3 Recommendations For Financing Your MBA

I was lucky enough to get accepted to study at INSEAD 10 years ago. But before the great news I had spent at least 18 months preparing: from doing the GMAT, writing essays, deciding which school to go to, and determining how to finance this unique and life changing experience. I probably spent the least amount of time on the financing point, but in the end it was the most important. Here are a few recommendations to keep in mind when financing your MBA: The first recommendation is that whatever you expect to spend on your MBA, you are going to spend at least 30% more on your living expenses, and other expenses that come up. Of course, I wanted to make the most of the experience, and every MBA program, including INSEAD’s, has more activities than anyone can imagine going to. And it’s very tough to say â€Å"no† to them due to lack of savings. So tip 1: save at least an extra $5,000 for â€Å"travel expenses† per year. The second recommendation is to evaluate the financial difference between a 1 year and 2 year MBA program. It is not only the opportunity cost of not working and making money, but the 2 year MBA is normally 50%-100% more expensive due to cost of living and 2 years of tuition. Choosing a 1 year MBA like INSEAD was not a conscious decision on my part but I’m glad I decided on it in the end. There is a trend around the world for more 1 year MBAs because of this reason. The third and most important recommendation is to look for other sources of funding aside from a loan – a few options include: 1.   Scholarships (there are a lot more per country than you may think. In Spain, there are at least 8 organizations that give scholarships) 2.  Ã‚  Ask family and friends for donations or savings 3.  Ã‚  Crowdsource your MBA experience 4.  Ã‚  Get a side job for extra money I started with the 4th option and managed to save a worthwhile extra amount for INSEAD. Three months before starting the program, I got lucky and got an amazing scholarship from Fundacion Rafael del Pino in Spain for my studies. Finally, I encourage you to look at what others are doing around you, search on blogs and forums, be creative, and most importantly: if you are set on doing an MBA, with a little bit of discipline and structure, you can save for the future. ; Ricardo is Prodigy Finances Head of Business Development. He got his MBA from INSEAD in 2006. After his MBA, he worked in management consulting for 8 years before shifting his focus to consult for startup companies in the Fintech space. He joined the Prodigy Finance team in 2014. Related Resources: †¢Ã‚  MBA Admissions A-Z: 26 Terrific Tips  [Free Guide] †¢Ã‚  INSEAD Essay 3: Writing About Cultural Diversity †¢Ã‚  The Money will Sort Itself Out: IV with a Future INSEAD Student