Who is Max Prosper? (Part Three)
Going Back to School
The MBA Gamble
After four years at my consulting job, I had a problem. Despite being relatively successful, earning around $70k and building my net worth to about $50k, I could see exactly where my career was headed. Slow, incremental raises. Gradual promotions every few years. A comfortable retirement at 65 if I was lucky.
The math was depressing. Even if I got promoted regularly and my salary grew 3-4% annually, I'd be looking at decades of the same routine. I wasn't miserable, but I wasn't inspired either.
That's when I started researching MBA programs.
The Decision
Everyone told me I was crazy to give up a steady income and go back to school. I was already making more than most people my age. Why risk it?
But I had done the math on MBA outcomes from top programs. The data was public because these schools proudly published their employment statistics. The average graduate from a top-five program was earning $180-250k in their first year out. Even accounting for the cost of school and two years of lost income, the return on investment was compelling.
More importantly, I realized that without an MBA, my career ceiling was relatively low. With one, entire industries would open up that previously wouldn't have considered me.
Note: Keep in mind the time period. The labor market has changed since, but it was a “slam dunk” decision at the time assuming I could get in.
The Application Process
Getting into a top business school is no joke. I spent months studying for the GMAT, writing essays, and preparing for interviews. The process was grueling with tests, applications, and traveling for in-person interviews.
I targeted strong finance programs since it would combine well with my operations background to create higher earning potential. I wasn't interested in some of the most prestigious names because they specialized outside my area of interest.
The waiting was brutal. These schools reject incredibly qualified people simply because they can't accept everyone.
Business School Life
I won’t go too deep here since it’s not relevant to financial independence, but when I finally got accepted to an elite program, it felt like winning the lottery. The first day of orientation, I looked around and thought, "How did I get here?"
Business school turned out to be the best two years of my life. The academic work was rigorous, but captivating. My classmates were impressive and intelligent people from all over the world with various backgrounds. I studied alongside former military officers, startup founders, consultants from prestigious firms, and engineers from tech companies.
Much of the education happened outside the classroom in late-night study group sessions where we'd debate case studies or weekend trips where classmates would share their career experiences. Summer internship recruiting taught me how to network and sell myself.
The Financial Reality
Let's be honest about the money. Two years of business school should have cost me cost me approximately $500,000 when you include tuition, living expenses, and foregone salary. That's a nice house in most parts of the country.
I earned a full-tuition scholarship that helped offset the cost and Mrs. Prosper was nice enough to work for a few years while I was in school. Watching my net worth decline after years of building it up was psychologically difficult. Every month, I'd see that savings balance shrinking and wonder if I'd made a mistake.
But I also watched my classmates land summer internships paying $4,000+ per week. I saw second-year students getting job offers with signing bonuses larger than my previous annual salary. The financial transformation was real for those who executed well.
Summer Internship
The summer between first and second year is crucial in business school. Most people use it to try out new industries or lock in full-time offers.
I landed an internship in real estate finance that paid about $25,000 for ten weeks, but more importantly, it gave me exposure to deal structures and financial modeling that I'd never seen before. I was working on transactions worth hundreds of millions of dollars, learning from people who made more in bonuses than I'd ever earned in salary.
The internship confirmed what I suspected: I enjoyed the analytical work, the deal-making process, and the financial complexity of real estate. It also showed me what high-performing teams looked like and how much more productive you could be with the right resources and training.
The Transformation
The person who started business school was not the same person who graduated. I'd developed confidence in my ability to learn new industries quickly, present to senior executives, and hold my own in rooms where everyone else seemed more accomplished.
I'd also developed expensive taste. My classmates thought nothing of $50 dinners or weekend trips to expensive cities. When everyone around you is spending freely (often with student loan money), it's easy to rationalize lifestyle inflation as "networking" or "professional development."
This was my first real exposure to lifestyle inflation among high earners. I saw classmates accumulate massive student debt loads and then immediately start spending their post-graduation salaries on luxury apartments and expensive cars. They weren't thinking about financial independence. They were thinking about catching up to the lifestyle they felt they deserved after years of "sacrifice."
The Job Search
Second-year recruiting was intense. I was targeting roles in strategy consulting, which typically paid $180-200k for new graduates plus signing bonuses. The competition was fierce, but I had advantages: relevant previous experience, strong academic performance, and the confidence that comes from surviving the MBA crucible.
I received multiple offers and eventually accepted a position that would nearly triple my pre-MBA salary. The signing bonus alone was 70% of my previous annual income.
Looking Back
Was the MBA worth it financially? Absolutely. The immediate income increase paid for the degree within three years.
Was it worth it personally? Definitely. I met new friends, learned valuable skills, and gained access to opportunities that would have been impossible otherwise.
But the MBA also introduced me to a dangerous mindset: the belief that high income justifies high spending. Most of my classmates graduated and immediately inflated their lifestyles to match their new salaries. They moved to expensive cities, bought luxury cars, and started spending like they were rich.
I almost made the same mistake.
The Income Elephant in the Room
Before I wrap up, I need to address something directly. I know that revealing a $200k+ post-MBA salary might make some readers think, "Well, of course he achieved FIRE. Anyone could do it with that income!"
That reaction is understandable, but it misses the point entirely.
First, most of my MBA classmates earned similar amounts and are nowhere near financial independence despite making excellent money for over a decade. High income doesn't automatically create wealth. In fact, it often destroys it through lifestyle inflation.
Second, the timeline to FI depends on your savings rate, not your absolute income:
Someone earning $50k and saving 20% reaches FI in about 31 years
Someone earning $100k and saving 20% reaches FI in the same 31 years
Someone earning $250k and saving 20% also reaches FI in 31 years
Higher income gives you more flexibility in achieving a high savings rate, but it's not required for financial independence.
My story isn't meant to suggest you need six figures for FIRE. It's meant to show how someone discovered these principles despite being surrounded by high-earning peers who were making every wealth-destroying mistake possible.
The strategies I'll share in Part Four, the specific tactics for maintaining a 70% savings rate, work at any income level. The math is the same whether you're saving $500 or $5,000 per month.
The Setup for Part Four
Graduating with a top MBA and a high-paying job offer felt like reaching the finish line. I had "made it" by conventional standards. I was 27 years old and earning more than most people twice my age.
What I didn't realize was that this was just the beginning. The next phase would teach me the difference between earning a lot of money and actually becoming wealthy. It would also introduce me to the concepts that would change everything: the FIRE movement and the mathematics of financial independence.
Next time, I'll share how a casual conversation with a classmate led me to discover Mr. Money Mustache, and how that discovery transformed my relationship with money forever.
In Part Four, I'll cover the post-MBA lifestyle inflation trap, my discovery of FIRE, and the specific strategies I used to maintain a 70% savings rate on a six-figure income.