Is studying MBA in USA really worth it? What if I do not make more money in Job?

Few of my friends question me indirectly questions like:

  • What are you trying to achieve by doing MBA ?
  • Will you really make more money after MBA in USA ?
  • What if you do not make more money after MBA ?
  • Why dont you do it online ? You get the MBA degree

I have explained the differences between MS and MBA and if one should apply for MS or MBA in US after Bachelors in previous articles. Here, I will try to give my answer to above questions.

MBA in USA AdvantagesIf you think logically, what my friends are asking is correct. What if I really do not make more money, is my degree going to be waste?  Let’s try to analyze the question and possibilities by using some math ! Imagine you are spending $60,000 towards your MBA in USA.  What is the Return on your investment for $60,000 ? When will you be break-even? When will you make more money from the MBA degree?

Traditional Thinking of MBA and earning after MBA

If everything goes well and you get a job promotion and make $5,000 more every year then it takes 12 years for you to break-even. ( I am taking a very minimum hike scenario, in reality you may get more, but for discussion let’s look at worst case scenario as base case )  . Even if you get promotion even at the age of 45, still you will be break even financially. Let’s look at the best case scenario, imagine you get that promotion at age of 35, and then you are making $50,000 dollars on top of your investment. What I have explained above is just layman’s thinking of finances and how most of us looks at finances…This is probably not the right way to look at MBA. It is not just about making more money…

My perspective, what does MBA really give you?

After my personal experience of studying MBA courses, here is what I think about MBA. In MBA, you study about many concepts of Business that can be applied to personal life. MBA really gives you the ability to make better decisions financially and personally.  Doing MBA online is the worst thing that you can ever do. In fact, you learn NOTHING and may only learn just bookish material. You should go to MBA classes and discuss with professor and fellow classmates. You learn from knowledge and business situations of other companies explained by your fellow classmates. Bringing their companies experiences to class. Classroom is a place for exchange of ideas. Online, you may read the articles and do discussions online.. but it is not the same….

Few things that I learnt in MBA

  • How does Financial Markets work ?   How can I invest ?
  • How does Marketing work ? What makes a product good ? What makes a brand good ? How can I demand customer service ?
  • How does Sales work ? How not be tricked by Sales people ?
  • How does Economy work ? How to save or spend based on Macro economic conditions ?  Where to invest in terms of Macro economic Crisis ?
  • How to identify a trend and predict the future if I have a set of data ? How can I implement the data analysis concepts to real life ?
  • How to create a Business Plan ? How to start a business ? How to create a Marketing Plan for business ? How to sell  ? Everything about Entrepreneurship
  • What is Strategy ? How to think Strategically ? Looking at 1 year from now or looking at 30 years from now ? What is best ? what is your strategy for personal life or career  ?

I can keep on writing….The key point is, strategically thinking : two to three years of my life and $60,000 of investment is totally worth the time and money for MBA because, if I can make more educated decisions by using logic and knowledge for the next 30 years of my life, I will get at least 20 times more than I invested in my education. Just imagine, if I can invest my savings money 2% better with the knowledge I gained, I make a lot more… Also, imagine I can save and buy better products in the next 30 years, I am saving a lot too. The first case is making profit, the second case is cutting loss by not choosing bad products, both of these are adding value… Some may argue, you do not need MBA to get all these, you can study and learn all these. Come on guys…tell me, How many of you will take time to study all these with dedication, unless you have tremendous self-discipline ?

My view of MBA and investment on MBA :

You are investing in yourself to make educated decisions in future based on logic and knowledge. MBA is not just for getting a better job or making more money. You cannot really measure the value of all your decisions by just money. It is more than money !  If you are passionate and want to learn and grow, I personally think MBA is a something right to consider… You may make a ton of money, you may be intrigued to open a company and you may succeed in making millions, you may be failure as an entrepreneur,….or you may not make an extra dime in job or business, but still you know how to manage your finances and other things at hand with more knowledge and logic…

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108 comments… add one

  • SYED AAMER Oct 20, 2015 Reply

    hi guys i complete my mba right now this year and i want to a good job in usa so what is main requirment neccesarry about the job and interview give me suggestion ………

  • Curid Sep 11, 2015 Reply


    I second your opinion on online MBA. I don’t like that.

    What are your thoughts on part time MBA? My employer sponsors 90% of my tuition and I am planning to join a part time MBA in a nearby public university. Is it worth doing it? I would like to learn as well as propel career wise to next level.


    • Kumar Sep 12, 2015 Reply

      Curid, Part time MBA is definitely worth doing it, it gives you the balance of working full time. The only downside is you might miss out on the activities in the school like student organizations, etc. Regarding career prospects, you need to plan accordingly. Check with the career center in the school you plan to apply on the opportunities and if you are eligible for all of them…it can be tricky at times because you may not be able to do the internship, etc with your full time job…so, evaluate all your options and make a decision.

      • Curid Sep 24, 2015 Reply

        Thanks for the response, Kumar. I’m not very keen in getting a campus placement through a MBA. I am currently on H1b and have 7+ years of IT experience. By the time I complete my MBA, I’ll have 10+ years of experience. I’m planning utilize my experience and MBA to get into middle management within(if possible) or outside my company. Basically I’m planning to fast forward my career by few years with the MBA. Will a part time MBA help meet that purpose?

        • Kumar Sep 25, 2015 Reply

          Hi Curid, yes, part time or executive track should help. I think it sounds like a logical move. You just have to market yourself internally well that you are doing MBA and position yourself for the management role shift…I have seen many do that internally in the company and it works !

          • Curid Oct 14, 2015

            Thanks Saurabh. One final question. Does the part time MBA have to be really from a top college/university?

            I have a state university (UNH) in mind due to the following reasons:

            – Reasonable fees
            – Campus within 15 mi from my house
            – AACSB accreditation
            – GMAT waiver based on work ex

            The university is not a top league one, but it is in top 30 among all the state universities in US. MBA program/school is not ranked. But it is one of the 296 schools acknowledged by Princeton review and has AACSB accreditation.

            I just want to progress in my IT career and don’t have any plans to enter investment banking or consulting. Will a MBA from this state university meet my purpose?

          • Kumar Oct 15, 2015

            Not necessarily. It all depends on what you want. If you are looking to use it in your IT career for management roles, maybe you can do it from any such school. While the factors you said look very appealing, look at the time you spend as well, which would be about two years on MBA. Personally, if I had a choice, I would do it from a top school, primarily for the sake of the alumni network that I would get connected to for any future opportunities. MBA is all about network and brand that can help you go farther. Think about it…if you do not have a better choice, go for it…

  • sagar Jul 15, 2015 Reply

    Hello, plz guide me. I completed my bcom in india , wants to do MBA in us. Is it really worthfull ? Can I get gud job by doing this ?

  • Alluri Divakar Reddy Jun 21, 2015 Reply

    Hi Friends…..I completed BA in an Indian University. I am planning to persue my MBA in US…..Is it really worthfull ???????

  • Alluri Divakar Reddy Jun 21, 2015 Reply

    Hi Friends…..I completed BA in Indian University. I am planning to persue my MBA in US…..Is it really worthfull ???????

  • git Apr 25, 2015 Reply

    if you want to study in the US study in a stem degree. If you want to do MBA go to another country

  • swetha Apr 25, 2015 Reply

    Hi. Frns..
    Please guide me.. . I was in a confused state.. . I completed my btech in civil engg In 2012 . Till now prepared for govt jobs but i did not get anyone.. . So i am thinking to plan for study PG in USA.. . I bothEring about wat to take my preference whether to take MBA r MS.. Please guide me which one is cheap and best.. . For a better job to settle ina better position.. .

    • daya May 28, 2015 Reply

      swetha my scenario is similar to yours .i have done my btech mech 2012.then joined merchant navy out of passion but passion isnt helping me out to make money .there are very less jobs hmm. now i dont wana regret for what has happened .well i am planing for my masters but not able to decide what to do..hmm life seriously shows a lot …

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