Some people have the luxury of pursuing knowledge for knowledge's sake. They are already established in their career. They may even exist beyond professional life, in that golden time when opportunities abound and time clocks don't matter. They probably have a degree of financial independence or, at least, financial security.
We'll get there someday. Right now, we have to pursue knowledge to position ourselves optimally for an entry-level job search. Whatever compelled you to study finance, you made an excellent choice. The finance industry is one of the fastest-growing sectors of the job market.
Do you know which team you'd like to join? If you pursue graduate studies in finance, you'll have the skills for virtually any job from accountant to business management. Here are just some of the top finance jobs to aim for.
Finance Jobs: Budget Analyst
Budget analysts keep a company's budget balanced. This team makes sure funding is properly allocated to each department to keep operations flowing smoothly. As the business makes plans to expand, budget analysts are the first to consult. They have to find money-saving opportunities to finance corporate growth.
Budget analysts support their company's accounting department. Their core duties may include auditing - or, at least overseeing finance ledger entries. They read and interpret data to monitor the company's financial health. They report those findings to management.
Budget analysts often work in corporate finance departments. They may answer to their firm's senior finance manager; the Finance and Accounting department head. Budget analysts work in government, too. Australian Office of Financial Management (AOFM) budget analysts fulfil many of the same duties as those working in corporations.
The average budget analyst's salary is just over $98,000 per year. Naturally, these wages depend on many factors. Accounting skills, of courses, but also location. Melbourne and Sydney-based budget analysts may earn upwards of $123,000. By contrast, Perth and Darwin budget analysts earn a bit below the national average.
Across Australia, corporate and government budget analyst positions demand at least a Bachelor's in finance for even entry-level opportunities. You may improve your skills by going for a Master's in Finance and Accounting. The extra time spent in graduate school will pay off well in the end. You'll start your career earning substantially more than an accountant with a Bachelor's degree. That alone makes extra studies in finance worthwhile.
Credit Analyst Earnings vs. Finance Manager Salary
They say the world revolves around money. In today's economy, that's no longer true. The world revolves around credit. Consumers use credit to buy big-ticket items like homes and cars. Business uses credit to expand and invest. In banking, credit services enhance their bottom line. Entire countries' economic strength is based in part on their credit rating.
Somebody has to analyse those entities' creditworthiness. That's the role of credit analysts. They go over borrowers' profiles to decide if they're likely to default on a loan. That includes going over their financial details - property, income and investments. They also consider how a credit applicant spends their money.
As described above, a budget analyst makes sure their 'client' stays within their means. By contrast, a credit analyst determines how far beyond your means you may go. For instance, credit card services may give you a $5,000 limit on your new card. If you max that card out quickly, you'll see your creditworthiness downgraded. The next time you need credit services, your application won't be viewed so favourably.
Credit analysts work in banking and credit card companies. Bank credit analysts approve or deny loan applications. If your debt-to-income ratio is too high, they'll likely reject your loan application, even with a sterling payment history. Credit card companies are different. If you have a perfect payment record, the credit team will raise your limit with no regard to how much you owe.
Credit analysts earn, on average, $88,500 per year. Again, that depends on where in the country you live. In Australia, banking credit analysts tend to earn more; they are also expected to have at least a Bachelor's in Finance. By contrast, a credit associate working in the credit card industry may only need a high school certificate. They'll also earn, on average, $20,000 less than their formally credentialled counterparts.
Finance Jobs: Risk Specialist
Every opportunity involves a degree of risk. Nowhere is that more obvious than in finance. More so than practically any industry, finance actors demand the minimum risk to attain the maximum reward. Finding that sweet spot is the risk specialist's role.
As a member of the risk specialist team, you'll analyse prospective investments to identify their degrees of risk. Let's say you're a risk analyst working at the AOFM. The government wants to invest in a mortgage-backed securities program. Your job is to first, determine whether the bundled mortgages are worth their rating. Then, you'll figure out whether the asking price per bundle is justified. Finally, you'll assign the venture a degree of risk and present your analysis.
You won't make any decisions regarding the investment. Once you assess how much risk is involved and told management about it, your work is done. By contrast, if you're an investment risk analyst, the job is ongoing. For instance, risk specialists in commercial banking must continuously monitor assets' stock market performance.
If an asset suddenly turns volatile, you must quickly calculate the degree of risk. You might hedge against it if the risk appears mild or temporary. Hedging won't work if the risk is severe and/or immediate. You'll recommend dumping the asset at the earliest opportunity, and in the most urgent terms you know.
There is some debate over risk specialists' ideal temperament. Are the risk-averse more competent or do the risk-tolerant deliver a better performance? However, there's no doubt over risk specialists' needed skills and credentials. You should have studied Finance at least at the graduate level and work among the senior staff in the accounting group. But you stand to earn handsomely; the average yearly salary starts at $106,786.
Finance Manager Salary and the Financial Planner
Financial planning is a relatively new field. Until about 40 years ago, the average earner had no need for accounting or financial services. What assets they had could be easily managed. A few dollars in a high-yield savings account. An allotment to buy a life insurance policy and a mortgage. Those banking opportunities, coupled with their pension, were enough to assure their retirement and a bit leftover for their progeny.
The markets have moved on. Today, banking services - savings accounts, certificates of deposit (CDs) and other vehicles pay little to nothing. It's all high-stakes trading and incomprehensible financial instruments, these days. That's why small businesses and concerned 'civilians' need financial planners.
As a personal financial planner, you'll tutor clients about the inner workings of financial markets. You'll teach them the skills needed to get the most out of their investments. You'll listen as they outline their financial goals and search for opportunities to help clients attain them.
Corporate financial planning is a different proposition. This level of financial planning was and still is handled by firms' in-house Finance Managers. It takes lofty educational credentials, targeted skills and years of experience to work in this capacity.
In Australia, a corporate financial planner will earn well over $100,000 per year; just under what a finance management personnel earn. By contrast, a personal financial planner is often paid on commission; a percentage of a client' total investment. There's a bit of hustle involved at this end of the financial planning spectrum. On the other hand, you only need a Bachelor's degree to get started.
Finance Jobs: Stockbroker
This is the finance job everyone (wrongly) aspires to. Stockbroker services were glamorised in films like The Wolf of Wall Street and The Big Short. Those stories told of less-than-ethical brokers raking in piles of cash before greed caught them out. To this day, thanks to those films, visions of fast cars and fine women motivate many to study finance.
Brokering is nothing like it's depicted in the movies. With average earnings of just over $79,000 per year, brokers are at the lowest end of the finance job group pay scale. Brokers spend long hours in front of computer monitors, phones to their ears. They try to entice clients into buying a few shares of this or that company's stock.
Many monitor stock markets around the world. Also, brokers must constantly keep their ear to the ground lest they miss out on a hot tip. Their failure to catch a sudden, dramatic market shift could cost them thousands in commissions. It could also cost them their clients.
The only upside to being a stockbroker is not needing any higher education. Some brokerage services might demand a Bachelor's degree but the job boils down to sales. Not very glamorous, right? It's best for you to abandon any Gordon Gekko, 'Greed is Good' ideas about working in finance.
Instead, sign up for one of the best Australian university finance study programs. You'll fare far better in finance, that way.
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