What is finance, and how to make the most money? Finance is a broad term that can mean different things to different people. Many other fields are involved with finance, including but not limited to banking, investing, accounting, finance, and credit. You might be thinking about what type of finance job is best for you, but first, you might want to know what the different types of finance jobs are and what the highest paying finance jobs are.
Let’s discuss the different types of finance jobs and average salaries, and we share a list of some of the highest-paying finance jobs.
What is Finance and How to Make the Most Money?
Finance is the science of money management. It studies how people and businesses manage their money, including investments, taxes, loans, and other forms of borrowing.
The goal of finance is to make a profit by using money wisely. Making money involves more than investing in stocks or other assets. It also includes cutting costs, reducing fees, and making your money work harder.
How to Make the Most Money
Financial analysts typically earn an average salary between $60,000 and $80,000 per year, depending on location and industry experience. However, some factors can help increase your income significantly:
Working at large firms or Fortune 1,000 companies can allow you to advance more quickly than working at smaller businesses where promotions may be less frequent.
Having advanced degrees in finance, such as an MBA, can boost your earnings by as much as 10% over those without advanced degrees.
Is Finance a Good Career Choice?
Finance is a great career choice for many people, but it’s essential to understand this field’s pros and cons before deciding to pursue it.
- High salary potential: The average starting salary for an entry-level financial analyst is $37,000, according to Glassdoor. After five years of experience, that jumps to $70,000 per year.
- Variety of job opportunities: There are many different roles within finance — from investment banking and wealth management to accounting and auditing — so there are plenty of options for those who want to focus on specific areas of expertise or industry sectors.
- Flexibility in work schedules: Many finance jobs allow employees to set their hours or work remotely if they have a family or other obligations outside work time. Some companies even offer sabbaticals after five years so that you can take time off without worrying about losing your job or pay.
- Job security: Finance is one of the most stable fields. In fact, according to the U.S. Bureau of Labor Statistics (BLS), it’s expected to grow by 6% through 2024 — slightly higher than average job growth rates in other fields. The BLS also reports that over half of all finance positions require bachelor’s or master’s degrees, meaning that even if jobs aren’t plentiful at first glance, they will be down the road as long as you continue your education.
- Long hours spent in front of a computer screen can cause eye strain and headaches; working in an office environment also comes with distractions from colleagues who may not be as invested in their work as you are (or who might even try to steal your ideas).
- Stressful Environment: Many people think that finance is tedious and stressful – but this isn’t true! The excitement around trading stocks makes up for it all. Don’t get me wrong, though – there will be times when you feel stressed about work, not getting promoted fast enough, or some other problem. It’s just part of being an employee in any industry – not just finance!
What Are The Different Types of Finance Jobs?
There are many career paths in finance. From accounting to sales and marketing, there are a variety of jobs that can be done in this field.
Here are some of the different types of finance jobs you could work in:
- Accounting: Accountants keep track of money entering and going out of companies. They record transactions, prepare financial reports and ensure everything is done according to tax laws. Accountants may specialize in one area, such as auditing or taxes.
- Auditing: Auditors verify that all the numbers add up by examining records from businesses or government agencies. Auditors ensure that companies follow accounting standards when reporting their financial results so investors can make sound decisions about investing in them.
- Budgeting: Budgets help managers plan for future spending by limiting how much money will be spent on specific items over time. Budget analysts also help set priorities for spending based on planned outcomes for projects or departments within a company.
- Economics: This field deals with economic data, forecasts, and analysis. You may work as an economist at a company, government agency, or research institute.
- Financial analysis: A financial analyst examines past performance and prospects for companies or industries using quantitative and qualitative methods. They then make recommendations on how to invest money based on their findings.
- Insurance: Insurance professionals assess risk, calculate premiums, develop policies and manage claims on behalf of clients. Anybody working in insurance will have a strong understanding of risk management and be able to analyze data related to this area.
- Personal finance: Personal finance professionals help people make smart financial decisions regarding money matters such as savings, investments, and taxes. Some personal finance roles involve assisting people in managing their budgets or planning for retirement, while others focus entirely on assets such as stocks and bonds or insurance products like life insurance policies (which protect beneficiaries if the policyholder dies).
- Selling financial products: This job involves selling stocks, bonds, mutual funds, or any other financial product. This might be a good fit for you if you have a background in sales and marketing. You can start with smaller companies and work your way up to larger ones as you gain experience and prove yourself capable in this area.
- Consulting: This job involves helping companies make better decisions about their finances, whether by helping them manage their budgets or advising them on which projects they should invest in. Consulting is also important in accounting careers because accountants often consult with clients about how best to handle their money issues.
- Real estate investing: Real estate investing boils down to buying properties at a low price and then renting them out until they’re worth more money than when you bought them. This requires some knowledge about real estate investing but can provide fantastic returns if done right!
5 Highest Paying Finance Jobs
If you’re interested in working in the financial industry but aren’t sure what your salary will be once you get there, here are some of our favorite higher-paying finance jobs:
The best financial analysts can earn $120,000 to $160,000 per year. Those with a background in economics will have an advantage over those without one. The position requires several years of experience, strong math skills, and the ability to analyze data.
Investment bankers typically earn $120,000 to $200,000 per year. To get the job, you need a degree in finance or economics and three to five years of work experience at a large investment bank or consulting firm.
Credit managers earn between $100,000 and $150,000 per year, depending on their level of seniority in the company. This position involves managing credit risk for loans and mortgages issued by banks, credit unions, and government-sponsored enterprises (such as Fannie Mae).
Credit counselors typically earn between $60,000 and $90,000 per year. This position involves counseling consumers about their finances so they can improve their creditworthiness by paying off debts or getting loans with lower interest rates than they would otherwise qualify for from traditional lenders such as banks or credit unions.
Mortgage Loan Originator
A mortgage loan originator is a position that requires working knowledge of the mortgage lending industry. The job requires you to have a strong understanding of mortgages and home financing and an ability to communicate effectively with borrowers.
For those looking for an entry-level position in this field, there are plenty of opportunities in metro areas like New York City, Chicago, and Los Angeles. However, if you’re looking for more opportunities within your area, consider working with a local bank or credit union where you’ll be able to make a difference immediately.
The average salary for mortgage loan originators is $50,000 per year.
Ultimately, the best choice depends on your particular skills and area of expertise.
The more you know about the field and the various positions they offer, the easier it will be for you to pick a good fit.
Don’t be afraid to shop around, or at least take some time to ask your current employer if they’d be willing to switch you over.
There’s no doubt that finance is a rewarding field—some fields more than others—and there are many ways to rise to the top. Before long, you could be on your way to making big bucks.
Well, I hope this article has been informative. If you’re not naturally inclined towards the finance path, I’d like to encourage you to reconsider; in the right hands, finance is a powerful tool that can generate great wealth.