<p>Hello, </p>
<p>I am a computer engineering student and I was thinking about switching to Finance.</p>
<p>What is finance? What can i do with this degree? how can I be successful in this field?</p>
<p>Is it worth pursuing finance or should I complete engineering?</p>
<p>Thanks!</p>
<p>Google…</p>
<p>Doesn’t help, Google has too much and I want to hear from people who actually are going into finance…</p>
<p>I’m planning to go into finance and have been interested in the field for many years. I’ve done extensive research on finance in my spare time and have followed financial markets for many months.</p>
<p>Put simply, finance is “the science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities” (from Investopedia: <a href=“What Does Finance Mean? Its History, Types, and Importance Explained”>What Does Finance Mean? Its History, Types, and Importance Explained). The field itself has two main divisions: commercial banking and investment banking. When people talk about “finance,” they are usually referring to careers on the investment banking side such as trading, sales, equities research, and (of course) investment banking itself. NOTE: From here on out, I’ll use “finance” to refer to the investment banking side of finance.</p>
<p>Commercial banking isn’t a lucrative field and almost anyone can do it. Investment banking, on the other hand, is arguably the most lucrative career field you can enter. When you factor in bonuses, finance careers pay much more than any other career you can enter after graduating college (at either the undergrad or the graduate level). In addition, the pay-scale in finance (i.e. how much your pay increase as you climb the corporate ladder) is much better than most industries. If you can handle the pressure of a finance job, you’ll earn money much more quickly than you could in virtually any other profession. </p>
<p>There are a few drawbacks, however, to pursuing a career in finance: [ul]
[<em>] Competition - Getting a good (read: well-paying) job in finance is very difficult. There’s a lot of competition for each job so you have to make your application strong. In engineering, a relevant degree and some research experience is usually enough to land a good position. In finance however, a business/finance degree won’t be enough; you must earn high grades and have relevant work experience.
[</em>] Work hours* - At the top banks, Investment Banking analysts** work around 90-100 hours a week. Trading analysts work around 60-70 hours a week, but they have to follow the markets in their spare time. Most finance professions will have similarly bad hours, though your work schedule gets slightly better as you gain seniority.
[li] Barriers to Entry at Non-Targets - Most top financial firms do on-campus-recruitment at the top colleges (which are referred to as “targets”). The competition is still difficult (as I mentioned earlier) despite the fact that firms are “on-campus.” Even if a bank visits your school, you must have a strong application to stand a chance at getting a job there. If you aren’t at a target school however, you won’t have these OCR opportunities and will have to work much harder to get into the industry. Generally speaking, most students at non-targets don’t get positions at the top banks unless they have relevant connections. It is still possible to “break in” from a non-target, but it will definitely be an uphill battle. [/ul][/li]I hope this post gives you a general understanding of finance and the advantages and drawbacks to working in the industry. If you want to learn more, I’d suggest reading articles on the financial blog “Mergers and Inquisitions.” Let me know if you found this helpful!</p>
<ul>
<li>The two most common jobs in finance are investment banking and trading.
** In the finance industry, people who join a firm after finishing their undergrad degree are called analysts. People who join after doing a graduate degree are associates.</li>
</ul>
<p>Stick to engineering and if you’re truly interested in business, do a minor in either accounting or finance (accounting preferred). You’ll find a job in either the engineering field, or a business industry of your choice. The only additional thing you’ll have to do is read and keep up to date with business news. Read the business section of newspapers, perhaps subscribe to the WSJ or Bloomberg, etc.</p>