Is an MBA worth it for FI?

Sources:

Pursuing an MBA can be a significant financial decision, particularly in the context of achieving Financial Independence (FI). Brad Barrett discussed this topic in the context of entrepreneurship and achieving FI. He emphasized that pursuing an MBA involves not only a substantial investment of time but also a significant financial cost. However, if managed well, the benefits can outweigh the costs.

For instance, Will Boland shared his experience on the podcast where he transitioned from a high-paying job in investment banking to entrepreneurship. He noted that while this move meant a massive pay cut and dealing with MBA loans, his previous savings and the strategic financial management allowed him some runway to establish his business without immediate financial pressure 1.

Additionally, the broader FI community, as discussed by Brad Barrett, often includes individuals who have opted for paths that require significant early career investment, like an MBA. These paths may lead to high compensation which, when paired with a frugal lifestyle and strategic financial planning, can accelerate the journey towards FI 2.

Understanding and calculating the return on investment for an MBA in your specific circumstances—considering the cost of the program, potential income increase, and your financial goals—is crucial. It's about aligning professional development with financial strategies that support your goals toward financial independence.

Pursuing Entrepreneurship

Will discusses his decision to leave a high-paying job in investment banking to pursue entrepreneurship, despite the financial setbacks it would bring. He explains how he and his wife cut expenses and calculated their runway to give themselves ample time to see if their business was viable. Will also shares how his frugal tendencies helped him save money early on in his career, making it easier to pursue an MBA later on.

ChooseFI

092 | Will Boland | CarLotz and Entrepreneur Case Study
1
2
RELATED QUESTIONS