Graduating (college) very soon, big decisions, need assistance!

[Rabbit]

For a much more detailed explanation of my background, current job/career aspirations, and etc, see my reply below. But essentially, my dilemma is:

I'm graduating college in four weeks (BA in Economics, minor in Business Administration, GPA ~3.0). I have no job prospects lined up. I have $20,000 in student debt and roughly $5500 in savings to carry me until I find an income.

I've been planning on moving to another apartment (current lease is expiring), which is affordable and in a desirable location. My savings give me roughly a 3.5 month 'safety cushion' to find an adequate income, although I could even work full-time at minimum wage and survive my lease term (7 months) and all debt payments without bankruptcy. However, if that is the only choice, after the lease expires I will likely be forced to move back in with the parents until I can land something better.

However, my parents just offered to take me back in, without having to pay any costs-of-living until I get my feet on the ground. They are only 20 miles away. I'd have very low monthly expenses, and thus it is an attractive option, but I feel it would largely limit my personal and professional life (mostly the professional aspect, honestly).

It just feels like cheating to go back home. I'm not worried about getting wrapped up in the "freeloading" and losing motivation, but I do feel that I'd be losing something large if I went home... Perhaps my need for independence and self-sufficiency is just too great. Hopefully it's not an ego-driven opposition, as I am aiming to make the best rational decision.

I already know that I want to get the apartment and be independent. This decision will likely not change. I guess I'm just looking for some affirmation that I am not dooming myself to unnecessary hardship during this phase of my life... that I can and will be just fine on my own, because someone else out there has been or is in the same situation.

And I have to make this decision fast! I'm supposed to begin moving into the new apartment (and sign the lease) on Monday!

Much appreciated .

[Rabbit]

This is the long-winded, in-depth background of the situation behind the problem. Dunno if it will change the advice given, but it couldn't hurt to be fully informed of my dilemma.



Preliminary info-
I'm 22, and a senior at the University of Texas (at Austin). I will be graduating mid-August (after an intense, over-full-time summer school session) with a Bachelor of Arts in Economics and a minor in Business Administration, with a GPA likely to be 3.03...


Setting the stage (for the drama)-
I'm graduating very soon and don't have a job lined up. I've always been extremely resistant to 'finding a job' after school, as all others do. I think most on this forum would understand and agree with that general attitude. Furthermore, I've always been very independent, self-sufficient, and entrepreneurial. For several months now, I have decided to eventually (but hopefully very soon) open a brewpub here in Austin. I had been searching for years for a theme, because I've known for the majority of my life that I want to start and own my own enterprise- and I finally found it after getting into homebrewing. I rapidly immersed myself in all things related, and started preliminary work on the business plan several months ago. Lately, that has been put on hold due to my very demanding summer school schedule.

I didn't partake in any professional internships during my college career (but I believe I have an interesting resume from my entrepreneurial pursuits). I'm naturally good at interviews, and I believe that my education in economics has greatly shaped and sharpened my mind... but, I have no prospects lined up, and getting a job in the beer industry is difficult (especially with current hiring decisions based on reactions to the economy).

The past two semesters here- finishing up my business minor, and especially my final upper division econ course, "managerial economics"- have all truly reinvigorated my interest in using economics professionally. I cannot extol the virtues of studying economics enough... And in this final class, we are assigned a research project in which we pick an industry, and write a ~10 page case study of the industry, problems, and possible strategies for firms to solve them. I find this project extremely interesting and valuable as something to include in addition to a resume; a curriculum-vitae.

Thus, I now have two preferences/goals for the long term- opening my own brewpub, and using my degree for strategic management/planning, specifically in the beer industry.

I'm graduating, with no job lined up, $20,000 in student debt (which I do not regret in the least), and only about $5500 in the bank. I'm all set to move out of my current apartment (lease is expiring) near campus to an affordable 1-br north-central Austin apartment, and qualified for a 7-month lease based on my recent student loan disbursements (oddly enough) without a cosigner. I have a 'safety cushion' of about 3.5 months until I run out of savings, and thus will be bankrupt if I cannot find an adequate income. I'm not terribly worried about that - I can even work full time at minimum wage and survive the lease term and all debt payments without bankruptcy. After that, I'd be forced to move back in with the parents.


And now, the dilemma-
My parents have now offered me to move back home, for free, until I 'get my feet on the ground'.
My plan admittedly is to find employment in the short-run, hopefully in the beer industry, and hopefully doing strategic analysis and management (in line with this final econ course I'm taking, which I feel will be a major 'selling' point for finding a job in that area). However, I'm willing to accept whatever I can get if necessary, and in my off-time I will continue researching and planning until I am ready to start my own business or can land a job in the industry doing strategic planning/etc.

So, I'm given the opportunity to move back home with the parents (which is undesirable, and I feel that it would limit my personal and professional life- and probably mostly the latter), but I have very little expenses and no immediate financial worries.

Alternatively, I can continue on in my own, individualistic way. I welcome the idea that I must find an adequate income within 3 months, and feel strongly about the need to be independent from my parents after this 'milestone' in life.

So what should I do?

[Rabbit]

One more thing-

I don't mean to accidentally influence any comments with the tone of my writing. I hope that anybody who desires to respond would put themselves in my position and think out their own solution.
I'm not totally decided against going back with the parents, I suppose. I must be fully rational about this.

As an economist, I must analyze the total utility of each decision. Freedom and the luxury of living independently has a higher explicit (financial) cost than living at home. At this point in my life, that money has a higher marginal utility than the freedom of my own apartment; put another way, my total utility may be maximized by living with my parents initially, as I explicitly value money more (when I have very little) and not earning enough/not having much spending ability or not having any income thus has a higher negative marginal impact to my total utility than the marginal damage of living with my parents.

Er, most people I know find my economic reasoning difficult to follow... Anyhow, yes, being financially stable (choosing to live with the parents initially) may be more valuable in terms of explicit, or financial utility. But there are also nonfinancial factors in this decision, which are hard to ascribe a value to and are hard to account for in terms of utility.
An example of which may be my own self-valuation, as when living independently, I feel responsible, and I feel that beneficial-pressure of the need to be self-sufficient... if that makes any sense.

Let me know what factors would guide your decision, were you in my place.

Again, much appreciated .

[TonyToneTone]

Don't go back home. You don't want to and 3.5 months is PLENTY of time to get your stuff together. You said it yourself:

I already know that I want to get the apartment and be independent.

[ssandra]

Originally Posted by Rabbit

I guess I'm just looking for some affirmation that I am not dooming myself to unnecessary hardship during this phase of my life... that I can and will be just fine on my own, because someone else out there has been or is in the same situation.

You are not. If it feels right, it is the right decision!

When I first move out on my own the economic didn´t make sense. I could barerly survive, but I did it anyway and it was the best decision ever!

Also, everybody I know who had to move back with their parents (regardless of their relation) felt bad about it, felt wrong, and were out of there asap.

[Daffy Duck]

Set out on your own. It's clear that's what you want to do.

If something goes crazy, it sounds like you have your parents to fall back on. So, you're in a good position either way.

[homeboy]

Hey,

This scenario sounds very familiar to me as I have lived through it 2 years ago hahaha. I was 30k in debt from a prestigious college, had about 5k in the bank and was forced to move back home. Unfortunately I did not have any work experience at all, and on top of that I totally lazed through six months after graduation.

I started early 08 by volunteering and getting my work habits back. I finally landed a job in a small company. This has given me great amounts of experience in my field but it has also killed most of my personal time. It is basically 8-30 - 6 plus more time work from home and weekends.

I am currently reworking my resume and gonna go out to get some interview clothes soon. After brainstorming my resume, I find that I have a lot of responsibilities at my current position and feel really down that they are not giving me a fair price for my time. I know I will leave this company but it has given me great learning experience so I am greatful for it.

Looking back, the thing that hurt me the most was not having any previous internships. Your prospects should be good if you choose to start looking. I did not start my actual job search until 9 months after graduation when the grace periods of my loans ended.

Start early and start fast, make sure you know what career path you want to go in. If you don't know then I would just apply to any position that you find interesting. With the current economic climate, there is even more competition when you drop your resume off. As a matter of fact, I got my current position during the interview. The application was for a totally different position but the CEO knew that this position suited me better.

It is your personal decision whether you want to stay with your parents or not. I did not have a problem with it, I had to sleep in the living room for a few months even after working. I cut down 1/3 of my loans and looking to wipe it out completely within the next year. I am currently living with a sibling in a new house with mortgages, bills, etc.

I still do not regret the time I goofed off after graduation. Although most of that time was spent worrying about getting a job hahaha. Most of my friends have a year on me in terms of experience, but due to the pace of my company, I can honestly say I have learned more than any of them.

Good luck on your job search,
Don't try to worry too much,
Everything will be okay in the end.
It always is.

-HB

[Rabbit]

Excellent, thanks again for the responses.
I feel a bit more confident about getting the apartment now.

Of course, I'm still very interested to hear more opinions.