Louder than words

Understand the Value of a Graduate Degree

Michael Brenner earned a doctorate in education from the prestigious Teachers College at Columbia University in 2010, assuming a degree from an Ivy League institution would open numerous doors for him and bolster his chances for success entering the field of corporate consulting. However, after starting his own leadership and team-building consulting firm, he finds the doctorate has added little value to his business. "At this point, I would say that attending graduate school was not worth the cost," he says. "However, I recognize that it is early in this venture and the doctorate may pay off financially in the future."

Though many with graduate degrees echo Brenner's feelings, graduate school does lead to increased earnings across every discipline, according to a recent study on the economic value of college areas of study by the Georgetown Center on Education and the Workforce. Among the 15 fields of study analyzed in the report, median earnings of those with a graduate degree in the field, irrespective of tenure, are an average of 38.3 percent higher than those who only possess a bachelor's degree in the same field. "Is it worth it?" asks Reid Linn, dean of the Graduate School at James Madison University. "I am unaware of any study that has ever proven that more education and more guided practice and direct experience has hurt anyone or negatively impacted someone's life over a lifetime."

[See the 10 M.B.A. programs with the most value at graduation.]

But while the study found that earnings for students with graduate degrees increased, the extent of that benefit varied wildly. Biology and life science majors earn 70 percent more with graduate degrees in those disciplines than those with bachelor's degrees in the same field and social science workers with graduate degrees earn 55 percent more than their counterparts with bachelor's degrees, according to the study.

[See U.S. News's rankings of Best Graduate Schools.]

Shane Ellison, for instance, who received a master's degree in organic chemistry fromNorthern Arizona University in 2000, parlayed the degree into a successful career as a medicinal chemist-turned-health author. "The education was invaluable to me as a chemist, as it taught me how to handle the unique rigors of scientific research, namely pharmaceutical drug design," he says.

At the opposite end of the spectrum, the median journalism/communications major and arts major earns only 19 percent and 25 percent more, respectively, with a graduate degree, though degrees from top programs in those fields can cost $40,000 a year or more in tuition alone.

In fields where the median salary increase after graduate school is below average, work experience might prove more helpful than another degree. Eric Peters thought the master's degree he earned in 2009 from Radford University in corporate and professional communication would bolster his job chances and boost his earning potential, even amid the recession. In his job search, however, he found that his master's degree was trumped by those with more work experience in the communications field. He ultimately landed the type of entry level job typically reserved for younger workers with less educational experience.

[Is it time to go back to school?]

"I expected to get out of grad school and find a job fairly easily, even in the down economy," he says. "What I found after applying to more than 150 jobs was that experience weighs far more than education. And I'm talking paid full-time experience, because I had four internships under my belt when I graduated that didn't seem to matter very much."

Students shouldn't look at graduate degrees holistically, academic officials say. Instead, they should carefully examine the payoff an advanced degree typically garners in their field. "I would not recommend enrolling in any graduate program—if your primary goal is full-time employment—without some hard, externally verifiable evidence that the program is successful at placing its graduates in positions that the applicant would regard as acceptable," says William Pannapacker, professor of English at Hope College in Holland, Mich.

Ultimately, career experts say, it's up to the students to make the most of their degree, no matter their field. Simply earning a graduate degree and slapping it on a résumé isn't enough to guarantee increased earnings potential. That's the case even in the fields identified in the Georgetown study—such as the physical and social sciences—where graduate degrees appear to drastically boost income, consultants say. "Professionals are not entitled to work because of a degree; they earn work based on their ability to do work and think," says Lorrie Ross, a career and marketing consultant.

EDC 2011 - watch the middle part! warning: NSFW

How Laziness Can Cost You Money

While some consumers are experts when it comes staying within the streamlined family budget through comparison shopping, haggling, negotiating, coupon-clipping and making necessary cuts, some of us are—ahem—a bit lazy. Here’s where we’re coming up short and what you can do about it:

Failing to set financial goals

Many consumers are leading a “spend as you go lifestyle,” which is not productive. The bottom line is that we are much more inclined to save when we’re saving for something specific, whether a home, or college tuition, for example. Write down your short and long-term goals (where do you want to be in five years or ten?) and have a plan to meet those goals.

Being disorganized

I’m talking largely about paying bills late. What you may not know is that when you pay your bills late, you’re not only faced with late fees (which could easily exceed your minimum payment on your credit card), but higher interest rates and credit score consequences, which affects your ability to buy a home, a car, or even get a job. Get it together: have a designated place for bills, and set aside a time to pay them, or arrange to have them paid automatically.

Ignoring your credit score

Your credit report has a huge impact on what you can do, financially. Ideally, you should check it – from each of the three credit reporting agencies—once a year. Go to annualcreditreport.com; it’s free. Why should you bother if you’re not taking out a loan anytime soon? It’s important to identify potential problems, such as unauthorized charges/fraudulent behavior, and inaccuracies. After all, error rates range from about 3 percent to 25 percent (and some studies put that figure as high as 80 percent).

Loan options

It’s amazing that we’re spending twice as much time researching a car purchase as we are a home loan, particularly since a home is the single biggest investment people make. Try the new Zillow Mortgage Marketplace iPhone App. It makes it easy since you can shop for quotes—anonymously—and even contact the lender right from your phone—while out touring homes.

Letting bad habits slide

The numbers don’t lie: two-thirds of Americans are either overweight or obese, according to the National Center for Health Statistics. The costs over a lifetime? Nearly $260,000. As for smoking—another killer —a pack a day habit costs about $4,000 a year. Smoking also significantly increases your insurance costs, from life insurance (expect to pay about three times as much as a non-smoker) to homeowners (non-smokers typically get a 10 percent discount on their premiums), auto (non-smokers generally get a 5 percent discount), down to your health insurance. Run the numbers on ehealthinsurance.com and you’ll see: smokers pay several hundred dollars more per year than non-smokers.

Relying on the government—or an employer—for financial security

This is a big no-no, particularly with promised benefits like Social Security and Medicare headed for bankruptcy. The reality is that we’re going to have to work much longer, and retire on much less—or both. In an environment like this, you’ve got to take the initiative and be captain of your own financial ship.

Waiting for a miracle

A lot of Americans are waiting for something miraculous that will bail them out of their predicament. Why do you think so many of us play the lottery? Many of us think this our best chance for improving our financial situation. What’s particularly disturbing is that those earning an annual $13,000 or less spend a whopping 9 percent of their income on lottery tickets. Any idea what the odds are of striking it rich? As slim as one in 195 million.

Winners vs. Losers

Props to Kenny for this post

Differences Of Winners and Losers

	Winners	Losers
1	Winners focus on solutions.	Losers focus on problems.
2	Winners take responsibility.	Losers blame others.
3	Winners find opportunities in crisis.	Losers complain about crisis.
4	Winners enjoy being in the present and learn from the past.	Losers live in the past.
5	Winners make commitment and keep them no matter what.	Losers make promises that they always break.
6	Winners think about how they can achieve.	Losers give excuses.
7	Winners make personal development a priority.	Losers neglect personal development.
8	Winners face their fear, accept it and take the leap.	Losers dwell in their fear.
9	Winners constantly expand their comfort zone.	Losers stay in their comfort zone.
10	Winners take action consistently.	Losers refrain from taking action and lack consistency.
11	Winners take failure in their stride and learn from them.	Losers fear failure and avoid them at all cost.
12	Winners try different strategies when they are not getting the results they want.	Losers do the same thing over and over again expecting different results.
13	Winners set goals.	Losers lack goals.
14	Winners plan.	Losers hate having a plan.
15	Winners believe there are always things to be learn.	Losers consider themselves as an expert even though they know little.
16	Winners are humble.	Losers are egoistic.
17	Winners continue to hone their skill every other day without fail.	Losers make little effort in honing their skill.
18	Winners work hard.	Losers avoid work.
19	Winners give their best for the things that they decide to do.	Losers work half heartedly in everything that they do.
20	Winners are persistent and will do whatever it takes (ethical means) to achieve their goal.	Losers give up when obstacles pop up.
21	Winners manage their time well and indulge in high value activities that will bring them closer to their goals.	Losers lack time management skills and indulge in time wasting activities like playing games and watching re runs for the umpteen time.
22	Winners dream in the day.	Losers dream in bed.
23	Winners think about possibilities.	Losers focus on obstacles that will stop them from achieving.
24	Winners are certain.	Losers doubt.
25	Winners control their own destiny.	Losers leave everything to their fate.
26	Winners give more than they take.	Losers take more than they give.
27	Winners think whether the crowd is going in the right direction. If not, he will walk the other direction.	Losers follow the crowd.
28	Winners think and lead.	Losers refuse to think so they follow.
29	Winners listen.	Losers fight for every chance to talk.
30	Winners always find a better way to do things.	Losers stick to one way of doing things.
31	Winners spend money in seminars and classes to improve themselves.	Losers think that spending money on seminars and classes is a waste of money and they prefer to buy toys that gives them instant gratification.
32	Winners help others to win.	Losers refuse to help and think only about their own benefit.
33	Winners find like minded people like themselves that can bring them to greater height.	Losers find like minded people like themselves that will drag them to failure.