2020 Guide to the Average Salary of a Finance Analyst
What is the Average Salary for a Finance Analyst?
A finance analyst is a key position in any business, responsible for conducting financial analysis and making projections for a company's future performance. As such, a finance analyst can expect to earn a competitive salary.
The Average Salary for a Finance Analyst
The average salary for a finance analyst can vary significantly based on a number of factors, such as the size of the company, the industry, and the level of experience. According to the Bureau of Labor Statistics (BLS), the median annual wage for financial analysts was $85,660 in May 2019. This means that half of financial analysts earned more than this amount and half earned less.
However, the top 10% of financial analysts earned more than $155,450 in the same year, while the lowest 10% earned less than $51,990. Salary also varies by industry. For example, financial analysts working in securities, commodity contracts, and investments earned a median annual wage of $103,680 in 2019.
Factors that Affect the Average Salary for a Finance Analyst
There are a number of factors that can influence the average salary for a finance analyst. These include:
- Location - the cost of living in a particular area can have an impact on salary.
- Experience - the more experience a financial analyst has, the higher their salary is likely to be.
- Industry - finance analysts working in certain industries, such as securities and investments, tend to earn higher salaries.
- Company size - larger companies often offer higher salaries than smaller ones.
- Education level - finance analysts with higher levels of education tend to earn higher salaries.
In addition, bonuses and other forms of compensation, such as stock options, can also affect the average salary for a finance analyst.
How to Become a Finance Analyst & Earn Higher Salaries
Finance analysts are in high demand in today's economy. With a finance analyst career, you can earn higher salaries and gain access to career advancement opportunities. To become a finance analyst, you must have a strong understanding of finance, economics, and accounting. Here is a guide to help you become a finance analyst and earn higher salaries.
Step 1: Pursue a Degree in Finance
One of the first steps to becoming a finance analyst is to pursue a degree in finance or a related field. A bachelor's degree in finance, accounting, economics, or business is preferred. With a degree in finance, you can gain a better understanding of the financial markets, business principles, and financial analysis.
Step 2: Develop Analytical and Technical Skills
In order to become a successful finance analyst, you must develop analytical and technical skills. You should be comfortable with financial software programs such as Excel and Access. Additionally, you should have an understanding of financial modeling, financial analysis, and budgeting.
Step 3: Obtain Professional Certification
Obtaining professional certification is another important step to becoming a finance analyst. There are several certifications available, such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP). These certifications demonstrate your knowledge and skills in the field of finance.
Step 4: Gain Experience
Gaining experience is the final step to becoming a finance analyst. Many employers prefer to hire finance analysts with at least two years of experience in the field. You can gain experience through internships, volunteer positions, or part-time jobs. This experience can help you gain the skills and knowledge necessary to become a successful finance analyst.
Once you have completed the steps above, you will be well on your way to becoming a finance analyst and earning higher salaries. With a degree in finance, strong analytical and technical skills, professional certification, and experience, you can become a successful finance analyst.
The Benefits of Working as a Finance Analyst
Being a finance analyst is an exciting career path for those who are interested in the financial world. Working as a finance analyst allows you to be at the forefront of the financial market and to gain valuable experience and knowledge in the field. Here are some of the benefits of working as a finance analyst:
Gain Valuable Experience
Finance analysts are often exposed to the latest trends and technologies in the financial industry, giving them an advantage in the job market. Through the experience they gain from working as a finance analyst, they can develop the skills necessary to succeed in their chosen career.
Stay on the Cutting Edge
Finance analysts are required to stay on top of the latest financial developments and trends in order to be successful. By staying on the cutting edge of the industry, finance analysts can be prepared for any changes that may come their way. This helps them to stay ahead of the competition and ensure that their clients get the best possible advice.
Develop Professional Network
Finance analysts are also able to build a professional network by working in the industry. By networking with other professionals, finance analysts can gain insight into the industry and build relationships that can help them succeed.
Flexible Working Hours
Finance analysts often have the ability to choose their own working hours. This allows them to have a flexible schedule that fits their lifestyle and can be beneficial for those who have other commitments such as family or school.
Working as a finance analyst is a great way to gain valuable experience and knowledge in the financial world. By staying on the cutting edge of the industry, developing a professional network, and having flexible working hours, finance analysts can take advantage of the many benefits of working in the field.
5 High Paying Jobs for Finance Analysts
Are you looking for a career in the financial industry? As a finance analyst, you can make a great salary in a variety of industries. Here are five of the highest paying jobs for finance analysts:
Investment Banking Analyst
Investment banking analysts help financial institutions and businesses in the acquisition and sale of assets. They are responsible for researching potential investments and helping clients to make sound financial decisions. Investment banking analysts typically make a median salary of $77,000 per year.
Corporate Financial Analyst
Corporate financial analysts work for corporations and help to analyze financial data and make sound investments. They are responsible for creating financial reports, making forecasts, and analyzing business trends. Corporate financial analysts make a median salary of $70,000 per year.
Financial Planning Analyst
Financial planning analysts are responsible for providing financial advice to individuals and businesses. They help clients to plan for their financial future and make sound investments. Financial planning analysts typically make a median salary of $67,000 per year.
Risk Analyst
Risk analysts help organizations to identify and manage risks. They are responsible for analyzing financial data, developing risk management strategies, and identifying potential areas of risk. Risk analysts typically make a median salary of $63,000 per year.
Credit Analyst
Credit analysts are responsible for analyzing credit applications and making decisions about whether to approve or deny them. They are also responsible for monitoring credit risk and making sure that customers are paying their bills on time. Credit analysts typically make a median salary of $60,000 per year.
These are just a few of the high-paying jobs available for finance analysts. If you are looking for a career in the financial industry, these jobs offer the potential for a great salary and career advancement. To get started, you will need to have a degree in finance or a related field, as well as experience in the financial industry. With the right skills and qualifications, you can make a great salary and have a successful career as a finance analyst.
Salary Negotiation Tips for Finance Analysts
Finance Analysts are responsible for managing financial operations and providing critical financial advice to their employers. This role requires a great deal of knowledge and experience in the financial sector, making it a highly sought-after and well-paid position. As such, it is important for Finance Analysts to be aware of the various salary negotiation tips that can help them secure a higher salary and better benefits.
Do Your Research
Before entering into a salary negotiation, it is important for Finance Analysts to do their research. They should take the time to investigate the salary ranges for their specific role in their local market and consider the different benefits that are offered. This research will give Finance Analysts a better idea of what to expect in their salary negotiation and what they should be asking for.
Be Prepared
Once the research is done, it is important for Finance Analysts to be prepared for the salary negotiation. This means being aware of their worth and having a clear idea of what they want to achieve in the negotiation. It is also important for Finance Analysts to have a good understanding of their current and past performance, as well as their qualifications and skills, to help them make a strong case for a higher salary.
Know Your Worth
It is important for Finance Analysts to understand their worth and be able to articulate it clearly in the salary negotiation. They should be able to explain why they deserve a higher salary and why their skills and experience make them a valuable asset to the company. Additionally, Finance Analysts should be confident in their ability to negotiate and be prepared to counter any offers that are made.
Be Open to Negotiation
Finally, it is important for Finance Analysts to be open to negotiation. While it is important to have a clear idea of what they want to achieve in the salary negotiation, it is also important to be flexible and willing to compromise. This will help ensure that both parties are satisfied with the outcome of the negotiation.
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