Is an MBA Really Worth the Expense?

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Posted by Money Tips Staff

Within the overlapping realms of professional business and academia an ongoing debate has raged regarding the relative worth of earning a Masters in Business Administration (MBA) degree. For decades, the holder of an MBA has been afforded preferential treatment through career advancement, increased salary and executive placement. A status symbol of sorts, an MBA from a prestigious business school lends a certain sense of authority and prominence which can easily translate into a lucrative career path. The question of whether or not the financial investment required to study for and attain an MBA degree has been raised repeatedly in recent years, partially in response to the exaggerated importance that this qualification has assumed in modern culture. If you are considering the choice to embark down the long path towards securing your own MBA, you should begin by determining once and for all if an MBA is really worth the expense.

In order to balance the investment required to earn your MBA against the potential increase in salary and stature, it is important to remember that not all MBA degrees are the same and each provides a unique blend of pros and cons to consider. For example, if you choose to complete a full-term MBA at a major, top-tier university, the tuition and opportunity costs can easily surpass the $200,000 benchmark. To realistically make this degree economically worthwhile, you must expect to earn $5,000 more per year for the length of a 40 year career, an expectation which is decidedly unfeasible. On the other hand, if you choose the path of moderation and earn a part-time MBA from a mid-level school, the outlay could come in at under $50,000. In this scenario, simply earning $1,200 more per year over the course a full career can make the choice to attain your MBA degree a sound financial decision.

A wide range of professions, including accounting, marketing, and business management, utilize employees who hold an MBA in a variety of positions and roles which makes the degree an attractive option for many recent graduates hoping to excel in their fields. This diversity, while certainly appealing, does not always translate to a padded profit margin and you should carefully consider how your own career choice can benefit from an MBA degree. The country’s recent economic woes must also be taken into account, and the fact that the prolonged recession may finally be coming to an end is an important factor. Many major companies are beginning to hire skilled and qualified managers to fill executive positions and holding an MBA puts you at the head of the line when it comes to filling these openings. Many top business schools are now offering MBA strategic management programs specifically to fill this widening gap in the American job market. If you want to be sure that your MBA degree provides you with the maximum yield on your initial investment, the strategic management MBA is the top option to put you in the best position for career advancement.

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