Old Buffalo said:
Right, but it seems like putting yourself under the gun of a 400k investment isn't the best option. Especially when you figure the PV of that decision discounting those future increases in salary.
There are non-monetary benefits, but I don't think the increase in quality of life comes with a high paying job to make financial sense.
This isn't an attack, just something I've struggled with when considering this route.
I don't think there's a clear cut answer. The question is how much are you willing to bet on yourself. For example, the majority of people who attend top 5-10 schools already make $100K or higher. For them, if the average salary at graduation is $140K, they are faced with a 10 year ROI which I agree is not insignificant.
However, the focus shouldn't be on how much do you make when you are in your late 20s but rather how much could you make when you are in your late 30s. In corporations, most high potentials are identified and cemented by the time they are in their mid 30s. Sticking with your $100K job may seem like a good decision but what if a Harvard MBA elevates you from the ordinary track (assume topping out at mid-manager with a salary of $150K) to the high potential track where you will have a fighting chance at c-level +1 or +2 or run a large BU?
Coveted jobs out of top business schools (i.e. consulting, banking, corp strategy, etc) do exactly that - it provides opportunities for high potential people to be identified and groomed for long-term success. Of course there is risk involved but what doesn't. Final point is that from experience, high paying job doesn't not equal quality of life. Rather, what I've seen is the more companies pay you, the more they expect out of you. After you've invested $400K, you will naturally be more inclined to work that extra hour - it is a slippery slope.
