200k as a goal. Plus, who knows if I’ll ever want to start a family, which could mean shelling out big bucks for a larger place down the line.
My personal mission? Owning a home by the time I hit 30 so I’m not stuck with roommates in my golden years like my dear ‘rents. So, what’s the lowdown on the financial risks of ditching my job for college? Am I setting myself up for a financial disaster? And forget about financial aid or scholarships – my dismal high school grades won’t get me anywhere.
Oh, in case it helps – the degree I’m eyeing is in IT.
Thanks a ton for any advice you can toss my way,
Future IT Ace
Response from THE MONEY MINDER:
Thank you for reaching out to us. How can we assist you with your financial needs today? Let us know how we can help!
"Hello There,"
Given your current financial situation and your goal of homeownership by 30, the decision to go back to college for an IT degree is a significant one that requires careful consideration. It’s great that you have a clear goal in mind and are thinking about your long-term financial stability.
Firstly, let’s address your concerns about giving up your current job for college. It’s essential to weigh the potential benefits of a degree against the financial risks. In your case, with a steady income and a promotion on the horizon, it might make sense to continue working for now and save as much as possible for your future home purchase. Consider taking advantage of tuition reimbursement programs or online courses to continue your education while still working.
When it comes to saving for retirement and a down payment, it’s crucial to prioritize your goals. While it’s admirable to want to be a homeowner by 30, rushing into a purchase without a substantial down payment could put you in a risky financial situation. Focus on building your savings and retirement accounts first before committing to a large purchase like a condo or townhouse.
As for going back to college for an IT degree, research affordable options like community colleges or online programs that offer the flexibility you need while working. Look into scholarships specifically for adult learners or inquire about financial aid options at the schools you are considering. With a clear plan and budget in place, you can minimize the financial impact of returning to school.
Remember, achieving your goals takes time and careful planning. It’s essential to balance your aspirations with your current financial responsibilities. By making informed and practical decisions, you can set yourself up for a secure financial future.
THE MONEY MINDER
