What does a financial analyst do all day?
A typical workday for a Financial Analyst begins early in the morning and may extend beyond regular office hours, with tasks including checking news and market developments, attending meetings, reviewing financial models, collecting and organizing data, analyzing financial metrics and ratios, and preparing for the next ...
A Day in the Life of a Financial Analyst. Financial analysts gather information, assemble spreadsheets, write reports, and review all non-legal pertinent information about prospective deals. They examine the feasibility of a deal and prepare a plan of action based on financial analysis.
Even though Financial Analysts work long hours and sometimes must handle a lot of stress in the workplace, these professionals are well-compensated for their efforts. In 2021, the average salary in the U.S. for a Financial Analyst was $96,000.
At the entry-level, you'll usually work between 40 and 50 hours per week. However, that varies based on the group and the time of year. For example, FP&A Analysts might work more like 50-60 hours per week because the role tends to be more strategic and involves more interaction with management.
Financial Analyst Job Description
Analyze financial statements to evaluate investment opportunities. Create financial modeling for investors to find profitable investments. Recommend individual investments and collections of investments. Asses the performance of stocks, other types of investments, and bonds.
The finance industry is infamous for struggling to create a positive work/life balance because of its long hours and intensely competitive nature. Achieving work/life balance includes being proactive in requesting flexibility with work hours, remote work, and time.
It's a lucrative and interesting career, and financial analysts can expect to make around $85,000 per year, but that number is going to look very different depending on the route an individual financial analyst takes.
Pros and Cons of Finance Jobs
Like every field, there are also drawbacks to a career in finance. They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.
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.
- Stress: Some finance professionals find that their roles or industries feature stressful work environments. ...
- Long hours: Employees in the financial sector might also work overtime or unusual business hours, such as evenings and weekends.
What GPA do I need to be a financial analyst?
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.
Financial analysts may work at institutions that are based in large cities. Financial analysts work primarily in offices but may travel to visit companies or clients.
Being a financial analyst can be a tough gig because it requires a lot of complex thinking, preparation, and hard work. Many analysts report that the hardest part of their job is communicating sophisticated analysis and insights to decision-makers in a way that is both comprehensible and actionable.
They need both strong math skills—specifically in statistics and probability—and computer literacy, as analysts use software to look at trends and make forecasts. These professionals should also have a good grasp of economics and know how to read and interpret financial statements.
Earn a bachelor's degree: Most employers require a bachelor's degree for financial analyst positions. These four-year programs teach students business finance principles and fundamentals. Degree-seekers may also learn investment and portfolio management.
The salary range for a financial analyst is $38K-$725K. The average salary for a Financial Analyst in US is $86,009.
Financial analysts tend to work with the overall picture of economic trends and market movements to forecast financial situations. A career in accounting may be ideal if you enjoy examining data like auditing and reviewing financial statements. Financial analysts may make more money on average than accountants.
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.
Financial analysts can work long hours, generally either working on updating research and financial models or networking. Junior financial analysts generally have less than three years of experience and spend much of their time putting together information and updating financial models.
Financial Analysts made a median salary of $90,680 in 2022. The best-paid 25% made $131,340 that year, while the lowest-paid 25% made $64,390.
Where do financial analyst get paid the most?
- Washington, DC. $91,201 per year. 169 salaries reported.
- New York, NY. $84,072 per year. 335 salaries reported.
- Houston, TX. $82,801 per year. 177 salaries reported.
- Los Angeles, CA. $79,085 per year. ...
- Dallas, TX. $79,044 per year. ...
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Analysts have a more stable salary because they tend to earn a larger base salary, with the opportunity to receive bonuses on top. Financial advisers largely earn lower base salaries and instead work mostly for commissions and fees.
When working as a budget analyst, interaction with others is limited, and the bulk of the job involves analyzing, preparing and reporting financial data. However, some positions may require more social interaction than others.
Some experts say that becoming a financial advisor or financial analyst can be a good fit for introverts. You should keep in mind that you may need to be presented to a large group of people sometimes.
- Firefighter.
- Social worker.
- Broadcaster.
- Newspaper reporters.
- Emergency dispatcher.
- Mental health counselor.
- Anesthesiologist.
- ER nurse.
