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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

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Last Updated on January 13, 2020

50 Motivational Quotes for Work to Inspire Success

50 Motivational Quotes for Work to Inspire Success

Let’s face it – no matter how excited you are about a new project or priority in your life, there will always be days when your motivation lags. Days when – despite all the progress you’ve made in the past – it just sounds easier to sit on the couch playing video games than to buckle down and crank out the work needed to meet your goals.

In order to be successful, you must be able to motivate yourself past these humps. Whenever you feel your drive and determination lagging, turn to these motivational quotes for work to provide the extra spark of passion needed to keep you on track.

Quotes about Goal Setting

Whether you’re still in the planning phases of your business or whether you’re plotting a plan of attack to bring about your long-range vision, setting good goals is a critical part of succeeding in business.

Check out these quotes for extra inspiration on how to turn your dreams into reality:

quote-Benjamin-E.-Mays-the-tragedy-in-life-doesnt-lie-in-106113

    “The tragedy in life doesn’t lie in not reaching your goal. The tragedy lies in having no goal to reach.”– Benjamin Mays


    “By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be. Put your future in good hands — your own.”–Mark Victor Hansen


    “Give yourself an even greater challenge than the one you are trying to master and you will develop the powers necessary to overcome the original difficulty.”–William J. Bennett – The Book of Virtues


    “The entrepreneur is essentially a visualizer and actualizer… He can visualize something, and when he visualizes it he sees exactly how to make it happen.”–Robert L. Schwartz

    Quotes about Achieving Excellence in Work

    Once you’ve got your goals together, you’ll need to put in 110% of your effort in order to transform these visions into reality. To increase your motivation to work at a consistently high level, take a look at the following words of wisdom:

    “Excellence is an art won by training and habituation. We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence, then, is not an act but a habit.”–Aristotle


    “If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude.”–Charles R. Swindoll

    Desire is the key to motivation

      “Desire is the key to motivation, but it’s determination and commitment to an unrelenting pursuit of your goal — a commitment to excellence — that will enable you to attain the success you seek.”–Mario Andretti


      “The secret of joy in work is contained in one word – excellence. To know how to do something well is to enjoy it.”–Pearl Buck


      “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.”–Vince Lombardi

      Quotes about Determination and Persistence

      Since every business or other endeavor is bound to hit some rough patches, it’s often a person’s level of determination and patience that brings about either success or failure. These positive quotes give you an extra boost of encouragement:

      “Enter every activity without giving mental recognition to the possibility of defeat. Concentrate on your strengths, instead of your weaknesses… on your powers, instead of your problems.”–Paul J. Meyer


      “Knowing trees, I understand the meaning of patience. Knowing grass, I can appreciate persistence.”–Hal Borland


      “Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.”–Calvin Coolidge

      quote-Thomas-Fuller-an-invincible-determination-can-accomplish-almost-anything-92190

        “An invincible determination can accomplish almost anything and in this lies the great distinction between great men and little men.”–Thomas Fuller

        Quotes about Leadership

        Whether you use it to engage your employees, to encourage teamwork or motivate others to follow your unique way of thinking, leadership is crucial. Take your leadership cues from these renowned leaders’ famous sayings:

        “The most dangerous leadership myth is that leaders are born — that there is a genetic factor to leadership. This myth asserts that people simply either have certain charismatic qualities or not. That’s nonsense; in fact, the opposite is true. Leaders are made rather than born.” –Warren G. Bennis


        “All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.”–John Kenneth Galbraith

        Leadership is not magnetic personality

          “Leadership is not magnetic personality — that can just as well be a glib tongue. It is not ‘making friends and influencing people’ — that is flattery. Leadership is lifting a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”–Peter F. Drucker


          “The task of leadership is not to put greatness into people, but to elicit it, for the greatness is there already.”–John Buchan


          “High sentiments always win in the end. The leaders who offer blood, toil, tears and sweat always get more out of their followers than those who offer safety and a good time. When it comes to the pinch, human beings are heroic.”–George Orwell

          Quotes for Success

          Think of success as a holistic process – one which results from the combination of goal-setting, excellence, patience, determination and leadership you prioritize throughout your career. These highly successful people provide you with an excellent source of motivation:

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          “Be patient with yourself. Self-growth is tender; it’s holy ground. There’s no greater investment.”–Stephen Covey


          “Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy.”–Norman Vincent Peale

          Success is the ability to go from one failure to another with no loss of enthusiasm.

            “Success consists of going from failure to failure without loss of enthusiasm.”–Winston Churchill


            “Successful and unsuccessful people do not vary greatly in their abilities. They vary in their desires to reach their potential.”–John Maxwell


            “Would you like me to give you a formula for success? It’s quite simple, really. Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, So go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”– Thomas J. Watson


            “The great successful men of the world have used their imagination.  They think ahead and create their mental picture in all its details, filling in here, adding a little there, altering this a bit and that a bit, but steadily building – steadily building.”–Robert Collier


            “It is a paradoxical but profoundly true and important principle of life that the most likely way to reach a goal is to be aiming not at that goal itself but at some more ambitious goal beyond it.”–Arnold Toynbee

            Sports Quotes for Athletes

            You don’t need to be a Michael Jordan-caliber athlete to draw inspiration from the following quotes. Even if you’re just a recreational player or someone who’s using sports as a means to get back in shape after long periods of inactivity, the following motivational sports quotes will encourage you:

            “My attitude is that if you push me towards something that you think is a weakness, then I will turn that perceived weakness into a strength.”–Michael Jordan


            “Pain is temporary. It may last a minute, or an hour, or a day, or a year, but eventually it will subside and something else will take its place. If I quit, however, it lasts forever.”–Lance Armstrong

            Strength does not come from winning. Your struggles develop your strengths.

              “Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.”–Arnold Schwarzenegger


              “I know what I have to do, and I’m going to do whatever it takes. If I do it, I’ll come out a winner, and it doesn’t matter what anyone else does.”–Florence Griffith Joyner


              “Every time you stay out late; every time you sleep in; every time you miss a workout; every time you don’t give 100% – You make it that much easier for me to beat you.”–Unknown


              “If you are hurt, whether in mind or body, don’t nurse your bruises. Get up and light-heartedly, courageously, good temperedly get ready for the next encounter. This is the only way to take life – this is also ‘playing’ the game!”–Emily Post


              “We must train from the inside out. Using our strengths to attack and nullify any weaknesses. It’s not about denying a weakness may exist but about denying its right to persist.”–Vince McConnell

              Quotes to Motivate Learning

              Committing yourself to pursuing knowledge in a single area is a tremendous endeavor – one that often seems overwhelming given the depth and breadth of information that’s available today. Keep the following motivational quotes in mind if you’re learning:

              “How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and the strong. Because someday in life you will have been all of these.”–George Washington Carver

              quote-William-Arthur-Ward-if-you-can-imagine-it-you-can-36189

                “If you can imagine it, you can achieve it; if you can dream it, you can become it.”–William Arthur Ward


                “It is the mark of an educated mind to be able to entertain a thought without accepting it.”– Aristotle


                “Success is not the key to happiness.Happiness is the key to success.If you love what you are doing, you will be successful.”–Albert Schweitzer


                “Wear your learning, like your watch, in a private pocket: and do not pull it out and strike it, merely to show that you have one.”–Philip Stanhope, 4th Earl of Chesterfield


                “He who asks is a fool for five minutes, but he who does not ask remains a fool forever.”–Chinese Proverb


                “Study while others are sleeping; work while others are loafing; prepare while others are playing; and dream while others are wishing.”–William Arthur Ward


                “Books can be dangerous. The best ones should be labeled ‘This could change your life’.”–Helen Exley


                “A book is like a garden carried in the pocket.”–Chinese Proverb

                All-Time Favorite Positive Quotes

                Finally, whatever your goals are in life, you can’t go wrong by taking the advice of the following famous motivational quotes:

                “Change your thoughts and you change your world.”–Norman Vincent Peale


                “Your time is limited, don’t waste it living someone else’s life. Don’t be trapped by dogma, which is living the result of other people’s thinking. Don’t let the noise of other’s opinion drowned your own inner voice. And most important, have the courage to follow your heart and intuition, they somehow already know what you truly want to become. Everything else is secondary.”–Steve Jobs


                “Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”–Maria Robinson


                “Out of clutter, find Simplicity. From discord, find Harmony. In the middle of difficulty lies Opportunity.”–Albert Einstein


                “Yesterday is not ours to recover, but tomorrow is ours to win or lose.”–Lyndon Johnson

                If we did all the things we are capable of, we would literally astound ourselves.

                  “If we did all the things we are capable of, we would astound ourselves.”–Thomas Edison


                  “You miss 100% of the shots you don’t take.”–Wayne Gretzky


                  “Success is not final, failure is not fatal: it is the courage to continue that counts.”–Winston Churchill


                  “What lies behind us and what lies before us are tiny matters compared to what lies within us.”–Ralph Waldo Emerson

                  Final Thoughts

                  To use these motivational quotes effectively, find the one that speaks to you. Although all of the phrases listed above can be considered “motivational,” only you can decide which one resonates with you most directly.

                  Next, take the quote you’ve settled on and copy it onto small index cards or other pieces of paper that can be stored around your home and workspace.

                  If you’re creative, you can create inspiration boards, signs or other decorative displays featuring your favorite motivational quotes – really, though, the most important thing is that your chosen phrase be accessible in a variety of different places. This will make it easy to access and review whenever you feel your motivation slipping away.

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                  Featured photo credit: Kyle Glenn via unsplash.com

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