Can you make a lot of money as a financial analyst?
They Earn a Competitive Salary
According to the U.S. Bureau of Labor Statics (BLS), careers in finance pay a median salary of $76,850 — 66% higher than the median salary for all occupations in the nation ($46,310).
Most financial analysts work full time, and some work more than 40 hours per week.
People who have a bachelor's degree in finance take in $124,000 a year on average, according to data collected by Comparably. 1 However, and it becomes apparent just how many finance-related careers pay well above average. Here's a look at how you can expect to fare in some of the field's more common occupations.
There is a reason people in finance who work in private equity or a hedge fund make millions. These industries make money by investing in companies, and after a certain level you get an equity stake in the profits of the firm through carried interest.
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections. Careers in finance may also offer flexibility for employees by allowing them to work remotely or in hybrid environments.
Finance can be a fiercely competitive field. It's a famously high-paying industry known to deal out six or seven figures in salaries and bonuses for those at the top. Even those on the bottom rung can expect to start at a good wage compared with other fields.
According to the BLS, the median annual wage for financial analysts was $95,570 as of May 2021. The median annual wage for financial risk specialists, another type of financial analyst, was $100,000 as of May 2021.
Minimum GPA: Minimum cumulative 3.3 GPA required, 3.5 GPA preferred. Certifications: All are optional: Chartered Financial Analyst® (CFA), Certified Public Accountant® (CPA), or MBA.
Competition for these jobs is fierce, especially among analysts new to the field. The Bureau of Labor Statistics projects 8.2% employment growth for financial analysts between 2022 and 2032. In that period, an estimated 68,000 jobs should open up.
What is the highest paid job in finance?
- Chief financial officer (CFO)
- Investment banking.
- Hedge fund manager.
- Private equity associate.
- Actuary.
Hedge fund managers can make tens of millions of dollars because of a similar compensation structure to private equity; hedge funds charge both an annual management fee (typically 2% of assets managed) and a performance fee (typically 20% of gross returns).
- Chemical Engineering. Engineering degrees are a common theme on this list. ...
- Computer Engineering. ...
- Aerospace Engineering. ...
- Electrical Engineering. ...
- Computer Science. ...
- Mechanical Engineering. ...
- Civil Engineering. ...
- Industrial Engineering.
1. Investment Banker. Roles in investing banking are highly sought after. For investment bankers, it's often a higher competition to land a role in one of the largest firms.
$175,000 - $200,000
The required skills, knowledge, and abilities are typically acquired through a minimum of 5 years of accounting/finance management experience.
1. Engineering. Coming in at the top is engineering - which might surprise you, but the scope of engineering is huge and widening all of the time. 22% of the world's top 100 billionaires studied some kind of engineering.
Financial careers often involve high barriers to entry, stiff competition among applicants, and a lot of stress. Still, these jobs offer numerous perks, including a challenging work environment, interaction with highly motivated and intelligent colleagues, opportunities for advancement, and excellent pay.
Landing a finance job with just a bachelor's degree is highly competitive but it isn't impossible.
While both fields offer the potential for substantial earnings, finance often holds an edge in salary. Roles such as investment banking and financial management tend to command higher compensation due to the complex nature of their responsibilities and the financial expertise required.
A seven-figure job refers to the number of digits listed in your salary. This includes people who earn anywhere from $1 million to just under $10 million per year.
Can I major in finance if I am bad at math?
It's normal to have these thoughts and it's good to ask these kind of questions before you get into it. Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today's technology, all math-related tasks can be done by computers and calculators.
While ZipRecruiter is seeing salaries as high as $133,726 and as low as $24,673, the majority of salaries within the Finance Degree jobs category currently range between $74,000 (25th percentile) to $107,600 (75th percentile) with top earners (90th percentile) making $133,232 annually in California.
Overall, Financial Analysts report being happy with their jobs. When interviewed about whether they like their career, Financial Analysts report above-average job satisfaction. Not only is financial analytics currently ranked as the 13th-best business job in the U.S., but it's also listed as the 66th-best job overall.
The average age of male Financial analysts in the workforce is 37.6 and of female Financial analysts is 40.6, and the most common race/ethnicity for Financial analysts is White.
Years of experience | Per year |
---|---|
1 to 2 years | $72,620 |
3 to 5 years | $80,493 |
6 to 9 years | $87,430 |
More than 10 years | $90,544 |