Deciding whether to go to grad school is a highly personal decision. Grad school requires a tremendous time and financial sacrifice with the hope of using that experience to move into a new career or move up in a career.
We’ve talked about grad school quite a bit on this blog, as I have been facing the decision of whether to pursue an MBA and our staff writer Sally has discussed her decision to pursue an MBA.
Another thing we talk about a lot on this site is side hustles. Side hustles – which includes small businesses, second jobs, and anything you do for money in addition to your full-time job – are also time consuming. It will be difficult, to say the least, to pursue both a side hustle and grad school, especially if you continue to work full-time while attending grad school.
So which is the better idea? Read on to find out.
Head-to-Head: Grad School versus Side Hustles
There are many good reasons to going to grad school. A few of these reasons are:
- Start a career – My Dad is a chemist, and there’s no way he could be one without getting his phd. Lawyers, doctors, psychologists, and more career tracks require getting graduate degrees before starting.
- Advance in a career – In some careers, such as business, getting a graduate degree isn’t required but has the potential to help you advance in your career. People with masters degrees earn more money, on average, than people without masters degrees. If you don’t have a masters degree, you might hit a ceiling in your career.
- Pivot into a New Career – I work in finance. Let’s say I want to move into, government relations. Getting a masters degree in public policy could help me pivot into a new career field.
While there are many valid reasons to get a graduate degree, they come with a price. You have to sacrifice time in the form of attending classes and studying at night and on the weekends. That means less time for other things, like a social life or friends and family. If you pursue a side hustle, there likely won’t be time for you to continue to grow your business or put in the hours you have been.
If you are forced to decide between grad school or pursuing a side hustle or side hustles, I think there are valid reasons for choosing either side. As I said earlier, choosing whether or not to go to grad school is a highly personal decision.
There are many reasons why someone would choose to work on a side hustle instead of go to grad school. A few of them are:
- Long-term goals – If your long-term goal is to become a full-time entrepreneur or small-business owner, it probably won’t make sense to go to grad school. Many small businesses are started by someone who is pursuing it in their spare time in addition to working a full-time job. Going to grad school will steal valuable time that could be put towards entrepreneurial pursuits.
- Potential of your Side Hustle – I think almost everyone who has pursued a side hustle would agree with this statement: there is never enough time. As I said above, going to grad school will take time away from your side hustle, if not prevent you from working on it altogether.
If your side hustle has potential to become a full-time income – or more – it might make sense to focus your efforts on that instead of your career. One reason I love working on my side hustles is because they have potential to be sold for a lump sum when I decide to divest myself from it.
If, on the other hand, your side hustle is not a small business you may have more flexibility. For example, if your side hustle is taking a shift at a retail store once a week, you could probably more easily justify going to grad school because you can easily stop/start your side hustle.
So which is better: Focusing on your side hustle or going to grad school? You might not like my conclusion – Only you can decide.
Real-Life Examples
My wife and I both have had to deal with the question of whether to pursue grad school. When I was in college I was a political science and finance major. If I had chosen to fully pursue political science, I was prepared to pursue grad school. Instead I ended up going the finance route and have now been employed as an accountant full-time for just over three years.
As you can imagine I now have to face whether to get an MBA. I have the 2+ years of recommended (and sometimes required) work experience. As far as my career is concerned it makes logical sense. It’s something that I could leverage to move up higher.
With that being said, I’m an entrepreneur at heart and want to continue to pursue side hustles. I would have to quit this pursuit while in grad school. While it would not be difficult to sell the businesses I’ve already started and to put future ones on hold, I had to ask myself: “what are my long-term goals?” If I got an MBA I would want to pay off that investment by staying in a corporate environment. But do I want to stay in a corporate environment or eventually run my own business, or businesses? I think the latter is the truth, so for now I won’t be pursuing an MBA.
My wife, on the other hand, pursued psychology and will be pursuing a master’s degree. While this will cost us a decent amount of money in either student loans or direct payments – you pay for it one way or another – it makes sense for her because most jobs in the psychology field require a graduate degree. With that in mind, getting a masters degree and leveraging it to get a job in her field makes sense.
Check out DC’s new book Hustle Away Debt to learn everything you wanted to know about making money through side hustles!
____________
What do you think? Is it better to focus on a side hustle or to go to grad school? Is it possible to do both?
____________
Photo by Alper Cugun
Check out some of our favorite personal finance resources:
Are you getting the best credit card rewards? Check out the top cash back credit card offers (updated daily)
Make extra money: 15 ways to make money from your computer
Get the First Chapter Free!
Join our online community and get the first chapter of the book Student Loan Solution absolutely FREE!
It can be such a tough question, but you’re so right- it depends totally on the individual person and the situation. I think you’re probably right to not pursue an MBA for now. I look at people who achieve so much success through entrepreneurial or internet-related pursuits (like blogging) and I often wonder if we are entering an era where a college degree or graduate degree is not as valuable as it used to be. For some fields- like the ones you mentioned- you definitely need a grad degree, but I don’t think it’s as much the rule as it has been in the past.
colormefrugalI think a lot of people are wondering the same thing about a college or grad school degree. At the same time, I think the undergrad degree will always be a staple. Even if you do pursue some sort of small business, it usually coincides going to college because then you have a “backup” if your small biz doesn’t work out.
Great post DC. We are constantly asking ourselves this question as well. My husband can get his master’s degree entirely paid for by work if he makes a two-year commitment to the company to not leave. I think he is probably going to do that. I get a little funding from my employer but I know that if I did pursue a master’s degree I would sacrifice a ton of time and money. I am not really sold yet so I will probably just wait for now.
BudgetforMoreHmmm yes if your husband plans on staying in that field I think it totally makes sense for him to take advantage of a ‘free’ masters degree. At one point I was certain I would get my MBA but now I feel like other options are more lucrative and make more sense long-term.
My employer would pay for me to get my graduate degree….but I have no interest in doing so. It wouldn’t help me professionally (no raise, or promotion would come of having another degree), it would only be in the name of the quest for learning. However, having a technology based job, there’s more than enough opportunity for learning within the parameters of my job. Plus, hands on working with the “real deal” beats reading a text book any day. So for me…it’s side hustle + continuing to kick ass at my day job. :)
DebtChroniclesI feel like I should have pursued an IT-related career because I really like that field. In all honesty my favorite part of accounting and finance is improving and automating processes and doing the coding and design work for a beautiful spreadsheet dashboard. I also like that, as you said, there are a lot of hard skills there that you can more easily benchmark (imo) and it’s easier to judge someone’s skills.
I think you should get a graduate degree if your employer will pay for it but you shouldn’t necessarily pay for it yourself. I’ve read a lot about MBAs specifically and they don’t have that great of an ROI.
Holly at ClubThriftyPart of the problem, though, is that I’m more concerned with the time commitment. I would likely have to sell the blog because I’m not sure I’d be able to do both at the same time (on top of full-time work). I think that’s the biggest issue for me.
My wife wanted to be a mental health counselor and therefore had to get a Masters. I’m working towards becoming a financial planner, which doesn’t require graduate school. I think, like you say, it all comes down to really understanding what your goals are and what the best investments are to help you reach them. The big mistake is putting the big money down for grad school without a clear understanding of the return you’ll get from it.
Matt @ Mom and Dad Money For sure. I think one issue is it’s really hard to forecast where the job market and economy will be x years down the road so it’s hard to know if the degree will pay off. I think as long as you have a plan of what it’s supposed to do for your career then you have good enough reason to go most of the time.
It would be incredibly difficult to do both at once. It really is an either or decision. There is no way my wife could have done anything on the side while pursuing her Master’s. In her case a side hustle wouldn’t have done any good for career advancement. She needed the degree. But now that she is done, she is helping me side hustle by writing for my blog.
Brian @ Luke1428 I definitely would not try to do both at the same time. If I went to get my MBA I would either sell the blog or completely outsource it so even the day-to-day management was done by someone else. So glad your wife is writing for the site now!
I am in the exact same place in my life. I have an idea for a great side hustle, but I know that I would get more out of going to grad school so I can advance my current career. The side hustle is my passion but my career is lucrative. I wish I could figure it out!
fitisthenewpoor I hear you! I feel like side hustles can be lucrative as well, but you’re right, a career is more “guaranteed” than a side hustle. Side hustles may LOSE money even.
Great article! I made a similar decision late last year and went with side hustling. When I really thought about it I was considering grad school as something I was just ” supposed” to do rather than a stepping stone to my ultimate goal – self-employment. So, grad school is out the window.
TrendyCheapo I think you and I are in the EXACT same boat. I have felt more and more comfortable with my decision not to get an MBA recently.
I think a lot of people pursue an advanced degree without a plan which is a bad idea. Specifically with an MBA…I think it’s generally a good to have some related work experience first. Are you a CPA? Can you get the license to advance your career rather than going back to school. There are other licenses that are useful (not for you necessarily, but in general) like the CFA, CFP, etc. Side hustles are great too if you see the potential in it. When I was in law school, but working full time, I did try to pursue an online side hustle but it didn’t pan out. Now with a family, I don’t think I’d be able to do everything…not enough time.
Andrew LivingRichCheaply I am not a CPA and I was a finance major so I can’t even sit for the CPA unless I went back and took six more accounting classes! I would never do that, plus I’m not sure I want to stay in the accounting field long-term anyway. There is the CMA, but that would take about 15-20 hours of studying per week for about a year. Same problem – no time for my side hustles.
The biggest factor you missed in grad school is the network. I truly believe if you go to a top tier school (otherwise don’t waste your time and money with an MBA) then the network is what will truly pay off. As you know, I’m in the middle of this debate myself but I’m learning towards grad school because I want to pivot my career as you pointed out. I do have a vision for my own company in the future, but I’m not sure I can get there without the skills (and network) I’d get from an MBA.
BrokeMillennial Oh absolutely the network is the biggest benefit. In my case I would go part-time so I’m not sure the network would be worth quite as much. At this point I think I would be much better-off not putting the time towards an MBA.
I think it depends on what you want and where you want to go. Grad school makes sense for some people, not so much for me. It was still a pretty great experience and I loved living in NYC. I’m just stuck with all the debt. I had advanced in my career enough that I thought going to grad school would make me more, but I haven’t seen it yet. I hope it comes true in my life time. Good luck on making the decision – it’s tough.
deardebt It’s always tough to know whether it will pay off or not. You could have a solid plan and everything point to something paying off, but there’s no guarantees. Same with side hustles. This is one of those really tough questions.
Even if you don’t intend on going to grad school, strive to focus on a side hustle! :)
moneycone Yes, that’s the plan. One or the other.
A few years ago, I thought I wanted to pursue an MBA because I was feeling stuck. I chatted with a former professor and he advised against it because he felt the program would be “75% repeat information” since I already have a business degree. He suggested I pursue a Masters in Communication or Journalism based on my career track. At this point, I have little interest in pursuing a master’s degree as side hustles like yoga teaching and freelance writing are of more interest.
Like you said, it really depends on your long term goals. It’s a very personal decision so you have to look within yourself and do your research on which path is best for your individual case.
I am an entrepreneur at heart. If I feel that I could gain a lot from an MBA in my position, I would think about it more.
I’ve thought about this a lot, but a graduate degree definitely wouldn’t help with my current career (entertainment business). I’ve always wanted to go to graduate school, but it’s so hard to justify the cost. Perhaps there’s somewhat of a comprise where you commit to lifelong continued learning, classes, certifications, etc. while still maintaining the ability to work on a side hustle. I think that’s where I’m at right now.
I got my MBA a few years ago and the networking aspect was really big and led to some cool opportunities. Would I do it again and drop the same amount of money on it….probably not. I think I would get a better ROI if I used that money on my entrepreneurial (Side-hustle) pursuits. Tough call though.
I think grad school has a pretty dubious ROI when compared to a bachelor’s degree. Employers are pretty open minded with bachelor’s degrees, and I think, as long as you have one, quite a few doors open up even outside your field. But as often as careers change, I personally would hesitate to incur the costs of a specific graduate degree, which are typically far more expensive, per year, than their B.S./B.A. equivalents. YMMV, of course.
I did both! When I first started my blog, I was in my Finance MBA
program. It was hard, especially since I was working full-time as an
analyst and taking around 12 credits each semester, but it was well
worth it.
LIke you said David, it is absolutely a personal choice and everyone has to do their own cost benefit analysis before making that decision. For me, I chose to pursue my career and side hustles instead of the MBA, and I feel it was the right call. I not only continued to make and save money during this time while not incurring debt, but I also had job security. There are no guarantees as to job security after getting a higher level degree. I have seen friends graduate with an MBA from Wharton and not secure jobs.
For me personally, I chose not to go to grad school mostly because in my field of study, that means a lot of research. I wasn’t interested in taking that road. I did briefly think about going for forensic psych, but after some deliberation I figured it wasn’t the lifestyle I wanted. It sounds like you made the right decision though. It’s obvious you have a passion for blogging and creating something of your own, which is awesome. You could always revisit your decision in a few years if things change.
Great question. There are a LOT of variables in the decision, for sure. Currently, I need to focus on side hustles. That said, I am also pursuing an additional designation at the same time. On that note… it’s time to do some reading.
I like reading about your thought process DC. My wife and I both got our Masters, as you probably remember. Mine is an MBA in Finance and hers is a Masters in Communication. While I learned a ton and I enjoyed it, I don’t know that I’d go back and do it again. It has helped minimally in our business and opened few doors for me in the corporate world. Now that I’ve been an entrepreneur for nearly two years I see that’s what I truly am deep down. On the other hand, my wife got a lot out of her experience and has opened a few doors which ultimately has helped propel our business. That said, I think you’re right on in that it’s a personal decision and sounds like you made the right decision for you.
Like you said at the beginning, it is very personal. Personally I prefer taking the small business route but I still have my options open in case I would ever desire to go to grad school. I think doing both is very difficult because most people already have a job and so that would be dividing your attention to 3 things not even mentioning family.
Well it’s completely up to the individual and their situation. For me I would never choose to go back to graduate school. For me the time and cost and money lost from income would so not be worth it. But I’m also 43 and closer to retirement.
Hey DC! I have to decide on this as well. Like your wife, I have an undergrad in psychology and would need a masters to pursue much further in my career. For me, I have chosen to concentrate on making the most of my current education for the moment. I’m still paying on the undergrad and I didn’t want to put a whole bunch more money and time to another degree.
So I’m going to move forward and focus on case management roles in my “day job” which will help me move forward and try and develop my blog/side hustle income on the side. There are so many ways to do this though.
Good luck! I’m sure whatever you and your wife decide on will work out great because you’ll make it great. Cheers!
I think you’re making the right decision for you. Knowing you and your super human work ethic, I can’t imagine you stopping your dreams for all your businesses to get an MBA. It would be hard to gauge what value an MBA would be for you because, well, you have that entrepreneurial knack already so I think I would have done the same thing as you in that case. As far as your wife’s psychology degree, that does make more sense for her! I think I’ve mentioned before that on one hand, I *think* I’m glad I went to grad school. I don’t think it hurt me, aside from the debt. But, I would have picked a different program if I would have gone now, and I can’t pick a new one just for funsies bc. I’m still paying for the last one. Ack, good post!
I think if grad school makes sense for your career, then do it. However masters degrees, especially MBAs, seem to be almost too abundant these days which makes me think they aren’t as valuable as they used to be (but still very expensive). Personally, I think I’ll always seek more education through certificates and other postgrad programs, but I’m not sure if I’ll ever full on go to grad school. Only time will tell I guess.
Higher degree does not guarantee higher pay. I think we have been conditioned to believe that more education will lead to a better job, but I know quite a few people who went back to school during the recession thinking they would find a good paying job and all they got was more student loans. I could not do my job without a graduate degree and Jim got a really nice pay increase after his second master’s but almost nothing after the first one. I think you are making the right decision because you have legitimate side income and a desire to be the boss. You can always change your mind later.
As someone who invested in a pricey graduate degree, I agree with you that you should focus on your side hustle before deciding to pursue an MBA. I don’t have an MBA, and feel like there is a lot about business I should know, as we develop our start-up, but I have been learning as I go and have only been learning the things I need to know. Whereas, with a degree, I would be learning the things other people think I should know, for a wide variety of business jobs — not necessarily the business job I’m actually doing. I say pursue the side hustles, which will lead you to pursue your interests more, instead of painting yourself into a financial corner with student loans and will direct you to the jobs the school values — not necessarily the ones YOU value. (Not sure if B School is like that, but in law school it’s all about the Big Law job, when that’s really not the right job for everyone).
I will disagree with your idea that it doesn’t make sense for entrepreneurs to go to grad school. One of my best mba courses was a management course on lean startups that really challenged us to examine product market fit and explore different business models for our ideas, among other topics. Plus there is the bonus of having instant access to experienced advisors and resources. If you already have a lot of experience and/or have the perseverance to discover & grind through books and articles on your own, great, then maybe grad school isn’t for you. But if you’re new to business or are looking for easy access to the latest thoughts, then grad school might be more help than this article gives credit. At least looking on how I approached side hustles before grad school and today.
*exceptions apply both ways of course