Episode 19 - How not to suck with money

Apreche

Now that we have more active forums I have to remember to start the discussions for each episode every time. It will help me keep track of the episode numbers better too.

Today we basically rambled on about how amazed we are that people piss away their money on crap and suffer for it later. here is the BusinessWeek article that inspired this episode. Our general feeling is that people who were in debt were spending their money on stuff they don't need or living above their means. Discuss!

Rym

Debate!

TheWhaleShark

Pontificate!

Alex

On the subject of grad school and money.

I contend that if you're not badass enough at your field to get someone to pay for at least the large majority of your master's degree through grants, scholarships, assistantships, or whatever, you should seriously ask yourself why you're trying for that degree. A master's degree indicates that you're capable of actual contributions to your field. That's what a thesis is supposed to be about. Schools like paying for good MS students, because they get prestige and possible patents out of every completed degree.

In short: get a real job, not an MBA.

TheWhaleShark

This is the same way with the Ph.D. in a real science; if you're actually good enough to get the degree, odds are you won't be paying for it, and in fact, you'll be stipended.

In fact, most schools that accept a student into a doctoral program in a hard science will give a full tuition scholarship and a stipend just as routine practice; I know that acceptance at, say, U of R means full scholarship and stipend.

Cremlian

guess I'm never going back to school ^_^

Apreche

Strange how this became a discussion of extra degrees in higher education. Oh well. All I gotta say is that a doctorate is only useful if you want to be a professor or researcher. Masters degrees can increase your salary or chances of getting jobs assuming you go for the full-time salaried work everyone else does. The logic is that a masters degree lets you pay a pile of time/money now for a small head start and boost over the long run.

However, there's a lot to be said for getting a bachelor's and then getting a job. If you don't count the piece of paper how does the two extra years of school for a masters compare to the 2 years of real work experience? Depends what you're going for.

RadioElectric

I'm probably in quite an unusual position on these boards in that I haven't gone to university yet, I can go next year. I've applied to...

A really kitschy Computer Science course that asks the world of you grades-wise and in return puts you into the industry during the 3 years you're earning your BSc and gives you a wadge of money for being good enough to get on the course. If I went for this one my career path would probably be something quite deep in the industry.

York for a 5 year MEng course with a year in industry. I'd want to either go on into research or go do something spectacular.

Some crappy forensic computing course in case my brain dies between now and my exams (they teach some cracking stuff, so they make you sign something to make it illegal to abuse it, wtf?). Would probably take that to MI5.

All the combinations of Music Tech, Neuroscience and Computer Science in a dual honours program. Not sure what I'd do with them, but they'd be fun while I was doing them at least.

Dr. Zibbelcoot PhD

If you're getting a higher degree in anything biology/chemistry related and you're paying for it you did something wrong. Any of the schools you would want to go for a masters or PhD waive tuition and make sure you have a stipend for at least 7 years (if you get your PhD).

The only instance that I know of that it isn't true is if you try to get your MD/PhD and you fail out. In that case you owe them the money for medical school.

George Patches

Thought I'd bring this discussion back up, but to actually discuss money.

I've become settled in my new post college life and for the first time have money in excess of both my needs and impulse wants (going out with friends, a video game here and there.) Seems that my financial situation can now benefit from having more than a checking account and a credit card.

So aside from investing in your 401K, how are other forum members saving their money?

Kate Monster

Aside from a 401k, we've utilize different savings accounts (different interest rates and terms for different needs), money market accounts, mutual funds, and Roth IRAs. I've utilized Certificate of Deposits (CDs) in the past, and they have their purpose. It all depends on when you want to access different amounts (down payment on a house in x years v. money for retirement in y years, etc.) and maximizing the yields.
Also balancing the interest/earnings per year versus any interest you are paying on any debts. If money sitting in a savings account is earning less than the interest on a debt, then pay off the debt or transfer the funds/invest them for higher yields.
All of this is basic information, but people twice my age that I encounter on a daily basis still don't grasp these simple concepts.

George Patches

Basic financial knowledge I have. I'm more interested in what banks, mutual funds, etc people are investing in and how satisfied they are with them.

So I guess this is more of a "where" question than a "how" question.

I found SmartyPig through some Google searching. They currently offer 2.75% APR and interest accrues daily. Not bad for a relatively liquid savings account. PNC by contrast is offering a giddy 0.05% APR.