What is the value of a MBA?
Right now, education in America is a controversial debate. While 8% of a population of 16 million people in the U.S. have achieved their MBA’s, the rest of us are left wondering, what is it truly worth?
Of course no individual wants to admit that a higher education could have a negative impact on their lives, however in this current economic climate, no one can deny the apparent pros and cons that exist.
Is receiving an MBA a necessary tool for success? Or will this potential investment ultimately leave you in more student debt with zero benefits? What’s the true value of an MBA when it comes to propelling your financial aspirations forward? Although every individual is different and it depends on specific circumstances, it doesn’t hurt to weigh out your options.
- Recognition – Both personally and professionally, people start to recognize you in a different perspective.
- Aura of Legitimacy – When you actually know what you are talking about it is a professional testament to your credibility.
- Perceived Professional Opportunity – There is incentive to bridge the gap between job titles which lead to more opportunity.
- Problem Solving – This level of education will teach you how to approach and solve problems differently.
- Ivy League Schools – By attending a top tier school, you are increasing your chances of making more money.
- Networking – You will expand your circle both socially and professionally. The more people you know, the easier it will be to search for positions.
It all sounds so nice, doesn’t it? However, the truth behind what “people say” regarding an MBA vs. the reality, is a bit misleading…
- Falsehood – There is no actual guarantee that this degree will help you to find an amazing job or make more money in the future. Imagine the feeling of going through the hard work, spending time and money, and still not being able to find a job. What if by going for your MBA you end up worse off in the long run because you will be in hundreds of thousands of dollars in debt?
- Expensive – You all knew this one was coming. America tends to be one of the most expensive places to receive higher education and its only going to get worse. The worst part is, you almost have no choice if you want to have a decent salary in a few years. If undergrad is usually between $20,000-$40,000 a year minimum, then you can just imagine how much graduate school is!
- ROI – Is the return on investment really more profitable in comparison to the initial cost? In the long run, maybe, but most people end up having to pay off student loans for the rest of their life, including those who make over $100,000/ year. Bills pile on when you graduate because you are on your own now. So suddenly, you have to pay so many bills, pay for a place to stay, and pay hundreds of dollars each month towards loans. On top of all this, there is no guarantee that you will even find a job.
- Pressure – Many people go through with achieving the degree because of all kinds of different types of pressure- family, cultural, peer, or work. I grew up in a Persian household and ‘average’ is simply not acceptable. To be accepted in the Persian society as a professional, or in general, you have to constantly be on the train towards becoming something in the field of an engineer, doctor, business owner, or CEO. Otherwise, you basically have done absolutely nothing with your life. Therefore, when I finish my undergrad in management in a year, guess what I’m going to be doing? Going after my Masters. My family’s pressure is so constant that it is hard to think I have a choice otherwise. This kind of pressure is both family and cultural, however there can also be peer pressure, or pressure from current work. If all of your friends are going for their Masters, then you are bound to follow in their footsteps. Just like when your boss says that if you don’t get your Masters, you can only work here for a few more months, you are essentially left without an option.
- Opportunity Cost + Risk – The opportunity cost when you are spending extra time studying rather than working and making money, can prevent the benefits of saving while you can.
Who Should Go For The MBA You Ask?
- Kids from a wealthy family
- Students who get scholarships
- Those with grants
Who Should Pass Or Put More Thought Into This Decision?
- Those who think they will have a great ROI
- If they can’t afford it
- If they want to be an entrepreneur
Another important aspect to consider when you are thinking about if you should go for your MBA is when is the best time for you to enroll? Traditionally, it is appropriate to attend within 1 or 2 years after receiving your Bachelor’s Degree, while working or when your boss at your current job sponsors your Master’s Degree initiative. Many employers offer a raise when an advanced degree is complete.
Often times MBA programs can also inspire individuals to create new opportunities for themselves in the workforce. For instance, Thomas F. La Vecchia, MBA, earned his Masters of Business Administration from Farleigh Dickinson University and an undergraduate degree from Rutgers University. Thomas is a 20-year veteran in the pharmaceutical and medical device space, and he has recently published a best-selling book The X Factor Selling System: The Sales Expert’s Guide to Selling- as a “how-to” of his innovative sales process. La Vecchia parlayed his proficient knowledge in sales and built a well-oiled media and marketing machine for other clients to seek out different services.
Thomas La Vecchia insights, “If it weren’t for my strong educational background in a specific area of study and my belief in the system, I would not have had a full understanding of what it truly takes to run a successful empire. Putting myself through higher learning programs, I developed a greater appreciation for business and discovered my underlying passion to help other companies thrive.”
I know there are people who think that this degree can help and there are people who don’t. After weighing in on all of the options, I think it definitely depends on the person, their financial status, and what their mission is to achieve by obtaining this degree.
Don’t make a decision quickly, then look back and say to yourself ‘what the hell was I thinking?’ Take your time. No one is chasing you and in the end you will be the only one who will face the consequences of falling under the pressure and landing yourself in more debt.
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