Choosing a Doctorate Degree Over a High-Paying Tech Job

In a world constantly evolving, the pursuit of education remains a steadfast path towards personal and professional freedom. For many, this journey leads to the daunting yet rewarding realm of doctoral studies. The decision to pursue a doctorate can be transformative, offering more than just academic credentials; it can reshape one’s career trajectory and personal fulfillment. In this context, I have chosen to embark on a doctoral program in Business Administration with a focus on real estate at UC Berkeley, a decision fueled by my passion for real estate and a desire to tackle critical housing challenges in America.

Reflecting on my previous experiences, including an MBA from UC Berkeley in 2006 and my extensive involvement in real estate since 2003, I realized that this academic pursuit aligns perfectly with my life's goals and aspirations.

The initial aspiration: landing a tech job

My journey began with ambitions of securing a prestigious role within the tech industry. In 2022, I set my sights on major players like Meta, Google, Microsoft, and Apple, motivated by the prospect of financial stability and professional growth. With my daughter preparing to enter full-time schooling in September 2024, I felt the urgency to transition back into the workforce.

After a decade-long absence from formal employment, I understood that re-entering the job market would be challenging. I envisioned a two-and-a-half-year job search, anticipating that this timeframe would suffice to secure one of the lucrative six-figure positions I sought.

The encouragement of friends played a pivotal role in my job search. A friend from my pickleball community who worked at Google, along with her boyfriend, provided valuable networking opportunities. Their lifestyle, characterized by a balance of work and leisure, inspired me to pursue a position at Google, reinforcing the idea that achieving financial independence could coexist with enjoying life.

The reality of job hunting in tech

Despite my efforts, landing a role at companies like Google and Meta proved to be an uphill battle. The combination of my lack of relevant tech experience and my age—approaching mid-40s—presented significant hurdles. Furthermore, the broader context of ongoing layoffs within these firms exacerbated the challenge. In March 2024, for instance, Google implemented another round of layoffs, underscoring the volatility of the tech job market.

While pursuing opportunities in artificial intelligence firms such as Anthropic and OpenAI, I faced the reality of significant competition and the need to demonstrate my value in a rapidly evolving field. The prospect of explaining to my children why I didn’t seize opportunities in AI left me feeling compelled to apply, even in the face of daunting odds. After all, it’s crucial to at least make an effort to avoid future regrets.

Choosing a doctorate degree: a strategic solution

Back in 2012, during a transitional phase in my career, I contemplated pursuing a PhD in the arts or securing a journalism fellowship at Stanford University. However, my experiences managing Financial Samurai since 2009 led me to conclude that further education in writing or journalism was unnecessary.

At that time, I didn’t feel financially equipped to pursue a doctorate. My annual passive income was around $80,000, ample for living in San Francisco but insufficient to support a family while I studied. We made a pact that if our financial situation improved in the coming years, my wife could retire early after negotiating a severance package, which she successfully achieved in 2015.

Life events shifting my educational timeline

Once my wife retired, our priorities shifted toward travel and family. With the birth of our first child in 2017, followed by another in 2019, the idea of pursuing a doctorate seemed further out of reach. The pandemic added another layer of complexity; we embraced our roles as stay-at-home parents and educators, dedicating ourselves to our children's development during these uncertain times.

Amidst the chaos, I turned to writing and produced a bestselling book titled Buy This Not That, totaling 110,000 words. This endeavor not only provided a creative outlet but also positioned me uniquely in the academic landscape due to its focus on real estate.

Securing a spot in a doctoral program

The chapters of my book on real estate garnered attention from admissions directors at UC Berkeley. Despite my average academic performance and standardized test scores, my real-world experience distinguished me from other candidates. The academic community values practical knowledge, and my book's success showcased my commitment to the field.

In academia, the mantra “publish or perish” rings true, and having a published work with a reputable publisher bolstered my application. A PhD thesis typically ranges from 60,000 to 120,000 words, and my writing experience convinced the admissions team that I had the capabilities to complete my dissertation.

Additionally, the website Financial Samurai hosts a wealth of behavioral finance data, receiving approximately one million page views monthly, further solidifying my candidacy. Ultimately, I was accepted into the program, bringing me one step closer to my dream of earning the title of “Doctor.”

Financial readiness for doctoral studies

Since initially considering a PhD in 2012, the financial landscape has changed dramatically. My net worth has benefited from a robust bull market, making it feasible to pursue higher education without the anxiety of financial strain. It’s an ironic twist that one often needs to feel financially stable to justify the time and resources required for a PhD program.

Pursuing a doctorate is driven by a strong desire for knowledge rather than the promise of high salaries, especially in fields outside of quantitative finance or tech. My love for learning and teaching fuels my ambition, evidenced by my extensive contributions to Financial Samurai over the years.

The appeal of an academic career

As I advance through my doctoral studies, I find myself drawn to the idea of becoming a professor. Academic positions offer a unique blend of respect and financial stability, making them highly desirable. The lifestyle of educators, especially those who have authored influential works, often comes with notable perks.

For instance, prominent professors, such as those affiliated with Stanford, have demonstrated that one can achieve considerable financial success within academia. The prospect of owning a vacation property while maintaining a professorial position is enticing. While I might not be looking to purchase in the Bahamas, a home in Hawaii remains a dream of mine.

Many successful finance authors I admire are professors, contributing significantly to their fields while reaping the benefits of academia. However, I recognize the challenges that come with being a minority in academia, where biases can affect recognition and tenure decisions. Despite these challenges, I maintain optimism and ask myself, why not me too? Why can’t I achieve my dreams at institutions like UC Berkeley or Stanford?

Embarking on a journey of enlightenment

As I prepare to start my doctoral journey in the fall of 2024, my goal is to complete my degree by June 2028. Although this path may delay my plans to regain financial independence by January 2029, I believe the knowledge and experiences I will gain are worthwhile. I hope my dedication to my studies inspires my children to value education and hard work.

Financially, I anticipate earning around $40,000 annually as a research assistant or teaching assistant in my second or third year, with the possibility of securing a position even sooner due to my experience. Fortunately, tuition costs will be mostly covered, with minimal fees to pay annually.

As I embark on this new chapter, I will continue to share insights on Financial Samurai, although I may reduce the frequency of my newsletters and podcast episodes to accommodate my academic commitments. The journey ahead promises to be exciting, and I look forward to sharing this experience with my readers.

Engaging with readers: your experiences and insights

For those of you who hold a doctorate degree, I invite you to share your field of study, the duration it took to complete, and your income level. Were you able to secure funding for your doctoral studies? Looking back, what would you have done differently in your educational journey?

As we face inflation and rising costs of education, how do you think young adults navigate the financial and temporal demands of pursuing a PhD? This dilemma echoes the challenges faced by individuals deciding when to start families, as both paths come with unique sets of advantages and disadvantages.

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