Why the Smartest Women Don't Get MBA's
Getting out of the rat race and onto the path to success
It's no secret that women in the marketplace are playing catch up. Income disparity is a real thing, and many women who are as capable and experienced as their male counterparts make significantly less-like 21% less.
While this is unacceptable, it's also not likely to change soon. So, what's a woman to do?
Many women think that more education is the answer. The logic goes that if you can get an MBA from a reputable school, you'll finally get the professional recognition you deserve.
But is this true? Does an MBA really pay off for women?
The answer, sadly, is no.
According to a recent report by Bloomberg Business, "…women with MBAs earn a median of $35,000 less than men eight years after graduating from business school." And add salt to the wound, this puts women at a huge disadvantage as it takes much longer to pay off the student loan debt they take on to attain these higher degrees. As Bloomberg reports, "Seven years after graduating, 28 percent of women still owe $50,000, compared with 21 percent of men."
So, given these numbers, why would a woman decide that getting an MBA is a good idea? The answer, of course, is she most likely doesn't know any better or any better way.
From a young age, we are told by our parents, teachers, and experts to go to a good school, get good grades, and land a good job. Unfortunately all this "good" advice is really bad advice.
The good news is there is plenty a woman can do to advance financially. It just takes a little out of the box thinking.
Invest in financial education
An MBA prepares you for one thing, how to succeed in corporate America. The benefit all too often, however, is for the corporations, not for you.
Rather than invest all that time and money into learning how to climb a corporate ladder (and meet a glass ceiling), invest in learning more about money and how it works. Whether your interest is in investing or business, you can easily find a wealth of free information that can take your financial knowledge to the next level.
All it costs is your time and a bit of effort.
Take on good debt
Many people consider education to be good debt, but the numbers don't play out. After all, a simple definition of good debt is debt that puts money in your pocket. Bad debt takes money out. It makes no sense to invest two years and hundreds of thousands in debt to get an MBA when seven years later, you're still shelling out loan payments and struggling to get ahead.
Instead, take all the financial knowledge you've gained and put it to work. Find ways to use other people's money (OPM) to make investments that provide cash flow or to start your own business where the sky is really the limit.
If you're willing to take on hundreds of thousands in debt to get an MBA, this should be no problem for you-and it will pay off more in the end.
Opt out of the rat race
Many women find their self-worth in achieving society's conception of success. At Rich Dad, we call this the rat race, and you have the power to opt out.
Most likely, if you don't try to climb the corporate ladder and forego the advice to go to a good school, get good grades, and get a good job, you will be judged. Sometimes this will come from the most painful place-your family and friends, those who love you and should support you the most.
Rather than get discouraged, know that the best thing you can do is persevere and show them that there is another path to success in life, a true path rather than one that constantly holds a carrot out in front of you like the rat race does.
As the old saying goes, "Be the change you want to see."
Hire smart MBA's
Rather than get an MBA and run the rat race of corporate America, learn how to start your own business and then hire great MBA's. You'll get all the knowledge they've learned working for you, and you'll also get them making money for you.
One of the secrets of the rich is they are rarely the smartest people in the room. Rather, they build teams of smart people who aren't willing to take the risk to build a business or invest. The ironic thing is that by being an employee, they actually take on the most risk.