Although finance can nowadays take many forms, all roles within the finance world come down to one thing – money. Whether it is managing money for individuals, small businesses, corporations, financial institutions, or even the government – those who work in the financial sector work on the valuation of allocation of capital, or to put it simply managing assets or cash.

Taking everything into consideration, if you are thinking of pursuing a career in finance, then calculating an asset’s worth, raising and allocating capital, tracking and predicting changes in the economy, and providing quality financial advice are only a few examples of your regular tasks. 

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6. Corporate Finance  

Truth is, finance is a ‘must’ for businesses across all sectors and industries, which in turn means endless opportunities for corporate finance jobs. But for those of you that might not have come across the term ‘Corporate Finance’ let’s dive right into it and find out more. 

Corporate finance is the department within a business that manages its financial and investment decisions. Some of the key areas that the corporate finance division is concerned about are: 

• Short-term and long-term financial planning
• Capital structuring and budgeting 
• Working capital management 
• Investment decisions
• Financial business strategy 

The work of a corporate finance employee

As an employee in the corporate finance division you should be ready to spend endless hours working with spreadsheets in order to prepare the financial models and mechanisms that your business will set out upon. On this note, you will also be spending a considerable amount of time working with the accounting department to extract the information needed. 

When it comes to the organizational structure of a corporate finance department, it all starts from Chief Financial Officer (CFO) who is at the top of the corporate finance team. Directly reporting to the CFO will be the management accounting department, the financial accounting department, and the treasury department. Working your way to the CFO position will be a challenging and demanding journey – which not all of us can make – but be rest assured that it’s going to be a rewarding one. 

The life of a corporate finance employee

When it comes to lifestyle, you shouldn’t expect long working hours or overtime during normal weeks – which might sound the ideal scenario for you. Yet, when quarter-end, and year-end close and you are at your busiest weeks, it can get increasingly hectic to catch up with all the deadlines. This might mean extra hours until you get the job done.

The pay of a corporate finance employee

Compensation for a Corporate Finance position varies widely depending on the size and performance of the business, the industry in question, and of course the level you are at. 

For an entry-level or junior position annual salary ranges around $70K to $90K but as you move through senior roles the compensation skyrockets to a six-digit figure. Yet, keep in mind that these numbers are only indicative, and the pay range significantly varies from business to business. 

7. Research Analyst  

There is no shortage of disagreement that no decision can be made without a comprehensive set of the right data and facts. For this reason, the work conducted by a research analyst aims to solve this problem by examining and analyzing a set of data, principles, and theories for internal use by a financial institution or an external financial client. 

Research analysts can work on both the sell-side and the buy-side of the financial equation. Analysts on the buy side serve as a support function for performing in-depth analysis and assessment in regards to an investment decision in both public and private markets. On the other hand, analysts on the sell-side are responsible for conducting reports that make ‘buy / hold/ sell’ recommendations to be used internally. 

The work of a research analyst

As a research analyst, you will be responsible for researching, analyzing, and presenting data and financial information to related stakeholders such as investment professionals. Your day-to-day job will be all about reading financial statements and interpreting financial information in order to develop financial models and industry reports which will serve as know-how for a particular domain. 

Your job as a research analyst will be all about critical thinking, analytical skills, and a data-driven mindset. So, if you think that you have the skills, then the work of a research analyst might be the right one for you.

The life of a research analyst

Unless there is something big happening, you won't be expected to work extra from your nine-to-five grind. Yet, as the job of a research analyst is all about staying up to date with what’s going on with the financial markets, you might be expected to start your date a bit earlier to keep abreast of the global economic and market news. 

On that note, you should be prepared to stay alert for any breaking news that might impact the markets or the companies you are dealing with – even if that is at 11 pm. That’s especially crucial on highly volatile days when stock markets are going up and down in a matter of milliseconds.

The pay of a research analyst

The average annual pay of a research analyst is lower when compared to other roles within the finance industry. Yet, if you have the set of skills for a research analyst and you have the potential to move to senior roles within the field, then seven-figure digits are not very far away from you. 

8. Venture Capital 

Venture capitalists invest in early-stage companies. Similar to private investors, they raise money from limited partners and invest that on their behalf. These limited partners include, but are not limited to, state pension funds, university endowments, private family businesses, and international sovereign wealth funds. The venture capital funds range from micro-stage to mega venture funds, <$50 million, and >$10 billion respectively.

What distinguishes venture capital funds to hedge funds and private equity is the high level of risk, the early-stage investment, and the high-growth firms with long investment horizons. Venture capital funds manage the money of investors who want private equity stakes in start-up and small- to medium-sized enterprises.

The work of a venture capitalist

As previously mentioned, venture capitalists invest in upcoming companies with growth opportunities, suggesting that they pursue a high-risk high-profit approach. Day to day activities include researching for growing companies that are looking to raise money at the specific instance, and sometimes the entrepreneur behind the firm.

Meeting with companies’ representatives to evaluate if they are worth the investment is something you do on a weekly basis, as well as the appearance in a variety of events to broaden professional connections so that people know the company is out there. 

It is a really demanding job as, on average, one hundred companies will be evaluated before a deal is closed with one of them. This suggests that one should be emotionally unattached to the deals and companies as some of them might be so close to being agreed upon but fall through, maybe even on the last day.

The life of a venture capitalist

A lot of time of a venture capitalist is spent in meetings trying to identify the one company that would bring the greatest return on investment. This advocates that there’s no room for a typical 9-5.

So if you are planning for a career as a venture capitalist then be ready to squeeze in some extra work during the week – or even during the weekends. 

The pay of a venture capitalist

The annual pay rate for an associate at a high-ranking venture capital ranges from $100K to $150K and then scales up from there as you move through senior and leadership roles. When it comes to partners, compensation is then predominantly performance-driven and result-driven which makes it a lucrative and appealing opportunity for high earnings. 

9. Commercial Banking 

Commercial banks are, in fact, the first thing that comes to your mind when you hear the word ‘bank’. Commercial banks provide financial services to businesses and individuals and their work is predominantly concerned with accepting deposits, safeguarding assets, making loans, and providing general banking services. 

The work of a commercial banker

The work of commercial banker is not an easy one. As you will have to manage many aspects of banking and coordinate numerous operations at one, multi-tasking and team-working are definitely your go-to skills. So, what can you expect in a career in commercial banking? 

As a credit analyst:

• Monitor clients’ financial statements 
• Apply for financing requests
• Ensure that the bank is complying with all legal regulations
• Manage loan portfolio
• Assess and decide on customer credit applications

As an account manager:

• Build and maintain client relationships
• Advise commercial clients about investment opportunities
• Promote banking services to clients 
• Train and supervise junior-level staff (if you have a senior role)

The life of a commercial banker

Although the reputation of commercial banks has taken its toll after the Great Recession of 2008, they nevertheless play a major role in our economy today and are still a great option for employment. 

Known as a career with a good work-life balance, the hours for a commercial banker are typically from 9 am to 6 pm, like any normal job, but can occasionally be longer depending on your workload. Not bad, right?

The pay of a commercial banker

As you start your career in commercial banking, you should expect a salary below average when compared to other sectors of the finance industry like venture capital and investment banking. The compensation for credit analysts ranges from $50.000 - $80.000 while for account managers it ranges from $60.000 to $100.000.

Yet, as you gain experience in the industry, you will be surprised to see how quickly your salary will rise – it can even double! Yet, it’s important to note that the compensation of a commercial banker significantly varies not only depending upon the bank you are working for but also upon your job location. 

10. Financial Planning 

Financial planning is all about evaluating the current financial state of a business in order to create a strategy towards its strategic goals and long-term monetary objectives. To put it simply, a financial plan begins with an in-depth evaluation of the current financial position of the respective firm and then expands to consider the future expectations of that firm. Once the current and future states are compared and contrasted, the financial plan then seeks to create a realistic and effective strategy to achieve the business’ expectations. 

The work of a financial planner 

As a financial planner, you will work with both individuals and businesses in order to firstly help them comprehend their financial state and then secondly craft a well-thought financial plan that will help them reach their short-term and long-term financial objectives.

When you start working on a financial plan you should have all data and facts in hand including total annual revenue, debt obligations, current balances, tax liabilities, insurance plans, monthly expenses, A & M budget, investments, and so on. You should then be able to analyse the given information, and in turn, provide realistic and data-driven strategies and recommendations to your clients. 

The life of a financial planner 

As a financial planner, you might be working for banks, mutual fund companies, or other investment firms. The job itself requires long hours of researching and analyzing which can take many hours out of your day. Yet, as you become more familiar with the industry you will become much more efficient and effective which means fewer hours.

Plus, as you gain enough experience you can even start your own business which will give you a great head start as a financial planner. 

The pay of a financial planner 

Financial Planners start with an average base salary of $57 K according to Glass door. While this salary might sound lower than average when compared to other jobs in the finance industry like in investment banking or private equity, it’s nevertheless a good starting point to start off your career in financial planning. Plus, it’s also important to note that you will also heavily rely on commissions that are derived from the sale of investment securities, life insurance, or exchange-traded funds. 

Conclusion 

Truth is – money makes the world go round. And without a doubt, careers that are directly related to money are becoming the most sought-after and well-paid careers. Taking into account the exponential growth of the finance industry, there will always be work for financial planners, analysts, advisors, and executives. 

Yet, as finance covers a lot of ground it’s important that you choose the right career path in the industry. We hope that by reading this article you now have a well-rounded, holistic opinion of the different paths you can follow to jump start your career. It’s now time to spend some time with yourself to look further into your skills and interests.