Overtime vs Masters degree 1

[photoengineer]

Here's a good quandry:

I have the opportunity to work significant amounts of paid overtime next year (probably around 300-400 hours). I am also half way through a Masters program in Mechanical Engineering that is paid by the company. I can't do both - I can either work lots of overtime or work on my masters, but I don't have enough hours in the day to do both.

Two things make it important that I finish my masters program as soon as possible: 1) After the project I am assigned to is completed at the end of next year, the company will be laying off a lot of people and I'll likely be one of them. 2) My wife and I are likely to start a family next year, and it's be really good to have my degree complete before then.

Would you say it is more important to put my graduate degree on hold to take advanatage of the overtime, or decline the overtime and complete my masters degree?

 

[ajack1]

Well the masters should give long term benefits and the overtime short term.

Would the amount of extra money from the overtime and redundancy be enough for you to pay for the degree that you say the company are paying for and give you enough time to complete the masters with no other distractions?

I guess it boils down to what you think the job market will be like in 12 months time.

 

[SWComposites]

Get the MS before having kids. Have done both. Can't imagine trying to do a MS with young kids.

Overtime just burns you out. Been there too. Rarely worth it, unless it is the only way to hold onto a job.

The MS is worth more in the long run, and will help if you need to look for a new job.

SW

 

[bootlegend]

Find a way to do both. I had two (young) kids and worked that much overtime or more while working on my MS. It was tough. Most weeknights I studied until 1am and was up and at work by 6:30. You can get used to it, and if you are already halfway done you don't have long left.

If you know you may be getting laid off you need both the OT and the degree. It is really tough, but it can be done.

I don't know much about statistics, but I do know that if something has a 50-50 chance of going wrong, 9 times out of 10 it will.

 

[jpankask]

Can you work the overtime and cut down on the classes for next year, maybe 1 per semester, OR take a class that maybe you won't have to spend as much time studying to do well?

When I started my MS program, while working full time, I had no kids. By the time I was finished, my 3rd son came along. It was difficult to juggle working, school and family with little ones and it puts a lot of the burden on your wife. As much of your school as you can get done before kids, the better off you will be. If you put school on hold, it may be harder to go back and finish later.

On the other hand, it's hard to turn down overtime cash if you have the opportunity and are getting ready to start having kids. If you go that route, put that money away before you even touch it.

I agree with the others that the MS will be more of a benefit over the long run. Overtime pay will quickly disappear with a house, kids, new car, etc. A MS may significantly increase your earning potential for the rest of your career. Good luck with the family and the MS.

 

[RoyTyrell]

Go for the money.

 

[trainguy]

In Quebec, (Canada)

It would be a no-brainer - avoid the overtime, because of the increased taxes to pay. Have you checked your after-tax take-home pay with and without the overtime?

I'd go for the MS.

tg

 

[moltenmetal]

The last study I saw in Ontario, Canada, gave the additional salary benefit to a P.Eng. of a Master's degree of about $5,000 per year- that might be $10,000 per year by now. The more recent studies do not distribute data based on salary versus highest degree attained- you need to pay extra for that information.

Put it this way- worth doing for free (i.e. if the boss is paying) AND if you're really into it. Doing a Masters for the money? Forget about it- take the O/T.

trainguy: I think you're confusing the income tax withheld at source from your paycheque with how much tax you owe at the end of the year. O/T is not taxed any differently at the end of the year than any other earnings are. Assuming equal deductions, someone earning a base salary of $80k and working no paid O/T pays exactly the same income tax as someone who earns $60k base salary plus $20k worth of O/T.

 

[HgTX]

But depending where the bracket cutoff is and what the tax step is from bracket to bracket, someone who grosses 80k with overtime may not be earning significantly more per hour, after taxes, than someone who grosses 60k without overtime.

Hg

Eng-Tips policies: faq731-376

 

[photoengineer]

HgTx,

Tax brackets are incremental, meaning that your first xxx are taxed at the lowest rate, the next xxx are taxed at the xxx, and the last xx are taxed at the highest rate. So it's not like earning one dollar above a tax bracket causes all of your income to be taxed at a higher rate.

 

[FeX32]

Don't do an M.Sc. for the money, do it b/c you want to do it.
Do an MBA for the money


Fe

 

[trainguy]

I guess it doesn't help that I live in Quebec, the highest taxed area in North America. We pay provincial and federal income tax.

Sorry, just venting. At least we don't have extreme weather except the cold winters, and my wife can go out at 10:30 PM for a walk around the block in an urban area without fearing for her safety. And to top it off - free health care... - not too bad.

FYI, these days my work week is cut down to 4 days for lack of work, and I'm taking home 84% of when I was working 5 days...

tg

 

[FeX32]

I live in Canada as well. Ontario to be more specific.



Fe

 

[trainguy]

FeX32,

I promise I won't make any Leafs jokes (Toronto's NHL hockey team, for other folks). At least, you guys still have a baseball team!

tg

 

[FeX32]

So, true. To be honest it has been a while since I expected anything from the leafs.
Although, I have buddies that still dust off that blue and white jersey every game.


Fe

 

[MedicineEng]

My oppinion:

Are you sure that the company will lay you off right after paying for your studies?

If it is true, this is one of the most stupid managerial decisions that I ever heard of.

I would go always for the MSc. A higher degree usually opens you doors that you cannot anticipate.

My example:
In 2004 I've decided to take a MBA (paid by me). In my previous company I didn't expect a big promotion after my MBA (I was already reporting directly to the general manager)but I knew that my contract as expatriate would finish in 2006. In middle 2007 (my contract was extended one more year) I started looking for job. I landed in a company with a 30% salary increase. In my job interview, my future boss mentioned my MBA (that by that time was not yet compelted. In fact, only this year I managed to finish it) and that he was also taking a MBA also but in a different university, so half of my interview was discussing subjects of the MBA. Still today I believe that my MBA was the decision factor for me to have the job that I currently have. So, in these 2 years now, I already more than recovered the money that I spent in my MBA.

Your case is even better, the boss is paying you to study.
Go for it.

 

[FeX32]

Wow. MBA this MBA that. . An MBA is much much different then a MSc.
Just for the record.


Fe

 

[MedicineEng]

FeX32:
You are right, it is different. But I think that for you to enroll in a MBA or other post-graduation course, you must have a MSc or equivalent, don't you?
So my point is: higher education opens you doors that overtime don't.
Also and assuming that photoengineer is really laid off. If you had to choose, would you prefer to have a stack of money or a set of skills that make you more employable with a potentioal higher salary than today?

 

[moltenmetal]

No, you don't need a M.A.Sc. or M.Sc. to obtain an MBA. You do need to write GMAT to prove you're capable, and generally you need some work experience. It's not the "exclusive" degree it once was.

I did an M.A.Sc. and it was the right decision for me. But I had no illusions- I was NOT doing it for the money. I did it right after my B.A.Sc., and it was a research (thesis) rather than coursework program. It was experience and education like any other- valuable to me because it taught me something I retained and am able to apply.

The degree itself has NEVER been the deciding factor in getting or not getting a job, and it hasn't resulted in one dollar of extra compensation relative to graduating a year earlier with a B.A.Sc. I think that's the reality for many Masters level engineers in the workforce.

 

[photoengineer]

Thanks. I appreciate your opinions.

Cedar Bluff Engineering

http://cedarbluffengineering.webs.com