Comments on: Clark’s Option Theory: Making the Most of Opportunity http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/ personal finance that makes cents Sun, 08 Nov 2009 13:32:29 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Tim http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-109011 Tim Mon, 17 Dec 2007 14:32:16 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-109011 Claire makes a good point. Many people with MBAs say the most valuable thing about their program was the contacts/networking, both personal and professional. plonkee's point about opportunity cost is well taken, too. Here's one way to think about it if you've already decided to do an MBA. Option 1: If you're doing it to accomplish a major career change and achieve a big jump in salary, try to get into a top-notch, namebrand school. Option 2: If you're doing it to simply polish your skill set and advance in your current career, aim for a part time program at a less high-powered school. Option 2, which I chose, involves a substantially lower opportunity cost. Claire makes a good point. Many people with MBAs say the most valuable thing about their program was the contacts/networking, both personal and professional.

plonkee’s point about opportunity cost is well taken, too. Here’s one way to think about it if you’ve already decided to do an MBA. Option 1: If you’re doing it to accomplish a major career change and achieve a big jump in salary, try to get into a top-notch, namebrand school. Option 2: If you’re doing it to simply polish your skill set and advance in your current career, aim for a part time program at a less high-powered school. Option 2, which I chose, involves a substantially lower opportunity cost.

]]> By: Ryan S. http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108911 Ryan S. Mon, 17 Dec 2007 00:26:25 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108911 Your field of study/field of work matters a lot in this. As a social worker in Hawai'i, I can tell you that the master's level is a minimum to make a livable wage; however, you can make more at that level than a PhD in social welfare would make at their typical (education) job. OTOH, a registered nurse who may not even be a BSN makes more than a MSW... Your field of study/field of work matters a lot in this. As a social worker in Hawai’i, I can tell you that the master’s level is a minimum to make a livable wage; however, you can make more at that level than a PhD in social welfare would make at their typical (education) job. OTOH, a registered nurse who may not even be a BSN makes more than a MSW…

]]> By: DermDoc http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108908 DermDoc Sun, 16 Dec 2007 22:38:23 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108908 In medicine, the mantra is "more education is always better." I am not sure I agree. More education is better if you want to be highly specialized. However, spending year after year in fellowships can take you far down a road; you might later discover you don't want to be there. In medicine, the mantra is “more education is always better.” I am not sure I agree. More education is better if you want to be highly specialized. However, spending year after year in fellowships can take you far down a road; you might later discover you don’t want to be there.

]]> By: Roger http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108895 Roger Sun, 16 Dec 2007 20:35:49 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108895 Keep in mind, too, that there are lost compounding opportunities. If you stay in school until you're 30 you will probably be wonderfully well-rounded but will have missed the opportunity to compound what you might have saved if you had graduated at 22. If education makes you happy, by all means go for it. But recognize that there is a fetishization of education within the academic community--and it's sometimes hard to recognize that advanced education isn't the only way to succeed in life. I would argue that the things you need to succeed in small business, for example, are not things that can be taught in an advanced study program. Keep in mind, too, that there are lost compounding opportunities. If you stay in school until you’re 30 you will probably be wonderfully well-rounded but will have missed the opportunity to compound what you might have saved if you had graduated at 22. If education makes you happy, by all means go for it. But recognize that there is a fetishization of education within the academic community–and it’s sometimes hard to recognize that advanced education isn’t the only way to succeed in life. I would argue that the things you need to succeed in small business, for example, are not things that can be taught in an advanced study program.

]]> By: plonkee http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108885 plonkee Sun, 16 Dec 2007 17:42:32 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108885 Of course the other side, is that when you take up one opportunity, you are missing out on other opportunities. If you go back to school or start your own business or whatever, then that means that you can't do something else. And the something else would probably lead to positive outcomes as well. There is never a perfect decision. Of course the other side, is that when you take up one opportunity, you are missing out on other opportunities. If you go back to school or start your own business or whatever, then that means that you can’t do something else. And the something else would probably lead to positive outcomes as well.

There is never a perfect decision.

]]> By: Camilla http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108880 Camilla Sun, 16 Dec 2007 17:24:00 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108880 I'm *loving* the perspective. I know i can be very narrow minded in the way you're pointing out, to think that just because something might not to go to my specific plan that is has failed. I love the idea of being more open minded about all the benefits every day brings, and the opportunities you create simply by learning, or remaining active, or changing your environment. Great post! I’m *loving* the perspective. I know i can be very narrow minded in the way you’re pointing out, to think that just because something might not to go to my specific plan that is has failed. I love the idea of being more open minded about all the benefits every day brings, and the opportunities you create simply by learning, or remaining active, or changing your environment. Great post!

]]> By: Jeff http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108878 Jeff Sun, 16 Dec 2007 17:07:46 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108878 A simple ad on is what type of day to day job you're going to have after you've obtained this education. Sure, I make more money than I likely would have without my education, but what I really love about my degree is that I was interested in the material, and I'm constantly interested in my job. You can live to work, or work to live, but if you love what you do, you'll never have to work a day in your life. A simple ad on is what type of day to day job you’re going to have after you’ve obtained this education. Sure, I make more money than I likely would have without my education, but what I really love about my degree is that I was interested in the material, and I’m constantly interested in my job.

You can live to work, or work to live, but if you love what you do, you’ll never have to work a day in your life.

]]> By: Erin http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108876 Erin Sun, 16 Dec 2007 16:56:18 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108876 I strongly agree with this. I did an evening MBA program - it took me 4 years and I finished last May. I am making at least 30% more than I was when I started the program, but that may have happened anyway as I progressed in my career and that was not my motivation. It was especially useful for me because I did not take any business classes as an undergrad (I majored in Journalism and Poli Sci). I gained knowledge outside my functional discipline of marketing, met great people, and I don't know that I would have had the thought of starting my own business if I hadn't learned more about other areas of business. I am planning to start my own business within the next 5 years. No, you don't need an MBA to become an entrepreneur but for me it helped. I strongly agree with this. I did an evening MBA program - it took me 4 years and I finished last May. I am making at least 30% more than I was when I started the program, but that may have happened anyway as I progressed in my career and that was not my motivation. It was especially useful for me because I did not take any business classes as an undergrad (I majored in Journalism and Poli Sci). I gained knowledge outside my functional discipline of marketing, met great people, and I don’t know that I would have had the thought of starting my own business if I hadn’t learned more about other areas of business. I am planning to start my own business within the next 5 years. No, you don’t need an MBA to become an entrepreneur but for me it helped.

]]> By: Claire http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108873 Claire Sun, 16 Dec 2007 16:26:34 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108873 I love this blog posting! Yes, I agree that without exercising options we often don't allow opportunities into our lives. As some readers have pointed out before, if we look at child-bearing today only on a cost/return on investment analysis then no one would have children. I'm doing a Master's program and it already provided far more opportunities than I thought were possible. However, they are not equating to money at this time. I'm not done with the program yet either. I have met a whole different caliber of people than just having a bachelor's and that's priceless when you are networking. They also tend to take you more seriously because they are also interested in passing on their work to knowledgeable people who show they can do the long-haul commitment that most people won't do unless there's a buck behind it. I love this blog posting! Yes, I agree that without exercising options we often don’t allow opportunities into our lives. As some readers have pointed out before, if we look at child-bearing today only on a cost/return on investment analysis then no one would have children.

I’m doing a Master’s program and it already provided far more opportunities than I thought were possible. However, they are not equating to money at this time. I’m not done with the program yet either. I have met a whole different caliber of people than just having a bachelor’s and that’s priceless when you are networking. They also tend to take you more seriously because they are also interested in passing on their work to knowledgeable people who show they can do the long-haul commitment that most people won’t do unless there’s a buck behind it.

]]> By: Terry http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108872 Terry Sun, 16 Dec 2007 16:20:10 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108872 Good points about the non-monetary values of writing a book and starting a business. I agree with SJean that you should be sure of the direction you want to go before moving ahead with with advanced education. Good article! Good points about the non-monetary values of writing a book and starting a business.

I agree with SJean that you should be sure of the direction you want to go before moving ahead with with advanced education.

Good article!

]]> By: SJean http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108869 SJean Sun, 16 Dec 2007 15:24:58 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108869 Interesting way to look at it! Good article, thanks! I am of the opinion that education is usually a good idea if you have a clear plan of what you are doing with it. Interesting way to look at it! Good article, thanks!

I am of the opinion that education is usually a good idea if you have a clear plan of what you are doing with it.

]]> By: dawn http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108867 dawn Sun, 16 Dec 2007 15:16:23 +0000 http://www.getrichslowly.org/blog/2007/12/16/clarks-option-theory-making-the-most-of-opportunity/#comment-108867 If somebody has the desire to improve and learn new skills, I'd say yes to pursuing further education. And you never truly know what doors may open because of it. If somebody has the desire to improve and learn new skills, I’d say yes to pursuing further education. And you never truly know what doors may open because of it.

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