How do you prepare yourself for an MBA programme? How easy is it to move from work life back onto the school desk, miss out on bonuses and even a regular salary? Bloomberg Business Week has launched an interesting new series to help MBA candidates ease into their new life. Part one is all about budgeting and avoiding debt.
Here are Business Week’s top tips for the new starters:
1. Adjust your spending habits up to a year before returning to school. Reduce on eating out, buying expensive clothes, gadgets and holidays and stop using credit cards.
2. Start saving at least one year before starting the two years in B-school without a salary.
3. Make a plan of how much money you will need for business school and your life in general.
- Food and other everyday expenses (telephone, insurances...)
- Income tax on the previous job in the first year of school and any part-time job thereafter
- Travel expenses for necessary private trips as well as the school’s global experiences
4. Apply for government loans whether you think you will need them or not.
5. If the government subsidies are not enough, look for a fixed-rate loan and not a floating-rate loan. Always manage your debt! International students should seek loans with banks in their home countries.
6. Always calculate considerably more than you think you will spend, just in case something unforeseen happens.
Business Week also has some valuable information on housing and getting your family settled, should you wish to bring them along. Read more on those topics on: