Your Ph.D. Is A Luxury

Stephanie wants to know at what point she should fund her college instead of her kids' college. Dave advises Stephanie to work her debt snowball in order and clean up her mess.

QUESTION: Stephanie in Dallas wants to know at what point she should fund her college instead of her kids’ college. She wants to get her Ph.D. and teaches special education. Dave advises Stephanie to work her debt snowball in order and clean up her mess.

ANSWER: You’re making $95,000. You’re going to get this mess cleaned up as fast as you can. The answer to your question is work your Baby Steps. Finish becoming debt-free. Finish the emergency fund. Start saving for retirement. Start saving for your kids’ college. Then you get to work on luxuries, which is your Ph.D. That’s like you guys saving up for a boat or whatever. You’ve got to do that while you’re doing other smart things ahead of time. You’ve got to clean up the mess first.