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CFA or MBA? 11 Facts to Help You Decide

CFA or MBA? 11 Facts to Help You Decide

After years of financial work, most financial practitioners would schedule a self-improvement plan, especially those who would like to start their own businesses. The common question is that whether one should take a CFA test or get an MBA degree for career development. Indeed this is a big decision.

The MBA, short for Master of Business Administration, covers various areas of business such as accounting, finance, marketing, human resources, and operations in a manner most relevant to management analysis and strategy. On the other hand, CFA, short for Chartered Financial Analyst, covers special, specified skills and concepts in asset management, private wealth management, equity research, and ratings advisories in financial institutions.

An MBA could enlarge your social network and widen career choices, but a CFA gives you accuracy and rigor in financial areas. You may need to spend years of full-time study and finish the graduation thesis for an MBA, but you may spend even more years of hard studying to pass three exams before you could get the CFA charter certificate.

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Below are 11 factors that might help you decide which one you should get.

1. Cost

It should be noted that an MBA degree from any top university is a high-cost and expensive self-enhancement project. The total all-in cost (tuition fees, modest living expenses, forgone salaries, etc.) of a 2-year top MBA program is around $275k to $325k. The cost of a CFA is much lower, at about $1,000 to 1,500 per level, less than $8,500 (on average) for all three level tests if you take part in additional prep classes.

2. Time

If you want to get a MBA certificate, you need to spend two years of full-time study. That means if you’re not brave enough to quit your job and focus on the MBA degree, it would be a dilemma indeed. However, the CFA would cost at least 250 hours of self-guided study before you can sit the six-hour exam. You could make the CFA program study as part-time task.

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3. Content

The purpose of these two certifications is obviously different, therefore the content is of course different. Getting an MBA certificate means you’re going to get comprehensive and all-inclusive training and knowledge in management analysis and strategy. MBA covers various courses like accounting, finance, marketing, and human resources, while CFA program will deliver you special, specified skills, and concepts on asset finance exclusively.

4. Application procedure

To apply for an MBA program, you need to prepare a lot of things, including an online application, recommendation letters, resume, admission essays, university transcripts, GMAT or GRE score reports, English language proficiency, etc. For the CFA, you need an international travel passport. Also, you need to meet one of these 3 requirements for CFA application: four years of professional work experience (does not have to be investment related), a bachelor’s (or equivalent) degree, or be in the final year of your bachelor’s degree program.

5. Teamwork

Task requirements differ from each other. Unlike the MBA requires group tasks, the CFA has no teamwork requirement. It’s totally upon your own schedule. If you can, you could study and finish all CFA programs individually.

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6. Pass rate

Only 37% of CFA test takers passed December 2012’s CFA Level I exam. In June 2012, 38% passed Level I, 42% passed Level II and 52% passed Level III. On an average, 60% would fail in CFA test, with even low pass rate across total 3 levels. On the other hand, 95% of Harvard MBA test takers could pass the MBA test.

7. Job Prospects

With MBA degree, you get broader job prospects and wide career choices. But with a CFA certificate, since it delivers specific, specialized knowledge in finance industry, your career choices are greatly narrowed but financial career could be greatly sharpened and improved to another level. “An MBA can take you into all sorts of industries,” said Skiddy von Stade, CEO of financial recruiting firm OneWire. “A CFA is for a stock picker that really wants to be an analyst. The CFA carries a lot of weight with asset managers. It’s an analytically driven test.” Outside of finance, the CFA is of little use, while the MBA is more widely recognized.

8. Benefit/Compensation

It’s important to know the return of CFA and MBA. According to the calculation from PayScale, a compensation research firm, the compensation differs a lot. Median pays of 0-5 years of experience are $72,000, $87,000, $57,000 and $63,000 respectively for people that hold a CFA and no MBA, CFA and MBA, MBA and no CFA, and an MBA in finance and no CFA. These differences stay constant for CFA and MBA holders of 5-10 years of experience.

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9. Learning

Some CFA certificate holders said that MBA programs teach things they could learn from college class, while CFA programs deliver knowledge that couldn’t be learned from college.

10. Partnering relationships

CFA Institute has started partnering relationships with multiple business schools into their class offerings. Some exam materials are even delivered in these courses. This would surely result in reduction of CFA test difficulty. More students are now expected to take Level I of the CFA exam directly after graduation.

11. Achievement

The founder of the CFA Institute is Benjamin Graham, one of the most legendary and valuable investors. With the profound knowledge gained from CFA tests… who knows? You could become the next Benjamin Graham. In contrast the broad coverage of MBA makes it becomes hard to become a great master.

Featured photo credit: FGV via flickr.com

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Last Updated on November 27, 2020

15 Office Design Tricks That Will Increase Your Productivity at Work

15 Office Design Tricks That Will Increase Your Productivity at Work

Where you work has an enormous impact on how you work – on your ability to focus (and stay focused) and your overall ability to be productive. That means the design of your office, whether you work at home or in a larger company environment, is of supreme importance. This isn’t just about Feng Shui, this is about producing results and getting things done.

According to studies done on workplace and productivity, the most significant factor in determining an employee’s ability to focus is their physical environment. In fact, it’s been said that a well-designed office can increase your productivity about 20%. However, despite the studies and statistics, nearly half of the employers interviewed don’t consider workplace design a good business investment.

So what is a productivity hack to do? What if you work in an environment that doesn’t promote focus?

Check these 15 factors and make changes where you can. A little adjustment can produce a lot of impact.

Lighting

Lighting is one of the most important factors in staying focused and feeling inspired to create, yet it’s one of the most overlooked and least invested in. Bad lighting can cause fatigue, eyestrain, headaches and overall irritability. Dark spaces can actually produce depression.

If you work in a company office:
You probably have no control over your general lighting so bring in your own, if need be. Consider using natural light bulbs or a light therapy device.

If you work from a home office:
Open the windows and doors and let natural light in. Using lamps in a variety of areas for cloudy days or when it’s dark.

Chair and Table

If you’ve ever sat at a desk to do work but found yourself adjusting, stretching and moving too often to actually stay focused, then you’re aware of the importance of having a correctly fitted table and chair. In today’s work environment where so many of us are sitting for most of our day, it is critical that your throne fits your body probably.

Consider these quick ergonomic checks:

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  • Eyes 24-36 inches from the computer screen. The top of the monitor should be below or at eye-level.
  • Feet should be on a foot rest or resting on the floor.
  • A slightly reclined chair posture is best to reduce pressure on your spine and minimize lower back pain.

If you work in a company office:
Ask for an adjustable chair. Add pillows for your lower back or bum, if you need it. Many companies will also provide risers for computers to adjust the height of your computer screen (and a separate keyboard to keep your hands and wrists in the ideal position)

If you work from a home office:
Invest in a decent chair or at least use a few pillows to make the chair more comfortable. If the table is too high, add pillows to your chair. If it is too low, consider buying leg risers from your local hardware store and using books beneath your computer to raise the screen. Use a separate keyboard.

Clutter

Your mama was right, it’s important to clean up your room. Clutter may help the creative mind create, but it isn’t necessarily helpful for focus and productivity.

If you work from a company office: While you can’t control the cleanliness of the office at large, do keep your own environment around you clean. Spend 10 minutes every morning or evening making sure things are put away, filed, organized and generally out of sight so you’re not distracted by it later.

If you work from a home office: Because you work from home, the entire house or apartment is potential for distraction. If you can afford it, hire a professional cleaning service to keep your home clean. If not, schedule a specific day and time to clean your home. Commit to doing daily pickup at a specific time. And spend at least 10 minutes every day making sure your office  is organized and tidy.

Room Color

The colors around us all have an effect on our moods and brain function. It evokes both a physical and emotional response. So choosing the right colors for your work space has the ability to affect your productivity. For instance, blue has been said to illicit productivity. Mind you, too much of anything can be overwhelming, even color.

If you work from a company office: Bring in items from home that are a certain color that inspire you and keep you focused. Use postcards, magazine cutouts, even just blocks of color will do.

If you work from a home office: If you work from home, you have much more control over the colors around you. Consider repainting a wall, adding color to the table you work at, or hanging pictures that are dominated by a specific color.

Room Temperature

Most offices keep their temperatures around 65-68 Fahrenheit but it turns out that this might not be good for productivity. Warmer rooms actually make people more productive.

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If you work from a company office: Most offices are regulated by somebody else, so bring a space heater, sweaters and blankets to your work space.

If you work from a home office: Depending on the season, open the windows or adjust the heat or a/c so that you’re more comfortable and warm. Pile on the sweaters in the winter or add a space heater to your feet.

Room Scents

Like the color of the space you work in, our sense of smell can powerfully affect our mood, mindset and thus our productivity. Consider adding scents to your work space to jar your mind into focus when you start to notice yourself drifting off.

Try using these scents to stay focused:

  • Pine – Increases alertness
  • Cinnamon – Improves focus
  • Lavender – Helps to relax you during a stressful work day
  • Peppermint – Lifts your mood
  • Citrus (any) – Wakes you up  and lifts your spirits

If you work from a company office: Most people will not appreciate added scents to their work environment so you’ll need to keep it subtle. Keep essential oils in your bag or drawer and when you’re in need of a boost put a few drops on a handkerchief or cotton ball.

If you work from a home office: Use candles, incense or essential oils. You can also simmer herbs and spices in the kitchen to fill your home with a warm scent.

Noise Level

The noise level in a work environment can vary greatly depending on the size of the team you work with, the office design and company culture. But make no mistake, the noise around you affects your ability to stay on task. Not only can it be distracting, it can also raise stress levels making your ability to sustain productivity far more difficult.

If you work from a company office: Bring in noise cancellation headphones and use music services like Spotify or Songza and choose concentration boosting sounds, like white noise.  Find out if your office offers quiet work spaces for times when you need the utmost focus.

If you work from a home office: Sometimes the complete quiet can be as distracting as an office. Use a service like Coffivity to mimic the noise of a coffee shop, which has been said to help with concentration.

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Air Quality

Air quality can drastically affect our ability to focus and think clearly. Get this: OSHA estimates that the total annual cost of poor air quality in office environments costs employers $15 billion “due to worker inefficiency and sick leave.” Yeah, it’s serious business.

If you work from a company office: Talk to them about installing air filters. If there is a way to bring in fresh air through windows or doors, arrange to have them opened for at least a portion of the day. If nothing else, get a personal air filter to have on your desk or nearby.

Also, get a plant (or better yet, have the company buy and use more plants in the office!). Plants are great at filtering the air and providing clean, purified oxygen.

If you work from a home office: Open windows and doors and let in the fresh air. Install an air filter or get a portable air filter to keep near your desk. And, yes, you too should get a plant.

Different Spaces

If you can manage it, give yourself more than one space to work from. Putting yourself in a new space with different qualities and things to look at quite literally shifts your brain and helps you stay focused.

If you work from a company office: Many offices offer a variety of environments to work from: your personal space, lobbies, break out rooms, conference rooms, kitchens and eating areas and, if you’re lucky, they also provide lounge areas. Use all these spaces to vary your routine. Make sure your supervisor knows so they don’t think you’re slacking off and know tat you’re actually getting more done!

If you work from a home office: If you work at a desk, add a comfortable couch or chair to the room. If your space is less flexible or ultra tiny, think about more creative ways to change your work space. Rotate the pictures on your walls every couple of days. Sit on the other side of your desk. Get a lamp and multiple colored bulbs. Or go work at a café, the library or in a park.

Organization of People

Most employers organize employees around job function or in specific divisions. Instead, studies show that people are more creative and productive when they are sitting with colleagues that share the same goal or client. Not only are you able to get answers and generate solutions quicker, but because you’re directly accountable to the people around you, you’re more likely to stay on task and productive.

If you work from a company office: Ask your employer if you can experiment by clustering your group together in a conference room for a day or a week. Get feedback from everybody involved. Show the results. If your company won’t make permanent adjustments, perhaps they’ll allow you to work together a couple times a week when the conference room or lounge area is free.

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If you work from a home office: This is a little bit more difficult because when you work at home you’re not with colleagues. You can recreate a similar space digitally, however. Create a Skype group and have everyone logged in during working hours. You can do morning accountability and check-ins while remaining available for questions, solution-finding and general banter that promotes creativity.

Idea Storage

Ever been working hard when you’re suddenly distracted by a great idea? At first you try to push it away, but then the next thing you know you’re 20 pages deep into an online search on the topic. Ideas should be encouraged and cultivated, but when they come right in the middle of another task it can be incredibly distracting. Instead, create a place to store your ideas that’s easily accessed from your work space.

For both a company and home office: Keep pads of paper around, have a chalk wall, get a white board – when you have a spark of inspiration write it down right away to get it out of your head then return to the task at hand. Then, at the end of the day or when you have free time, collect all the ideas and review them. With a little time and space you can better decide if it’s worth pursuing or better to leave it on the back-burner.

Refreshment

Our brain needs nourishment to keep going, especially when we’re driving hard and staying focused. You can let a rumbling stomach go on for only so long before the brain shuts down. Assuming your different is like wanting your car to keep driving without having to stop and fill it with gas. A novel idea, but not realistic.

If you work from a company office: Pre-make snacks for the day and/or week. Or, bring in prepackaged snacks. Keep in mind that junk food has properties of diminishing returns so if you’re buying your food prepackaged think nuts, fruit, unsweetened yogurts, and hummus and crackers. Likely, your company provides coffee, tea and water so you don’t have to worry about supplying that for yourself.

If you work from a home office: If you work from home, this can be a key distraction. Try to reduce the number of times you walk into the kitchen each day. To do this, keep quick and   easy snacks pre-made or prepackaged ready and near your desk. Keep a water bottle nearby. And consider bringing a kettle into your office and stocking tea and coffee so you’re   not tempted to wander around the house and lose time poking through the pantry.

Bring in Nature

We are biological creatures, first and foremost. So we are deeply affected by our access to (or lack of) the natural world. It’s important for our psychological and physiological functioning, which directly affects our ability to be productive.

If you work from a company office: If you don’t have windows in or near your work space, bring in pictures of the outdoor world. Keep a picture of something natural as your screensaver and/or desktop wallpaper. Take walks outdoors at lunch or in between major tasks. Just a few minutes outside in the fresh air and sunshine can boost our mood and shake out the doldrums. Be sure to add a plant to your desk, too!

If you work from a home office: Keep the shades open and, if you can, let in fresh air. If you can’t see anything natural out of your window, keep pictures of the natural world as your screensaver and/or desktop wallpaper. Take walks. Or, just step outside and put your feet on the ground. Put plants in your office – research shows that having live plants in your office makes you more productive, happier and less stressed.

Digital Space

For most people, our primary work is housed within our laptops and our physical environment simply the backdrop to our digital lives. Make sure your computer has software that helps you sculpt the digital environment that best elicits productivity. Use focus apps like this one or this to decrease distractions. Or design your day using intervals with an app like this one to keep you at your peak focus throughout the day.

Featured photo credit: Phil Desforges via unsplash.com

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