In December I listed my six (mostly financial) goals for 2009, but then I realized, I forgot about Freedom Fund! So here’s one more goal:
7. Increase my Freedom Fund by $5,000, from the 2008 year-end balance of $27,000 to $32,000
So, overall, I am aiming to save $15,000 this year – $5,000 each to Roth IRA, 401(k), and Freedom Fund. If I remain gainfully emloyed through all of 2009, I will have the opportunity to save more. We shall see…
The $5K Freedom Fund goal will be iffy if I go on a vacation AND if I lose my job. Maybe I will try extra hard to cut back on eating out costs to compensate…
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Wow, $32,000…that’s a lot of freedom! Good luck!
I re-read your original six goals. I want to warn you – applying to B-school is VERY expensive. If you can pull it all from current cash flow, good for you! Here’s a warning, though, about how expensive the process has been.
I’ve spent:
$250 GMAT + $58 additional scores
$650 for three applications. Top programs are 200-250 each.
$20 Transcripts
That’s close to a grand, or over it if you include the $50 I spent to stay in a hotel near the GMAT test center.
Then, for the interviews:
School #1 – domestic candidates required to interview on-campus. No local interviews.
$200 Airfare
$150 Hotel
$150 Rental Car, Gas, Tolls
$75 Food & Misc.
School #2 – I hadn’t visited before, so I opted for on-campus.
$160 Airfare
$300+ hotel. I might extend for the full weekend in Chicago
$150 Ground Transit (car or shuttles & cabs)
$125 Food & Misc
School #3
LOCAL, so I have no interview-related expenses.
That is over $2300! This does not include the money my dad spent when we went together to visit a handful of schools up in New England last fall. Luckily, I had saved up for the application fees last year.
However, I don’t think I fully realized the costs of interviewing. When I travel normally, I try to stay with friends and have lots of flexibility on arrangements. I got REALLY lucky on airfare with both schools. However, I made the mistake of staying in a cheap hotel by my GMAT Test Center and missed my target by a few points b/c of the lack of sleep. My MBA is too important to risk that happening pre-interview.
I would recommend you budget $800-1000 per school for applications and campus visits. More if you will visit and interview on separate trips to the same school(s).
do you mean 2008 year end balance?
I’m looking for a B-school as we speak. I really found your list of expenses helpful, Margo. My employer will pay for a few of the course, but not all the ‘incidentals’. I’m going to keep these costs in mind once I begin to go to interviews.
Best of luck on your interviews!