Should I Go To Grad School? Get Rich Or Die Trying!

I’ve decided to dedicate much of the rest of this month focusing on graduate schools, specifically the much loved and vilified graduate degree, the MBA.  The deadline for round 1 applications is fast approaching, and I’ve come up with a $1,000 giveaway that any aspiring MBA applicant, PhD applicant, or grad school applicant for that matter may be interested in receiving.  Hence, feel free to spread the word and stay tuned!  For now, let’s start off with a layup as to why getting your graduate degree is a good idea, if you want to make more money.

Many personal finance publishers use Net Worth IQ as a way to track their financial progress.  NW IQ managed to gather a bunch of good data to digest and analyze.  A lot of it is just common sense such as the older you are, the greater your net worth tends to be.

This is the chart that stood out most:

EducationProfile Count% of Pop.Median Net Worth
Less than high school graduate210.67 %$26,440
High school graduate792.53 %$40,570
High school graduate with some college32210.32 %$25,189
Associate degree1173.75 %$46,464
Bachelors degree146046.78 %$73,461
Masters, professional, doctoral degree90128.87 %$193,761
Total Reporting Users: 2900

Someone with a graduate degree averages a net worth 160% greater than someone with a bachelors degree and 700% greater than someone with  a high school diploma.  The data is based on info provided by 2,900 users which is a big enough sample set.

5 Theories Why Those With Graduate Degrees Have Higher Net Worths

1) People are older when they enter or re-enter the work force

2) Graduate degrees command higher salaries

3) People  tend to work longer because they invested a greater amount of time and money in their education.  Doctors, for example, study until they are 28-30, and can work well into their 70’s.

4) People may have more money already, since graduate school is expensive.

5) People are motivated to succeed because they are sacrificing more, and need to prove to themselves they made the right decision.

There’s been a lot of debate over whether a graduate degree is worth it, and this data tilts the data towards yes.  You guys know we don’t like to rely on net worth, as it gives a false sense of security.  But, since net worth by definition is net of all liabilities, we can presume the cost of higher education, and student debt specifically, is included.


The Older You Are, The Wealthier You Tend To Be (Except If You’re Between 60-64!)

AgeProfile Count% of Pop.Median Net Worth
Under 2549915.99 %$9,660
25-2991629.35 %$37,229
30-3464820.76 %$136,629
35-3945514.58 %$298,500
40-442387.63 %$491,100
45-491143.65 %$690,090
50-54591.89 %$702,552
55-59351.12 %$1,123,000
60-64120.38 %$507,000
65-6930.10 %$2,294,492
70-7400.00 %$0
75 and over20.06 %$2,734,001
Total Reporting Users: 2981

The Higher Your Income, The Higher Your Net Worth

IncomeProfile Count% of Pop.Median Net Worth
0 – 9,999922.95 %$1,830
10,000 – 19,999652.08 %$839
20,000 – 29,9991314.20 %$1,808
30,000 – 39,9991865.96 %$3,582
40,000 – 49,9992688.59 %$22,211
50,000 – 59,9992839.07 %$32,461
60,000 – 69,9992829.04 %$50,177
70,000 – 79,9992608.33 %$96,520
80,000 – 89,9991805.77 %$113,100
90,000 – 99,9992026.47 %$176,548
100,000 – 149,99954217.37 %$267,042
150,000 – 199,9991906.09 %$513,000
200,000 – 249,999993.17 %$549,446
250,000 +1294.13 %$1,035,000
Total Reporting Users: 2909

The last two charts aren’t a surprise at all.  The net worth differential among various levels of education is.  Now obviously there are plenty of wealthy people who don’t have graduate or even bachelor degrees (Bill Gates). However, if you’re someone who’s trying to decide between attending or not, perhaps this data may help you in your decision making.


I’ll be the first to tell you that getting a graduate degree was a royal pain in my a$$, especially going part-time.  Can you imagine working 60-70 hours a week, and then going to class from 9am-6pm every Saturday for 3 years?!  What’s worse was the last minute studying on Friday night when the only thing I wanted to do was pass out on the couch watching my favorite movies.  The good thing about a difficult experience is that it’s over, and what’s left of you is a stronger individual who can better endure future hardship.  Every weekend now feels like a vacation and I’m glad I got my degree.

To quantify the MBA is somewhat difficult, but I’d like to think it’s helped me avoid the chopping block during these past two downturns, and get me promoted once during school, and once right after I graduated.  The degree gives me the credibility to manage a business out west, and I’d be happy to do it all over again.

Refinance Your Student Loan With SoFi

SoFi is a fantastic social lending company that provides rates as low as 1.9% variable with auto pay and 3.5% fixed with auto pay. The reason why they can offer lower rates than the rest is because they analyze you based on merit, quality of employment, and education besides just a credit score and financials. There is zero origination and prepayment fees. Offer terms are from 5, 10, 15, 20 years in both fixed and variable. Both private and public student loans can be refinanced.

Besides low rates, one of their best features is their unemployment benefits. If you lose your job while repaying your loans, you don’t have to pay your loan for up to 12 months while you look for a new job! Interest will still accrue, but having this cash flow break is a huge benefit. They also provide job assistance guidance as well. You can apply to refinance or apply for a new student loan here.

Want To Make Extra Money Easily?

I’ve recently tried out driving for Uber in 2015 because they are giving up to a $300 bonus after you make your 20th ride. After 125 hours, my gross pay is $36/hour, which is not too bad! I can see how people can easily make an extra $2,000 a month after commission and expenses with Uber or any ridesourcing company. I’d definitely sign up and drive until at least the bonus . Every time I plan to drive somewhere, like my main contracting gig down in San Mateo, I’ll just turn on the Uber app to try and catch a fare towards the direction I’m going. Why not make extra money? You can easily make $40,000 a year after commission and expenses working 40 hours a week in my experience.

$36/hour is a huge pay cut for me and it’s a humbling experience as well. But discovering the whole ridesourcing experience first hand is fascinating! I’ve got so many stories to share in the future about my experiences picking up random people.

Learn How To Negotiate A Severance Package

Sam started Financial Samurai in 2009 during the depths of the financial crisis as a way to make sense of chaos. After 13 years working on Wall Street, Sam decided to retire in 2012 to utilize everything he learned in business school to focus on online entrepreneurship. Sam focuses on helping readers build more income in real estate, investing, entrepreneurship, and alternative investments in order to achieve financial independence sooner, rather than later.

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  1. says

    Very interesting analysis, Samurai. Thanks.

    Bottom line is, I need to pursue a doctorate it seems. Not really financially viable, even if it makes Money Sense!

  2. Larry L, New York says

    Hmm thought about getting a MBA myself, not sure in my case with owning a business does it make financial sense.

    Also how much would I learn from what I already know. Some of has been from the school of hard knocks.

    On thing you didn’t bring up with the recent increased costs for ANY college education and how it’s increased much faster than CPI. How long will it take to re-coop the cost? In some situations the case can be made to buy a franchisee instead.

  3. says

    An MBA feels like the next undergraduate degree.

    It’s like EVERYONE has to get it, or has it, or is working towards it.

    I still stand by the fact that you have to make the analysis of whether or not it will have any impact on your industry.

    For me, no. In IT, no one cares about your degrees unless you are doing systems work for engineers and you have an engineering degree.

    Or financial systems work, and you are a certified accountant.

    But those degrees are STILL unnecessary in terms of IT, because the company already has that expertise in house to guide you along.

    Still, I think the MBA is useful if you can score it for free. Heck, if someone wanted to pay for my MBA AND give me a salary while I go to school? I can jump on board for one.

  4. Neal @ says


    First, really well done. Here’s a question that I’d love to see you address – if possible.

    Take 2 business owners. One has an undergrad degree and the other has an MBA. Which is more successful or is it irrelevant?

    The reason I bring it up is because I believe the best ticket to a great life in this country is to be self-employed. I also think the undergrad degree is important but not sure about the MBA. I have a CFP which isn’t an MBA but took work to get. It helped me because it was specific. The knowledge wasn’t that new but the credential was very helpful.

    I think the MBA serves as a good educational foundation but a great credential. Credentials are probably less important in most small business but I could be wrong.

    Your thoughts?

    • says

      Hi Neal! A pleasure to have you come visit my humble site. It’s hard to answer your question without knowing the various aspects of the two business owners: dedication, passionate, street smarts, connections, capital position etc.

      I’d love to be self-employed. It is my dream and one that I’m slowly working towards as well. The wheels are set in motion with this site, and I do believe I will get there one day. I do enjoy my current occupation now, but after 10 more years (20 years in total), I’m sure I’ll long to do something else full time.

      I think HUSTLE is more important than credentials in most small businesses for sure. In a big corporate environment, hustle and credentials will help.

      Everybody has their own path to take. Like FB said, it “feels like the MBA is the next undergrad” b/c there is this unstoppable inertia about more and more people seeking out graduate degrees. If all your managers have MBA’s, I’m pretty certain whether they admit it or not, they’ll want you to have one as well.

      Thanks for sharing your thoughts! Best, FS

  5. says

    @Larry L, New York In your case, it probably doesn’t make sense at all, especially going full-time. Part-time MBA perhaps, but definitely not full time.

    The cost of education is ridiculous, and the growth doesn’t seem to abate. I kinda do bring up the cost and ROI aspect in the beginning:

    “There’s been a lot of debate over whether a graduate degree is worth it, and this data tilts the data towards yes. You guys know we don’t like to rely on net worth, as it gives a false sense of security. But, since net worth by definition is net of all liabilities, we can presume the cost of higher education, and student debt specifically, is included.”

    Cheers, FS

  6. says

    @Lee Actually, I think getting a doctorate degree may go a little too far, given how much time it takes, and the expense. Unless you want to be a medical Doctor, it’s kind of tough. A lot of my PhD friends tell me they would rather have started working earlier on not spent the extra time. But, they could just be acting modest. FS

  7. says

    @FB @ True, going full time is a pretty darn big commitment. I definitely was very hesitant, and hence ended up going part-time for 3 years instead. The company paid for most of it, but it’s not a cake walk to juggle the hours and studies at the same time.

    However, when you believe you could be at risk given the economy, and joining the firm last, you can do anything! It wasn’t all that painful though. I did go to Rio de Janiero and Sao Paulo for 2 weeks studying abroad, and had a great time meeting new people locally as well. It’s definitely not for everyone thought! FS

  8. charlie says

    I’ve been working for close to 8 years after just getting an undergrad degree. I’ve been able to get promoted several times and could still see myself getting promoted again in a year or two with my current degree so it’s made me think about putting grad school aside. I am starting to realize however that I need to increase my knowledge of things like accounting to feel more comfortable in a larger role so I know I should go about that one way or another. Right now I don’t wan to fork over 100k+ in tuition so I’m going to try and self teach as much as I can for the specifics to my job. I’m sure if I were to hop firms that an MBA would be a great leg up though.

  9. says

    There are less honorable careers than becoming a doctor. I think 26 is a bit old to be starting down that path, though. It’s the kind of career you begin planning for in High School. A PhD would be nice, but I can’t think of any applicable career for me that wouldn’t bore me to tears.

    I will just have to poke up with the career path I’ve chosen. It’s an honorable one, at least.

  10. BG says

    FS: please note that income is a great indicator for networth, hence why I argue so fervently against a flat-income tax. The sample counts are way, way too low for age to be used (only 2 people over 75) — the vast majority of people over 75 are living on medicaid and are dead-broke: go visit any nursing home.

  11. BG says

    Let me double post: on that last chart, if you put another column on there that had “percent of networth if 15% flat-income tax”, you will drastically see how regressive the flat-income tax idea would be, the numbers are:

    82%, 357%, 249%, 167%, 33%, 28%, 12%, 12%, 8%, 8%, 6%, 7%, 4%

    lower income people would be taxed at a much greater rate under a flat-income tax…

  12. Gen Y Investor says

    This is something I’ve been debating recently. At first thought the MBA sounds like a good idea but after factoring costs of going to a good program and the time commitment it’s not so simple. When I look at a lot of successful people in my line of work there are a lot of people who do just fine w/o advanced degrees. I think there comes a point where your hard work, social skills and drive can be enough to propel you to the next level. Just my opinion though.

    • says

      Gen Y – The older you are, the less likely you need an MBA I’ve found b/c they are already successful. The problem is that since so many young gunners are getting their degrees, game theory says that if you are also a young gunner, and do not get one, then you are at a disadvantage.

      Knowing someone important to get your foot in the door, or provide for a fast track promotion is even more valuable though. Hence, people should do whatever they can to buy connected people lunches or dinners. It’s much cheaper than $80,000 in tuition!

      Look into part-time programs so you don’t miss a beat. FS

  13. says

    i would suggest people only go to [graduate] school to learn more about a field they love, rather than the hopes of making lots of money from it. no one really cares where you went to school, it’s the hard work and experience you gain after school that gets you $$$, not the piece of paper.

  14. says

    Canz – I like your opinion bc it sets up for my next post, which may end up offending everybody outside of the most well ranked schools! I take a quote from a senior editor of a major magazine, to start the debate. FS

  15. says

    How I wish I could have a chance to work there in US for me to know if this median networth works for me too.

    I think I should pursue an MBA degree. A lot of top executives have at least MBA degress. I don’t know if it’s a prerequisite but with the looks of it, I think somehow it is.

    • says

      Hi Tyrone – Is it hard to get an employee visa coming from The Philippines? I have a Filipina colleague here in the US, and all she’s thinking about doing is going back to Manila to work. Is it possible that the grass is greener on the other side?

      There must be an MBA program in The Philippines too no?

  16. Shakela says

    I don’t know much about the MBA. (Though I’ve been told by both parents and my roommate in the last week that I should get one :) ). However, I am working on my master’s in mental health counseling. (License in 3 years yay!!!!) Seems like it doesn’t follow in that field at least if you’re salaried for it to be “worth it”. A bachelor’s level case manager makes usually low 30’s a year. A master’s level therapist makes probably low 40’s. Not sure it’s worth the 40K+ for grad school. However… if you go into private practice there’s a LOT more room for growth. And there’s a definite ceiling with the bachelor’s level, since you CAN’T legally practice without a license aka the advanced degree. Curious on your thoughts on the matter.

    • says

      Hi Shakela – If you’re already getting your masters in mental health counseling (COOL!) then it seems a little overkill to get your masters in business administration. I’d focus on your current masters first and see how far that takes you. After 3-4 years working, you can think the MBA.

      In 3 years, I think you’ll be itching to start working full time anyway and see what you can do with it! The irony for me is, I never wanted to go to school again after undergrad. The last downturn forced my hand, and I needed a logical back up in my mid-to-late 20’s, and getting my MBA part-time was the logical choice. If I got blown out at work, I could always enroll full time.

      Good luck! FS

    • says

      Larry – Wow, nice chart! That’s nuts! I can’t imagine how much tuition will cost if your kids want to go to private school in 10-15 years!

      The thing is…. education demand is so inelastic, the best schools in the world can practically charge whatever they want. Unless people start thinking education isn’t important, I think the bubble continues! I for one think that education is the absolute KEY to everything. FS

  17. Larry L, New York says


    But why is education demand inelastic? Is it because people value higher education a lot, or is it because the govt in the past has offered low rate loans (govt intervention)?

    I look at higher education as any other investment, there comes a point where the value of the education outweighs the cost. Same with if you are 100k in debt from education, yet only make 30k year after graduation. How long will it take before you pay back this debt? There comes a point you are better off with the lower paying job with no debt, than a slightly higher paying job and massive debt. With your posting’s charts you assume previous performance equals future returns. :-)

    People will seek alternatives, either because they want to or have no other choice.

    • says

      Larry – That’s true, there is a point where the returns really don’t justify the expense, but by then, the person will be 35 years old and too late to realize they shouldn’t have spent $50,000/yr to go to some no name private school!

      I’d be curious to know though, let’s say your daughter got into Harvard undergrad, how much would be willing to pay a year in tuition? It was between Harvard for $60K a year and a no-name state school for $8k a year, which do you choose?

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