How to Become a Financial Analyst

How to Become a Financial Analyst

The Basics of Becoming a Financial Analyst

Are you investigating how to become a Financial Analyst? Their man job is to conduct analysis of financial information to determine market conditions. They advise investment decisions, monitor financial and corporate developments, and interpret data on price and risk. They evaluate the performance of stocks, bonds, and other kinds of investments. Analysts examine the financial statements of organizations to determine their value. They also keep up to date with economic and business trends. They work in investment banks, pension funds, hedge funds, and other businesses.

What general knowledge should a financial analyst possess? First and foremost, financial analysts should have knowledge of economics and accounting. In these areas, they should understand economic and accounting principles and practices, financial markets, banking, and financial data analysis and reporting. Consistent with this realm of knowledge, they should be skilled in mathematics and how to apply it on the job. Because they might use query software and numerous computer programs, they should be adept at working with computers and software and skilled at communicating results of studies. To communicate results of analyses, they should have knowledge of communications and media and able to inform using oral, written, and visual media. They must also have command of the English language.

Most Financial Analyst positions require a bachelor’s degree, and there are various fields of study that could potentially provide the appropriate preparation for this career, including accounting, economics, finance, statistics, mathematics, and engineering. For advanced Analyst positions, employers often require a master’s in business administration (MBA) or a master’s degree in finance.[ii]

Advice to Becoming a Financial Analyst

You’ll want to start with an understanding of your true self. It’s a career and a lifestyle.Click To Tweet!click to tweet

Will you love what you do today 20 years from now? You owe it to yourself to find out, research and find a mentor to shadow.Click To Tweet!click to tweet

It’s about really loving and serving clients to help them reach their financial goals, coaching them through the challenging times, and being able to stand tough and tell them when they are wrong.

Winnie Sun, Managing Director and Founding Partner
Click To Tweet!click to tweet
- Winnie Sun, Managing Director and Founding Partner at Sun Group Wealth Partners

A Financial Analyst's Salary Potential

Average Financial Analyst Salary
[ABOVE] National Salary Averages for Financial Analysts[iii]

Top States with the Highest Salary Averages[iv]

Top States for SalaryLowest 10th% SalaryHighest 90th% Salary
Alaska$65,090$142,180
New York$57,040n/a
Connecticut$54,950$186,440
California$54,560$164,820
New Jersey$54,310$141,670

How Do Your Skills Stack Up?

Day to Day Skill Set for a Financial Analyst

As reported by O*NET, these traits are ranked as either extremely or very important to the day to day life of an Analyst[i]

What You Will Learn With a Finance Degree?

Interested in a bachelor’s degree in finance? Schools with undergraduate finance programs, may feature finance courses like:

  • Corporation Finance
  • Investment & Portfolio Analysis
  • Money & Banking
  • Managerial Economics
  • Statistics

Finance majors aren’t just good with numbers—they must also understand how mathematical principles apply to areas like business, investing, risk management, supply chains, and more. A bachelor’s degree in finance often includes basic math courses like accounting, statistics, and calculus, but in addition, students typically explore business finance strategies, portfolio management, international finance, and money markets. They may also delve into current issues and concerns in this field, like the social, legal, and ethical environments of business and finance. Basic business courses like management & leadership, information systems, and even business writing may help finance students develop a well-rounded perspective.

Who were some influential Financial Analysts?

According to Ranker's List of Famous Financial Analysts, the below people are renowned for being influential in shaping the financial world (in some way).

  • Meredith Whitney: Co-founder and CIO of Kenbelle Capital LP, earned a bachelors degree from Brown University in history
  • Abby Joseph Cohen: Former Chief Investment Strategist at Goldman Sachs, earned a master’s degree in economics from George Washington University
  • Mario Gabelli: Founder and CEO of Gabelli Asset Management Company Investors, received an MBA from Columbia Business School

FAQs About How to Become a Financial Analyst

What is the average salary a Financial Analyst makes?

What skills do Financial Analsyts possess?

What are common types of software I would have to learn as a Financial Analyst

How many financial analysts are employed in the U.S.?

How many financial analysts are employed in the U.S.?

What professional licenses and certifications might a financial analyst pursue?

 

Sources:[i] O*NET | [ii] bls.gov | [iii] bls.gov/oes| [iv] BLS Salary Data  | Job information sourced from O*NET