Financial Planning as a Single Woman

LLucy1 on 27/01/2019 - 00:33
Last edited 27/01/2019 - 00:34

I'm a 32 year old high school teacher living in Melbourne. Over the last few years, I've become increasingly concerned about my financial future as I have very little super (<20k) and virtually no assets to my name. I do currently have about 115k in a high interest savings account for a deposit on a house, but haven't bought anything as I fear buying in Melbourne is well beyond my meagre salary (72k). Only debt I have is HECS (40k).

The options I currently have:

  1. Try to increase my salary as much as I possibly can. I currently do tutoring which gives me a little bit extra (2-3k a year), but am also thinking of adding in some retail/hospitality work (lower pay, but more hours available).
  2. Choose a new career. Unfortunately most high income careers will require that I retrain, which I'm quite happy to do. I have just been offered a place in Deakin's bachelor of engineering. As its online, I will continue to work full-time whilst studying part-time. Given that I am getting a lot of credit, I can get it done in 4-5 years.
  3. Teach overseas somewheres that pays better than what I am currently getting. I have done a bit of research and it appears the Dubai pays rather well with the possibility of free accommodation.
  4. Move to the country. I have previously lived in the country and hated it, but it may be only hope of ever buying a house.

Any suggestions of what I should do?

Financial

Comments

          • p1 ama on 28/01/2019 - 14:03
            +2

            @Lucy1:

            Just ppor. Im competiting against 2 income families for property. Even 500k is something i'll never be able to afford

            What makes you think you can't afford $500k? That's just not true.

            purchasing an apartment sounds like a hassle (and seems to be risky as their value is prone to flucturate).

            You're making it sound like prices for houses do not fluctuate?

          • [Deactivated] on 29/01/2019 - 13:17

            @Lucy1: You'll be able to afford $500k, but you probably shouldn't. Better off getting an apartment for $300k, paying that off over 10-15 years and then looking at something bigger. By that time you'll either not be single or not need something any bigger anyway. The fact that value fluctuates is irrelevant if you're living there. It's pretty cost effective (about as cost effective as anything beyond share housing). Alternatively, you can buy something bigger and rent out a room.

            The main issue with buying a property to live in is that you want to be fairly sure you're not going to sell it in the next 5 years at least (the longer the better).

  • DonWilson on 27/01/2019 - 16:02
    +2

    You could move to a better paying state. If you'd been teaching in Perth for 4 years you'd be on ~$90k. That's public sector. You definitely do get better private here, according to teachers I know.

    • Lucy1 on 27/01/2019 - 17:34

      That's sounds like a big improvement. I will have to look into it. Thanks

      • andyfc on 27/01/2019 - 19:48
        +1

        Agree - your current salary youre being shafted. Have a look at 2019 VIC public sector teaching salary, caps out 105 k I believe.

        By the way, engineering may not get you that salary you hope, I know many senior engineers that will never get more than 105 k. Sure some roles are lucrative, but not everyone can get the good technical roles or mid level manager jobs that will command 120-140k, and tbh you very well could be stuck with a salary lower than what you could be at a private school. And almost guaranteed to be stuck there until your are 45 (4 years uni + 8 years exp).

        Something to think about (from an engineer).

        • MechEng on 29/01/2019 - 00:22

          +1 on this comment.
          Working in engineering may get you a better paying job, but also may not. Good paying positions are very competitive and hard to get. Based on my experience, and talking to colleagues I estimate that most are in between the 100 -120 mark. These are all experienced engineers, some with postgraduate qualifications.
          It will take you 5+ years to get your degree, + at least 3 years working with a salary that is lower than what you earn now before you get ahead, if you get ahead. Qualifications from an online bachelor's may seem good for you as a student but if the graduates are not good word spreads fast, and will put you behind in a selection process, no matter how good you are. Good luck

  • Destin on 27/01/2019 - 16:35

    +1 for Barefoot

  • burningrage on 27/01/2019 - 16:41
    +2

    Option 3. But is it dangerous for a woman in UAE?

  • mlburnian on 27/01/2019 - 17:25
    +5

    Teachers get paid very well. The pay is more than acceptable considering the very low entry standards to get into teaching. Consider vets and medical scientists that have far tougher education, and make similar money

  • JIMB0 on 27/01/2019 - 17:34
    +9

    Find and marry a man with money while you're still young and have your looks.

    • Lucy1 on 27/01/2019 - 17:37
      +2

      Sure. You know someone?

      • Dreamcast on 27/01/2019 - 18:26
        +14

        Hi.

      • Luck1 on 28/01/2019 - 09:55
        +2

        Hi, coffee?

        • Kangal on 30/01/2019 - 21:18

          I see what you did there….

      • search678 on 28/01/2019 - 16:54

        Hi!

    • Ghost47 on 27/01/2019 - 19:23

      Sadly this is what most people I've seen do. Unless you graduated at 21 and got into a grad role or earned good money and saved a lot of your salary, buying a house on your own in the current market (even with the recent decline) in Melbourne or Sydney would be very difficult. OP could look at a unit? No reason to buy a house if you're just living on your own IMO.

  • Yotta00 on 27/01/2019 - 18:17

    You are a teacher. You can teach at an international school teaching rich expat kids. You will have the same wage with the added benefit of living in a developing nation with a cheap cost of living.

    • Lucy1 on 28/01/2019 - 02:41

      Yes its definitely tempting

  • avoidfullprice on 27/01/2019 - 18:19
    +4

    Firstly, thank you for being a teacher - an underappreciated professional which we need so much for our future ones.

    Barefoot investor is a good read. He has suggestions on how to grow wealth sustainably.

    Consider doing something outside teaching that you are passionate about, and then turn that into a second income source while you don't lose work-life balance.

    Reduce expenses by continuing to be an Ozbargainer!

    Watch out for burnout.

    • Lucy1 on 28/01/2019 - 02:42

      Will do. thanks!

      • Kangal on 30/01/2019 - 21:30

        By the way, since you're thinking about property here's the most important factors you need to think about:

        1 - (40% of Importance Factor) is… The Price
        2 - (25%) The Location
        3 - (20%) The Land size
        4 - (10%) The structure itself
        5 - (5%) Freshness/Renovation level

        …so you should buy something that you can afford, after paying the 20% deposit (general rule 1). And buy it with as large m2 size as possible, and as close to the CBD as you can get it. The structure, its condition, and age are NOT as important. What is important is the LAND, that is what actually appreciates in value as the actual structure's value depreciates over time. If you do this, you might end up with an old house that is small and is in desperate need of renovation and could be a nightmare to live in…. but it will have a large land, that is close to the city, and is affordable…. and over time it will be worth more than your neighbours property which could be a shiny brand new townhouse or apartment, or even a house without much land. That's what the smart money says, anyhow.

    • 811b11e8 on 28/01/2019 - 09:57
      +4

      Lol ozbargain doesn't reduce expenses. It's increases impulse buys and exposure to marketing leading to more purchases.

  • dahax77 on 27/01/2019 - 18:36
    +14

    I'm a primary teacher in my mid 30's so I understand the frustration at the 'cap' on our salary and how working harder or being more skilled doesn't have any affect on your pay unless you want to get into a principal role (I don't!). It can also be difficult to figure out how to transition the skills we have to other industries.

    I was burnt out and a little bored with the job and am just returning from 12 months leave to a full time position and definitely enjoyed the break! However I am going to give it another go as there are definitely lots of positives in teaching. I'm on about 95k a year in QLD and have 13 weeks fully paid holidays. Yes it's a tough job but lots of people would love the wage and working conditions we have, it allows me to travel, leave work at 3.30 if I want and even though you may not realise it at the time we do have an affect on peoples lives!

    People have given some good advice but don't feel like you are in a bad situation in any way. Life isn't about money or owning the biggest house - just enjoy what you have and find a career that makes you happy.

  • Ghost47 on 27/01/2019 - 19:28
    +1

    What are your expenses like? Anywhere you can cut back?

    Have you looked at units instead of houses?

    Re: retraining — The number of students who go to uni has just trended up over the past several years (despite a couple of years that dipped), if you go back to study you should realise that it is very competitive getting a job afterwards. I've heard of engineers who have gone into finance (due to their maths skills) because they were not able to land an engineering role. Sadly in the current climate it's very dangerous to say "I'll go study this degree and get a job in the field of that degree", you really need to excel if you want to be a competitive graduate (and not just in your studies but all aspects of your life really, employers want well rounded grads).

    • Lucy1 on 27/01/2019 - 19:42

      It is a risk, but if i dont try I will never know. And engineering at least allows you entry into a lot of careers that pay better than teaching (finance, IT, Banking etc). If i get a scholarship the decision will be easy.

      • Ghost47 on 27/01/2019 - 19:43

        Yeah fair enough. As long as you work hard and excel to the very best of your ability you should be fine, but it will still be competitive (if you go for grad roles).

        • Lucy1 on 27/01/2019 - 19:46

          I can always go back to teaching if needed. Always demand for maths teachers.

          • Ghost47 on 27/01/2019 - 19:48

            @Lucy1: That's true but you don't want to rack up a HECS debt for nothing.

            Oh, and how strong are your maths skills? You'll need to be proficient for engineering.

            • Lucy1 on 27/01/2019 - 20:03

              @Ghost47: Very strong. My job is doing linear algbra and calculus so thats helps

              • Ghost47 on 27/01/2019 - 20:05

                @Lucy1: Well that's a good start!

              • sakurashu on 29/01/2019 - 19:53

                @Lucy1: If you mean something like the equivalent of Queensland's Senior Maths C school course, that covers about 75% of the first engineering maths course. Depending on the stream of engineering, the maths courses up to second year are the easy part - what discipline of engineering are you considering?

  • Samsungnote10 on 27/01/2019 - 19:31
    +2

    Ahh the good old how much is a teacher worth salary wise debate

    I feel they are underpaid for the importance to society,

    But then I rememeber they get like 13 weeks holiday a year and think, yep theyre paid fine

    • serpserpserp on 27/01/2019 - 22:15
      -1

      It is a bit more than that I think. Although they'll tell you about how much work they do in the holidays time yada yada.

      • Findo on 28/01/2019 - 23:31
        +2

        Read some enterprise agreements champ, it might blow your mind to see annual leave being sucked up by holidays, and technically schools can call teachers in for planning days outside of mandated annual leave. It rarely happens, but it’s not as good as you think.

        • serpserpserp on 29/01/2019 - 12:00

          The rest of the world gets 4 weeks a year. Often they are taken during parts of school holidays (not all, because it is only 4 weeks) and for a lot of people that gets "sucked up" by a xmas shutdown of ~2 weeks where they are forced to take it.

          • Findo on 29/01/2019 - 13:38

            @serpserpserp: Teachers get 4 weeks a year too. Unlike a lot of people, teachers don’t get to bank their annual leave at all because there’s nothing left to bank.

            • serpserpserp on 29/01/2019 - 13:58

              @Findo: See HelloHello123 post above. 13 weeks off. 4 might be annual leave where you get to choose when you can take it off, but teachers spend a lot more time away from work than 4 weeks.

              • Homr on 29/01/2019 - 14:04

                @serpserpserp: So are the other 9 weeks with pay or without pay?

              • Findo on 29/01/2019 - 15:27

                @serpserpserp: You don’t get to choose when you use your 4 weeks, not in all schools in NSW at least. That goes for Catholic, Catholic independent, independent and DoE schools.

                • serpserpserp on 29/01/2019 - 16:05
                  -1

                  @Findo: But you can request at the start of the year and they try to accommodate (usually). Businesses do this across the board, can't have everyone taking holidays to Bali in the middle of winter (for instance)

                  • Findo on 29/01/2019 - 20:15

                    @serpserpserp: Which school do you work at? I’d love to be able to take time off when I want to, rather than being told when to take all my annual leave.

                    • brad1-8tsi on 30/01/2019 - 14:16

                      @Findo: not being able to choose when you take your leave is pretty common over many industries.
                      When i was at Goodyear we couldn't take leave in December.
                      Family Tyre business we Had to take 2 weeks at Xmas (and only the owner had children).
                      Qantas Engineering you could never get Xmas/january off unless you'd put the form in 12 months earlier.
                      Most construction jobs shut down for 3 weeks at Xmas.

                      • Findo on 30/01/2019 - 14:59

                        @brad1-8tsi: Yes, but you got to choose when to take some of your leave and had the option to bank some of it too. We don’t - we are forced to use it all up at specified times. Too bad too sad if you need to take time off to attend a wedding or something outside of the school holidays.

          • MementoMori on 30/01/2019 - 14:37
            +1

            @serpserpserp: Not quite - the standard in the US is 2 weeks leave.

            We live in an amazing country.

  • nikey2k27 on 27/01/2019 - 19:40
    -1

    You save 110k you should be proud fix interest at the moment is best get money WELL LOOKKING

  • RiseAndRuin on 27/01/2019 - 19:47
    +2

    I'm in a similar situation, as I'm single and looking to buy a property in Melbourne, however I'm looking at properties way cheaper than "the average" 1M. I don't think you're in a bad position if you want to buy a property in Melbourne, but you should probably do a bit more research and be realistic about what you need vs want vs can afford.

    Salary-wise, keep in mind that your job comes with a lot of time off, so you should definitely consider that when making any comparison. You could easily work an extra 8-9 weeks a year and still have as much leave as people working in other fields. Another option would be to buy a property and rent out 1 or more rooms, if you're ok with sharing.

    If you don't mind living a bit far from the CBD, Melton/Brookfield would be a great option if you still want to buy a bigger house with a decent amount of land, and the train should take less than an hour to get to the CBD. The entry price for an older house is around $350k-400k at the moment. A newer house with e.g. 400sqm of land will cost anywhere from $400k+

    Apartments can be expensive to own due to fees, etc… depending on the facilities and services available in the building, but if you buy second hand and negotiate a decent price, they're not necessarily a bad option. A 2 bed in North or South Melbourne/Southbank would be around $425k+

    Townhouses/units/villas are a middle option price-wise, if you don't mind having to potentially deal with a number of neighbors and losing a bit privacy, but you can live closer to the CBD, in a more established suburb.

    Overall I'd say you have plenty of options, and long term you'd be better off using the money you're currently paying in rent to pay off a mortgage.

    • Lucy1 on 27/01/2019 - 20:12
      +3

      Gosh it seems like a lot of money to buy something that you dont really want and in a place you dont really want to live. I dont know how people with lower incomes than me can afford to buy anything at all.

      Im probably not going to buy for a few years yet.

  • magikz on 27/01/2019 - 20:54
    +2

    Have you thought about what type of engineer you want to be? I'm a former mechanical engineering grad, and whilst I excel'ed academically, and lucked into a scholarship in my 3rd year that helped me with a year of internships, I found it difficult to get into the field I trained for. To be honest, whilst people say you need to have strong maths skills, from my experience this is only true during the course of your study. When you start working, mostly you are applying process and project management. I eventually retrained to web development, and worked for a company the made software for engineers. In this job I made use of some of the more advanced topics I learnt (vectors, geometry, and linear algebra mostly). You definitely deserve to be paid more if you are doing R&D with your maths skills, but from my experience most engineering roles involve less and less of this.

    • magikz on 27/01/2019 - 23:06
      +1

      Highly recommend software, and with your STEM skills, I recommend a data science stream.

      • Lucy1 on 28/01/2019 - 02:43

        Are there many jobs in data science? Some people are saying its a bit of a fad, but I certainly think it would suit me.

        • magikz on 28/01/2019 - 11:01

          You should do your own research, but data science has a good future ahead of it. Businesses collect more and more data from their consumers, and they (having big budgets) want to extract insights and business decisions from it. Another offshoot of data science is machine learning and AI, which involves training bots with huge data sets. This will be in the realm of data science too, and whilst niche, is capturing the imagination of most in what can be achieved with this data. A good place to look is on Seek and Indeed to see what kind of hits you get.

          • sakurashu on 29/01/2019 - 12:05

            @magikz: Unfortunately both data science and robotics aren't very big in Australia yet, but they have certainly boomed overseas and for some of the large software companies of the world (e.g. Facebook).

            The flip side of there being many jobs opening up in this field is that you will be competing with a wider range of qualified graduates from maths, stats and engineering backgrounds

        • MarsTitan on 30/01/2019 - 00:03

          Companies in US are advertising AI/autonomous (car) jobs in front of their competitor's billboards at the moment. How long will this trend last is another matter. Maybe next 10 to 20 years is peak AI.

          This is the biggest shift in this space in a generation, soon they will be teaching AI in schools, maybe you can pioneer this trend :)

        • takemymoney on 03/02/2019 - 19:49

          DS is very competitive and the higher pays are only for considerable experienced/genius guys ( and I say guys cause there is a considerable inequality.) Also, These days you can hire a very earlier data scientist for about your salary <90k that will be directed by a senior one with 140k+.

  • belongsinforums on 27/01/2019 - 21:36
    +2

    Enable your pms op. Happy to talk about moving to the country as I made the move myself. Rental assistance will raise your effective salary

    • Lucy1 on 28/01/2019 - 02:44

      Just did. thanks

    • [Deactivated] on 28/01/2019 - 19:50
      -8

      Enable your pms

      pms

      'pms' as in premenstrual syndromes?! 😱 Am I missing something here?

    • codinghelloworld on 30/01/2019 - 08:30

      Just curious, I am working in IT but want to move to country too. Can you tell me how you made your move? Thanks.

      • belongsinforums on 30/01/2019 - 17:41

        Pretty easy to do with a job where they will organise movers and accommodation for you. I have no idea about IT

  • eclaw on 27/01/2019 - 21:48
    +2

    Why are we giving career advice when OP is after financial ones.

    With >$100k saved at 32, OP seems to already be doing the right thing.

    1) Spend less than you earn, yes you might not be "up there" with it comes to pay but there's no guarantee you ever will be - word hard yes, self improve yes but don't assume you will earn significantly more than what you already do (average $82k, median $65k in Australia - keep that in mind)

    2) Invest for the long term - decide on an investment strategy and stick with it, it doesnt matter if its property or shares…just invest in something that appreciates in value over time and don't wait, you got 20 -30 years of investing ahead of you (speak to a financial planner if you are worried about market downturns - for reference, markets go up and down but trends upward over time)

    • DonWilson on 28/01/2019 - 10:46
      +2

      Why are we giving career advice when OP is after financial ones.

      Because that's literally the first numbered point she lists and discusses. And the second. And third.

      • eclaw on 28/01/2019 - 10:59

        Actually I read the part about her being worried about her financial future as the actual focus… The options op lays out are relevant but isn't arguably the point. Situations will change for op and she can list out thousands of these options over time.

        Basic financial concepts will put anyone in a solid position regardless of pay, or at least to have better control of their situation.

  • goodbuy on 27/01/2019 - 21:49
    +1

    Tutoring is a multi billion dollar industry now in the country. All you need is a little slice of that action and in my opinion, it will get you more money than you would ever get trying to wageslave away in the engineering industry. Some of these tutoring cram schools have kids fresh out of high school tutoring the classes, but you have your teaching credentials and experience to give you some advantage in why they might want to choose you. If you get only 10 kids or so every weekend, combine their sessions if possible, charge the parents $50/hr or whatever the going rate is these days. That's $500 in your pocket a week, say over 30 weeks (counting for holidays etc) and that is $15000 into your bank account per year.

    Have you done the sums on how much money you will have in 5years/10years/20years for all of your scenarios listed? You need to find out how much are you going to take home after taxes, HECS payments etc for each scenario. Use salary guides like this one to help you plan: https://www.hays.com.au/cs/groups/hays_common/@au/@content/d…
    You can see what your situation might look like if you can only find roles in the lower end of the salary (40-50k) versus the sort of roles you might be able to land if you can ace your degree (90-100k)

    Remember that high salary = higher taxes! Use calculators like this one to help plan https://www.paycalculator.com.au

    • wordplay on 27/01/2019 - 22:48

      in the summer holidays you may be able to get a second job for 5-6 of those weeks, even just assuming casual non-skilled work could be another 4000-5000 dollars.

    • Lucy1 on 28/01/2019 - 02:44

      Awesome thank you for the advice. I have a lot of research to do.

  • tryagain on 27/01/2019 - 22:20
    +2

    What about becoming an academic at a university, Lecturer's seem to get paid quite well for what they have to do.

  • serpserpserp on 27/01/2019 - 22:23
    +2

    I know a few people in here are down on property ownership in Melbourne. But I think with the capital you have, the time might be right to buy a 300-400k apartment. You could afford that on one salary (but not easily afford, but property investment isn't easy these days).

    Remember buying a property isn't forever, you purchase it and build equity, you'd hope with a 300-400k place you could probably pay it down over 10-15 years to a point where you might have some flexibility on what to do with the asset (ie. plow more cash into paying it off, rent it out as a positively geared property, could sell it if you see any great growth in capital gains etc.) I mean you could even buy one and move to the UAE and earn some decent coin while renting it out and really put a dint in it.

  • lostn on 27/01/2019 - 22:50
    +3

    I have just been offered a place in Deakin's bachelor of engineering. As its online

    I studied Engineering. I really don't know how they can turn a course like that into an online course. How do you do lab pracs? You wouldn't have the equipment.

    The options I currently have:

    I think you have more options than that. The good news is you're still young. You've got plenty of years left to earn money.

    But do you intend to stay single forever? It sounds like you are trying to buy a house with a single income. Will it always be a single income? If you had a partner, they'd normally pay half, and it will become much more manageable.

    There are areas you can buy an affordable house that's not in the countryside. I bought a house in Doveton about 8 years ago for under $300k on a single income, and I earned less than you. You can still find houses there in the 350s range. They won't be mansions, but what can you expect at that price range and close to Dandenong shopping?

    • Lucy1 on 28/01/2019 - 02:47
      +1

      I hope I'm not single forever, but who knows. Either way I don't want to struggle financially in later years.

      The engineering isn't all online. The lectures are online, and you go in to do your labs in the evenings. It's a course for people like me who work full-time durng the day

      • lostn on 28/01/2019 - 07:42
        +1

        OK, I wasn't sure if your single status was of your choosing or because things haven't worked out for you.

        Don't financially plan on the assumption you are going to be single forever, unless it is your choice to be single forever. Find the right person (I was about to say 'guy' but that might not be very PC in this climate), and things should open up, and you can stress less.

        Your income is not that low. There are a lot of people doing much worse. ~80k is the mean income but that is mean, not median. Mean income is skewed upwards by the mega rich. There are a lot more people earning less than you than there are earning more than you.

        Another option is to just buy an apartment. If you are buying a house to live and not as an investment, an apartment is much cheaper, and you don't have a big family (yet).

      • Homr on 29/01/2019 - 11:35

        How is your dating life like OP?

        • Lucy1 on 29/01/2019 - 18:39
          +2

          Haha its dead at the moment.but got to stay positive.

    • search678 on 28/01/2019 - 16:26

      Interesting! I was looking for a property in Doveton, and I was advised to not even worry about it.

  • MessyG on 27/01/2019 - 22:54
    +1

    Read The Barefoot Investor. Completely changed the way I thought about money for the better.

  • netjock on 27/01/2019 - 22:58

    As you might have found. Lots of opinions but not necessarily fitting your financial circumstances. If you are stuck you need to look for some serious expert and professional help.

    • Lucy1 on 28/01/2019 - 02:48

      thanks

  • p1 ama on 28/01/2019 - 01:26
    +4

    I have a degree in finance and used to do this sort of stuff. Funnily enough, I'm now a teacher! Anyway, here's my two cents from someone who used to be in the industry, but usual disclaimer applies (general advice only…etc.).

    Over the last few years, I've become increasingly concerned about my financial future as I have very little super (<20k) and virtually no assets to my name. I do currently have about 115k in a high interest savings account for a deposit on a house, but haven't bought anything as I fear buying in Melbourne is well beyond my meagre salary (72k).

    I understand your concern. Something to be mindful of is that your super will grow much faster as you start to earn more and through compounding. Also, I would say that you are actually in quite a good position for someone who is your age. You have a reasonable amount of savings, and your salary is above the median. In other words, from an outsider's perspective, despite how you may feel about your situation, you have the means to live a comfortable life and there's nothing to be immediately concerned about.

    Try to increase my salary as much as I possibly can. I currently do tutoring which gives me a little bit extra (2-3k a year), but am also thinking of adding in some retail/hospitality work (lower pay, but more hours available).

    Tutoring is a really good idea. There are also a lot of tuition centres who are looking for teachers. However, my general advice for most people is that trying to find a way up in their industry is a much better idea than trying to do odd jobs to make a bit of extra cash. I have friends who do things like drive Uber on weekends, but they haven't made the most of the opportunities they already have. Even though some people might look at teaching as a low paying job, there does exist opportunities should you wish to take them. Private schools tend to pay much better than public schools (I have friends who are in six figures), and there are always paths upwards which involve coordination, leadership roles…etc. You might also want to have a think about university teaching. There are casual positions which may help you fill in your time that pay extremely well.

    Choose a new career. Unfortunately most high income careers will require that I retrain, which I'm quite happy to do. I have just been offered a place in Deakin's bachelor of engineering. As its online, I will continue to work full-time whilst studying part-time. Given that I am getting a lot of credit, I can get it done in 4-5 years.

    If you want to be an engineer, then by all means go for it. However, be aware of the issues with that pathway. You're sinking around 4 - 5 years of your own time (which could be spent upskilling as a teacher), you'll be in even deeper HECS debt, and when you graduate, you'll be a graduate online degree engineer (which employers will not treat as the same as an on-campus degree), you'll also be 37. Not only is it difficult enough getting a job in engineering, but the deck isn't stacked in your favour. Even if you do land a very nice graduate role, your salary will almost certainly be lower than what your teaching salary will be at that point in time. You'll face a really difficult choice and I don't think you'll end up much better off.

    I don't want to discourage you if you really want to be an engineer. However, it doesn't make any sense if you're just looking for a financial boost.

    Teach overseas somewheres that pays better than what I am currently getting. I have done a bit of research and it appears the Dubai pays rather well with the possibility of free accommodation.

    How long do you intend to spend in Dubai?

    Move to the country. I have previously lived in the country and hated it, but it may be only hope of ever buying a house.

    I think you should think carefully about why you want to buy a house. Buying a house is seen as a right of passage by some people, but I think it's also a huge burden. You're single, so it doesn't really make much sense for you to tie yourself down. Even if you really want to buy a house, you currently have 115k, so let's say you put down a deposit of 100k, which means you'll probably be able to buy a house that's around 500k. There are plenty of suburbs around Melbourne that have median house prices around that mark. You could even look at townhouses or apartments.

    Living in the country is not a bad idea, there are other benefits (e.g. less traffic, less people, less noise…etc.) other than cheaper houses. You might want to look at other cities as well. Melbourne is particularly expensive. Maybe head down south to Tasmania, where you could easily afford a really nice house 15 mins away from Hobart city center.

    Any suggestions of what I should do?

    This is a really broad question. Without really knowing you, your motivations, what you want to achieve in life, what makes you satisfied and happy, it's hard to make any sort of recommendation.

    I have friends who couldn't care less as long as they have somewhere to sleep and can live another day. I also have friends who aren't happy unless they are the best at what they do and are perfectionists in every way. I also have friends who are super into particular things (e.g. cars, travel…etc.) and will gladly spend their entire salary pursuing those things. I also have friends who want a very textbook life, where most of their salary goes into paying their mortgage for a nice suburban home.

    Cliche, but it's about what makes you tick and how you want to live your life.

    • Lucy1 on 28/01/2019 - 03:06

      I currently teach at a private school but I don't get paid more than I did teaching at a state school (perhaps I chose the wrong private school?). I'm sure elite schools and universities pay better so maybe I will need to consider that when I look for a new job at the end of the year.
      You're right, engineering is a big decision. I think I only applied because I like physics and it seemed like the safest degree to get (my dad is an engineering exec and is confident he can get me a job with his company if I wanted it). Even so, it may take years to get back up to my teaching salary and 30k extra debt is significant. If I get a scholarship it will pay tuition so it will be a much easier decision to make. Should find out in a couple of weeks…
      I think I'm just going to wait and see how things pan out. I don't need to make any rash decisions as I have a permanent job and am not looking to buy anytime soon. I guess I am worried about having to plan my financial future on my own.
      Thank you to everyone for all of the advice. It have been really helpful.

      • p1 ama on 28/01/2019 - 03:26

        I'm sure elite schools and universities pay better so maybe I will need to consider that when I look for a new job at the end of the year.

        Elite schools are probably the best in terms of pay, but I find the culture and environment of some elite schools insufferable.

        Universities are not a bad choice, but they have their issues too. Most of their teaching oriented positions are fixed term, meaning you need to renew after a set number of years. I work at a university and I find that the workload is less than my high school teacher friends. That said, it's practically impossible to get into university teaching without some inside contacts as the number of hires are so small.

        I think I only applied because I like physics and it seemed like the safest degree to get (my dad is an engineering exec and is confident he can get me a job with his company if I wanted it).

        Have you considered doing a PhD in physics or maths? My PhD came with a $30k stipend and with a bit of teaching and research work, I was easily able to make close to $80k per year. Job prospects aren't bad either.

        I guess I am worried about having to plan my financial future on my own.

        Ultimately everyone does :)

      • Baniya on 01/03/2019 - 15:16

        I've been reading this entire thread and noting everyone's advice. I really admire your thinking for (a) wanting to stop and reassess your situation and (b) considering all of your options. I believe you wholeheartedly that you are intelligent and dedicated and you really are good at maths and physics! (Despite what others may think!)

        I agree that there's no reason to make rash judgements. At this point, I feel compelled to suggest your first step should be to change schools. I know there is comfort in a permanent role. But I think there is little harm in trying to find a better school. One with a better salary and a far better culture. You can still mull over your engineering decision after this change. All the best!

  • ilikeradiohead on 28/01/2019 - 05:28
    -4

    Hi OP,

    TL;DR Get an MBA, much higher salary, completely different career

    I can't specifically comment on what is the best decision for you, but I feel like I was in a similar position to you, I'll give a little background on what I have done.

    So I was working for the WA State Government, making just over $80k, but I absolutely despised the role and the Department, (similar to what you have said, people seem to get promoted without the skills to be in their roles). I decided that I wanted a complete change in my life, so I decided to go back to school. There are a lot of options out there, but I wanted a role where my skills would be useful (I have a finance/econ degree + worked in a finance/accounting role), wanted to have as many options as possible, and wanted a job where I would make significantly more than I was making, so I settled on an MBA in the USA.

    I think with your background (teacher, strong math skills, not too far past 30) you would be a good candidate for an MBA. Your math skills should be useful when studying for the GMAT, and a higher score opens more doors in terms of schools.

    If you want to stay in Melbourne, the University of Melbourne is a good choice, however the best MBA programs are in the US + Europe. However the choice of where you study will generally lead to where you work, so if you want to work in Europe, get one there etc.

    There are a couple of caveats to consider (some of which you may have already considered since you're looking at going back to school anyway):

    • The degree is comically expensive - the annual tuition at my university is $66,000 USD
    • You will not be working during this time, so you would need to draw down on that $115k nest egg you have

    However, the upsides are:

    • The whole point of the degree is to get a management job at the end of it, so top tier schools have very good outcomes for placement
    • The starting salaries are also comically high - my school's median starting salary is around $120,000 USD (so a good ROI)
    • New friends, new network, new city (country?)
    • It really does open doors to careers that would be out of reach with a teaching degree. It also allows you to change careers completely.
    • It is a short circuit to a high paying job.

    This is just my experience. I am about 1/4 of the way through so I can't say if it has been worth it yet or not, but if you have any questions shoot me a message and I can give you some more stuff to look at.

    For more general MBA info, check out GMAT Club and Poets and Quants

    PS Here are the salaries for teachers in WA, after 1 year you would be making more than you do now

    • netjock on 28/01/2019 - 12:40
      +6

      I see you have drunken the coolaid. I'm doing an MBA with a top British school. I can tell you.

      1. People in their 30s are more likely looking for career acceleration rather than change of career.
      2. A change of career is fine but MBA doesn't make you an expert at anything. It is usually for non financial people to get a handle on finance (accounting, economics, financial markets and leadership) so they can get into a management role. If MBA is not a requirement to be a principle etc than it might not be best choice.

      Be careful asking people to throw their life savings into something that might not work out.

      • ilikeradiohead on 28/01/2019 - 13:19

        I just thought I'd chip in my 2c and let her know about my experience. I can't imagine anyone would commit to spending $200k on the advice of someone they have never met on the internet.

    • goodbuy on 28/01/2019 - 13:17
      +2

      This is not a good idea for OP at all… Let's just look at the upsides you've listed:

      top tier schools have very good outcomes for placement

      Which top tier schools? Are you talking about Harvard/Stanford? Do you think an Aussie school teacher with 4 years exp and half done pre med qualifications is gonna get accepted there?

      The starting salaries are also comically high - my school's median starting salary is around $120,000 USD

      How many came from teaching? How many from non management backgrounds? How many had their existing work pay for their MBA? Lol @ 120k salary being "comically high"

      New friends, new network, new city (country?)

      Higher cost of living, less social safety net, expat lifestyle is not for every personality

      It also allows you to change careers completely.

      What sort of company is gonna hire a teacher with 4 yrs exp and an MBA over someone who's already a manager or team lead in their industry plus an MBA?

      It is a short circuit to a high paying job

      High paying job is not the same as high wealth.

      Hope it works out for you, but as the reply above mentioned, OP should think carefully before throwing her life savings at some university that's promised the world

      • ilikeradiohead on 28/01/2019 - 13:27

        I read through the comments, saw that no one had made this suggestion, added my 2c. From your comments it appears that you have not done any research into studying for an MBA.

        How many came from non-management backgrounds?

        Almost all of them. Most of the students are in their late 20s and are using the degree to propel themselves into the C suite.

        What sort of company is going to hire a teacher with an MBA?

        Most MBA graduate jobs are MBA specific jobs. Out of school you are generally not competing with people who have risen up within the company.

        I am not sure why your gut reaction is to be opposed to this course of action.
        I thought I would let her know an alternate path that she had not considered.

        It's not for everyone, but it might be for her.

        • goodbuy on 28/01/2019 - 13:51
          +2

          What exactly are MBA specific jobs? Supply chain? Logistics? Pricing? All these skills they teach at MBA schools are getting replaced by teams of data scientists and engineers who can make all the major decisions for the business with higher confidence and accuracy.

          The MBA grads I work with aren't doing anything different to the other managers who only had undergrad degrees.

          MBAs have become so devalued over the last decade or so by the huge graduating class sizes from no name schools. Unless your employer is helping to pay tuition or you are going to a top tier Harvard/Stanford/MIT schools, my gut reaction is that an MBA simply represents bad value. And like many here on OzBargain, there's nothing I dislike more than bad value

  • justinh93 on 28/01/2019 - 07:01

    It sounds like you are motivated and love what you do. I definitely wouldn’t change jobs if I was you. I would focus on increasing my earnings through tutoring.

    2-3k means you are only doing 2 hours a week? I would try increase this to 15-20hours and build up your reputations as a really good tutor. This is a market where putting in more work will let touch rise to the top.

    Spend a little bit of time and build a website on squarespace. It will be half price for you anyways as you have a .edu email or if you have more time use Wordpress.

    Than list on tutorfinder and all the other tutoring sites. You can charge a little bit less at the start to build volume. Don’t be scared to invest a little bit of money into the most premium ads on it. I started a tutoring business when I was 18 and we got around 20-30 leads from being the first ad on tutorfinder in Melbourne, cost around 180 per month so we’ll worth it. You just have to really book in advance.

    Try and do it from home to start with and slowly build your reputation. Eventually you will move from one on one to either group tutoring or a higher price. I find that the market is still growing significantly and will be a good way to earn more whilst still doing what you love.

    Whilst being financially secure is important, I don’t think you should trade a job that you already love for it. Feel free to shoot me a private message if you would like to chat and I can give you a few pointers.

    All the best! I think that teachers are such an important part of our society, and should be paid on merit, rather than time served.

    • Milk tea on 29/01/2019 - 13:34

      it sounds like she wanted to get into post-grad med but teaching was a backup so not sure if that's the same as loving what you do lol

  • movieman on 28/01/2019 - 07:03

    Hi OP.

    Is that salary pre-tax or post-tax?

    • Lucy1 on 28/01/2019 - 14:00

      Pre.

  • [Deactivated] on 28/01/2019 - 09:04
    -1

    Hold on OP, are you a graduate? Because $72k is a graduate teacher wage. At 32 you should be earning over $100k as a teacher even at a state school. Based off levels if you started working Stoginofski out of university.

    • netjock on 28/01/2019 - 13:02
      +1

      Just thought you would put the boot in?

      • Lucy1 on 28/01/2019 - 14:01

        No I'm a 4th year teacher. Depending on the state, it takes 8-10 years to hit 100k (if you ever do at all).

        • [Deactivated] on 28/01/2019 - 23:41
          +1

          You said you work in a private school, which means it will have an enterprise agreement, (and by the sounds of it a shitty one). State has nothing to do with it. You need a new job, not a new career. FYI, friend in a Victorian private school started on $77k as a graduate. By her 4th year she was on over $90k.

  • Ragnarok1983 on 28/01/2019 - 09:35
    -1

    To be honest Lucy I think you are better off doing an MBA. Cost would be same/less than engineering and would open doors to wider career options.

    Engineering tbh in Australia is pretty average, let alone making the switch at 32. It would take a good 10+ years to climb back up.

    Also marriage is a good option too!

    • Samsungnote10 on 28/01/2019 - 13:58
      +2

      And whay if she marries a low income/unemployed male who is sterile?

      Not that there is anythinf wrong with it

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