Ways To Make Paying For An MBA Easier

The best investments aren’t in magical companies or assets… it’s actually in yourself. Investing in yourself is probably one of the most profitable investments you can make in your life.

While there are several ways to achieve that, the most evident one is developing your knowledge and skills by investing in higher education, like pursuing an MBA to help you advance in your career. Investing in yourself plays a significant role in determining the quality of your life in the future.

The question is – can you afford to pursue an MBA? The best way to get an MBA is, of course, getting it through a scholarship. One of the scholarships available for Master’s students is the Hong Leong Foundation Master’s Scholarship. Find out more about scholarships for postgraduate programmes.

However, scholarships shouldn’t be your only option. There are many ways you can fund your MBA with your own money.

It is a common misconception that pursuing a Master’s degree will cost a bomb – but it is it is possible to afford one. Plus, the benefits, not just financially, will outweigh the cost in a long run.

How much is an MBA?

Depending on the institution you will be getting it from, it is safe to say that an MBA will cost at least RM20,000 in Malaysia. However, there are different types of institution that offer MBA, the costs will differ.

The most important thing to planning for your funding is to understand how the payment schedule is like, and how flexible it is.

If you are thinking of getting your MBA on a part-time basis, you will be required to pay for miscellaneous fees such as registration fee, facilities fee and security deposit. However, SEGi University offers the flexibility of instalment programme at 0% interest, where the fees can be stretched over the time of study – typically 18 to 24 months.

For MBA programmes from international universities, such as the MBA from University of Southern Queensland, Australia, that is being offered by SEGi University, students will be required to pay for the exam fees in foreign currency. That usually amount to A$600 per paper.

However, for those who appreciates more flexibility, they also have the option of going online. For example, taking the MBA (Global Business) course online only cost about RM22,300, which is paid according to the subject(s) enrolled.

Each module costs from RM1,650. This will allow the students to manage their course according to their finances.

With the flexibility available, it’s absolutely feasible to afford your MBA. If you need the extra financial boost, here’s how you can come up with about RM40,000 to cover your MBA fees:

1. Invest in unit trust funds

Your goal is to have at least RM40,000 in cash to pay for fees.

However, as with any savings and investment, it will require time to compound to the amount that you need.

For example, if you are starting with RM5,000 and you would like to invest in unit trust, here’s how much you could potentially save in five years:

Initial investment	RM5,000
Regular monthly investment	RM370
Investment period	5 years
Rate of returns*	12.81%
Total potential returns	RM40,667
Total contributions	RM27,200

* Based on 3-year annualised bid-to-bid returns for Kenanga Growth Fund, taken on Nov. 11, 2016

2. EPF education withdrawal

If you have been working for a while and have saved up a sizeable Employees Provident Fund (EPF) fund, you can consider accessing a portion of this fund to further your education. Though you will be using your retirement fund before your retirement, pursuing an MBA could easily increase your income in the future to make up for the difference.

The EPF allows its members to utilise their EPF savings in Account 2 to finance a full-time, part-time or even distance learning MBA in a public or private institution, both locally and abroad.

If you are pursuing your MBA in a private college, you are only allowed to make one withdrawal every academic year. Your maximum withdrawal limit is your tuition fees amount or all of your savings under Account 2, whichever is lower.

There are many financial options available for you to get an MBA today. If you are worried that taking up an MBA full-time will put too much strain on your finances, you can always consider universities that offer you the flexibility of working while taking up the course.

This way you won’t need to take up additional financing burden, and still have your income intact. One such university is SEGi, where MBA students will have the flexibility of choosing the study mode which best suits them, be it weekend or evening classes, supported and/or independent learning. They even have the flexibility to view the information presented in lectures remotely.

These online programmes only require you to be present for the exams at the end of each semester. This gives you the flexibility to work as usual and fund your education so nothing is put on hold, hence you will not need to pay any financing fees as well.

Other options that can possible make it easier to afford your MBA is such as flexible payment, where you pay as you go, by the number of subjects in a semester, like what is being offered with the online course above.

Investing in yourself will bring a significant difference to your life, well-being and ability to keep moving forward. Besides, investing in yourself is the best way to see an immediate return on your investment.

There really is no risk in investing in yourself, and it will eventually pay off in abundance in the long run. Your future lies in your willingness to invest in yourself the right way today.

Don’t procrastinate. It’s time to invest yourself now for bigger rewards in the future.

Get started!

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