Is Finance even worth it anymore?
College Junior here. Currently thinking whether Finance is even a good choice anymore nowadays.
The outcome has strongly diminished in terms of real wages. It has gotten more competitive. The career risk has increased due to AI. Culturally Finance has also become constrained. The factors making you feel like an unrestricted winner has been thwarted by modern HR practices and different hiring practices.
The value of alternative opportunities has also increased. If you're good tech is a top choice. Entrepreneurship and creatives are also great options.
There never have been requirements for talent. The bar in terms of skills never has been high.
All in all, the calculus seems to have shifted. Finance feels like it is something for risk-averse normal people who do not want to be left behind financially and still have a comfortable life. This explains the increase in competitiveness. People go to finance to have a decent life, as corporate alternatives are even less lucrative due to real wage decreases.
Finance just no longer feels like it's the path that those pursue that want to win. The mechanisms just dont reward winners enough
I have no experience with the publics space. There it might be different. It might be the last bastion remaining.
As someone who is doubting his decisions I just wanted to genuinely see if Finance is worth it anymore or if it might be best to cut costs and try something else
Bump
Based on the most helpful WSO content, your concerns about finance as a career path are valid and reflect broader trends in the industry. Here's a breakdown of the key points to consider:
Competitiveness and Real Wages:
While finance remains a lucrative field, the competition has indeed increased, and real wage growth has stagnated in some areas. This is partly due to the influx of talent and the evolving nature of the industry, where traditional finance roles are being disrupted by technology and automation.
Impact of AI and Tech:
The rise of AI and tech has significantly impacted finance. As technology infiltrates the industry, the demand for engineering and quantitative skills has grown. Universities are adapting by incorporating fintech into their curriculums, but this shift also means that traditional finance roles may face higher risks of automation.
Cultural and Structural Changes:
Modern HR practices and hiring processes have indeed made finance feel more constrained compared to its "golden days" before 2008. The perception of finance as a path for "unrestricted winners" has shifted, with many now viewing it as a stable, risk-averse career choice rather than a high-reward, high-risk endeavor.
Alternative Opportunities:
Tech, entrepreneurship, and creative industries have become increasingly attractive alternatives. These fields often offer higher potential upside, especially for those with talent and a willingness to take risks. Startups with equity allocations, for example, can outpace finance in terms of long-term financial rewards.
Public Finance and Niche Areas:
Public finance or specialized areas within the industry might still offer unique opportunities. These niches could be less affected by the broader trends and may provide a more rewarding experience for those who are passionate about finance.
Skill Bar and Perception:
While some argue that the skill bar in finance isn't exceptionally high, the combination of finance and accounting expertise is still highly valued. A strong foundation in accounting, for instance, can help professionals excel in corporate finance, investment banking, and other roles.
Final Thoughts:
Finance is still a viable career path, especially for those who value stability and a comfortable lifestyle. However, if you're driven by innovation, creativity, or the desire to "win big," exploring tech, entrepreneurship, or other high-growth industries might be more aligned with your goals. Ultimately, the decision depends on your personal interests, risk tolerance, and long-term aspirations.
Sources: Finance Career Path & List, Finance Degree Worth More Than Accounting Degree?, What does an impending recession mean for students wishing to pursue a career in finance?
Bump
Molestias qui voluptate ea ipsa. Vel fuga ut architecto ipsa ullam laboriosam sed in. Eum voluptates sint dicta perspiciatis at non omnis. Ut qui corrupti non itaque.
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