So often, we think of investments as equities or property or businesses. However, one of the best investments you can make is in yourself.
When you’re studying for the GMAT, you are investing in yourself. You are investing in your skills, abilities, and knowledge. Most importantly, the time and energy expended are an investment in your future. Unfortunately, most people in the world never get the opportunity to do what you are doing. Don’t let that get lost on you.
Remember, the primary goal in scoring high on the GMAT is to gain acceptance to a top business school, so that you can land a great job and ultimately have greater earning power throughout your career.
According to the annual US News survey, the average starting MBA salary (with bonus) among the top 132 full-time MBA programs is $101,034, about $40,000 higher than the salary of a graduate with a bachelor’s degree in business. Even if we assume that your salary does not increase throughout a 30-year career (which is unlikely), that starting salary translates to roughly $1.2 million more in earnings, on average, with a top-130 MBA than without.
The disparities are even more significant when considering starting salaries for graduates from the top-10 full-time MBA programs. The average starting salary (with bonus) was $172,265, so over 30 years, you’re looking at an extra $3.2 million in earnings. Divide this 3.2 million by the 400 hours you spent preparing for the GMAT, and you’ll find that you “earned” $8,000 per study hour.
Another thing to remember is that, while the average cost of an MBA is around $65,000, not all MBA students end up paying the full cost (or any cost) for an MBA. Business schools offer various scholarships, which often come with the price tag of a high GMAT score. So, the next time you groan at the thought of sitting down to study for the GMAT, really think about the proverbial pot of gold at the end of the rainbow: high GMAT score = acceptance to a great (maybe free) school = great job = great salary.
Warmest regards,
Scott Woodbury-Stewart
Founder & CEO, Target Test Prep
