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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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David Brooks

An expert in web content editing and multimedia solutions

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Last Updated on September 18, 2019

15 Best Organizing Tips For Office Organization and Getting More Done

15 Best Organizing Tips For Office Organization and Getting More Done

You may think that you don’t have time for office organization, but if you really knew how much time that disorganization cost you, you’d reconsider.

Rearranging and moving piles occasionally doesn’t count. Neither does clearing off your desk, if you swipe the mess into a bin, or a desk drawer.

A relatively neat and orderly office space clears the way for higher productivity and less wasted time.

Organizing your office doesn’t have to take days, it can be done a little at a time. In fact, maintaining an organized office is much more effective if you treat it like an on-going project, instead of a massive assault.

So, if you’re ready to get started, the following organizing tips will help you transform your office into an efficient workspace.

1. Purge Your Office

De-clutter, empty, shred, get rid of everything that you don’t need or want. Look around. What haven’t you used in a while?

Take one area at a time. If it doesn’t work, send it out for repair or toss it. If you haven’t used it in months and can’t think of when you’ll actually need it, out it goes. This goes for furniture, equipment, supplies, etc.

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Don’t forget about knick-knacks, plants (real or artificial), and decorations – if they’re covered with dust and make your office look shabby, they’re fair game.

2. Gather and Redistribute

Gather up every item that isn’t where it belongs and put it where it does.

3. Establish Work “Zones”

Decide what type of activity happens in each area of your office. You’ll probably have a main workspace (most likely your desk,) a reference area (filing cabinet, shelves, binders,) and a supply area (closet, shelves or drawers.)

Place the appropriate equipment and supplies are located in the proper area as much as possible.

4. Close Proximity

Position the equipment and supplies that you use most within reach. Things that you rarely use can be stored or put away.

5. Get a Good Labeler

Choose a label maker that’s simple to use. Take the time to label shelves, bins, baskets drawers. Not only will it remind you where things go, but it will also help others who may have a need to find, use, or put away anything in your workspace.

6. Revise Your Filing System

As we move fully into the digital age, the need to store paper files has decreased.

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What can your store digitally? Are you duplicating files? You may be able to eliminate some of the files and folders you’ve used in the past. If you’re storing files on your computer, make sure you are doing regular back-ups.

Here’re some storage ideas for creating a smooth filing system:

  • Create a meeting folder – Put all “items to be discussed” in there along with items that need to be handed off, reports that need to be given, etc. It’ll help you be prepared for meetings and save you stress in the even that a meeting is moved up.
  • Create a WOR folder – So much of our messy papers are things that are on hold until someone else responds or acts. Corral them in a WOR (Waiting on Response) folder. Check it every few days for outstanding actions you may need to follow-up on.
  • Storage boxes – Use inexpensive storage boxes to keep archived files and get them out of your current file space.
  • Magazine boxes – Use magazine boxes or binders to store magazines and catalogs you really want to store. Please make sure you really need them for reference or research, otherwise recycle them, or give away.
  • Reading folder – Designate a file for print articles and documents you want to read that aren’t urgent.
  • Archive files – When a project is complete, put all of the materials together and file them away. Keep your “working folders” for projects in progress.
  • File weekly – Don’t let your filing pile up. Put your papers in a “To File” folder and file everything once a week.

Learn more tips on organizing your files here: How to Organize Your Files for Better Productivity

7. Clear off Your Desk

Remove everything, clean it thoroughly and put back only those items that are essential for daily use.

If you have difficulty declutter stuff, this Declutter Formula will help you throw away stuff without regretting later.

8. Organize your Desktop

Now that you’ve streamlined your desktop, it’s a good idea to organize it.

Use desktop organizers or containers to organize the items on your desk. Use trays for papers, containers for smaller items.

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Don’t forget your computer desktop! Make sure the files or images are all in organized folders. I’d recommend you clear your computer desktop everyday before you leave work.

9. Organize Your Drawers

Put items used together in the same drawer space, stamps with envelopes, sticky pads with notepads, etc.

Use drawer organizers for little items – paper clips, tacks, etc. Use a separate drawer for personal items.

10. Separate Inboxes

If you work regularly with other people, create a folder, tray, or inbox for each.

11. Clear Your Piles

Hopefully with your new organized office, you won’t create piles of paper anymore, but you still have to sort through the old ones.

Go through the pile (a little at a time if necessary) and put it in the appropriate place or dump it.

12. Sort Mails

Don’t just stick mail in a pile to be sorted or rifle through and take out the pieces you need right now. Sort it as soon as you get it – To act, To read, To file, To delegate or hand off. .

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13. Assign Discard Dates

You don’t need to keep every piece of paper indefinitely. Mark on files or documents when they can be tossed or shredded.

Some legal or financial documents must be kept for specified length of time. Make sure you know what those requirements are.

14. Filter Your Emails

Some emails are important to read, others are just not that important.

When you use the filter system to label different types of emails, you know their priority and which to reply first.

Take a look at these tips to achieve inbox zero: The Ultimate Way to get to Inbox Zero

15. Straighten Your Desk

At the end of the day, do a quick straighten, so you have a clean start the next day.

Bottom Line

Use one tip or try them all. The amount of effort you put into creating and maintaining an efficient work area will pay off in a big way.

Instead of spending time looking for things and shuffling piles, you’ll be able to spend your time…well…working and you’ll enjoy being clutter free!

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Featured photo credit: Alesia Kazantceva via unsplash.com

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