The average graduating salary of a Harvard Business School student is $120,000.
When compared to the average American salary, which is only $24,000, this may seem like a lot of money. But this isn’t all of the information.
Typically, when we think of salaries, they’re expressed as the amount of money you make in a year, such as $60,000/year.
However, this isn’t how people get paid. You don’t get paid by the year. You get paid by the hour.
So, even though the average Harvard Business School graduate makes $120,000 a year, they’re also having to work three times as much in order to make that much money.
In his book “The Happiness Equation,” Neil Pasricha shows that when you do the calculations, you see that Harvard business graduates aren’t really worth that much per hour.
Here’s the math:
A Harvard MBA makes $120,000 a year. They get 2 weeks of vacation time which means they work 50 weeks out of the year. Each week, they work 85 hours, which means they work 4,250 hours a year. So, divide $120,000 by 4250 hours and you get an hourly salary of $28.
Now, let’s compare this to teachers.
A teacher makes $45,000 a year. They get 12 weeks of vacation time which means they work 40 weeks out of the year. Each week, they work 40 hours, which means they work 1,600 hours a year. So, divide $45,000 by 1600 hours and you also get an hourly salary of $28.
Whether you’re a teacher or a Harvard Business graduate, you’re both making the same amount of money per hour.
The question is, what life do you want?
If you’re a consultant making $28 a hour working 80 to 100 hours a week, you’ll have more money to spend on luxuries and vacations, but you’ll also have less time to do the things you enjoy.
If you’re a teacher, however, making $28 a hour working 40 hours a week, you’ll have less money, but you’ll also have more time to spend with your family and to do things you love.
Either life is fine, but think about the life you want.
What’s important to you?