Wednesday, March 30, 2011

Numbers

I have always been one to calculate things out. I attempt to save money on my subscription services by calling customer support.  Once off the line I calculate how much I saved, divided by the time spent, just to know how much I saved per minute. I have calculated how much I make per minute at every job I have had, all of which pale in comparison to working with my father in our family lawn-care business. So in considering all of my options for business school, I of course built out an excel spreadsheet.
Like every model built in all of my economics courses, it is based on some theoretical information. No one knows the future, so you do your best to estimate some numbers based on past results. But let's start going over some of the numbers I have been dealing with.

1 - Number of children I currently have
2 - Number of cars I will be transporting to MA
3 - Number of children I will have come July
5 - Size of my family that will be moving to MA
11 - Stress level on a scale of 1-10 I have been experiencing in this process
21 - Months that I will be studying at Babson College
2388 - Miles between my home in SLC and Babson College
$27,000 - Roughly the cost difference for year between two universities I considered
$30,000 - The amount of money per year of my Presidential Scholarship to Babson College 2 year MBA program
$xx,xxx - Salary per year I will be giving up to attend Babson
$77,865.00 - Amount I will likely borrow on student loans, each year for two years
$????? - Amount of government assistance I hope to have while living in MA
$167,952.28- Theoretical amount I believe I will owe, all in all, once I finish school
9585.5 - Number of days I have been alive
$17.52 - dollars per day this equates out to for every day I have been alive
$$$$Larger Number - Opportunity cost of the degree
7.31 - Number of years I expect it will take me to break even on this investment including opportunity cost
36 - Age I expect I will be once I hit my theoretical break even point
1 - to represent my supportive spouse, who stands by me after all these numbers

In my past I have been considered a bit of a gambler. Before I was married I had been to Vegas a couple times, Wendover a few times, and I played with stocks quite regularly. But since having my first child, I have not really left much to chance. Some of the numbers I posted above scare me a lot! I have spent the last few weeks freaking out about that entire list. One thing that I keep reminding myself is to try to balance the fear with some excitement. Although this will be the biggest bet I have ever placed, this time instead of it being on Black, or doubling down on 11 or even clicking a mouse and hoping for XYZ to move 5 points, this time the thing I am betting on is myself. I have some control of the outcome here, and I am going to bust my ass to make sure that every penny pays off.

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