Is an MBA Worth It in 2024-2025? A Comprehensive Guide

As another MBA application season ramps up, we find ourselves pondering an important question: Is an MBA even worth it in 2024-2025? This is a challenging question to answer, but let’s dive into it together. Right now, there are two very different narratives in the world—one incredibly optimistic and one far more pessimistic.

On one hand, the American economy and the global economy continue to grow somewhat stubbornly. It feels like the Fed and other central banks keep trying to cool the economy down by raising interest rates, yet the economy keeps on roaring. Unemployment is quite low for college grads, and many expect waves of investment and innovation driven by the revolution in A.I. So, we have a stronger economy, low unemployment, and the potential for productivity boosts.

The optimist would argue that now is the wrong time to go to business school because job security is at an all-time high. However, as you consider whether now is the right time to apply, you must also look to the future. If you’re potentially applying in September 2024, what does the economy look like in August 2025 when you would theoretically matriculate? Will interest rates finally slow down the economy? Will car manufacturers and landlords feel the pinch? Will global uncertainty, with volatility in the Middle East and Eastern Europe, lead to higher oil prices or other forms of uncertainty?

Of course, it’s impossible to know what’s going to happen. But history shows us that application volumes tend to surge as economies slow down. We’ve seen this during the pandemic, the financial crisis, and the tech bust—three major economic crises that have occurred over the last 20 years. During these times, it suddenly became a lot harder to get into business school as applicants sought shelter in business school, hoping to ride out the tougher economic times.

So, if you’re concerned about where the economy is heading, maybe now is the time to apply to get ahead of the curve and beat the rush. If you think the economy is stronger than ever, then there’s no rush. But there’s another argument altogether: the MBA is not a short-term investment at all; it requires long-term thinking.

If you ask an MBA 20 years after graduation what the enduring value of their degree was, most will tell you that they still benefit from their leadership and organizational behavior classes. They’ll talk about how their education better enabled them to understand how to listen and motivate people. They will say their MBA allowed them to align their team, division, group, or organization behind a goal and ensure that their teams move forward towards it quickly.

Years of working with MBAs have shown us that they believe it all pays off in the long term. If that’s the case, you don’t need to be a short-term optimist or pessimist; you just need to be a long-term planner. If you’re managing your career for the long haul, 2024 is as good a time as any to get your MBA.

Now, you’re going to have to make your own choice as to whether you want to apply or not. One other factor in this evaluative process isn’t just timing; it’s how competitive you are as an applicant. This is where tools like GMAT Sprint can come in handy. It’s a fantastic platform to track your GMAT progress, helping you understand where you stand and what you need to improve.

As you prepare for your applications, consider the skills and experiences you bring to the table. Reflect on your career goals and how an MBA aligns with them. Are you looking to pivot into a new industry? Do you want to climb the corporate ladder? Or perhaps you’re an entrepreneur looking to sharpen your business acumen? Whatever your reasons, make sure they are clear and compelling.

In addition to your motivations, think about the schools you’re interested in. Each program has its unique strengths, culture, and focus areas. Research thoroughly to find the best fit for you. Attend information sessions, reach out to current students or alumni, and immerse yourself in the school’s community. This will not only help you in your application but also give you a clearer picture of what to expect if you’re accepted.

As you navigate this process, remember that the MBA journey is not just about the degree itself; it’s about the connections you make, the experiences you gain, and the personal growth you undergo. The friendships and networks you build during your time in business school can be invaluable throughout your career.

Moreover, consider the financial aspect of pursuing an MBA. While it’s an investment, it’s essential to weigh the costs against the potential return on investment. Research scholarships, financial aid options, and employer sponsorship programs. Many companies are willing to invest in their employees’ education, especially if it aligns with their business goals.

As you prepare your application, pay close attention to your essays and recommendations. These components are your chance to showcase your personality, values, and aspirations. Be authentic and let your passion shine through. Admissions committees are looking for candidates who not only excel academically but also bring unique perspectives and experiences to the table.

Finally, don’t forget to prepare for the GMAT. This standardized test is a critical component of your application, and a strong score can significantly enhance your chances of admission. Utilize resources like GMAT Sprint to track your progress and identify areas for improvement. With the right preparation, you can approach the test with confidence.

In conclusion, whether or not an MBA is worth it in 2024-2025 ultimately depends on your individual circumstances, goals, and aspirations. The landscape is ever-changing, and while there are both optimistic and pessimistic views, the key is to focus on your long-term career trajectory. If you’re ready to invest in your future and take the plunge, now might just be the perfect time to apply.

Best of luck with your applications, and remember to stay tuned for our next video on “Am I a Competitive Applicant?”—a four-part series designed to help you assess your readiness for business school.