Should you get an MBA? If you’ve ever pondered getting your MBA but wondered if it was worth the investment of time and money, today’s guest post is for you. We’ve talked about how to prepare your finances for grad school, as well as the pros and cons of changing careers, but we truly haven’t talked about this — so I’m thrilled to welcome the personal finance blogger behind Well Heeled Blog, a young woman who just finished her MBA. Welcome to Corporette! – Kat. (Pictured: Ted Baker London ‘Neon’ Leather Card Wallet, $55 at Nordstrom.)
I recently graduated from a 2-year, full-time MBA program at one of the “15 schools that make up the Top 10 MBA.” I once heard a dean use that phrase and think it’s a humorously apt way to describe the way schools jockey for that much-vaunted “top 10.” designation.
Once you include the money I spent out of pocket and the opportunity cost of two years of foregone earnings and benefits (minus the living expenses I would have had to spend, MBA or not), this degree cost me at least $250,000. That’s enough for a house in many parts of the country, and a hefty down payment in even the priciest areas such as San Francisco or New York City.
Was my MBA worth it? I’m a long-time Corporette reader and occasional commenter, and I’ve seen several questions on MBAs and finances. The decision to pursue an MBA isn’t solely about the ROI in dollars and cents–there are plenty of non-financial benefits such as a grounding in business education, a wider and deeper network, and the opportunity to devote two years to furthering your professional and personal growth. Still, the fact remains that an MBA is an expensive proposition for most people, and this proposition can expand your career horizon while at the same time limiting your future financial choices. Here are my thoughts about the financial implications of an MBA now that I have completed my degree–what I would (and have) told friends who are thinking about pursuing an MBA, especially through a full-time program: