We all must have come across the term finance at least once in our lives. Whether in passing or in a conversation with another person, finance is a very important aspect of our lives that cannot be eliminated. Frankly speaking, everybody has something to do with finance regardless of occupation.
But the next and obvious question that you probably may be thinking about could be “is finance a good career path?” Yes, the finance industry is a very lucrative one that is highly competitive and requires a lot of brainpower.
Interestingly, working in the finance industry can also be very rewarding as it attracts a six to seven-figure salary and other attractive bonuses. So, if you are considering starting a career in the finance industry, this article will guide you on all that you need to know before shooting your shots.
Read on as we explore the career world of the finance industry together.
What is the Finance industry?
The finance industry cuts across various areas, and it is not just limited to the management of money but also the various ways in which money is acquired.
Generally, the finance industry is usually divided into three main subsectors including;
- Corporate finance
- Personal finance and
- Public finance
Although each subsector of the finance industry requires quite a different level of mindset and skillset, there is an interesting fact about them. Just as you would rightly guess, they all share similar principles, especially as each job role in the industry requires some level of basic understanding of accounting.
As mentioned earlier, the management of money in the finance industry involves sourcing funds. These can be done through corporate funds, banks, or even individuals with respect to the type of financing being employed.
So, securing and keeping a career in the finance industry doesn’t only involve an understanding of the basic principles of accounting. Instead, it also requires a good understanding of the best ways for raising money and investing same.
Is Finance a good career path?
The question above is a valid one that you should ask, especially if you are skeptical and trying to determine the right path for yourself. Well, in its simplest form, the answer to this question is “yes” finance is a good career path to choose.
Asides from the fact that it is a good-paying job; finance is a career path wherein you can get easy access to senior colleagues, establish a connection with a different organization, and be a part of various business deals from start to finish.
Also, finance is a fast-rising profession, as the need for financial analysts as well as other finance-related jobs is growing on a daily basis. In a highly economical world, it is highly doubtful that we will ever outgrow the need for a finance person.
What is the Average Salary for Jobs in the Finance Industry?
A career in finance has a vast amount of opportunities as stated earlier. Just as is the case with other industries, the finance industry is one with different categories of workers who are paid based on the skills, job description, and rank of each employee.
In this regard, the U.S Bureau of Labor Statistics, 2021 published a report on the average annual pay for different categories of staff in the finance industry. these include;
Finance Manager = $131,710
Corporate Financial Professional = $199,750
Wealth Manager = $85,348
Accountants and Auditors = $77,250,
Securities, Commodities and Sales Agents = $77,250.
How many Jobs are available in the Finance industry?
In case you may be wondering where in the finance industry you can fit in as a career path for you, here are some jobs available in the industry with an overview of each job’s requirement and role.
Budget Analyst
Budget analysts are professionals who carefully analyze the organization’s expenditure.
Investment Banker
These are a set of professionals who encourage organizations and companies on the best ways to raise capital, and the most effective and productive way to acquire and/or merge with other businesses.
Management Consultant
A management consultant assists businesses by identifying effective ways to cut down on costs and increase revenue.
Financial Planner
A financial planner is a professional who assists individuals to make the best financial decision and make investments that will be useful to them in the long run.
Best Paying Job in the Finance Industry:
Let’s briefly take a look at the star job in the Finance Industry that pays the highest:
Chief Resource Officer (CRO)
CROs, are trackers. They are constantly on the lookout for any financial event that may threaten the organization’s profit and solvency.
They are also charged with monitoring the firm’s investment and ensuring that the organization is not affected by any legal shortcomings. Their average salary is valued at $189,000
Chief Financial Officer (CFO)
A CFO is an executive tasked with the primary objective of overseeing all the financial activities of a business.
These individuals constantly have to keep track of the financial reports and come up with financial strategies that will assist the organization in achieving its long-term goals. The average salary for this job is at the sum of $156,000
Things to note when choosing a career in the Finance industry
At this point, I am sure you are beginning to see the reasons why finance is a good career path.
However, below are some other major factors you need to consider before you begin to actively pursue it, and they are:
- It’s an industry that is ever-evolving and highly competitive; therefore, you need to be constantly up to date.
- Finance is one of the more stable career choices in the world, as it doesn’t seem to be going anywhere in years to come.
- A career in finance offers more opportunities to grow and advance to the next level.
- There are just so many career possibilities to choose from in finance.
- It’s most of all an exciting career that seeks to challenge you and keep you on your toes.
Top 5 Companies in the Finance Industry:
Here are the top 5 financial companies in the world as of 2022:
Berkshire Hathaway
Average Revenue: $286,250 million
Number of Employees: 360,000
Headquarters: USA
JP Morgan Chase & Co
Average Revenue: $121,640 million
Number of Employees: 271,025
Headquarters: USA
Visa
Average Revenue: $24,100 million
Number of Employees: 21,500
Headquarters: USA
Bank of America Corporation:
Average Revenue: $89,110 million
Headquarters: USA
MasterCard:
Average Revenue: $18,800 million
Number of Employees: 24,000
Headquarters: USA
Take-Home – Is Finance a Good Career Path
A career in the finance industry is not as hard as it looks or you’ve probably imagined. Once you get a hang of the basics, it’s a joy ride moving forward.
The finance industry will take you to greater heights not just by the knowledge of the job alone, but also by the series of network relationships you will gain from the job.
You’ll be presented with the opportunity to meet with various kinds of people from all spheres of life, as well as the opportunity to work with them and get to experience different lifestyles.
You can let this spur your motivation and be the answer to the question “is finance a good career path? Good luck in your career in the finance industry!
