Showing posts from March, 2010

Decision: Car or Education?

In 2005, I had a big decision to make.

I had saved up a decent amount of money with my consulting business, and my current car was just about out of warranty.

So should I spend my savings on a new BMW, or going back to school?

Now, in theory, the "smart" choice was obvious.

Pros for Car: Fun! Flashy!
Cons for Car: Expensive. High depreciation.

Pros for Education: Knowledge = Power!
Cons for Education: Hard work.

So I went ahead and took a year off doing a full-time MBA program at Wilfrid Laurier.

It's nearly five years later.  Did I make the right decision?

From a financial standpoint, it's not entirely clear.  Let's say, to make it simple, my savings were $100.

Ignoring inflation, the car would have been worth about $40 today, whereas the education money is completely gone = $0.

Also, had I bought the car, I would have earned my regular income that year (let's say $100 again) instead of the reduced amount while taking full-time school (let's say $20).

So for …