My MBA Experience: When should you start your MBA? (And other thoughts on Masters/Professional Programs)
Okay so you're starting your final year of college....and you're just crazy enough to be thinking of going to MORE school after graduation. Or perhaps you have a child ready to finish up his/her undergraduate degree and is thinking of a masters program?
Going to college was a BIG decision, and continuing with even more education is just as big of a decision. Why should it matter? Two words.
Opportunity Cost.
Because those couple of years you may be spending in a classroom you could be spending out in the world working. So while you're spending $50,000 (more/less) a year for additional education, let's say you could be making that same amount working. So that's a difference of not $50,000....but $100,000 a year! That is $200,000 if you're doing a 2 year master's program. Not to mention you could be spending that time working your way up at a company. So you've lost 2 years work experience, building up vacation, 2 more years of contributing to your 401(k) at a job with a possible employer match....all for....? Another piece of paper?
Okay, let me back up. I'll remind you that right after my undergraduate degree I went to 3 years of law school. Then I took 2 years to work at a law firm before last year when I started my MBA. I'm now planning to graduate with my MBA in December. So CLEARLY I'm not really that negative about the whole idea of going to more school after college.
I say the above to make you think about things...and make an informed decision. I made a semi-informed decision when I when I chose to go to law school. Semi-informed because I did make an effort to pick a school that was budget-friendly, but I also went in doing two degrees (my JD and my MBA). Not only that, but I really just went to law school because I didn't know what I wanted to do (not a good plan...trust me) and I knew I would not want to be a courtroom attorney, rather I wanted to be in a more transaction position.
First, here are a few steps to go through if you're thinking of continuing your higher education:
1. PLEASE sit down and add up all the loans you have currently. Look at the interest rate, minimum payments, how long it will take to pay them off. Really do the math (or have a math-geek help you).
2. Then look at the program you are thinking about and add up what it will cost to go to that program (room, books, etc). You can repeat these steps as much as you'd like, playing with different scenarios of what school you are looking at, how you can cut back costs (for example in-state vs. out-of-state tuition, or moving back in with you *gulp* parents)
3. What career could you have with your current degree? What will you be able to have after that degree? Is it different? The same? Would you be happy with either? Is there a difference in income between the two degrees?
4. What is the job market like for those degrees? Talk to the schools, but better yet see if you can talk to someone who is graduating from that program. How do they feel the job hunt is going? Had I done that in 2010, I would have learned that students were STRUGGLING to find legal jobs. Like really really struggling.
Going to college was a BIG decision, and continuing with even more education is just as big of a decision. Why should it matter? Two words.
Opportunity Cost.
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Okay, let me back up. I'll remind you that right after my undergraduate degree I went to 3 years of law school. Then I took 2 years to work at a law firm before last year when I started my MBA. I'm now planning to graduate with my MBA in December. So CLEARLY I'm not really that negative about the whole idea of going to more school after college.
I say the above to make you think about things...and make an informed decision. I made a semi-informed decision when I when I chose to go to law school. Semi-informed because I did make an effort to pick a school that was budget-friendly, but I also went in doing two degrees (my JD and my MBA). Not only that, but I really just went to law school because I didn't know what I wanted to do (not a good plan...trust me) and I knew I would not want to be a courtroom attorney, rather I wanted to be in a more transaction position.
First, here are a few steps to go through if you're thinking of continuing your higher education:
1. PLEASE sit down and add up all the loans you have currently. Look at the interest rate, minimum payments, how long it will take to pay them off. Really do the math (or have a math-geek help you).
2. Then look at the program you are thinking about and add up what it will cost to go to that program (room, books, etc). You can repeat these steps as much as you'd like, playing with different scenarios of what school you are looking at, how you can cut back costs (for example in-state vs. out-of-state tuition, or moving back in with you *gulp* parents)
3. What career could you have with your current degree? What will you be able to have after that degree? Is it different? The same? Would you be happy with either? Is there a difference in income between the two degrees?
4. What is the job market like for those degrees? Talk to the schools, but better yet see if you can talk to someone who is graduating from that program. How do they feel the job hunt is going? Had I done that in 2010, I would have learned that students were STRUGGLING to find legal jobs. Like really really struggling.
5. Look at the particular program and discuss whether now is the right time. There are some professions where it makes sense to continue your education immediately after an undergraduate degree. For example lawyers and doctors. The training you receive allows you to do the career that you are working towards. You can't become a lawyer or doctor without these degrees. However, another very popular degree for students immediately after his/her undergraduate degree is an MBA (Masters in Business). This is a degree I STRONGLY advise students to wait until later in their career. Why?
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Some may disagree...and that's okay. However, I come from not only starting an MBA without ever working full-time, being a professor in an MBA program, and now a returning student in an MBA program with 4 years of career experience under my belt. I can say from all three of those experiences, I strongly believe working first is most beneficial. .
So yes....I dropped out of my MBA program while I was in law school. And guess what...it was TOTALLY the right decision for me. Here is why I suggest students consider working a couple years before going straight from undergrad into an MBA program:
So yes....I dropped out of my MBA program while I was in law school. And guess what...it was TOTALLY the right decision for me. Here is why I suggest students consider working a couple years before going straight from undergrad into an MBA program:
1. Career Experience. I've been a part of 3 different MBA programs (two universities as a student, and one as a professor) and I can say all three put a lot of influence on relating your career life to what you are doing in class. There are some degrees that aren't designed like that. For example, I went directly from undergrad to law school, and work experience does not help you in class. It is designed for students coming from varying backgrounds, and the program teaches you to become a lawyer. An MBA program teaches you to manage people BETTER that you already are. You need experience in the workplace first.
2. Student Loans. Whether you have student loans from an undergraduate degree, or not....masters degrees cost money. There are ways to help finance it (see #3) but they do cost money.
3. Employer Financing. Many employers will help pay for an MBA program. Some pay all, some part...but very few reimburse for past costs of an MBA program. Plus an employer may like to see that their employee can manage both work and school...and that is pretty impressive.
4. Opportunity Cost. Yes, I'm mentioning this one AGAIN because it especially relates to an MBA program. If you are doing a full-time MBA program, you are probably taking anywhere from 1-2 years to complete it. Not only are you paying tuition for the program, but you're losing out on income you could be earning from a full-time job during that time. You're also missing out on perks like Employer contributions to a 401(k)---and if you're coming straight from undergrad you may not have started any sort of retirement account. Say it together...compounding interest is your best friend.
5. Hiring Choices. Honestly, I don't know many employers who would rather hire someone straight out of their MBA program to manage people...or someone who doesn't have that piece of paper, but has work experience. Classrooms can only teach you so much...and employers know that. If your goal is to use your MBA to get hired, I suggest getting hired first...get work experience while completion your MBA. It's totally do-able (see below). That way you're double dipping on the resume booster!
5. Hiring Choices. Honestly, I don't know many employers who would rather hire someone straight out of their MBA program to manage people...or someone who doesn't have that piece of paper, but has work experience. Classrooms can only teach you so much...and employers know that. If your goal is to use your MBA to get hired, I suggest getting hired first...get work experience while completion your MBA. It's totally do-able (see below). That way you're double dipping on the resume booster!
6. Scheduling. Most MBA programs are offered at night or online designed for people who are working during the day. There is a lot of group work, classes are usually offered just 4 times a weeks, so you aren't going to multiple classes a day like in undergrad.
7. Retention of Information. There aren't a ton of true business concepts I retained from undergrad. They were illusive when discussed in class, and since I couldn't apply the concepts to what I was already doing...it was much more difficult to retain. The nice thing about an MBA is a lot of the concepts you can start using right away in your job! You retain what you've learned better, and hopefully it will benefit you for years to come!
So there you have it! Whether you're thinking about a law degree, masters in psychology, communication, business....whatever it is...I challenge you to consider the above in part of the many things you have to look forward to!
P.S- many have asked "Okay Kitty, what degree are you going to get next?" Goodness...I am done! I learned this year that having a baby completely changes your perspective. I went back to classes during my maternity leave, when she was just 3 weeks old...and it was really really tough. But I knew if I didn't go back now, it would just keep getting more difficult as Lorelai grew up. Thankfully I'm in the home stretch! I don't plan to quit learning....I will say Mandarin and swing dancing are a couple things on my bucket list that I've been dying to learn!
So there you have it! Whether you're thinking about a law degree, masters in psychology, communication, business....whatever it is...I challenge you to consider the above in part of the many things you have to look forward to!
P.S- many have asked "Okay Kitty, what degree are you going to get next?" Goodness...I am done! I learned this year that having a baby completely changes your perspective. I went back to classes during my maternity leave, when she was just 3 weeks old...and it was really really tough. But I knew if I didn't go back now, it would just keep getting more difficult as Lorelai grew up. Thankfully I'm in the home stretch! I don't plan to quit learning....I will say Mandarin and swing dancing are a couple things on my bucket list that I've been dying to learn!
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