Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha


“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha
Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
Keywords: news, cnbc, companies, taking, institute, work, equation, students, clayton, school, student, christensen, college, borrow, youre, going, cofounder, schools, reveals, debt


Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“You really want to be mindful that you’re not crossing that threshold of payments that are just going to crush your income because they’re taking up, say, 20, 30% of your monthly paycheck,” he says. “If you’re in that realm, you’re going to have problems in the long-run.”

It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future.

“As students look at the equation for how much they should borrow when they go to college, they ought to be thinking of the total debt that they take on as not being more than 10 to 15% of what their earnings are going to be when they leave college,” says Horn.

But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college.

The cost of attending college today is a daunting prospect. According to the College Board’s 2018 Trends in College Pricing Report , from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools, and many students use some kind of student loan to finance their degrees.

Students should think about what they want to study, research how much graduates at a given school in that major make, and not take on more than 10 to 15% of that amount in debt.

For example, according to PayScale, the average salary for an individual with a Bachelor of Engineering degree from New York University is about $91,296 per year. That means a student could plan to take on up to $13,694 (roughly 15% of their projected future salary) in loans to finance this degree.

However, the average salary for a worker with a Bachelor of Social Work degree from New York University is about $50,008 per year, so based on Horn’s recommendation, students should only take on about $7,501 in loans. Additionally, many social work opportunities require students to earn additional accreditation such as a master’s degree, and students should consider these costs as well.

Of course, this math is dependent on a student having a clear understanding of what they plan to pursue after college, something that can be challenging for many young people. Other factors students need to consider include a school’s reputation for graduating successful alumni, as well as its rate of on-time graduations.

“If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, that’s probably a reasonable investment,” says Horn. “If you’re going to a bottom-third law school, a question you ought to be asking yourself is, ‘Is this worth it?’

“The most crippling debt is when you don’t complete. If [students] don’t complete, it can be crippling because they’re not going to have the wage bump from getting that college credential and so you’re going to be earning roughly as much as someone with a high school diploma is, but you have taken out $10,000 in debt.”

Horn emphasizes that debt totals have a significant impact on the financial lives of borrowers.

“Paying not just the debt back but also the interest on top of it, that can be really punishing to make the books work as you’re trying to think through raising a family, owning a home maybe in the future and other life decisions.”

Like this story? Subscribe to CNBC Make It on YouTube!

Don’t miss:


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
Keywords: news, cnbc, companies, taking, institute, work, equation, students, clayton, school, student, christensen, college, borrow, youre, going, cofounder, schools, reveals, debt


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cramer Remix: This former market darling has an equation for gains

“Let’s consider the case of Danaher, the life sciences, diagnostics and environmental technology play,” the “Mad Money” host said on Tuesday. Then, in April, Danaher’s earnings report revealed another problematic side to the story: the conglomerate’s lagging dental business. This quarter, however, Danaher turned things around, deciding to spin off its dental business as a separate company and addressing tariff concerns head-on, Cramer said. “Think of it as addition by subtraction,” he said, addi


“Let’s consider the case of Danaher, the life sciences, diagnostics and environmental technology play,” the “Mad Money” host said on Tuesday. Then, in April, Danaher’s earnings report revealed another problematic side to the story: the conglomerate’s lagging dental business. This quarter, however, Danaher turned things around, deciding to spin off its dental business as a separate company and addressing tariff concerns head-on, Cramer said. “Think of it as addition by subtraction,” he said, addi
Cramer Remix: This former market darling has an equation for gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-24  Authors: elizabeth gurdus, getty images, lucas jackson, brooks kraft, adam jeffery
Keywords: news, cnbc, companies, stock, manageable, remix, market, looking, darling, equation, cramer, sciences, life, gains, business, danahers, dental, danaher


Cramer Remix: This former market darling has an equation for gains

Every once in a while, CNBC’s Jim Cramer watches a once-beloved stock fall out of favor with investors. But what really interests him is how that stock gets its groove back when Wall Street throws it to the wayside.

“Let’s consider the case of Danaher, the life sciences, diagnostics and environmental technology play,” the “Mad Money” host said on Tuesday. “Over the past few decades — decades — Danaher has been perhaps the single best conglomerate on earth.”

But earlier this year, shares of Danaher stalled after the company issued some disappointing guidance. That spiraled into tariff-related pain as investors worried about its broad overseas business. Then, in April, Danaher’s earnings report revealed another problematic side to the story: the conglomerate’s lagging dental business.

This quarter, however, Danaher turned things around, deciding to spin off its dental business as a separate company and addressing tariff concerns head-on, Cramer said.

“Suddenly, the two biggest overhangs had been either removed or alleviated,” he said. “Now it appears that the China impact is both minimal and manageable, and dental will soon be no longer part of the company.”

Now, Danaher’s diagnostics, life sciences and environmental segments can continue to enjoy their double-digit growth and margin expansion without the slow-growing dental business infringing on the numbers, Cramer said.

“Think of it as addition by subtraction,” he said, adding that Danaher’s stock is still a buy thanks to “the consistency and the acceleration of the numbers.”

“Danaher’s doing everything it needs to do to generate higher stock prices, which is why I think this baby has more room to run,” Cramer continued. “Without dental to worry about, with the tariffs looking manageable, this already terrific story is suddenly looking a heck of a lot better.”


Company: cnbc, Activity: cnbc, Date: 2018-07-24  Authors: elizabeth gurdus, getty images, lucas jackson, brooks kraft, adam jeffery
Keywords: news, cnbc, companies, stock, manageable, remix, market, looking, darling, equation, cramer, sciences, life, gains, business, danahers, dental, danaher


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Man who retired at 35: Saving money won’t make you rich—here’s what will

Naturally, I support the idea of saving money. While it’s true that saving money alone won’t do a damn thing to enable a blissful destruction of your alarm clock, “Office Space”-style, for the rest of your life, it’s flat wrong to plainly state that saving money has nothing to do with it. In other words, is your money working for you or are you working for it? Invested money has a purpose, and the more money that you have to invest, the easier this equation becomes. And the sooner you’ll be sipp


Naturally, I support the idea of saving money. While it’s true that saving money alone won’t do a damn thing to enable a blissful destruction of your alarm clock, “Office Space”-style, for the rest of your life, it’s flat wrong to plainly state that saving money has nothing to do with it. In other words, is your money working for you or are you working for it? Invested money has a purpose, and the more money that you have to invest, the easier this equation becomes. And the sooner you’ll be sipp
Man who retired at 35: Saving money won’t make you rich—here’s what will Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-18  Authors: steve adcock
Keywords: news, cnbc, companies, invest, money, 35, richheres, purpose, youll, works, wont, man, equation, words, sitting, retired, working, saving


Man who retired at 35: Saving money won’t make you rich—here’s what will

Naturally, I support the idea of saving money. While it’s true that saving money alone won’t do a damn thing to enable a blissful destruction of your alarm clock, “Office Space”-style, for the rest of your life, it’s flat wrong to plainly state that saving money has nothing to do with it.

I like to think the equation that solves the early retirement riddle is actually quite simple: Your money’s purpose + Your motivation = Your chances of getting free.

Let’s say you have all the motivation in the world to call it quits. All right, you have one element of the equation firmly in hand. You want out, and bad. The other element revolves around your money’s purpose. In other words, is your money working for you or are you working for it? If the former, you’re in good shape. If the latter, you’ll probably celebrate your 60th birthday sitting in an office building somewhere.

Invested money has a purpose, and the more money that you have to invest, the easier this equation becomes. And the sooner you’ll be sipping a Sex On The Beach while at least sitting on the beach.

I’ve burned through a hundred additional words to basically say this: Invest your savings. Simply “not spending it” isn’t enough. That dough you saved by ordering water in restaurants instead of your Coke or Pepsi? Don’t just “not spend it.” Invest it. Get that cash in the market and let compound interest run its course like it has for so many of us who enjoy life outside of the confines of a full-time job.

It works, guys. Trust me, it really, really works.


Company: cnbc, Activity: cnbc, Date: 2018-07-18  Authors: steve adcock
Keywords: news, cnbc, companies, invest, money, 35, richheres, purpose, youll, works, wont, man, equation, words, sitting, retired, working, saving


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A simple equation will show you if you’re on track to save enough for retirement

Those between the ages of 55 and 64 who have retirement savings have a median of $120,000 socked away, Bankrate reports in a new survey, citing data from the Federal Reserve. So how much should Americans be earmarking for retirement in order to be sufficiently funded in their golden years? Financial services company Fidelity recommends putting away 15 percent of your income per year starting at age 25 and investing more than 50 percent of your savings over your lifetime. If you’re eligible for a


Those between the ages of 55 and 64 who have retirement savings have a median of $120,000 socked away, Bankrate reports in a new survey, citing data from the Federal Reserve. So how much should Americans be earmarking for retirement in order to be sufficiently funded in their golden years? Financial services company Fidelity recommends putting away 15 percent of your income per year starting at age 25 and investing more than 50 percent of your savings over your lifetime. If you’re eligible for a
A simple equation will show you if you’re on track to save enough for retirement Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-03-22  Authors: emmie martin
Keywords: news, cnbc, companies, million, match, simple, savings, retirement, away, equation, track, save, fidelity, recommends, 15, youre, putting


A simple equation will show you if you're on track to save enough for retirement

When it comes to saving for the future, Americans aren’t doing great. Those between the ages of 55 and 64 who have retirement savings have a median of $120,000 socked away, Bankrate reports in a new survey, citing data from the Federal Reserve. That’s only 12 percent of the $1 million many experts recommend, and it’s worth noting that even $1 million doesn’t stretch as far as it used to.

So how much should Americans be earmarking for retirement in order to be sufficiently funded in their golden years? Financial services company Fidelity recommends putting away 15 percent of your income per year starting at age 25 and investing more than 50 percent of your savings over your lifetime.

“The good news is that that 15 percent also includes any employer match,” Ken Hevert, senior vice president of retirement at Fidelity, previously told CNBC Make It. If you’re eligible for a 5 percent match on your 401(k) plan and you contribute 5 percent of your salary to the account, you’re already putting away 10 percent.

To know if you’re on the right track, start by figuring out your savings rate, recommends Eric Roberge, a CFP and founder of Beyond Your Hammock. This will show you how close you are to the ideal of at least 15 to 20 percent.


Company: cnbc, Activity: cnbc, Date: 2018-03-22  Authors: emmie martin
Keywords: news, cnbc, companies, million, match, simple, savings, retirement, away, equation, track, save, fidelity, recommends, 15, youre, putting


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

7 wise habits to strengthen relationships with your team

No one wants to go to work every day dreading the amount of time they are going to spend with his or her boss. At the same time, I don’t know any sane leader who looks forward to having bad relationships with team members. So the question then becomes, why are so many relationships between team members and their leader a major part of the reason people are unhappy at work? The majority of leaders believe team members are responsible for the relationship with their leader. This belief puts the ow


No one wants to go to work every day dreading the amount of time they are going to spend with his or her boss. At the same time, I don’t know any sane leader who looks forward to having bad relationships with team members. So the question then becomes, why are so many relationships between team members and their leader a major part of the reason people are unhappy at work? The majority of leaders believe team members are responsible for the relationship with their leader. This belief puts the ow
7 wise habits to strengthen relationships with your team Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: john eades, amy mellow, a creative focus photography, survival systems inc
Keywords: news, games, cnbc, companies, relationship, dont, habits, responsible, leader, work, team, equation, leaders, wise, members, relationships, strengthen


7 wise habits to strengthen relationships with your team

No one wants to go to work every day dreading the amount of time they are going to spend with his or her boss. At the same time, I don’t know any sane leader who looks forward to having bad relationships with team members. So the question then becomes, why are so many relationships between team members and their leader a major part of the reason people are unhappy at work?

The answer: Most leaders have the equation wrong.

The majority of leaders believe team members are responsible for the relationship with their leader. This belief puts the ownership of worthiness, trust, ability, respect, and work ethic on the shoulders of others.

More from John Eades:

5 critical skills you need before leading a team (and a refresher if you already do)

Why great leaders don’t allow their profession to become their identity

The power of leadership from an unexpected place

The correct equation is:

Leaders are responsible for the relationship with each individual their team member.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: john eades, amy mellow, a creative focus photography, survival systems inc
Keywords: news, games, cnbc, companies, relationship, dont, habits, responsible, leader, work, team, equation, leaders, wise, members, relationships, strengthen


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post