How to calculate ROI for studying abroad?

So many aspirants have pinged me on LinkedIn to ask me questions about pursuing a masters abroad, and how has my journey been. One of the common questions I get a lot is - whether the ROI of the education would be good enough? In this blog, I will try to answer this difficult question through my personal journey.

Section 1. My parameters, decision points, what motivated me?

When I decided to pursue my masters and go abroad to do that, it was not an easy decision for sure. Especially, it was because of the phase of life I was in which made it more difficult. I was working in a good role in India and was growing at a good pace professionally. Even personally, I had most of the things figured out and it was going great. My family, friends and life was well settled in New Delhi, and leaving my life there seemed daunting at the time. Pursuing my masters seemed like a good idea right after my graduation, but after 4 years of experience in industry, it became a bit more difficult.

However, there was this little spark which made me realize that the world I have developed v/s the world that can be developed somewhere does not have to go in a parallel comparison state. I do not need to delve into the mindset wherein I am making my decisions based on what I have right now. I wont go into endless lectures on motivation in this blog, I will be very raw so you are able to relate to it, and hopefully it helps you if wish to take the next big step.

What motivated me was my younger self who was more fearless than my older self. My younger self had nothing to lose, he was more confident and less reliant on the assurances and guarantees. Originally, my younger self had this dream for pursing a masters degree from abroad. Because of my younger self, despite all the doubts and challenges, I did decide to pursue my masters because I did not want to regret anything later on.

Some of the factors that I was considering while making my final decisions were:

I did a lot of back and forth on the countries, colleges and especially since it was a time period of Covid, one of the make or break factors was to go to a country where I could get a face to face experience. Finally, I chose UK as it offered me good mix of data analytics masters, academic standing of the institutions and also the diverse mix of students who pursue masters.

Section 2. How do I feel now post my masters?

The reality is that I do not often think about tying my current state with the decisions I had already made years ago. My current situation is a mix of my hard work from years ago, my skills, personality, luck, people I have been surrounded with and so many other things. Statistically speaking - just because something happened, it does not mean that a particular decision or an event caused it (correlation does not mean causation).

I will make it simpler. I never regret the decision of pursuing my masters and coming abroad to pursue it. It made me a better person. It connected me to people from around the world including my peers, professors and mentors. Let me tell you how it helps and why is it important. When you get into a mixed community, it makes you understand people and their cultures deeply. What might an easy going thing for you might be a shock for others and all this exposure makes you really humble without you realizing at every step of the way. You start to realize that the world is so big and the thought process and priorities of different people are quite different.

I also loved my course because it was exactly I had envisioned - full of data analytics, data science and fundamental concepts covering these horizons so I can actually understand them to the core. Some of the professors had a deep impact on me as they were quite inspiring given the level of depth they had about these subject areas. Business Statistics, Analytics in Practice, and Advanced Data Analytics were some of my favorite modules. I still leverage these concepts in my work life.

Also, I like my life here not because of its perfection, but because of its imperfection. From the happiness of my personal space and privacy, to the frustration of not getting food on my table without doing a hundred things before and after make it a good mix of learning experiences which I will always take anywhere I go. I guess all of these experiences is what makes it a wholesome experience in the end - sometimes it sucks when it is happening, but makes you laugh when you get over it and learn from it years after.

Section 3. How did I calculate the ROI?

I get reached by many candidates on LinkedIn who are curious about the aspects of undergoing masters or further education. One of the common questions I get asked a lot is - "what is the ROI"? This is not an easy question because everyone's situation and path are very different, and there is no right answer here.

A typical mindset which has been ingrained among Indian kids (including myself) to calculate ROI is also very rigid - whether the job right after the masters will be able to cover the cost of education or not. I would rather say - this is not only rigid but also limits the thinking and possibilities in so many ways. What if the job right after does not pay you a lot, but post a couple of years of work experience, you get a job which pays you really well. What if - right after your masters, you get so much more than you had ever expected. What if none of this happens, and you do not get a job for sometime, but after a bit of struggle, great things happen.

Quantifiables: I would say - a better question to ask is what motivates you to pursue further education? Is it the program which you would like to master, is it the switch to another field which your current career progression might not offer you easily, or is it to find a mechanism to settle in another country. Based on the motivation, right answers might vary for different people. I have also seen some people who come for a masters and then pursue a PhD. to get into the area of research and innovation, and then do really good in academics or industry careers.

In terms of ROI, always think of the long term ROI. For ex: if you invest in mutual funds, would your definition of ROI be the amount of money you make right after a few days? Probably not. Similarly, education is one segment of life which you do not want to define ROI in terms of the money right after, but rather a long term benefit. Try to quantify the long term benefits based on the success parameters you have set for yourself.

Non-quantifiables: The plethora of experiences and knowledge you would gain from your masters are things which you would not be able to quantify in your rigid ROI calculations. For ex: knowledge and experiences are non-quantifiable but if you think deeply, they often have even more impact on our lives than the money.

Section 4. How to look long-term?

The ROI calculations and doubts all inflicted on me as well when I was in the decision mode, because during that time, everything is uncertain. Its difficult to be sure. During this time, what really helped me is to let go and look at long term.

For example: the worst fear among international students is to not get a job and then having to return to the home country thereafter. What if this fear turns out to be true. The appetite to take risk is different for people because of the circumstances, situations, and personal thought process. I thought to myself that even if I have had to return, I would come back with a good degree from a reputed institution and a lot of knowledge. The benefit of my masters might not be visible explicitly but I would try to create a situation for me in my country which gives me significant upside. In this world, everything is based on developing perceptions and the a good way to create perceptions is to define your own brand value. One of the other things that would help is to exonerate yourself from the feelings of "what would others think".

Case Studies

The world is full of examples if you look around. Fortunately and unfortunately, none of those examples can be directly applicable to you because you have your own path, journey, time to success, and life.

Some of my friends from my masters course got an amazing job and they are doing great in the UK. One of my friends got into R&D - and he is currently pursuing a PhD. in ML and AI. A couple of my friends started their own company and offer services in the industry. I myself got into a consulting role in data strategy post my masters, and now I am working in the pharma industry in data & analytics.

These examples may inspire you or help you make your decisions. But one thing I have myself learnt the hard way is that none of these examples matter. You make your own success story and that story can be long, full of personal struggles, but in the end, it would pay. In no way, I am saying that everyone should pursue a degree. I am just saying that if you really want to, just try to let go of the hard end calculations in your mind, and take a leap of faith.

Because in the end, its this leap of faith which takes you distance in anything you do.

In the end, enjoy your story because it has been and will always be unique.