Is a career in finance right for me? Navigating the decision process
If you're unsure about whether to pursue a career in finance, follow these five steps to help you decide.
“What do you want to be when you grow up?”
It’s the one question every child hears at some point.
Some know from a young age they’ll be a doctor, scientist or detective. Others dream of more fantastical careers like dragon whisperer or ice cream flavor inventor.
But what about the world of finance?
It may not have been top of your list when you were a kid but finance offers plenty of opportunities whether you're interested in analyzing markets, managing investments, or working face-to-face with clients.
Picking what to do for a living is a big and often daunting decision.
If you’re unsure about whether finance is right for you, follow these steps to help you decide…
#1 Self assessment
Start by thinking about your personal strengths and interests.
There are the obvious skills relevant to finance - analytical, numerical and problem solving. But don’t pick finance to hide behind numbers and algorithms. The human side is just as important.
These days, in addition to technical skills, strong communication and interpersonal abilities are increasingly in demand. After all, building relationships with colleagues and clients is often a key part of the job.
In fact, our research identified soft skills as one of the four types of skills needed for a successful investment career, alongside technical, leadership and T-shaped skills (which blend deep expertise in one area with broad knowledge across other fields).
For Lily Taft, CFA, a Portfolio Manager at Mainstreet Research Wealth Management, the combination of technical expertise and human interaction is what drew her to finance in the first place.
"It's such a joy within my job to be able to connect with individuals on an emotional level, to help them understand their portfolio," she said.
Be honest with yourself about whether you have the necessary skills. If not, decide if you're willing to acquire them. Technical skills can be obtained through hard work and study, while soft skills like people skills can be developed through training.
#2 Understand your goals
Next, think about the journey you want to go on. Where do you see yourself in 10 years? Do you want to be client facing? Do you want to be running your own business?
Ask yourself whether a career in finance can give you what you want.
Also, consider if working in finance aligns with your own values, beliefs, and long-term goals. For example, if you value work-life balance, is there an option to work flexible hours? Or, if you aspire to make a positive social impact, is that possible?
Remember, the finance sector offers diverse job opportunities from quantitative and client-facing positions to transaction-focused jobs. Opportunities also exist in a range of settings, including corporations and government.
Frank Li, CFA, a Diversified Portfolio Manager at MLC, says he got into investments because he “didn’t want a desk job where I did the same thing every day.”
Many people aren’t sure which direction to take at first. However, having a general idea can really help when it's time for the next step: research.
#3 Research
Before committing to a career in finance, do your research. Understand the day-to-day responsibilities, educational requirements, and qualifications needed.
Most financial services jobs will, at a minimum, require a bachelor's degree. However, some will demand an advanced degree or professional development certifications.
Don't rely on stereotypes. Connect with finance professionals, especially in the area you're interested in, to get a clearer picture of what your life could look like.
#4 Weigh up the pros and cons
It’s rare to find a field of work that ticks all the boxes. Every career path has ups and downs.
In finance, you'll usually need to commit to extensive studying and long hours. However, there’s often job stability and opportunities for promotion or to explore new areas.
“I wanted to do investment banking because of the rapid career growth it offers,” said Carlos Cremades, CFA, an Investment Banking Analyst at CaixaBank.
Here are some factors to consider:
- Career advancement opportunities
- Diverse career options
- Global opportunities
- High earning potential
- Ability to make a difference in people's lives
- High pressure
- Long hours
- Regulatory challenges
- Tricky work/life balance
#5 Make your decision
After considering all the above, make your choice. Weigh the information and insights you've gathered and decide.
Remember, a career in finance opens doors to many future opportunities. You don’t have to stay in finance if you later change your mind.
Your skills in finance can be highly valuable in various areas, including fintech, consulting, and the nonprofit sector. The options are endless.
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