It’s finally been decided: I’m getting my MBA.
This decision did not come easily. In fact, I spent the past 5 years going back and forth on whether it was a good idea or not.
Two years ago I was pretty sure that I would not get my MBA.
People get their MBA for many reasons. Some want to switch careers and others want to get their foot in the door at a management consulting or investment banking company. Neither of these apply to my situation.
Today I want to share my reasons for getting my MBA. Some you may find surprising, others not so much.
1) Employer Reimbursement
I work for one of the biggest corporations in the United States. Many people hate on “working for the man” but working for a big company comes with a lot of perks (stock purchase program, anyone?). One of these perks is employer tuition reimbursement. Essentially my employer will reimburse me over $5,000 a year for my MBA tuition.
As I described in my employer tuition reimbursement post, if I time it right I can finish my MBA in four-and-a-half years but get reimbursed for six years. $30,000+ over the course of ~5 years is a tough opportunity to pass up!
I realize not everyone has the benefit of employer tuition reimbursement and honestly it can even vary from department-to-department within a company. I am almost 100% certain that the previous area of the company I worked in would not have given me tuition reimbursement. I also know of another employee in another part of the company who was formally denied reimbursement from his department.
2) I can get my CPA
I majored in finance but worked the first four years of my career as an accountant. I interned with an accounting team and ended up working full-time in the same group when I graduated from undergrad. I now work in a finance function but I would still like to get my CPA if possible because so many finance leaders – in FP&A and accounting alike – have their CPA. I also like the idea of being qualified for both accounting and finance jobs.
The problem with the CPA is that you need a minimum number of accounting credits. I only took two accounting classes in undergrad and unfortunately am unable to sit for the CPA. The good news is that I can take enough additional accounting credits while getting my MBA to sit for the CPA.
My plan is to take my accounting classes as early as possible in the program so that I can get my CPA within two years of starting the program. Then a couple years after that I will have my MBA and be done with tests/certifications forever – and have a very well-rounded resume.
3) High return on investment (ROI)
The MBA has a potentially high return on investment (ROI). Not everyone’s MBA pays off, but it definitely has potential to pay off in a big way. Even if the MBA gave me one additional promotion I otherwise wouldn’t have, the result could be a difference of hundreds of thousands of dollars over the course of my career. With how little I have to give up in terms of time and money, it really is a no-brainer to bet on the MBA having a high ROI.
MBA graduates rarely have problems finding work after graduation, as they are some of the most sought after graduates in the business world. Since there is always room for advancement with this degree, I can expect my earnings to increase over the years as well. Eventually, I feel as though my MBA paired with my CPA will allow me to move into an executive role with a company, which is where the real ROI occurs. Having such a positive career outlook is perhaps the main reason why I am so exciting about the prospect of earning my MBA degree.
4) Credibility
With each additional graduate degree or certification someone attains, the more credibility they have. Yes, job experience and gaining a reputation as a high performer goes a long way, but there is something about have an MBA and a certification that provides a “next level” credibility level. After all, I may be a high performer at my job but that may not translate into interviews and job offers at a new company. If I ever need to leave for another company, I want to have as much ‘ammo’ as possible to land a desirable job.
One stretch goal that my wife and I have is to start a counseling clinic. This would be cost-intensive at the beginning so obviously a few other things would need to go in our favor over the next 10-20 years (for example selling a side business for a large sum of money). If we did go this route, though, I would want to portray credibility as a business manager. I think an MBA would help establish that credibility as we try to recruit employees and build strategic partnerships.
5) Avoiding regret
You can’t always avoid regret. Every decision has the potential to be a decision that you ultimately regret. With that being said, I think if I didn’t pursue an MBA degree I would regret it later on. After all, I’ve spent hundreds of hours thinking about this decision – that alone shows the potential for regret!
The time is right for me to get an MBA. I have employer tuition reimbursement lined up, I don’t have kids, I’m willing to put in the resources (time, money, and effort) to get the degree, and my wife is in grad school. If there was ever a time to pursue and MBA, it’s now.
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When it comes down to it going back to school to get my MBA is a much easier choice than I previously thought. Listing out the pros and cons really helped me recognize the huge benefit an MBA could have on my career and earnings. It also helped me realize how minimal the risk was.
My only regret with getting my MBA is not taking the GMAT sooner. I wish I had spent the time to take the GMAT a couple years ago so that I had it out of the way. The score lasts five full years so you have plenty of time to decide whether or not to go after you take the test.
Considering going back to school? Be sure to check out our post 5 things to consider if you’re thinking about going back to school.
When have you practiced “delaying” in your life? What impact did it have? Have you ever delayed something that actually ended up hurting your finances?
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Congrats on making the decision, DC! How exciting! I similarly spent a long time debating about whether or not to get my MA and I realized that it was something I’d regret not doing. So, like you, I found an employer who would pay my tuition (the university) and took the plunge.
I think you’re hitting this at just the right time in life too–you’ve got the work experience to know that this is the degree program for you, but you’re still young and don’t have kids yet. I’m really thankful I got my Master’s during that window too because now that I’m older, I can’t imagine going back to school at this point. Good luck–I’m excited for you!
Congrats on the decision DC! I went back and forth on mine and eventually got it. The reimbursement was too much to pass up – my wife worked for the same employer at the time as well and they paid for her Masters to boot. I don’t know if I have had a huge pay off with it, though know that a lot of what I use with our business I got out of my program. Very interesting you believe you would not have received the reimbursement in your old area – you’d think that if it could be applied to some part of your job that it would be approved.
Good tip on the GMAT. I keep on deciding against the MBA, but the tuition reimbursement bit is tempting for me too. Life just feels so busy, and I would hate to add to the stress, but I’m also not getting any younger.
Congrats on deciding to pursue your MBA! I’m probably where you were a few years ago because I’m still going back and forth about it. I almost took the GMAT right after undergrad but I decided to get some professional work experience and I’m so happy I did. I agree that the tuition reimbursement is definitely something you should take advantage of. Good luck with everything!
Congratulations on your decision. I mean I kind of knew since you’ve been studying so much! Everyone I know who did get their MBA had it pay off for them, so I’m sure you’ll have a great ROI.
Congrats on the decision to pursue your MBA! I think that if your employer reimburses you for it, that is a definite no-brainer. What an awesome opportunity!
I’m so excited for you, DC! You really did your homework, which is no surprise whatsoever! I love employer reimbursement because it makes such a huge difference in cost. Like you said, when your employer will cover the majority of costs, it automatically improves your ROI. I have seen some low ROI on MBAs, but typically I see it more in those who go to straight from college to grad school because of a lack of job opportunities. The problem is some don’t have enough work experience and end up with MBAs in the wrong areas once they really start working and identifying where they truly excel and enjoy doing. You already know and I think getting your CPA in addition to your MBA will definitely make you a very well-rounded employee. Good luck!
Mrs. Frugalwoods Thanks! I don’t think the actual class and work aspect of it has hit me yet, and I know it’ll be difficult having been out of school nearly 5 years when I start. I do think it’s the right time for me to get it and I think it’ll pay off long-term.
FrugalRules Thanks John! I think sometimes it’s difficult to tell whether it has paid off or not. It can pay off in ways that we don’t necessarily recognize (like some of the knowledge and skills you are now applying in your business).
The reimbursement is department-by-department, and I know one other person who has had it rejected (he worked in a different area than me). The area I worked in was very focused on cost cutting and adding a few grand to SG&A means they would have had to make even more cuts and make up for the increase elsewhere.
Hannah UnplannedFinance It sounds like you are in a similar spot as me, and it really is tough to make a decision either way. It still hasn’t fully hit me that I’m actually going to get an MBA, but I’m sure once the application is done and I’m enrolled in my first class reality will hit.
Chonce Thanks! In all honesty I wish I had finished the GMAT three years ago so I don’t have to worry about it now, but it also could have ended up being wasted time and money if I ended up deciding against getting an MBA.
Beachbudget Thanks! Haha yes Facebook gave it away a while ago. I think there’s little risk of not getting an ROI out of it, and who knows? It may really pay off long-term.
Christina@EmbracingSimple Thanks! The reimbursement really pushed me over the edge, as well as realizing every single job from here on out is going to say “Masters preferred.”
ShannonRyan Thanks! I spent a pretty ridiculous amount of time researching the MBA and listing out pros and cons. I think it will really pay off and be a good experience. I hear you about getting an MBA right after undergrad. I get that some people have to do this because they can’t find work or need to transition into business, but it does limit where you are able to “exit” into at a company.
Congrats. That’s great that your employer will reimburse you. It certainly makes it easier to take the plunge. I recently moved from a Fortune 200 company to a younger, smaller company. I don’t regret the move at all but there are definitely some perks I gave up. So make the most of them while you’re there!
I too went back and forth for about 5 years. I finally decided on not doing it. I made that choice for many reasons which include 1) cost, 2) loss of two years of work experience and income, 3) the programs I was looking at mainly required 2 years full time, and 4) not many people in my line of work have them and my CPA seems to do the trick for now at least. Good job doing it part-time which means you won’t lose income and work is helping pay for it, which are both pluses. Good luck!
I’ve never really thought about going back to school for my MBA. For what I’m doing I really don’t need another degree. I also don’t have the patience to sit in a classroom or take online classes consistently.
These all sound like great reasons to me. Unfortunately, in this society a degree can trump actual experience more often than not. And most leaders in the industry have their MBAs. So it just makes sense.
Great reasons! I got my MBA for reasons 4 and 5, and also because the military paid for it. My new employer offers a small bit of tuition reimbursement and I still have a few funds left from the military, so I’m tempted to go back for another certification or something. I really enjoy learning, so why not?
Pretend to Be Poor Thanks! Yes there can be a pretty big gap between the large corporations and the smaller companies. It’s a big reason I don’t see myself switching companies anytime in the near future.
ferventfinance Yeah it’s totally different when you are talking about full-time MBA. A much bigger sacrifice for sure. Honestly I wouldn’t leave the job I’m in right now to go full-time, nor would I want to pay (AND lose out on 2 years of work) to do it.
Jason @ The Butler Journal It does take discipline and patience to get through a masters program. I think it won’t be too bad, though, because I’m stretching it over so many years that it won’t ever be TOO overwhelming of a course load.
AbigailP The pros simply outweigh the cons for me. An MBA/CPA combo would really open up some opportunities for me, especially at the company I currently work at.
SimplySave Those are two great reasons in my opinion. You definitely gain some additional credibility by having an MBA. Also very cool that the military paid for it.
Congrats! I think you are making the correct decision. I have my MBA, and even though I now work for myself I do not regret having it. I am actually thinking about going back for another degree, I just don’t know what yet…
SenseofCents Thanks Michelle! Good to hear you don’t regret it. Looking forward to hear what you go back for!
I would get a MPH if someone would pay me to do it. It’s not cost effective to pay for it out of pocket, but for free, I’d jump. I love the idea of opening a counseling clinic. Mental health is a hugely undernserved demographic. I hope that works out for you guys at some point down the road.
Eyesonthedollar Thanks Kim! And thanks for the encouragement about the counseling clinic. It means a lot coming from a practitioner like you.
Nice! You can’t beat employee reimbursement. And getting accounting credits as part of the MBA. Totally makes sense for you. I blocked out the memories of studying for the GMAT. So…Carlson? What’s it gonna be?!
Mark@BareBudgetGuy The accounting credits is the big draw for me. It seems like companies put a CPA on a pedestal, so I’m definitely going to pursue it during my MBA. It’s pretty much Carlson or “no where” for me. The other good business school in the cities was the place I went for my undergrad so I can’t justify going there for a masters as well.
Take advantage of that employer tuition reimbursement! You will not regret having a MBA.
houseoftre That’s the plan! I think the MBA will definitely pay off long-term.