The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ETBen on November 19, 2017, 06:36:33 PM
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I do believe I’ve made up my mind on this but I wanted some other insights on it.
I’m someone who believes education needs an ROI unless you’re on track financially and have the luxury of studying something just because you love it. I’m a nurse and work in senior leadership overseeing programs at multistate hospital/health system. I have an MBA from a cheap no name school bc I could do it without debt and I needed a masters to advance.
I love my job. I am loving supporting and growing othe Nurse leaders and future ones. So I’ve been seriously considering a DNP (Doctorate of Nursing Practice). It’s quickly becoming expected for nurse executives to have a DNP. Or if you want to teach university of course. So I thought of all the reasons to get one or not. I love my free time, being there for my kids (I’m single), but to wait for them to be out of the house is 10 yrs, there’s never a good time for these things, and the list goes on one way or the other. Income could go up with it but not much.
Before I took this job, I was considering doing a side job as a nursing career coach, public speaker, etc. My plan is to be able to retire or do what I want at 55. And I realized tonight, I was considering all the reasons to follow that defined path for my career. But forgetting about this other future that would make me fulfilled in a different way, adds income without cost, and will probably better support my goals.
Anyway, I’m open to other perspectives but I wanted to share how quickly we can be steered from our goals by a seemingly admirable plan.
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Math: a present value calculation might be helpful here. Try https://www.investopedia.com/calculator/annuitypv.aspx
Example:
Interest rate (what you could be making investing): 7%
Time periods (# of years you'd be making an increased salary before retirement): 10
Payment amount (annual salary bump from DNP): 8000 (taken from https://www.payscale.com/career-news/2013/06/nurse-practitioner-vs-doctor-of-nursing-practice-infographic)
Present value: $56,188.65
It's been a while since I've done a PV calculation, so hopefully I did that right, but essentially from a financial perspective, that says you shouldn't pay more than about $50,000 for a DNP.
Psychology: This might not be a purely financial consideration. If you're amped about getting a DNP and the job prospects you'll have afterwards, it might be worth it even if it costs more than that. Hard to say, but even financial decisions aren't entirely about the math.
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I agree. The financial picture shouldn't be too hard to calculate roughly, at least. Also, when you're in the position of already being employed you should consider how much is "enough". Greatly increasing your income has a lot less weight if you're already comfortably FI (or close to it).
I had an uncle tell me that I should try to further my education in another field to give myself more options as I get older. But by the time I could complete another degree I'll already be FI so I don't see the point of it from a financial perspective. Broadening my horizons and enlightening myself as a person? Sure. But virtually no financial incentive in my case.
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Okay well I already earn well above that payscale link, so maybe there’s no benefit lol. You’re both right, it’s not a solely financial decision and I’m not looking for a pay bump with it. But I don’t want it to cut into my retirement savings either, especially bc I started late. But of course it does afford other flexibility in my career. I think what’s driving my thinking most now is “how do I want to spend my free time.”
I’m on the fence. One day I lean one way, the next back the other. If anything, I guess that’s a sign.