Posted by fmba
on Feb 2, 2016 in Why Not Get an MBA
| 0 comments
Ever feel like youre the only one in the room who doesnt have an MBA? Youre not alone.
With more people than ever earning post-graduate degrees, and a huge portion of them MBAs, it can be intimidating to be surrounded by colleagues who have higher levels of education than you. However, theres so much more to a career than a persons educational background, and there are plenty of legitimate reasons to choose not to pursue an MBA, or to at least postpone it until the time is right. Here are 10:
1. You wont make more money.
Or at least not as much as you think you will. For one thing, overall wages for MBAs were stagnant for a number of years and only recently saw a small increase. There are also a lot of misperceptions about just how much of a pay raise you can expect from your MBA. On average, MBA students expect to earn a salary of $140,000 after graduation, which is simply not realistic. While graduates from top-tier schools can typically earn that much, they represent a very small percentage of MBAs nationwide. In reality, the typical MBA graduate can expect a salary of about $76,000 (with 5-9 years of professional experience). However, recent MBA graduates with minimal professional experience will earn more much less. So pursing your MBA too early in your careerand to the detriment of your careeris counterintuitive.
2. The value of an MBA depends greatly upon the rank of the school.
The school you go to makes a BIG difference. The disparity in salaries and overall life earnings between the top 25 ranked MBA programs and the bottom ranked 50 out of 100 is huge. Were talking a starting salary around $115,000 if you graduate from Harvard Business School, versus a salary as low as $60,000 if you graduate from a lower-ranked school. The minimal effect that an MBA from a lower-ranked school has on earning capacity both short and long term makes it hard to justify the financial and time expense of actually getting the degree. If youre set on getting your MBA, make sure to research all the different programs available. See what your chances are of getting in. Otherwise, theres probably a better option out there for you than an MBA.
3. The debt puts you risk averse at a time you should be trying things out.
Getting an MBA is expensive. Crazy expensiveas much as $100,000 from a top school, and that doesnt include the loss of the salary you would be earning if youre going to school full-time and not working. Post-graduate programs in general are even more expensive to finance now than undergrad, since, as of 2012, the government no longer offers subsidized student loans to post-grads (thanks, Congress!). Pursing an MBA is a long-term investment, and with any investment, you should investigate all your options and make sure you are committed before taking the plunge. Theres no better way to figure out what you want to do for sure than getting your feet wet in the professional world. Its a smart move anyway, because employers prefer to recruit MBAs who also have professional experience, and most MBA programs require you to have professional experience anyway. Spending a few more years in the workforce can help you figure out if an MBA is truly the right path for you, and you can pay off debt and build your savings in the meantime...