As some of you know, I recently decided to get my MBA. One of the things you need to do to get admitted to an MBA program is take the GMAT.
There are many ways to study for the GMAT. There are books, tutors, and classroom study formats. As you might expect or seen through researching the various GMAT study options, they can vary greatly in price.
Today I will explain how to study for the GMAT for cheap. I strongly believe that there are effective ways to study for the GMAT – and get a great score – without spending more than $100. In fact, you could get away with spending less than $40 on study materials and still crush the GMAT.
Utilize the 2 Free Practice Tests at MBA.com
Prior to signing up for the GMAT most people are unaware that MBA.com gives you two full-length practice tests when you sign up for the GMAT. Considering the cost of taking the GMAT ($250), you might as well get some free practice materials out of it.
These two full-length practice tests are extremely valuable because the GMAT uses an algorithm that adjusts the difficulty depending on the previous questions you got right or wrong. That means book practice tests aren’t worth nearly as much as online practice tests.
The only negative to the MBA.com practice tests are that they do not give you answer explanations for the questions you get wrong. With that being said, it still is worth your time to take the two tests at some point in the months leading up to your GMAT test date.
Skip the Classroom Study Option
In college you typically do not have a choice of study format; you are forced to sit through lectures in a classroom-style format regardless of whether it’s the best way you learn or worth the extra money to pay a professor. There are many classroom-style study options available for the GMAT, but most will run you $1,000 or more.
My advice to people is to skip the classroom study option. The book and online study materials are very comprehensive and much cheaper. If you think you need a classroom-style study plan because you don’t think you will stick to a book study plan, ask yourself whether it’s really worth forking over $1,000?
Conversely, think about a situation where someone was willing to pay you $1,000 and all you had to do was stick to a book GMAT study plan. I think most people would take the $1,000 and stick to their study schedule.
Spend Money only on Practice Tests
As I mentioned earlier, the most valuable study materials are the full-length computer adaptive GMAT practice tests. If you’re buying a book, make sure you buy one that includes these test.
For practice tests I highly recommend purchasing the Kaplan GMAT Premier study book which comes with 5 full-length computer adaptive GMAT practice tests. At a cost of less than $35, this book provides a ton of value beyond the practice tests as well. The potential ROI of this purchase is huge.
Before purchasing the Kaplan book I did purchase a few other books. For approximately $50 I received a bundle offer of three books, The Official Guide for GMAT Review 2015 Bundle (Official Guide + Verbal Guide + Quantitative Guide. I used the diagnostic test and practice problems, but I thought the actual review sections (such as the geometry review, algebra review, etc.) was lacking.
If I could go back I would only purchase the Kaplan book because of the full-length computer adaptive tests. I would then get whatever other study books I wanted or needed from the library. If you check out all the GMAT books from the library you can pick and choose which are the best to use, plus you only really need to purchase a book to get the product key for the online test.
In summary my recommendation is to get the Kaplan GMAT Premier study book and check out books from the library for the rest of your study materials.
Additional GMAT Study Tips
While this post is focused on how to study for the GMAT for cheap, I wanted to also share a few additional GMAT study tips. These are all tips I picked up throughout my time studying for the GMAT and I think they will benefit you as you prepare for the test.
- Focus on the quantitative section
I don’t have any research to back this up, but I strongly believe focusing your studies on the quantitative section instead of the verbal section will result in a higher score.
That’s not to say you shouldn’t study at all for the verbal section, I just think people are more likely to move their score up on the quantitative since it focuses on topics like algebra and geometry that take some time to remember.
- Get a Manhattan GMAT Test Simulation Booklet
Unfortunately the GMAT does not allow the use of scratch paper and instead have these dry erase pads that can take some getting used to. For $18 you can get a Manhattan GMAT Test Simulation Booklet which is exactly the same thing you’ll use on test day. I bought one of these and I’m glad I did.
- Don’t overlook the essay and integrated reasoning sections
While the essay and integrated reasoning sections do not impact your “800” score, they are seen by colleges you are applying to. You don’t need to ace either of these sections to get in, but at least spend a few hours learning basic technique/strategy for these sections. Once you have a basic understanding of the strategy and practice on a few practice tests, you’ll be fine.
Another reason to not overlook these sections is because they happen at the beginning of the test. I’m a big believer in momentum and if you start the test off on a bad foot and know that you didn’t do well on these two sections, you may do worse on the quantitative and verbal sections.
Again, you don’t have to spend a ton of time studying for these sections, but make sure that you at least spend some time studying for them.
I hope this post helps you to study for the GMAT for cheap. It really doesn’t require much money to study, despite what some of the companies pushing classes will tell you. It does require a pretty sizable time commitment, though, but if you’re willing to sacrifice some of your free time for a few months you should be in great shape for the GMAT.
Feel free to ask me any questions you have about the GMAT in the comments section – I’m happy to help.
What are your thoughts on the GMAT and other standardized exams? If you’ve taken a grad school placement test, how much did you spend on it? Were you as surprised as me at how cheap it is to study for the GMAT?
____________
Photo by Jess Pac
Check out some of our favorite personal finance resources:
Are you getting the best credit card rewards? Check out the top cash back credit card offers (updated daily)
Make extra money: 15 ways to make money from your computer
Get the First Chapter Free!
Join our online community and get the first chapter of the book Student Loan Solution absolutely FREE!
These look to be some really solid options DC. When I took the GMAT I went the route of buying similar books to the ones you mentioned and they served me just fine. I tend to not do the best on standardized tests for some reason so I needed all the help I could get. :)
Reading this made me realize I never want to go back to school…ever! lol! I hope you do great on the test DC! I know you’ve been studying like crazy!
This is a great resource DC and makes me SO happy that I have no intention of taking the GMAT :-) I honestly could not imagine taking another standardized test at this point in my life, but I commend you for going through with it, especially while working full time and running your side hustles.
Congrats on getting ready for the GMAT!
I took the exam in early 2013 before starting my MBA that September. Your advice here is pretty solid — I only bought 1 study book and focused primarily doing practice exams. Every Saturday I did a practice test to simulate the real exam, and I saw my score go up week after week. I ended up with a really good score, and was accepted to every school I applied to.
The only downside is once you write the exam and get accepted, you realize that was the EASIEST part of your MBA ;) hahaha
And they NEVER stop giving you standardized tests. I got an MBA in Finance so I was planning to go into investment banking (I ended up working for start-up incubator instead, thank god) but I was all geared up to take the CFA exams…. and I just couldn’t believe how much I needed to be tested. Exams to get into the MBA, exams throughout the MBA, exams to verify I learned what I was supposed to in the MBA…. worst.
Good luck!
Looks like some great options, DC. I decided to get my CFP rather than an MBA since it made more sense professionally. There was definitely a lot of studying and no online classroom options back then (yes, I’m old). Good luck and have fun studying. :)
I’m so happy for you that you’re getting an MBA!! I tried the free practice tests before and there was also this free guide as well with various sample questions and it was very helpful. I saw how expensive those prep classes were and I thought the same thing. Why pay all that money to be in a classroom with several other students and look through a book? Unless it helps you focus better or the instructor offers some additional value of some sort, I wouldn’t recommend it either.
My husband tried to make GMAT studying (or whatever test he had to take to get into the PhD program) into a fun competition between him and me. It was not fun, but I did win.
FrugalRules Yeah the books have been great, especially the Kaplan one. A high score is definitely possible if you are disciplined enough and utilize the right resources.
Beachbudget Thanks so much! It’s been stressful preparing, especially not knowing whether I’ve studied enough to get my target score. I still can’t believe I’m going back to school…the past two years I was sure I wouldn’t go back.
blonde_finance Haha yes you are lucky that you don’t have to take the GMAT! It’s been tough to find the time to study, but hopefully the time I did put into studying will pay off tomorrow.
moneyaftergrad Thanks! I’m ready to get the test over with tomorrow. I’m resisting studying tonight and trying to relax but also stay busy so my mind isn’t on the test. I don’t think the fact I’m going to school has hit me yet. The classes, homework, tests, presentations….I refuse to think about it until I finish the GMAT.
Hannah UnplannedFinance Nice! Competing with someone else can be a great motivator. Congrats on winning, too, haha!
ShannonRyan Ah I’ve heard the CFP is a tough one. I didn’t use an online classroom option to study, but with the GMAT being an adaptive test (changes each question depending on the prior questions) it’s best to take practice tests online since obviously books can’t adjust based on performance!
Chonce Yeah I really don’t understand the classroom courses. You could literally sit through a Kaplan book and get the same value – if not more – out of the time you invest in it.
I remember selling all my study books for a decent price too, so you can recover some of your cost. I took it in 2009 I think, and spent tons of time on beatthegmat.com. I think it has evolved, but it was a fantastic resource.
Mark@BareBudgetGuy The only bad thing about reselling some of the books nowadays is that people REALLY buy the books for the online practice tests. My Kaplan book still has some value, but I wouldn’t recommend anyone buy a new or used book that doesn’t come with online practice tests.