Making Six Figures and Broke
by Dave Ramsey
| My husband finished dental school three years ago. Recently, told me that he wants to go back to school to become a dental anesthesiologist. He makes $100,000 a year right now but says this will give him the potential to double his income. We’ve paid off five credit cards in the last year and a half, but we still have a $200,000 student loan. We also just found out that I’m pregnant. So, I’m feeling unsafe with this idea. What do you think?
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Dear Dave,
My husband finished dental school three years ago. Recently, told me that he wants to go back to school to become a dental anesthesiologist. He makes $100,000 a year right now but says this will give him the potential to double his income. We’ve paid off five credit cards in the last year and a half, but we still have a $200,000 student loan. We also just found out that I’m pregnant. So, I’m feeling unsafe with this idea. What do you think?
Shannon
Dear Shannon,
This is not a wise move. You’re $200,000 in debt, and he brings in dentist money. You guys need to clean up your debt.
This starts by living on nothing for a while. If he makes $100,000, then you guys need to live on half that. We’re talking rice and beans and living on a VERY tight budget for a couple of years. Then, if he wants to go back to school after that – and save up money to pay for it – we can sit down and talk.
You have every right to feel unsafe right now, Shannon. I’m sure your husband is a great guy, and that he loves you very much. But this is a ridiculous idea.
He needs to listen to his loving, pregnant wife. You’re right on this one, and he’s wrong. Period!
Dave
Posted by Christine
from Utah
Shannon:
To me it,part of the decision also depends on how long the Dental Anesthesiology school/class is for. Is it for a couple more years or ???
The other to consider, is can he still operate his Dental Practice part time, while attending school; which would allow an income at the same time.
The idea of living on beans and rice on a %50,000.00 income vs. $100,000.00 is questionable. We have an income of around $30,000; and we don't live on rice/beans; but we don't eat a lot of steaks either.
It might be worth it for him, to go back to school to increase your income, providing he can also work his current practice, or open a new practice part time. Perhaps that would be in the evenings, and/or 1 or 2 days per week + Saturdays (which would be great for people with day time full time jobs).
You definitely have valid concerns with a baby on the way. But I know we could live quite comfortably on $50,000.00 a year.
What about you working full time, for a few months, if he does go back to school.
In your case, going back to school, may or may not be a good idea. Other factors need to be taken into consideration, before making the right decision.
Also one needs to consider, how schooling is to be paid for. Additional student loans? And how long is it going to take to pay off those loans- with and/or without, returning to school.
The answer doesn't appear, to be as cut and dry, as Mr Ramsey makes it seem. But at the same time, my answer is not completely disagreeing either; I just think other factors are involved, that also need to be taken into consideration, before an actual decision can be made.
And that's great you've been able to pay off the credit cards. Good start.
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Posted by Faith
from Niagara Falls, Ontario, Canada
This is such wise advice. Young people who are comfortablein the way they live often see only the way things are, not looking forward to what can,and very well might, happen. Now they will have medical bills. What if there are complications? What if , for some reason, maybe even a health problem,he is not able to complete his studies? There would stll be the bills, and the added expense of the growing family. There ae so many ifs here, it scares me to even think of what could become of them.
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Posted by Rose
from Virginia
Hey, We have 5 children and made it through dental school. Get your credit cards paid off -- but, for the school debt you can defer it!!! Then make double the income, to pay off loans later. I would say go for it it will only make your life nicer with more to spend!!!
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Posted by Dottie
from Upland
I strongly agree!
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