Top ten financing rules for your EMBA

It is well known that an Executive MBA comes with a price tag so it pays to start planning your EMBA financing strategy well in advance. Resourcefulness and astute budgeting are called for in times of continued global economic uncertainty in order to make the most of your available finances. Here are our top ten rules to have at hand when considering your EMBA funding. 

1. Note your current salary 

Start by assessing your financial baseline which can be determined by your current salary. This will help you gauge the level of affordability you can opt for and determine how much funding you’ll need to secure through external sources, such as EMBA scholarships, EMBA student loans, or savings. It’s the first step toward building a solid financing plan for your EMBA journey. 

2. Determine the total cost of the programme 

When trying to arrive at a final total cost that may incur, go beyond tuition fees and consider all associated costs. Expenses for things like living expenses support, travel, accommodation, textbooks and even extracurricular activities could soon add up and having a comprehensive view of the costs will enable better financial planning. 

3. Identify your opportunity cost 

Understand the trade-offs of pursuing an EMBA. Opportunity costs may include lost income, reduced career progression, or foregone professional opportunities during your studies. Estimate these costs by multiplying the income or benefits you will have to forgo, by the number of months you’re planning to dedicate for your studies. By having an accurate idea about your opportunity costs right from the beginning, you will be able to weigh potential long-term gains against short-term sacrifices. 

5. Calculate your post MBA income and determine the ROI 

Evaluate the financial returns of your EMBA by estimating how your salary is likely to progress over the next decade. To gauge this, research salary benchmarks in your industry, network with professionals, and consult recruiters or career advisors to understand typical post-EMBA earning potential.

Once you have an estimate of your potential income, subtract the total cost of the programme (including tuition, fees, and additional expenses) and your opportunity costs. This calculation will give you an idea of your return on investment (ROI).

To determine the long-term value, simply multiply your estimated post-EMBA annual salary by 10 to represent a decade of earnings, then subtract the costs and sacrifices involved during your studies. This will help you determine if pursuing an EMBA aligns with your long-term financial and career goals. 

6. Be strategic 

There’s no set rule that you have to fund an EMBA straight out of your own pocket. One commonly used option by many is employer tuition assistance. However, securing company funding has become more challenging over the years. Increase your chances by presenting a detailed business case that demonstrates the value of your EMBA to your employer. Highlight how a company sponsorship for an EMBA could help you develop specific skills to support the company’s goals as you progress through the programme. 

7. Shop around 

Don’t let decreasing company sponsorship deter you from pursuing your EMBA. There are many cost-effective programmes available that meet the requirements of smaller budgets without compromising on quality. However, to find the best fit for your needs and your wallet, research is crucial. If you can’t secure employer funding, find the best programme for the budget you have. Don’t be put off by high price tags; remember that top priced programmes are not the only option available. 

8. Invest time in scholarship applications 

There are many merit-based scholarships and need-based scholarships for EMBA than many realise, it just takes some research. Start by checking with your business school, as they often offer EMBA grants, bursaries, and scholarships based on merit or financial need. Additionally, explore funding opportunities from external organisations, associations, and businesses that support students. 

Many business schools also offer flexible payment schedules, allowing fees to be paid in instalments. This can significantly ease the burden of upfront costs. Schools understand the challenges candidates face in financing an EMBA and are often willing to work with students to find manageable solutions. 

9. Find a good loan 

It may not be as easy as it once was to secure a loan for EMBA study but it’s still a good funding solution. Lenders have tightened their criteria, and terms can be less favourable, but there are still options like personal development loans or graduate student loans tailored for higher education. Some institutions offer loan forgiveness programmes for executives and deferred repayment loans tailored for students, enabling repayments to begin after graduation. 

Before committing, ensure you fully understand the loan terms, including the interest rate, repayment period, and eligibility criteria. Advertised rates often vary depending on your credit score and other factors. Consulting a financial adviser can help you compare options and find the most suitable loan for your EMBA needs. 

10. Save, save, save! 

The moment you seriously consider doing an EMBA, start putting money away. Setting aside a fixed amount each month can accumulate to a substantial sum within a couple of years. Although this may require fiscal discipline and a good deal of foresight and planning, it is also a tremendous ease to know you are able to finance a substantial amount of your EMBA studies without any other ‘strings attached’. 

Do your research into the costs associated with your EMBA, from course fees to travel, text books to socialising. That way you’ll have a better idea of the overall costs involved. 

FAQs 

1. What are the typical costs associated with an EMBA programme? 

The typical costs of an EMBA programme include tuition fees, travel, accommodation, textbooks, and other expenses like networking events or extracurricular activities. These can vary widely depending on the programme and location. 

2. What financing options are available for EMBA students? 

A few of the EMBA financing options available include scholarships, employer sponsorship, student loans, deferred payment plans, and personal savings. 

3. What does employer sponsorship typically cover? 

Employer sponsorship typically covers tuition fees, but it may also include travel costs, learning materials, and time off for study, depending on the agreement. 

4. How can I approach my employer for sponsorship? 

The best approach is to prepare a strong business case highlighting how the EMBA will benefit the company. Make sure to highlight on things like improved leadership skills or strategic insights. You can also schedule a formal discussion and emphasise the return on investment for your employer. 

5. Can part-time work help finance my EMBA? 

Yes, part-time work can help offset EMBA costs, especially in flexible programmes that allow you to balance work and study. But it will also heavily depend on the type of pay you can potentially earn while working part-time and the course fee you are planning to cover.