Careers in finance are consistently ranked amongst the highest-paying pursuits worldwide.
Investment banking is one extremely lucrative niche the world of finance offers. This leads to an age-old question: how can finance industries be so profitable? After all, it’s a delicate balance between things like price risk, risk aversion, risk tolerance – no shortage of risk here – and macroeconomic indicators like interest rates and inflation that can affect stock markets. One thing is clear: making it big in finance requires patience and hard work.
American businessman Robert Kiyosaki says:
True enough, since that is partly what finance professionals aim for: learning how to make smart investments based on patterns and predictions, and not ever spending everything that you earn. But what makes Kiyosaki such an interesting example is that in 2012, he ended up filing for bankruptcy. According to Forbes, this wouldn’t mean the beginning of the end for him – he was clever enough to cultivate multiple income sources – but it’s an insightful example of how easy it is to get in over one’s head when it comes to earning and spending money.
In an article titled ‘Finance is so profitable because people are so financially incompetent’, a Forbes analyst writes about financial illiteracy coupled with high borrowing demand which essentially leaves consumers at the mercy of finance professionals. Basically, acting smarter – that is, paying attention to market trends and being more frugal – can mean that it isn’t necessary to be in finance to make big bucks. Other up-and-coming careers can be made just as lucrative by adopting the mindset of a high-powered finance executive.
One such industry that is projected to offer opportunities for growth and lucrativeness after 2020 is the tech industry. In Pakistan, more and more young students are being encouraged to pursue computer science and software engineering so they can take advantage of the booming demand for tech engineers, information security specialists, and data scientists.
So why stick to finance, a career that is often highly stressful and requires brutal working hours, when there are smoother paths to monetary success – on your own terms?
Disclaimer: The purpose of this article is not to impart professional advice pertaining to careers and finance. It is based on secondary research and aims to provide a thoughtful opinion; the information outlined in this article is not meant to be used to make investment or career decisions.