Up next on MaltaCEOs.mt’s Work and Wealth Watch series where Money Coach Luca Caruana gives his expert responses to all your questions related to money, work and wealth. Want to see your own questions answered on MaltaCEOs.mt? Send your questions on info@moneycoachinghub.com

Dear Luca,

I find myself at a crossroads in my career and am seeking your perspective. As a 35-year-old with a Master’s in Education, I’ve been considering pursuing an MBA. My rationale is based on observing colleagues who’ve advanced their careers significantly after acquiring an MBA. However, I’m torn between this potential educational pursuit and starting to build my financial safety net, which includes an emergency fund and investing for retirement.

The cost of the MBA programme I am aiming for is substantial, estimated around €30,000. I’m apprehensive about taking on this debt, especially since I’ve recently completed my first master’s degree, to which I am still paying a loan (though waiting for some government funds which will reduce the amount remaining to be paid substantially). The thought of a promotion and career advancement is appealing, yet I can’t shake off the worry of what if the investment doesn’t yield the expected return – namely, no promotion or significant salary increase.

Financially, I’m in a position where I need to start thinking seriously about long-term financial security. I understand the importance of investing early, particularly when it comes to retirement planning. This makes the decision even harder, as I weigh the potential benefits of further education against the immediate start of building a solid financial foundation.

At 35, I feel the pressure to make a move that will quickly propel my career forward, but I’m also aware that I have many working years ahead of me. Is now the right time to take on this financial burden, or should I focus on securing my financial future through investments?

I would greatly appreciate your insights or strategies on how to navigate this complex decision.

Best regards,

Torn Between Two Paths


Luca Responds:

Dear Torn Between Two Paths,

Your situation is indeed a challenging one, balancing the pursuit of career advancement with financial prudence. The decision to embark on a second master’s degree, particularly an MBA, while already having substantial educational credentials, needs careful consideration.

Firstly, let’s address the financial aspect. Taking on a €30,000 loan is not a decision to be made lightly, especially when you’re at a stage where starting to build an emergency fund and investing for retirement is crucial. The early years of investing can significantly impact your financial stability in the future due to the power of compounding. Delaying this can have long-term consequences.

Regarding the MBA, while it’s true that such qualifications can open doors to career advancement, they’re not a guaranteed path to promotion. It’s important to weigh the potential return on this investment against the immediate and guaranteed benefits of beginning to save and invest. Given that you’ve just completed a master’s degree, a period of reflection and application of what you’ve already learned might be more beneficial than immediately pursuing further education.

You mentioned that you’re 35 and feel the urgency for quick career progression. While this is understandable, it’s also essential to consider the long-term perspective. You have many working years ahead, and sometimes a more gradual approach can yield better results, both professionally and financially.

My suggestion would be to take a year to focus on building a solid financial base. It will instil in you the habit of saving and investing, which are essential to have that future nest egg. This time can also be used to reflect on your current career status and the actual value an MBA might add. This approach doesn’t close the door on further education; it simply places it in a broader, more strategic life plan.

Education is a valuable asset, but it’s important to balance it with financial stability and long-term planning. Weigh the immediate benefits of investing and building a financial safety net against the potential, but uncertain, rewards of an additional degree. Whatever decision you make, ensure it aligns with both your career aspirations and your financial health.

Best of luck with your decision.

Luca,

The Money Coach, from the Money Coaching Hub

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