Pursuing an MBA degree can be really expensive. From the application fees, tuition cost to living expenses, etc, the costs you might have to bear could be really high. For this reason, it is really important that you keep an eye on all the costs involved in pursuing an MBA. So how could you do that? Through the course of this article we’ll provide you with seven financial aid tips for the MBA. Keep reading!
Tips to Manage Your Expenses While Pursuing an MBA
Analyze Your Financial Stability:
It is imperative that you evaluate your financial credibility before applying for a course abroad. Try to understand your financial situation by assessing how much debt you can manage and what methods you have to consider to repay them within time. Each student comes from a different background. So never compare your situation with that of other students’. Rather, list down the possible expenses for the course, including the course fees, living expenses, transportation charges, etc. On the basis of this, you should decide where you should stay, if you could afford to stay by yourself or if it is wise to opt to share your accommodation with a fellow student?, if you can manage to eat out on a daily basis or is it economical to learn to cook your own meals, etc. Simple decisions like these can help you save a lot of money.
Save Your Money:
Undoubtedly, MBA is a costly affair. And, to bear the expenses, you have to save money. Think in a way that for example – you are a finance manager at ABC Company and you have to maintain an adequate balance between costs and profits. As you’re getting to hold an MBA degree, you should enable your thinking process in that paradigm. This process is sure to assist you in avoiding unnecessary expenses. You should keep a tab on certain expenses that can be avoided as every penny you save will have an impact on your total savings eventually. Any extravagant shopping, daily parties etc., should be cut off since these would count as reckless spending when you are already on a limited budget.
List Down MBA Scholarships:
Though the MBA scholarships are hard to earn, getting one of the scholarships can help you pay your MBA costs. For this, you need to check all the shortlisted colleges by you and list down all the requirements needed to get the scholarships. You will have to do appropriate research so that you are well equipped with all the documents to meet the demands which universities have in place for granting scholarships. Applying early before the deadlines for the scholarships will give you a competitive edge over the other applicants. Ensure that your application satisfies most or all of the criteria which the b-schools have for granting scholarships.
Look for Family and Company Assistance:
Your family is the first option in helping you meet the financial crunches you may face while pursuing your Master’s degree. Sometimes, the company you work for also will come forward to help you. However, they may charge a certain percentage of interest rate. Most companies also have certain clauses which you will have to agree to, before they grant you financial assistance. Try to read the terms and conditions of the offer clearly, before accepting the same as you wouldn’t want to overlook any minute details which could be problematic at a later stage.
Assess Your Living Expenses:
Most often students take tuition fees as the priority and give less value to living expenses. But, living expenses are as important as the tuition cost. You should be very careful about managing living expenses, which includes food cost, rent, traveling, weekend fun and many other extra expenses. These expenses have to be carefully estimated and planned in advance. Create a budget which helps you to maintain your finances in a proper manner. Stick to the same at any cost. When drafting your budget, do keep in mind your requirements and goals. Also, set yourself realistic goals on the savings you wish to obtain over a certain period of time.
Calculate Your Post-MBA Salary:
You must have a strategic plan to follow after obtaining your MBA degree. This includes a minimum idea of the salary you’ll acquire post MBA. This is very important as you will have to repay it as soon as possible. Once you fail to do so, the banks will consider you a defaulter. This will ruin your credit reputation. If you have completed your MBA degree at one of the top institutes, it’s certain that you will receive a lucrative job offer from some of the most esteemed companies. You could make use of your college’s extensive alumni network to help you in assessing how much on an average you could earn on completing your MBA degree.
Evaluate the Factors At the Time of Incurring MBA Loans:
Before taking the MBA loan, analyze the factors associated with it. The main point you should take into account is the rate of Interest, repayment period, and in which currency you’re applying for the loan. Sometimes, the change in the value of currency exceeds the debt amount to certain bucks.
Now that you have an overview of the tips that will help you reduce the financial burden, take time and list down all the cost factors that are involved in getting an MBA degree. This way, you can plan and cut down unnecessary costs and peacefully complete your course.