I just Beat The GMAT!

Lmircea1 wrote:Good job mgross!
You really cracked GMAT

I have one question. How long after you take the Gmat, will the scores be sent to your chosen universities?

Thanks a lot!
And wish me luck;)

Hi Lmircea1,

You know, I'm not really sure how long it takes for them to send the scores. However, I do not think it takes long once you've received your score.

Best of luck!
-mike

Ever since the economy got worse, I have been questioning my decision to get an MBA in Jan 2010. Due to the amount of people being laid off and how many of those people currently have MBAs or are now going to get an MBA, I have decided to put off going to school and stay happy with the fact that I have a great consulting job with a Big 4 accounting firm.

So, as of now, I have my GMAT that will be good for 5 years, but I am definitely questioning whether getting an MBA makes sense for me personally. I love academics, so I am certain that I will enjoy the curriculum from that perspective, however, what will it do for my career?

The opportunity cost of an MBA is approximately $300k-400k (including lost income) depending on whether I do a 1 year or 2 year program. When I graduate, I am guessing the economy will be better, however, there will still be a large number of people with MBAs looking for jobs. What are the beatthegmat community's thoughts on whether it is worth the $300k-$400k, the lost real-world experience, and the fact that I will be one of many MBAs. I am seeing less benefits and more drawbacks than I used to.

I appreciate all thoughts and perspectives.

-mgross

How do you come up with 300-400k?


For an ivey league US MBA the napking calculation goes as follows:

1) 100k tuition
2) cost of living is close to nil since you would incur to roughly the same amount if you were working.
3) 15k after tax summer internship income

Net cost 85k USD

This leaves your after tax income loss for 21 months at 215-315k? If so, then the MBA probs doesnt make sense.

Now you're probably looking at CAD$. with the recent exchange rate drop the US MBA tuition went up for us be 20%

LSB wrote:How do you come up with 300-400k?


For an ivey league US MBA the napking calculation goes as follows:

1) 100k tuition
2) cost of living is close to nil since you would incur to roughly the same amount if you were working.
3) 15k after tax summer internship income

Net cost 85k USD

This leaves your after tax income loss for 21 months at 215-315k? If so, then the MBA probs doesnt make sense.

Now you're probably looking at CAD$. with the recent exchange rate drop the US MBA tuition went up for us be 20%

Your analysis is more thorough than mine, I would say that my after tax income loss for 21 months would be closer to $100k (USD). So, we are at a total cost of $185k (USD) rather than the $300k - 400k I previously mentioned. Definitely brings it back to a more reasonable perspective - however, I am still concerned with the value that an MBA brings when we have an influx of investment bankers and other layoffs looking for jobs and/or MBAs. What I am trying to do is weigh whether the job market will be saturated with so many MBAs and iBankers that 2 years experience (+$185k) will be equal to the intrinsic value of getting an MBA (+potentially not having a job immediately afterward) when the market is in a downturn.

first things first ... sorry for all the typos in my last message. I had just finished a long day with 4 hrs of sleep the night before.

I think your question is valid. Everybody has to find the right answer for themselves. IF I get into any of the top programs I will likely finish with 50-90k CAD debt and nothing to my name (even my car is a lease)

I still think it's worth it for me though bc I've been looking forward to an MBA ever since I started undergrad. If you do it just for the ROI you may or may not end up losing money. I can imagine the regret of this choice having been a bad investment to be quite painful in hindsight.

But if you take personal satisfaction out of it ... that's what an NPV calc cannot quantify.

But I think you mentioned that you have 3 yrs of WE. It can't hurt to wait for another year if you are uncomfortable with the economy.