Why Multiple Designations is NOT a Waste of Money/Time

I thought that, before I wrapped up this blog with my final post I would leave you with an overview of where this is all going.  The CSC is just one of many, many courses that I plan on taking over the next couple years as I continue my education in finance.  I’m reluctant to post this information, as many people coin the term “chasing letters” all to often.  The term chasing letters refers to individuals who, instead of gaining experience, gain education. The argument against these individuals is that there enormous breadth of knowledge is useless because they have no ability to apply this knowledge in a  real world situation.  As for my own opinion, I believe that there are multiple sides to this story.  Firstly, there are the individuals who seem to be envious of those with higher credentials and greater job prospects then them, so they feel the need to categorize they people as over-educated and under-qualified individuals.  The second is that, there are those individuals who think amassing an array of letters under there name but not acquiring the practical skills and networks needed for success in the workplace, will give them an added advantage.  Trying to put either in black and white terms seems to be kind of childish and irrelevant to the broader picture.

The point here is that neither extreme is very beneficial to either party.  A degree of balance and hard work does, however, set you apart from a large number of people.  Setting realistic goals and obtaining knowledge AND experience will allow you to be successful in any career.  This is why it bothers me when people believe a PhD or a MBA is just a waste of money.  Again, at 22 or even 24, a MBA in business doesn’t make a lot of sense.  But what about graduate studies for law, philosophy, medicine and so on.  What about for a up and coming executive.  Companies make 5, 10 and 15 year plans and start working slowly on them now.  Individuals who do the same have a better chance of succeeding at those objectives. Think of it this way.  A lot of experience when your older is almost a given, but a lot of education when your older is not.  The same is true if we flip this scenario; A lot of education when your younger is a given, but a lot of experience when your younger is not.

So you tend to be more educated and less experienced when you are younger, and more experienced and less educated when you are older.  This is not to say that you become less knowledgeable as you grow older, but taking all things aside, typically experience grows more then education as time goes on.  Therefore, when you reach career milestone ages like 30, 40 and even 50 your experience is growing at a steady pace while your education is not.  So if you can remove yourself from the scenario and understand that, at some point, those certifications,designations, degrees and diplomas will have value in your later years, you now understand the concept behind aggressive educational pursuits.

What I’m trying to say here is that, investments in education can truly pay off with the right combination of experience.  For me, giving up either one makes little to no sense.  If I am able to achieve needed experience in a variety of fields, make connections with a variety of people and do my time in my early years at work, while also significantly increasing my educational experience and qualifications on the side, I have now positioned myself as an asset to a company, or a set of companies.

Amassing the letters that accompany the enrollment in a recognized financial designation should not be a primary outcome, rather a consequential one.  Taking a course such as the CFA forces you to comprehend the material in relation to Financial Analysis in such a way not possible with general experience.  This also offers you opportunities to practice those new found skills in areas of increasing responsibilities.  I just wanted to type this  post out to illustrate my thoughts on the continuing education goals me and some of my other colleagues have set for ourselves.  I think it is unfair to discount the usefulness of a broadly based educational background coupled with an increasing level of work experience in your related field.

With that being said, I am going to post my study plans next, to give you an idea of what I’m talking about and what you can do after completion of the CSC.