Masters in Finance vs. MBA

[MMMarbleheader]

Question for my Mustachian Friends:

I work for a large construction manager and I think my mustachian ways have come to light recently. I was asked if I had interest in perusing an advanced degree in finance/business. I don't mind the financial side of the business as it is better than managing a 10 hour concrete pour at 4am. Everyone here wants to be in the field so it might be an opportunity to move up quicker.

I surveyed the local options vs. having no out of pocket costs. I have narrowed it down to an online/part time MBA from Umass vs. an online/part time Masters in Finance from Northeastern. Both would be about the same cost and all reimbursed by work. The MBA would take longer but it is from a state school. I am an alumni from the second school so I get a discount for going back for grad school. Work is fine with either.

I am trying to balance current career advancement vs. overall knowledge gained as it related to FIRE. What draws me to the finance degree is that is seems very applicable to a life post FIRE and more interesting having an engineering background. The MBA on the other hand seems like a very corporatist/generalist degree with more soft skills classes. I am a bit torn on this. I don't want to get an MBA just to check a box and breeze through easy classes. Yet with the effort and time I will put into either, I don't want to get less return from the Masters of Finance should my FIRE plans not pan out the way I think they will now at age 30.  As of right now, I don't plan on leaving the construction industry. I like finance but as it relates to an engineering application, I don't think I could do a just finance job.

[Chris22]

"I don't want to get an MBA just to check a box"

Why not?  That's how I view mine.  Potential future employers know what an MBA is, they know what it means, and they know how to value them.  I don't believe the same is true for a Masters in Finance, I don't think anyone in industry values it outside of maybe academia or some specialized banking/investor advising roles. 

As far as a masters in finance for FIRE, you don't need it.  Remember the math is "shockingly simple."  A couple finance classes that will be required for your MBA will be far more than you ever need to passively manage your investments. 

My advice, get the free MBA, it will give you a lot more options in the future than the MS in Finance. 

[pbkmaine]

Agree with Chris22. Get the MBA.

[NorCal]

I have an MBA with an emphasis in finance.

I would recommend the MBA, unless you actually have ambitions to work in finance.  The deeper dives into finance are marginally helpful from a personal finance perspective, but nothing I would pay for.  You would get a deeper dive into the Efficient Market hypothesis, and know how to value options using the black-scholes model.  Mostly stuff you'll never use again.

[meatface]

I have an MBA and think the degree is a worthless hunk of crap. But some jobs require it, so get it if you need it.

Like the others, I would also recommend the MBA over the MS. You can "major/concentrate" in finance for your MBA if you so choose and then market yourself as a finance person. The good thing about the MBA over the MS is that it's less likely to pigeon hole you should you decide to get out of the finance side of business.

Also, since you'll be working while you get the degree, definitely take as many classes as possible that relate directly to your current job. It will help your understand the material better, keep you more interested, and hopefully improve your work performance and pay.

[fattest_foot]

I don't want to get an MBA just to check a box and breeze through easy classes.

There are only two reasons to get an MBA.

1. To check the box; you need it for a raise, different job, etc.

2. You get accepted to a tier 1 school and can utilize their networking to get a high paying six figure position.

Everything you can learn with an MBA can be self taught in a much shorter period of time, spending a significantly smaller amount of resources (time and money) on.

If you're just looking to get a piece of paper, go for it. Some people enjoy collecting degrees. But you're not going to come out of an MBA program as some sort of "master of business."

[Chris22]

Even if your company is paying for the degree, I would not consider attending any MBA program at a school that is not consistently rated top 20.

There are only two reasons to get an MBA.

1. To check the box; you need it for a raise, different job, etc.

Everything you can learn with an MBA can be self taught in a much shorter period of time, spending a significantly smaller amount of resources (time and money) on.

Based on the number of middle-management jobs I see (admittedly in finance) that say "CPA or MBA preferred", I don't regret getting my MBA for a second.  Since getting it (graduated in 2011) I have more than doubled my income.  And if you are going to break into engineering management, most companies are going to want to see some sort of business background/experience. 

I will agree that there is a huge difference between top 20 schools and everyone else, but most of that difference comes from access to jobs at places like top banks and consulting firms and the odd blue-chip F100.  I've done very well getting jobs at F100 and F500 companies with my part-time state-school MBA.  I wouldn't have invested a lot of money into it, but given that it was employer-paid it was a total no brainer. 

[pbkmaine]

I have a top 20 MBA but my husband got his online from a not-highly-ranked school. His was paid for entirely by his company and qualified him for an internal transfer that led to an executive job.

[StephenP]

Question for my Mustachian Friends:

I work for a large construction manager and I think my mustachian ways have come to light recently. I was asked if I had interest in perusing an advanced degree in finance/business. I don't mind the financial side of the business as it is better than managing a 10 hour concrete pour at 4am. Everyone here wants to be in the field so it might be an opportunity to move up quicker.

I surveyed the local options vs. having no out of pocket costs. I have narrowed it down to an online/part time MBA from Umass vs. an online/part time Masters in Finance from Northeastern. Both would be about the same cost and all reimbursed by work. The MBA would take longer but it is from a state school. I am an alumni from the second school so I get a discount for going back for grad school. Work is fine with either.

I am trying to balance current career advancement vs. overall knowledge gained as it related to FIRE. What draws me to the finance degree is that is seems very applicable to a life post FIRE and more interesting having an engineering background. The MBA on the other hand seems like a very corporatist/generalist degree with more soft skills classes. I am a bit torn on this. I don't want to get an MBA just to check a box and breeze through easy classes. Yet with the effort and time I will put into either, I don't want to get less return from the Masters of Finance should my FIRE plans not pan out the way I think they will now at age 30.  As of right now, I don't plan on leaving the construction industry. I like finance but as it relates to an engineering application, I don't think I could do a just finance job.

Do the math on years of experience vs. improved qualifications for the locations you'd be willing to move to. Some MBAs have nil value compared to an additional 3 years of experience, especially in non-alpha urban markets. A masters in finance would give you a different set of opportunities, but once again that would depend on where you see yourself in the next few years. Planning sucks, but it'll save you a lot of time and money if you drop a pin where you want to be and work your way backwards.

[Optimiser]

I have an MBA and think the degree is a worthless hunk of crap. But some jobs require it, so get it if you need it.

I have an MBA and tend to agree. For me it was a quicker path to getting a job in accounting then getting a second BS. I found the course work to be relatively easy, and I didn't really learn anything I couldn't have learned on my own. This was at a state school, btw. I like putting the letters after my name though, and hopefully I can add CPA to list soon too.

[khangaroo]

I have the same background as you so I'd thought I would share my perspective. I'm a construction project engineer for a large GC and decided to get my MBA because I got moved into the main office to be a "cost" engineer for our construction projects - the schedule allowed for it because I didn't have to be at a 5:30 AM superintendents meeting and then putting out fires until 7 PM any longer.

I'm currently 2 weeks away from being done with the first year of my part time MBA (company-paid) at a local state school (Portland State University - a top 25 for PT MBA programs). I would HIGHLY recommend an MBA instead of the MF because of what you stated about how you wanted to stay in the industry; the MF is only if you want to go into the finance world.

I talked to some of the current PT students and alumni before I started and all of them mentioned about how fast the classes became applicable in their jobs. I was skeptical at first but after my first year, I have been able to discuss with upper management on things I've learned like weighted cost of capital, balance sheets and income statements, and strategies of the firm. It has also made me a better manager because you get to meet all sorts of people and pick their brains along with learning about management principles.

Like everything else in life, you get out of it what you put in. If you're just looking to get those 3 letters then you can just cruise on through. But if you take the time to engage with your classmates, truly examine the case studies, and open up to discuss your professional experiences, you'll find that the MBA can be very rewarding.

I really enjoy working in the construction industry but I don't know if I'll be here for my entire career and I truly believe the MBA will open a lot of doors for me. Especially that we have an engineering background, it is a coveted professional career progression. If you have any specific questions, feel free to shoot me a PM. Best of luck!

[Indexer]

I work in finance. I don't know anyone who has put a masters in finance to work in the corporate world. I had professors in college who had it though so it is useful in academia.

In business an MBA is worth more.

Specifically in a finance role a CFP or CFA is worth more depending on the role.

Management= MBA.
Investment Analyst/institutional money management(running a fund)=CFA.
Investment advisor/Financial Planning=CFP.
Accounting= CPA.


"What draws me to the finance degree is that is seems very applicable to a life post FIRE..."  Not as much as you would think. You would probably get more from undergraduate finance courses that teach TMV(time value of money). A masters in finance will spend more time on corporate finance than you might think. If you care a lot about the personal financial planning you are looking at a CFP. Note, studying the classes for a CFP is something you can do now, obtaining the designation requires work experience.

[Goldielocks]

What was your major at Northeastern? GMAT score?

Recruiters treat online/part-time MBA program students like second class citizens. MSF program students are second class citizens.

Even if your company is paying for the degree, I would not consider attending any MBA program at a school that is not consistently rated top 20.

I strongly urge you to reconsider pursuing your MBA/MSF unless you truly want to break into investment banking or consulting.

I have an utterly different point of view, and am compelled to write a rebuttal.  I am an engineer, and got my MBA via a distance education (with a few in person case study classes) about 15 years ago.

The top 20 schools are outrageously expensive, and not worth it unless you have your eye on a high salary / lots of work hours / high stress type position for at least 5 years after graduating.

A solid state MBA school will be for your interest.  I took it to learn about marketing, finance, HR, organizational structure, power plays, etc.  I also had an entrepreneurship class that was great.   After taking it, I was able to frame my suggestions for change within the company in a much more well-rounded fashion, not just about the numbers, and became more effective.   

Some people only saw the MBA and assumed I  must know what I am talking about (I don't know why but that happens).   When looking for a new job in a different industry, having the MBA was like having a ticket stating that I had relevant experience in that industry, people know what an MBA is and have seen them in their area of expertise, so assume you will have skills they need.   

Because your employer is paying, if you have interest in this, there is nothing to lose.   (Just don't do it with a baby and toddler at home, your spouse will never see you).

A Masters of Finance -- that is valuable if you have your eye on the construction business side, of looking at risk and cost estimates and pricing, and / or you want to become a CFO as opposed to a COO or CEO type.  Otherwise the MBA is more versatile.

There are many benefits to a master degree, for self-growth and skills development that lead to new and often better paying employment. 

Good Luck!

[CptCool]

Definitely get the MBA. A lot of employers want that box to be checked. I've never seen a job listing that requires or prefers people with a masters in finance.

If you're worried about whether one would be "easier" than the other - don't be. You can easily learn anything you want to outside of the classroom. You can also "audit" classes at most schools for free, which means you can attend, but don't get graded for the classes. The learning portion is easy to do on your own - you only get a degree so HR can check the box that the degree requirement was fulfilled in the hiring process.