FINANCING YOUR MBA
The cost of undertaking an MBA program in Australia can vary between each institution. Not only are the fees different for each course, but you also have to consider the costs of studying and living while you undertake your MBA.
For example, let us assume that you are a young executive currently earning $60,000 per year. You have decided that to make the next step into senior management you should undertake a full-time MBA at one of the prestigious business schools in either Sydney or Melbourne. The expenses will include:
1. Tuition fees, around $40,000.
2. You will need to purchase textbooks for each subject of the MBA. Assuming 20 subjects at $80 per subject, $1,600.
3. You will probably have to photocopy papers from journals to undertake assignments: let us say $200 over a two-year course.
4. You will definitely need access to a personal computer: say around $2,500 including printer.
5. Living expenses will probably be around $550 per week, including accommodation, food and social activities for 2 years, around $36,000.
Thus the total cost for the full-time MBA in Sydney or Melbourne at one of the prestigious business schools is around $80,000.
The above figure is an estimate only, and the total cost would be reduced if the MBA was studied at a University with lower fees. However, we must not forget the opportunity cost of the salary foregone, two years at $60,000-$120,000 which brings the hypothetical MBA to around $200,000!
While the above scenario is on the expensive side, please bear in mind the following points:
For most MBA students, the MBA cost is considerably cheaper.
That the return of the MBA must be greater than the financial investment, otherwise business schools would be empty.
That many MBA students undertake the MBA part-time or by distance learning, thus continuing to earn their salary.
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