A Graduate Degree That Pays Off: The M.B.A.

"Borrowing money to go back to graduate school can be a surefire way to get mired in student debt. But one master’s degree appears to pay off for many people who finance their education: the M.B.A."

https://www.wsj.com/articles/elite-mba-harvard-stanford-wharton-11635270641

 

I agree with the article; top MBA programs will help to pay off. As for Mr. Hoefer's MBA from Tulane University, he is working remotely from his comfortable small beach town. First of all, Tulane is not well known for its business program; secondly, he is working remotely is in Ormond Beach, Florida, would not able to see any significant opportunities in his field. It is the student's job to do some searches and homework for selecting the program and school. I am doing my MBA at Imperial College London with $60,000.00 out of my pocket without a loan for tuition and fees. Pretty much it costs me an entire RV or 20 acres of land in the Appalachian Mountains. It is one of the cheapest top MBA programs, but I don't know if there is any salary increase. I hope to make at least $250,000.00, but I am not sure it would help me get there.

 

Aren't you in tech? There's a young lady with a pretty popular YouTube channel who worked in software development. She has a bachelor's in political science from Columbia, and she ended up making over $200k at Google.

 

I am a jack of all trades but master of none. She must be in Silicon Valley or New York City to make that much at Google. My base salary is only $150k, but I don't live in a high-cost living city like the Bay Area, Boston, Seattle, and New York City.

 

Yes, you can...

 

Well, I'm sure he, along with myself, would like to say it and mean it! But I declare that I will get to and above that amount one day.

 

I have a coworker with an MBA from Cornell. He worked in HR at Cornell for a time and earned it, for "free" through their employee degree program.

He gets paid the same as people with their MBA from the University of Phoenix.

I'm not saying the article is wrong. Just that there is quite a bit of oversimplification at play in all of these grand pronouncements. In theory, going to a top flight business school can land you some connections that can help propel you into industries and companies that you never would have been able to approach, let alone access, otherwise. Of course, the people who do best with this are ones whose family connections already run pretty deep. If Dad runs a hedge fund then Junior has an easier time getting a job at a hedge fund, even if not Dad's. That Junior and Dad both have MBAs from Stanford becomes incidental to the success rather than a direct contributor.

Setting all of that aside, it reminds me of the much misguided advice I received when I was in high school. As with my colleague with the Johnson MBA, an individual's career choice doesn't just boil down to how much money they want to make. It also comes down to what sort of work they want and/or are able to do. Not everyone with an MBA wants to become a hedge fund manager. Not everyone with an MBA wants to work for Goldman Sachs. And, perhaps more importantly, having some top flight academic credentials may be a necessary condition for getting some of those top shelf jobs but they are no by means sufficient.

Articles like this feel horribly out of place for the time. This is the sort of thing I read regularly 20 years ago during the proliferation of MBA programs where tiny schools without a proper business school suddenly began offering MBAs. It was also part of the rising trend to no longer make the MBA the credential of the middle manager desiring a leg up to upper management. Instead it became an optional fifth year on a bachelors program so you could walk out with a BS/MBA combo that was sure to impress whatever coffee shop or call center that was going to hire you.

This is not to say that no one should get an MBA. But it feels like so many people are looking for the magic bullet degree. That one thing that if I put it on my resume I am guaranteed financial success. And such a degree doesn't really exist. A degree is one component of career building and one that, after a few years, becomes less and less significant to your profile as a job candidate. I do wish people would consider these things more holistically.

 

This is one of those things I find surprising but not shocking. I, personally, have encountered hiring managers and HR professionals with a very broad latitude toward the "or equivalent" category, specifically around MBAs. Though I have encountered some people getting into the weeds with more esoteric degree titles. As you note, though, doing one's best and being adaptable seem to be the best thing for success unless you have a trust fund.

 

1st time post-er here. Long time lurker.

I too read the article and felt a bit sense of ease since I am currently enrolled in an MBA Program at Lamar University. Although not top tier college, for me the school ticked off some boxes.

-No GRE/GMAT
-Fully Online Program
-Fairly economically (just paid 2500 for 2x courses) than here in other California programs. Expected to pay ~16k for the program as long as they do not increase tuition again. Also paying more due to leveling courses.
-AACSB accreditation

I currently work as a Validation Engineer/Consultant. Making 86k with 7 years experience. I've been with my consulting company for 4.5 years I am fairly confident that I can make 100k+ without an MBA if I decided to jump around to other companies.

My goal with the MBA is a personal check box. To be able to set the foundation in my household for my future kids. To work smarter not always harder. Nothing wrong with not going to college as college truly isn't for everyone. For me it was to allow me the opportunities to not break my neck and come home all tired from a hard laborious day. I want to still have the capacity and not have my body worn out by time I retire (22 years or sooner).

When I obtain my MBA I am planning to have a starting salary of at least 110k-120k. Looking into climbing up the ladder because Validation can be a lot of grunt work.

Also, within my field not that many folks have their MBA rather typically either only have Bachelors or other science Masters degree.

 

What's your plan?

 

At the rate you are going, you might get there. All it will take is another 3 masters degrees and I am sure you will hit 250K. If not, you might need to add another 2 PhDs. Pretty sure that will do it --- maybe.

 

If you hit 100K+ it will primarily be your experience and not the MBA that gets you there. The average starting salary at Lamar's MBA program is only $57K so the degree, by itself, will not get you there. But jumping around (as you suggested) might.

https://gmat.economist.com/mba-finder/lamar-university-college-business/mba

 

I thought I had seen everything. Going off topic a lil...

Research Assistant
Master’s Degree from an accredited college or university (on campus program) with major course work in criminology, criminal justice, psychology, political science, public health, sociology, or a related field.

https://jobs.smartrecruiters.com/CityofPhiladelphia/743999781939111-research-assistant

 

Man Explains How $150 Six Flags Annual Pass Helped Him Pay Off Student Loans

https://www.yahoo.com/entertainment/man-explains-150-six-flags-210022257.html

 

To be honest...that's what I am trying to figure out.

I never thought I would be back in school for a Masters let alone an MBA.

I am actually contemplating Lamar University's dual MBA/MS-MIS (Managem Information Systems) program.

Downside to this is I don't know how the MIS degree will help me out. I will have to fork out an additional 8k or so for the 2nd degree. If I were to do it, it would be for the wow factor. "Wow, 2x Masters!" Also, since I do not know if I would be going back to school in the near future due to me trying to settle down (marriage, kids, permanent job position,etc.). Figured I postpone my initial graduation (May 22') to Dec. 22' and knock out the 2nd degree.

Currently my MBA concentration is MIS. I am trying to use this as a gateway to the IT/computer field. I am trying to get into Quality Assurance within Software due to my Validation background. Since it is under QA field. I am trying to do a part-time internship so I can put on my resume I have "some" experience/knowledge in MIS.

Also, considered VUL DHA program but I don't know how I'd be able grow with that. Since I don't have any Health Administration experience.

For me having the MBA will set me apart slightly from other Validation Engineer/Consultants in the hopes of getting opportunities for supervisory/leadership positions. I don't always want to be doing the grunt work and this has been my motivation to keep on treading along.

I am always scheming. Trying to think and stay ahead. I don't like settling when I know LIFE has a lot to offer. Firm believer that you get out of life what you put in.

 

Thank you.

I do agree as well that my experience has been carrying me. As it is I do feel undervalued and underappreciated. Feel that the longer I am with this consulting company I am not keeping up with salary market value. Especially for Southern California. Cost of living is insane.

So maybe a jump from company will set me just above the 100k+ mark. I've been holding off on jumps right due to prioritizing school. Current project I'm on, managers are a bit lenient/flexible with my schedule.

If an opportunity came calling (in form of recruiter) I don't shy away.

Hoping this is the case in near future. Personal goal by age 34 (next June) to be at/above the 100k+ threshold.

 

Each persons experience is unique.
Wanting to earn more especially in a more expansive areas is a good thing.
Higher or additional education may provide a boost in career and personal satisfaction.
From my experience when I did a few job jumps that increased my earning significantly it wasn't always fulfilling.
While on average one job span for me would be 6 to 7 years there were a few jobs with 2 years and even a job with less then a year.
I found my self a few times in "enslaving" or unfulfilling jobs because I didn't do a good research about the position, employer, culture, expectations for these positions.
It was expected that people in my team will be working long hours and handle multiple projects to a point that it consumed most of me and prevented me from being able to spend time with wife and kids. Yet I would say I was fortunate to have these jobs as they did provide for the family and bills etc.
My strategy changed and I focused on well paying, challenging and fulfilling job with a company that offered good work/ family balance and flexibility.
Additional and further education, training and achieving certifications definitely helped to find the desired job.
People are different so where I struggled some others thrived.