Before the coronavirus pandemic turned the world upside down, the economic situation was good – actually, more than good. Going on vacation several times a year was completely normal for many people, and unemployment was at a very low level. Now, however, the cards are turning. Economists are not surprised; they claim that the economy always develops in cycles. People, however, are starting to panic. What should they invest their money in so that it loses as little value as possible- commodities, stocks, gold, or education?
The value of the Czech koruna is already declining, and it is likely to affect a large number of things. Goods imported from abroad will become more expensive, and not everyone will be able to afford a foreign holiday. For the same amount of money, we will simply be able to buy less. People are therefore hastily trying to figure out what to invest their savings in so that they do not lose too much value.
Which investment offers a high return?
There are quite a few options for investing money. Let’s take a closer look at some of them.
Commodities
Oil, gas, gold, silver, or coffee. If you decide to trade them, you do not buy them in physical form; you only own them virtually. Nevertheless, this investment carries a certain risk. You never know how their value will change, and when it starts to fall, you will not be able to do anything about it.
Gold and silver
Gold and silver can also be purchased in physical form, such as bars or coins. Their advantage is that they are traded worldwide, so when the koruna loses value, precious metals are not affected. It is always possible to sell them more profitably, for example, in neighboring Slovakia or Germany. However, if a major crisis occurs, gold will be purchased less and its value will decline.
Stocks
They promise high returns, but the risk is also significant. Beginners should definitely avoid stock trading in these uncertain times. The values of various stocks will decline, and no one knows whether, in the long run, they will rise above the price at which you bought them.
Term deposits, savings accounts, mutual funds
In all of these cases, you are essentially just depositing money and earning some interest. With savings accounts, the interest rate is often so low that it barely covers inflation, let alone compensates for the loss in the value of the koruna. With savings accounts or term deposits, the return is clear but not high. Mutual funds tend to offer slightly more attractive returns; however, even they will struggle during a crisis.
Education
This form of investment may seem somewhat unconventional, and no financial advisor will ever offer it to you. However, if you think about it, investing in education – whether your own or that of your loved ones – is, in the long term, the most advantageous and yields a high return over time. Benjamin Franklin was already aware of this in the 18th century; he is credited with the quote: “An investment in knowledge pays the best interest.” Let’s now take a look at specific numbers.
How much money does an investment in education bring?
It is difficult to pull specific figures out of thin air. It always depends on the field you choose to study, how beneficial that education will be in the future, and how well you can market it. We do not have data for all possible industries and types of self-education, but we can show you the concrete financial benefits of MBA studies.
Over the course of several decades, an MBA degree can bring its graduates up to millions of Czech crowns. This is clearly illustrated by the MBA return-on-investment calculator. You simply enter your age, how long you plan to work, and the field in which you are employed. You immediately see how long it will take for your MBA investment to pay off and how much extra money you will earn thanks to it. The calculator does not take benefits into account (such as faster career advancement or moving into a completely different, better-paid industry), so the actual amount may be even higher. The calculator clearly shows that the highest earnings thanks to an MBA degree are achieved by those working in finance and insurance. Moreover, their investment in MBA studies pays off in the shortest time – just 17 months.
You can enter your own data into the calculator and compare it with how much you would earn through the investment options mentioned above. Do not forget to take into account that MBA studies do not only increase financial income, but also the graduate’s value on the job market and often in life in general.
An MBA degree is a competitive advantage
If the economic situation worsens, companies will not avoid layoffs. Who do you think they will keep? Someone who merely fulfills their job duties, or someone who does so and goes the extra mile? When an employee invests in further education at their own expense, they clearly demonstrate their willingness to learn and become much more valuable to the employer in the future.
A job applicant who has completed more than just a standard university degree—which almost everyone has today – will also attract much more attention. MBA graduates have no problem finding a job even during times of economic crisis.
These are not just empty phrases; the numbers confirm it. In 2018, the renowned agency STEM/MARK conducted a survey among graduates for the CEMI Institute, and the results were positive:
73% of graduates feel they have a competitive advantage on the labor market thanks to their MBA degree.
58% of graduates obtained a better position at another company or moved up the career ladder with their current employer.
62% of graduates have a higher value for the company they work for.
The research revealed many interesting figures. Through their studies, graduates gained broader perspectives, prestige, and recognition, acquired a great deal of knowledge, strengthened their self-confidence, and applied their experience in practice. Particularly noteworthy is the fact that 91% of graduates are convinced of the advantages of investing in MBA studies.
MBA studies can be completed entirely online
Right now is the most suitable time to start studying for an MBA. Perhaps you are currently at home without a job or working from home, which gives you more time for personal activities. Take advantage of it and start studying online. It is not possible to complete the entire MBA program during the coronavirus pandemic (hopefully home quarantine will not last that long), but you can certainly manage a significant part of it.
At CEMI, studies are conducted entirely online; only the final thesis is defended in person in Prague (and if necessary, even via Skype), so quarantine is not an obstacle. Online study does not mean studying alone, however. During individual courses, students have access to lecturers with whom they can consult real-life situations and practical examples via Skype, phone, or email. Consultations are never group-based, making it possible to discuss sensitive company matters – for example, how to behave within a company during an economic crisis.
The only issue may be that the MBA program starts only twice a year, so it is not possible to begin at any time. However, due to strong student interest, the CEMI Institute has made an exception.
The current situation can be used for personal development
Students can join an already ongoing MBA cohort that started in mid-March. It is possible to enroll until April 15, 2020; later on, it would be difficult to jump onto a moving train. The first semester is shared and management-focused; in the second semester, students complete more specialized courses according to their chosen specialization. A total of 3 MBA specializations are available in English.
