Why Going Back To School Is One Of The Best Investments

The following is a guest post by Allie Gray, an Online Marketing Manager for Rasmussen College.

On the surface, going back to school can seem to be a rather unattractive decision. For one thing, college is the epitome of delayed gratification. In other words, successfully completing college involves years of hard work up front, and no reward until the very end. Many people get hung up thinking about all the tedious hours spent studying, taking tests, creating projects, and attending class every day. When considered in total, many adults feel that it just isn’t worth the investment of their time to limit to go through it all, all the while constraining their working hours and making less money, just to earn a piece of paper that says they completed the requirements.

On the contrary, research suggests that furthering your education is perhaps the best investment you can make in yourself. The U.S. Bureau of Labor Statistics shows weekly income increasing by orders of magnitude by workers’ level of education. In addition to an increased earning potential, having a degree can help you get approved for loans and investments. Today we explore why going back to school is one of the best investments you can make.

Associate Degrees

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According to 1997 data form the U.S. Bureau of Labor Statistics, those who graduated high school but never went onto college earn an average of $595.00/week. In contrast, those who possess an Associate degree (a two-year college degree) saw a significant bump, earning around $729.00/month. This data demonstrates that having the lowest level college degree one can attain has to potential to increase a worker’s yearly income nearly $8,000.00 compared to just having a diploma. Consider that many associate degree programs cost less than $10,000 for the entire two year program. This means that once you graduate you can pay off your entire tuition bill in a year’s time using only the extra money you can now earn.

Bachelor’s Degrees

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The hump in earning potential from high school to Associate level is nothing to shake a stick at, but consider what the data reveals about Bachelor’s degree holders. According to the same 1997 statistics, those who earned a four-year Bachelor’s degree in any field took home an average of $962.00/week. This represents a yearly increase of almost $19,000 over high school diploma holders. Though bachelor’s degrees are significantly more expensive than an Associate’s, the fact that workers will receive such an increase in average yearly income makes the extra time and money spent an invaluable investment.

Master’s Degrees

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Maybe you’re the sort of person who already has their Bachelors degree and works a decently paying job, but wonders what sort of benefits they might receive if they went back to earn their Master’s degree. not surprisingly, the income increase from the four year to six year level is quite significant, as is the array of new job opportunities that you could qualify for. While Bachelor’s students spend their time gaining a broad understanding of their field, Master’s students specialize in one acute area of the field, such as molecular biology instead of just “biology,” or clinical psychology instead of just, “psychology.” Perhaps this is why Master’s degree holders earn an average of $1,140.00/week (an almost $9,000/year increase) and are significantly more qualified to fulfill higher-level careers than Bachelor’s level workers.

Professional and PhD Degrees

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A PhD (or doctoral) degree is the highest academic accolade one can achieve. A common misconception about doctoral degrees is that, since they take the longest to earn, they must cost the most money. This is actually false, because most schools actually pay their PhD students to get their degree at their college. This means that your student loans end with your bachelor’s degree, and the only investment you must then make is the time and dedication it takes to earn your PhD. For no additional money, your potential rise in weekly income is breathtaking over the Bachelor’s level. According the 1997 data set, workers with a PhD earn an average of $1,441/week. This means that for no additional money, you stand to earn almost $25,000/ year more than if you remained at the four year level. Clearly, if you possess the academic muscle, this is perhaps the greatest single investment of your time you can make.

Entrepreneurial Benefit

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Some people avoid going back to college because they are planning on starting a business and don’t believe they need a college degree to succeed on their own. While it might be technically true that going into business does not necessarily require a degree, having a formal education as one of your credentials can prove to be a serious asset to you in the future. For example, if you approach an investor for seed capital, more often than not you will be asked for your qualifications to run the business you are trying to start. Having an MBA or similar degree to point to will make you look much more credible in their eyes, especially when a large investment is on the table. This also holds true for banks deciding whether or not to approve a business loan to a young start-up. Your degree is a statement of your discipline and commitment to your craft, and having one will assist even the most self-made of men at various times in their lives.

About the Author: Allie Gray is an Online Marketing Manager for Rasmussen College. In her position, she drives online promotion and content production for Rasmussen’s School of Business, School of Technology and Design, and Nursing School, and fronts Rasmussen College’s article database with topics ranging from career services to student interest stories. Allie has a Bachelor’s degree in Journalism from the University of Minnesota.