Since budgets are related to income, it’s encouraging to learn of the latest job and income trends.
The list of the 20 most profitable companies in the world, as compiled by 24/7 Wall Street, shows some important trends. Every company on the list (with the exception of Toyota) is either an oil, software or financial services firm. But the latter comprise four of the top 10, with Industrial and Commercial Bank of China earning the top spot with revenues exceeding $89 billion annually.
There has never been a better time in U.S. history to enter the financial services industry. Employment opportunities for financial analysts and personal advisers are expected to grow much faster than the average of all other occupations through 2022, according to the Bureau of Labor Statistics.
Those particular career options, however, are just the tip of the iceberg for those with a solid understanding of how banking and financial systems work.
A degree in finance opens the door to near endless possibilities for employment and entrepreneurship. Whether it’s handling payroll, preparing taxes or doing complex market analysis for new businesses and established firms, finance majors are prepared to handle numerous tasks that will be in high demand for the foreseeable future.
Business Credit Concerns
The 2015 Kaufmann Index indicates that year-over-year new business establishment is the highest it’s been in 20 years. However, Experian estimates that less than 10 percent of small business owners and entrepreneurs understand the concept of business credit, and research by MasterCard found that 46 percent of small business owners use personal credit cards and bank accounts to fund their companies. Not only do entrepreneurs jeopardize their personal credit scores this way, but they also are neglecting to build their business credit profiles.
Whether you studied accounting, economics or some other finance-related major, you’ll have the background to advise entrepreneurs about building a business portfolio. Moody’s Analytics offers in-depth seminars covering corporate credit analysis. You’ll learn, among other things, calculations of pertinent financial ratios and gain a firm grip on the processes involved in issuing business credit ratings.
These types of seminars can be thought of as continuing education or summer school for students. The rating issued by Moody’s Investors Service for the U.S. Treasury dictates economic policy in Washington, D.C., so a credential from this firm will only expand opportunities for finance majors.
Finance professionals deal with a lot of stress as market volatility, monetary policy and the business cycle as a whole bring perpetual unpredictability to the industry. The one constant when it comes to careers in finance is high salaries.
Personal financial advisers guide consumers through the process of building diversified portfolios and making sound decisions with their money and their families future. It can be stressful but also rewarding financially. The BLS places the median annual salary at $67,520. Financial managers, those responsible for the fiscal health of organizations, earn a median salary of $84,052, according to Payscale.com. Financial analysts earn a respectable $56,123 annually, according to the same site.
The best part about working in the finance industry is that you’re never stuck in one position. Former New York Stock Exchange Chairman Dick Grasso started as a mailroom clerk in 1968. Hard work and dedication saw him rapidly move up the ranks before becoming CEO in 1992. Once you get your foot in the door of a financial services firm, the opportunities are almost endless.
Cornell University, citing the BLS, says 70 percent of jobs today are landed through networking. Chances are as a finance major, your professors and advisors have worked for small and large firms at some point. Make certain to connect with all your instructors on LinkedIn and other social media websites. Connect with your classmates as well. They may share job openings to their social networks before the company advertises them.
A degree in finance is one of the few near-guarantees when it comes to college majors. The only limits will be those you create.