Career advance vs. paying off debt

[BCHGRL]

I am getting married in April and my fiance and I are financing it. I tried to pay for it without credit but with the cost of weddings today and the new home we bought, it just wasn't possible. (Wedding actual costs are a little over $10K, less than 1/2 the cost of the "average" wedding.) I also had LASIK so I could see on my big day.

My fiancial plan was to pay off the wedding in 6-7 months, save for 4 and go on a European honeymoon to visit friends in Europe one year from the wedding. Our friends are in the military and will not be there for a long period of time.

However, I am getting extreme pressure from my 2 bosses to pursue my masters. Right now, they understand that I have no time because of my wedding. However, once the wedding is over, I think that pressure will only increase. I've tried to explain that it is a financial situation as well as a time situation. There is a program to pay for my masters; however, when it runs out of funding, which usually occurs about 1/2 through the year, you can either quit until more funding is available or cover the costs yourself (non-reimbursable). It does not cover the cost of books either. When I pursue my masters, I want to be in a position to cover all costs without any debt. Sure, I'll use the program, but I just don't want to do it with the assumption that funding will be there when I need it.

I know this pressure is only because they want to see me advance. At some point, I do care to advance. However, I started very young in my business and I am content for now. My fiance's salary varies with overtime, but I bring home double his salary w/o overtime.

Here are my debts and stats:
Mortgage: $220K
cc for wedding and LASIK: $10K
Student Loan: $7K
Own my car
Own FI's car
Have $8K in savings
FI and I both contribute substantially to 401K

[sweeps]

Re: Career advance vs. paying off debt

Since your bosses are pushing you so hard to get your masters, can you get assurances from them that the money will be there to pay for it? Perhaps you can negotiate with them that if the education funding goes away, they can offer some other kind of bonus? Don't forget you can also get a tax deduction up to $4,000 (or possibly the Lifetime Learning Credit if your AGI is low) for school expenses that come out of your pocket.

This is one thing that concerns me about cutting costs to the bone all the time. Just like in a business, if you want to succeed in the long term, you have to raise the top line (revenue) and not just keep lowering the bottom line (expenses). Sometimes you have to spend money to make money. Some debts, like student loans, are worth the expense.

[Lemony]

Re: Career advance vs. paying off debt

Get your masters. You'll regret it for the rest of your life if you don't. I know I do.
Europe will still be there when you're finished, and by then maybe more of your debts will be paid off and you can afford to do even more.

[Lostsoul33]

Re: Career advance vs. paying off debt

I have to agree. I think you should get your masters.

[miclason]

Re: Career advance vs. paying off debt

if your bosses are pressing you, most probably they have something in mind already...something they can't give you unless you have your masters (or at least are studying to get it!!)...believe me, I see it all the time here!!

[34saving]

Re: Career advance vs. paying off debt

If you're going to stay in your business, get the Master's. It will only be harder to go back later.

[nanamom]

Re: Career advance vs. paying off debt

Look at what people in your position make and what they make with a masters and decide if the difference is worth it. Consider however that your bosses want you too. How will they feel if you refuse? If you start on the funding that is available now (or when the wedding is over) you will be further ahead than if you wait. How does your fiance feel about it? If you are waiting until after the wedding then it isn't just your decision. Also figure in when you want (if you do) to start a family and how that will effect things. Will having a masters then help if you decide to go back to work?

[shawni]

Re: Career advance vs. paying off debt

Only you can decide what is right for you. With this in mind, in addition to tax credits, keep in perspective the low interest rates you can get on loans for school. Think about the interest rates on other things you use credit for and compare. (I need to take this advice myself)