Four Tips on How to Finance Your MBA Master’s Program
It is important to make a budget plan for your MBA
Although the rewards for pursuing an MBA are great, it can be a big financial commitment. Not only do you have to pay tuition fees, but you must also have enough money to cover your rent, food, and other living costs for a year, as well any travel expenses you may have if you are studying abroad.
This can be very difficult for students, particularly if they have family to support or other existing commitments. However, there are ways you can make it easier on yourself, and most IBSA students find that with a bit of discipline and creativity they can comfortably afford their studies.
1. Create a Savings Plan for Your MBA Master’s Program
Good planning can make all the difference when you are trying to save for your MBA. You should consider your tuition fees, living expenses, and travel costs to calculate exactly how much you will need for the year. For international programs like IBSA’s, you may also want to factor in extra spending money for sightseeing and tourist attractions in order to make the most of your time abroad.
Once you have done that, look carefully at all your existing income and expenditure to try and figure out places where you can cut costs and save. You will often find that small sacrifices like not buying a cup of coffee in the morning or bringing your lunch to work add up, and that your savings grow more quickly than you think.
2. International Students Can Save in Different Currencies
Because IBSA’s MBA Master’s program involves studying in two different countries within a year, it is possible that you will be using more than one currency during your studies, so it could be a good idea to start saving in the currencies of the countries you will be studying in.
This will help to protect you from any major changes in exchange rates and ensure you reach your savings targets. The staff at your bank should be able to offer helpful advice about how to start saving in multiple currencies.
3. Seek Private Finance or Employer Sponsorship for Your MBA Master’s Program
Since MBA graduates tend to command high salaries, financial institutions often see them as a sound investment, and many will offer attractive loan packages. You should visit a number of different loan providers to see what is available to you and get the best possible deal.
For some MBA students, employer sponsorship may also be an option. Many companies will help to finance your MBA so that you can acquire new skills and business knowledge that will benefit their organization in the future.
4. MBA Students May Qualify for Tax Deductions
In certain countries like Germany, MBA tuition fees are tax deductible, meaning that you can write off a percentage of the cost, and you may also be eligible for other allowances or credits during your time as a student. If you are seeking employer sponsorship, your organization may also be able to treat your training as a business expense.
However, tax deductions can depend on a number of different factors, such as your income, employment status, and how long you are resident in a country, so you should be careful to research this thoroughly.
An MBA can seem expensive, but it is important to see it as an investment. Once you graduate, you will be able to apply for a number of new, more lucrative employment opportunities, and could greatly improve your salary, allowing you to quickly see a return on the money you spent gaining your qualification.