Is it hard to be a financial analysis?
The Bottom Line. A career as a financial analyst requires preparation and hard work. It also has the potential to deliver not just financial rewards but the genuine satisfaction that comes from being an integral part of the business landscape.
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.
A career in financial analytics is a fast-paced job that often requires long hours and a certain degree of stress. While some thrive in this environment, it can be challenging for others to find a work-life balance.
Technical training, financial literacy, accounting knowledge, and analytics training are among the hard skills required for Financial Analysts. They should also possess soft skills such as critical thinking, clear communication, problem-solving, and leadership.
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 Earn a Competitive Salary
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.
The U.S. Department of Labor reports that financial analysts earned median annual salaries of $81,590 in May 2019. Salaries ranged from less than $47,230 to $156,150 or more.
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.
The workforce of Financial analysts in 2021 was 273,293 people, with 41.4% woman, and 58.6% men. The average age of male Financial analysts in the workforce is 37.6 and of female Financial analysts is 40.6, and the most common race/ethnicity for Financial analysts is White.
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.
Are financial analysts happy?
On average, financial analysts rate the meaningfulness of their work a 2.3/5. The majority of financial analysts struggle to find any sort of meaning in their work, likely resulting in less satisfaction with the career overall.
The salary range for a financial analyst is $38K-$725K. The average salary for a Financial Analyst in US is $86,009.
The least stressful job in the finance sector is "Accounting." It requires you to build a routine that you can follow daily. It does not require much effort if you have the skill. An accountant is never on the counter and does not have to deal with clients face to face.
The national average salary for accountants is $54,603 per year , while the national average salary for financial analysts is $71,345 per year . Financial analysts typically make more money than accountants, and they often have higher starting salaries.
In this highly competitive job market, a master's degree gives an applicant a boost. A successful career as a financial analyst requires strong quantitative skills, expert problem-solving abilities, adeptness in logic, and above-average communication skills.
While ZipRecruiter is seeing salaries as high as $116,455 and as low as $37,996, the majority of Financial Analyst salaries currently range between $69,100 (25th percentile) to $109,100 (75th percentile) with top earners (90th percentile) making $114,974 annually in California.
Work from home financial analysts often measure key performance indicators, produce reports on request, ensure data integrity, and support regulatory compliance activities. This is a remote, home-based position, though some companies may occasionally ask you to visit the office to attend meetings or give reports.
On average, Financial Analysts can expect to work between 40 to 70 hours per week, with the longer end typical for those in investment banking or during busy financial reporting periods. Workload can fluctuate with market conditions, fiscal year-ends, and the specific demands of their employer.
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.
Analysts use complex mathematical and statistical techniques such as linear regression to analyze financial data. Financial analysts can expect to take complex math courses in college and graduate school, including calculus, linear algebra and statistics.
How long does it take to become a certified financial analyst?
Most candidates take 4-5 years to take and pass all levels of the CFA exam, and successful candidates spend around 300 hours studying for each level.
Financial Analyst Degree and Educational Requirements. There is no specific degree required for a career as a financial analyst, but finding a job will probably be easier if you have a bachelor's degree, and most companies require it. Nearly all financial analysts start with an internship or entry-level position.
The job outlook for Financial Analysts is strong, with a projected 9% growth rate from 2021 to 2031, partly due to anticipated increases in economic activity and the emergence of industries requiring financial knowledge.
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.
On average, financial analysts work over forty hours per week, with most working somewhere between fifty and seventy hours. Many who are just getting started in the field must dedicate additional time to studying for their professional and licensing exams.
