(This is part of Take Charge of Your Money , a partnership between INQUIRER.net and Citibank to help readers handle their personal finances well.)
Question: I graduated from college two years ago and have been working at a real estate company. I want to pursue further studies since I know having an MBA will help me advance in my career. The problem is that I just make enough money to make ends meet now. How can I realize my dream of going to graduate school given my low salary? – Nick
Answer: The job market is very competitive and those who have an edge will have a crack at better opportunities than the rest.
Graduate school these days is more exciting given the many specialized courses and methods of learning available. You can choose from the traditional setup wherein you go to the classroom every scheduled meeting, or you can attend classes online at “open” universities which offer distance learning. You may also have a choice between degrees that require a thesis and those do not. Because a lot of graduate students work full-time and only attend school part-time, schools also offer Saturday-only and weeknight classes for added convenience.
You did not mention if you have savings or not, but since you said that you only make enough money to make ends meet, we presume that you do not have savings. Don’t worry; this is not the end of your dream. Follow the tips below and you may find yourself in graduate school in a few years’ time.
1. Start saving for an emergency fund. Every time you receive your paycheck, allot at least 10 percent for your emergency fund which is the fund you will dip into should unexpected events such as job loss or illness happen. Even if you feel that you are just making enough for your needs, try to make room for savings. Cut down on your other expenses.
2. Have a target school. Find out how much the tuition fee is annually so you will have an idea of the amount you need to raise for tuition. In case your target school is on the expensive side, look for other schools that offer the same curriculum at a much lower fee. Determine if you can afford to go to graduate school full-time or you need to work part-time to pay for your bills.
3. Save for graduate school little by little. Commit to set aside an amount monthly for your graduate school tuition. It may mean foregoing a gimmick with the barkada during payday, but the result in the future will be the realization of your dream. Set a target date to achieve your goal. Having a deadline will help you be more conscious of saving.
4. Scout for available scholarships. MBA is a popular degree, and there are schools and organizations which offer partial or full scholarships here and abroad. Check the Internet for what’s out there and keep an eye out for announcements in newspapers.
5. Talk to your employer. Who knows, the company may want to send you to graduate school as a scholar. It never hurts to ask. You may be asked to sign a loyalty contract though which will require that you continue working for your employer during the duration of your graduate studies and after.
6. Consider applying for a loan. Your bank, credit card, insurance company, the Social Security System, the GSIS, and even your employer may be a source of funds. Study what options you have and see if loan terms are agreeable to you and offer easy payment terms over the course of your studies. Since you will derive benefit from your graduate studies in the future, getting a loan for this purpose is considered good debt. Just make sure not to make your monthly debt obligations exceed one-third of your salary every month.
7. Try to increase your income while you’re saving for graduate school. Find a sideline job you can work on every Saturday morning. Or pursue a hobby on weekends to add to your income then commit to save this for your tuition.
8. If you decide to go to graduate school full-time and let go of your present job, take in extra jobs at the university assisting in research projects and the like. Not only will you learn, you will also earn extra cash which may be used to help pay for your tuition.
9. Make an inventory of your possessions and sell any idle asset to raise cash. These days it is easy to sell personal stuff through auction websites on the Internet.
10. Get a head start now on learning. Your business education can start now even if you are not yet enrolled. Read the newspaper’s business section every day in print or online version. Attend free business seminars offered by organizations. Watch business feature stories on cable TV news, and read up on successful entrepreneurs and find out what makes them tick. In the office, observe your bosses and see how they manage the business. If you think like an MBA student now observing what’s around you, you will gain an advantage that will be valuable to you in the future.
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