The history of finance and all related financial activities dates back to 1000BC with the adoption of coins as a means of exchange. The idea of banks and interest-bearing loans also didn’t begin today as you can trace them as far back as 300BC.
So, the banking system has evolved and thoroughly modernized itself. Banking has its roots in the Sumerian empire of Babylon, as they used their temples and palaces for the safekeeping of all financial assets at the time.
A major development in the history of finances was the bill of exchange used during the middle ages to move financial assets over long distances without the trouble of physically moving large quantities of precious metals.
Presently, this feature can be seen in banks, just with a more innovative and modernized approach.
If you are good with numbers or you just fancy a career in finance, you might be in a steady questioning stage of ” Is finance is a good career path”?
This article will clearly highlight and review what a career in finance is, and the best opportunities open in finance in order to enable you to make the best decision.
Table of contents
What Is Finance?
Finance is one of the terms which you’re likely to hear when in any economic or financially related environment.
It is simply the proper management of money. In finance, you are usually tasked with controlling various financially related activities like investing, budgeting, saving, and borrowing.
The general overview of finance is money management. Finance encompasses a broad area and its concepts are from various branches of macroeconomics and microeconomics in finance.
Basically, the goal of finance is to ensure that the funds you need for projects activities are made available.
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Types of Finance
The field of finance is broadly divided into three types to enable all finance tiers to function properly. The types of finance include:
Personal Finance
The principle of financial planning generally involves the careful assessment of the financial strength of an organization, individual, or corporation in order to devise an effective strategy for the financial needs that will help in succeeding in all finance-related endeavors.
The personal type of finance is tailored to fit the specific need of an individual. Being tailored for a particular person means that all the strategies devised for your finances are made to be in line with your earnings, living requirements, and goals.
Personal finance deals with financial activities like insurance, mortgages, credit cards, and individual banking.
Corporate Finance
Corporate finance is a type of finance that deals with all the financial activities of a corporation or business.
All the issues of running a business are usually controlled by a department in the organization. Corporate finance deals with funding sources, capital structuring, accounting, and investment plans.
The main goal of corporate finance is to maximize the overall value of their products through standard financial planning.
Activities that corporate finances cover include tax considerations and investments. The corporate finance duties in a business organization are usually supervised by the Chief financial officer.
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Public Finance
The sub-category of finance known as public finance controls activities like budgeting, taxing, and debt policies, dealing with how the government pays for public services. Public finance is also part of the fiscal policy of a country.
The goal of public finance is the proper management and planning of a country’s spending expenditures, revenue, and debt through various government and non-governmental institutions.
Also, the issue of public finance is designed to include activities of revenue, implementation of an effective financial strategy, and effective control of society’s expenses.
Benefits of a Career in Finance
Still wondering “is finance a good career path”? Finance is an exciting and very lucrative business field with lots of benefits. This section will clearly review the benefits of a career in finance
Lucrative
Finance is an extremely competitive field and this can be particularly attributed to the high-paying figure of this sector.
The field offers a very impressive salary figure even for beginners in the sector. The jobs in the finance sector usually offer salaries that are well above the median salary of most positions in other occupations.
The U.S bureau of labor statistics estimates that the finance sector jobs will witness an 8% growth before 2030. Entry-level finance job compensation can be as much as $112,199 annually. This lucrative sector is selected as a career path due to its lucrative nature.
Diversified career options
Another reason why the answer to “is finance a good career path” Yes is because the finance field has a variety of career options to select from when compared to other career paths.
The finance sector is much diversified and offers a wide range of career options ranging from financial analysts to accountants, the various career options.
Advancement opportunities
The financial sector is usually described as being fast-paced. Being fast-paced means that it’s easier for you to gain promotions and proper incentive coverage in the finance sector.
Climbing up the echelon of the finance ladder is easy if you put in hard work and diligence. Unlike most other career paths, the finance sector is usually based on merit and hard work.
Good work hours
Careers in the financial sector usually afford you a balanced time for both your work life and your personal life. Most competitive career industries like the health sector usually require long hours, with you not even having time for your personal life and family.
With a financial career path, you can have the choice of closing work early and spending quality time with loved ones.
It should be noted that these comfortable work hours are not open to all financial career options, as top executives in financial firms can be seen to put in long hours of hard work.
Best Career Options in Finance
Being one of the most competitive career fields, finance has a myriad of career options available for you to choose from. This various career options go to show you that a career in finance might be a good fit for you. The various career options in finance include:
Investment Banking
Investment banking is usually one of the most lucrative career options in finance. The process of investment banking works by raising sufficient capital for governments, businesses, and corporations.
The general duties of an effective investment banking process include helping in the sale of securities, facilitation of mergers and acquisitions, underwriting new debt, and brokering of trades between corporations and private investors.
A good investment banker designs an effective plan for managing the financial side of all projects of the business. A finance degree will help you break into this financial field.
Financial Planning
Financial planning is a very crucial part of the financial sector. Effective financial planning is needed not just for personal use but also by big corporations and organizations.
The importance of financial planning propels financial planners forward in the financial sector.
Financial planning generally involves evaluating the capital required for a particular financial need or plan.
Helping to ensure that the outflow and inflow of funds are maintained hence ensuring stability, is one of the duties of a financial planner. A certified financial planner will help in achieving monetary goals.
Public Accounting
Public accounting is one of the most competitive career options in finance. A career option in public accounting gives you the title of a certified public accountant.
A public accounting firm is usually specialized in providing accounting services to different firms and corporations.
As a public accountant, you have top skills in accounting services like auditing and tax services. Cutting down expenses, boosting revenue, and general improvement of financial health are the wide range of duties that public accountants perform.
With an MBA (Finance) you have the qualification necessary for this career option in the financial sector.
Corporate Finance
The world of corporate finance is also one of the top career options in the financial sector. The main goal of corporate finance is to fund the business goals and activities of any organization.
Corporate finance like many other fields in the financial sector requires you to have a liking for dealing with numbers.
Taking a career path in corporate finance usually comes with a wide range of duties and responsibilities like managing funds and maximizing the value of an asset, evaluating the risk and profitability of a financial decision, and effective evaluation and prediction of financial-economic trends.
Corporate finance perfectly answers the question of “is finance a good career path” with its lucrative earnings and the power of effecting financial change.
Also, you can check this: Financial Advisor Job Description Template For 2023
Risk Management
The career option of risk management in the financial sector is further diversified into other career roles from enterprise risk manager to digital risk manager.
A risk manager is a financial professional that is well trained in immediately identifying bad investments and higher risks in our business or investment decisions.
The main goal of a risk manager is to increase profit and decrease risk. A competent risk manager is well equipped in applying qualitative reasoning to detect financial decisions with a high percentage of flopping in the future. Risk management is one of the top career options in the financial sector.
Financial Assistant
The role of the analyst is one of the most coveted career options in the financial sector. This career path in the financial sector is one of the most difficult to break into.
The duties and responsibilities of the financial assistant usually involve evaluating the various financial opportunities available in the finance world and evaluating the outcome a financial decision will have in the business or corporation.
Being a financial analyst usually involves lots of time spent going through financial data and investment theses.
As an analyst, you must be in the know of all current financial developments in order to enable you to predict future economic conditions.
A degree in finance is crucial to kick-starting your career as a financial analyst.
Frequently Asked Questions
Yes, finance is an exciting and lucrative career
Yes, being of the most lucrative career options, it is very competitive.
Yes, the various career options open in finance have witnessed steady growth over the years.
Financial analysts and Accountants top the list as one of the most paying career paths in finance.
Conclusions
College students, master’s degree candidates, and people going for a career change are some of the people who always ask the question ” Is finance a good career path.?” with the various benefits that this economic sector offers, it is a very good career path if you are interested in it.
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