A friend of mine from London recently asked me for advice on MBAs and, more specifically, whether I would recommend doing one at all. I have to admit the question had me stumped – I really couldn’t wholeheartedly recommend that he follow in my footsteps.

Don’t get me wrong, I am having the time of my life. I wouldn’t trade it for the world and I shudder to think where I’d be if I hadn’t made this decision. The problem is that he is in a pretty good job and would be well into his thirties by the time he starts, whereas I was 28 and pretty miserable in my job. The MBA is great, but it’s all relative.

When judging any investment decision (and going to business school is probably the second biggest investment there is behind buying a house) you have not only to look at the benefits but also the financial and opportunity costs.

The financial cost is broadly the same for everyone but there is a pretty wide divergence in benefits to be derived and the opportunity cost varies considerably between different people.

How do the benefits vary? First of all, it really depends which school you choose to go to. I truly believe that the education you receive at the top five European business schools and the top ten US business schools is on a par; what differs is all the extracurricular elements.

I’ve written in previous articles about the different atmospheres in different schools, but what is also important is the city your school is in. Part of the reason for my coming to IESE was to live in a vibrant, colourful Mediterranean city with plenty of time to explore it.

Some friends and I have started what we call the culture club. Every weekend we do something that we would never be able to do in our home towns – cava tasting, the Salvador DalÍ museum or even just a four-hour lunch on the beach.

The opportunity cost is going to be widely different for everyone. How much salary are you going to forfeit? If you’re going back to the same industry, how many promotions will you miss? Will moving to another country damage your relationship or will your better half move with you? If he or she moves with you will it mean leaving a good job? The list of variables are endless. The bottom line is the happier you are with your present life, the greater the cost of an MBA.

Coming up: read the next article from Tim Ensor at Judge Business School on April 3 when Career returns after Easter.

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