MBA in 2013? Can I do it?

[chloemon]

Hi,

I am fairly new to the forum and this is my first official post. I wanted to share a little about my finances to get some of the board’s opinions.

Ideally, I would like an go back and get my MBA part-time (continue to work at my job) starting in Fall 2013 –I’d pay cash – I’ve estimated it will be about 5k per semester or 10-15k per year (dependent on if I take summer classes).

I own a condo that I rent out for $1200 per month. I currently owe $124k on a 30 year fixed @ 4.85%.

The condo is essentially self-sustaining (but not earning) so the extra 1.2k per month is going towards savings.

Unfortunately, I did not buy the condo at the best time (bonuses at work went away and we started having to contribute 50% for health and dental from our pay about 3 months after I purchased. Also the condo dues increased by about $150 per month after I purchased so overall I lost about $300 a month income while increasing monthly expenses by $150. All this meant that 50% of my net income was going toward basic condo expenses!

By renting it early this year I finally feel like I can breathe again financially – but the experience has left me I little gun-shy. While I want to move on to my next goal (MBA) I am a little concerned about committing myself to another large expense.

Basic Info
I am 28 – but will be 29 next month
I earn 43k per year at my full time job and about 2-4k per year at my part time job (I would likely drop the 2nd job while in school if possible)
I pay my CCs off in full monthly (typically charge about 1k per month)
I have no student loans
My car is paid for and worth about 4k

I currently contribute 5% to my company 401k, which is matched yearly.
This year I also opened up a Roth IRA with an initial 1k and now contribute $100 per month

Monthly Expenses (including Condo expenses and Rent at current home):
2.5k per month
Net Income (including Condo):
$3750

Account Balances
Savings (MBA Fund): 10k (will move 1.2k per month here once EF is built up)
EF: 6k (currently putting minimum 1.2k per month to this to build it up to 12k)
Condo Savings Buffer: 1.5k
401k: 40k
Roth: 1.5k

What are your thoughts? I am crazy for thinking I can maybe afford this? Should I hold off another year?

[maat55]

I personally, would wait a year to finish the EF and build up the condo buffer.

[snafu]

What positions are you seeing advertised that meet your 'ideal?' What credentials are required? What is the experience vs education ratio? Do you require an MBA to advance with your current employer? How many new MBAs does your firm hire annually? Are they in a growth mode? How much moving to other communities/states are you willing to undertake? How fast can you make-up the costs incurred and foregone income of this advanced degree? What course work will be advantageous in 5 yrs...12 years? I agree we must all be prepared to continually upgrade/update our skills in order to offer our employer an extra benefit.

[Slug]

snafu asked some great questions. I would also want to know which programs you plan to apply to.