Is That College Degree Really Worth It?

The cost of higher education seems higher each and every day -- and it is no secret that student debt is a growing problem. In fact, as of 2017, more than 40 million Americans have at least some student debt. Worse still, there is a substantial amount of former students among these 40 million people who find themselves in serious economic trouble because of the debt that they have taken on. All this has many people asking the obvious question: is a college degree really worth it? In this article we will break down the numbers and offer a general answer, keeping in mind that everyone's situation is a bit different.

 

The average cost of attendance at an in state university in the United States is roughly $9,650. Of course, the average cost of private and out-of-state schools is much higher -- $24,930 for out-of-state public schools, and $33,480 for private schools, to be exact.  And this doesn't take into account the fact that many students pay for living expenses through loans as well. Finally, it is also worth considering that with accumulating interest, most former students end up paying far more than the original cost of the education.

 

So, just to maintain a healthy dose of skepticism, let's assume that your entire college education puts you $200,000 in the hole. (Which, let’s be clear, isn’t the most likely of scenarios.) Surely, this cannot be a wise decision, can it?

 

Well, according to a study, the average college graduate earns, over the course of their life, roughly 1 million dollars more than the average non graduate. So the bottom line is that your bottom line will likely improve over time if you decide to attend college -- even though such a decision can sometimes cause temporary hardships, especially when debt piles up.

 

Student debt got you down? No worries. You are an educated and capable person who clearly has potential for the future. The mere fact that you have attended college is a good indicator of this. If you find yourself concerned about your finances, the most important thing you can do is to take action. Visit Madison Monroe and Associates online today to learn more.

 

Should you Buy or Rent

Home Ownership Vs Renting

 

 

For decades, home ownership has been considered an integral part of the American dream. But does all that hype really add up to a good investment, or could renting actually be the smarter financial decision in some cases? The answer...is complicated. In this article, we’ll take a look at the pros and cons of both owning your own home and renting.

 

 

• Stability or Flexibility. The first question that you will need to answer when considering home ownership is how much you value stability versus how much you value flexibility. If you dream of settling down and spending a large part of your life in the same neighborhood, then purchasing a home is a great way to accomplish this goal in a comfortable and financially sound manner. If, on the other hand, you enjoy regular changes in scenery, if your line of work requires you to change location frequently; etc, then renting may offer the flexibility that you need. After all, the costs associated with changing apartments at the end of a lease pale in comparison to the costs and hassles of selling a home.
   
• Equity vs. Low Expenses. The age old argument for home ownership is that each payment you make on your home contributes to your purchase of a major asset. (The house itself.) However, it is important to consider that, while this is true to an extent, there are also many additional expenses that you take on with home ownership, such as maintenance, homeowners association fees, property taxes, and, most importantly, the interest on your mortgage.(which can sometimes nearly equal the value of the house you are buying!)
   
• Choosing your Responsibilities. Owning a home also tends to entail more responsibilities: maintenance, lawn care, homeowner’s association meetings, etc. tend to eat up a great deal of time -- this is one reason why some working professionals opt to rent instead of own.

 

 For more useful financial tips, visit the Madison Monroe and Associates blog today!