Working in the financial sector of the economy proves to be a wonderful career for people interested in studying financial trends and their effects on the quality of the country’s currency.
If you have ever wondered what people mean by the devaluation of a currency or inflation, the people who take time to make these decisions have made long term research which sometimes takes months or years. There are many people who contribute to the knowledge available in the finance sector, some of which include financial analysts and Economists.
Who Is An Economist?
An economist makes use of data and trends to analyze how consumers interact with goods and services. Economists study the relationship between price, supply, and demand, they also try to understand what contributes to the growth of an economy.
As an Economist, you can pursue your career in various organizations such as government organizations, banks, and audit firms. Your work hours might be extended on days where you need to finish up tasks within a stipulated deadline. Having a strong background in mathematics and statistics is very important for you as an economist with some positions requiring a master’s degree.
Who Is A Financial Analyst?
Financial analysts play an important role in offering adequate financial advice to both individuals and organizations. In order to give well-tailored advice, they try to look at their client’s assets, needs, the stock market, and financial trends on the best investment for their portfolio.
Usually, you have to decide from the beginning if you want to be a buy-side analyst or a sell-side analyst. Buy-side analysts usually work with insurance companies, hedge funds or nonprofit organizations to create investment plans for them while sell-side analyst works with financial companies on investment options that can be made available to the public.
Having a career as a financial analyst would require that you have a bachelor’s degree in accounting or finance with senior positions requiring a master’s degree or license from your country or state where you would like to practice.
Career Opportunities for Economists
As an economist, your area of expertise is required in the following areas:
- Market Research Analyst: it involves using your knowledge of industry trends to evaluate how goods and services would respond during different economic conditions.
- Economic Consultant: they make use of their theoretical knowledge, analytical and research skills to carry out studies for different organizations such as healthcare, education e.t.c
- Compensation and Benefits Manager: they help to determine the salary structures of various workers across different industries and organizations. they also help organizations determine how the company’s pay can be restructured to be competitive with other companies in the same industry.
- Actuary: they help to determine the likelihood of certain events like fires, deaths, and other hazards. they help to evaluate all variables that might contribute to the possible outcome of this event.
- Policy analyst: policy analysts help to analyze certain issues that affect the public and recommend possible solutions to the government for implementation.
- Economics Reporter: they conduct interviews and write about business leaders, companies, and new economic developments in industries and financial sectors in a way that one without an economics background can understand.
Career Opportunities for Financial Analysts
As a financial analyst, your area of expertise is required in the following areas:
- Financial Analyst: they work for insurance, investment companies, and other ventures where their services are required. they help to give recommendations on investment vehicles which can improve financial performance in the long run.
- Investment Banker: as an investment banker you would be responsible for the diversification of different assets for both individuals and corporate entities. you may also be involved in merger and acquisition deals that occur in businesses.
- Tax Accountant: you would help to ensure that individuals and businesses comply with paying their taxes according to the state laws. you may also help in the development of different measures and policies which would make tax payment less stressful for people.
- Financial Auditor: financial auditors work either as consultants or within the organization to conduct risk assessments and ensure that the company operates within the state’s regulations. They do so by reviewing the financial statements of the company, and also ensure that their public records are kept properly.
- Financial Advisor: financial advisors work in investment banking to give advice to individuals or companies on the appropriate stocks or investment options to consider. they make sure that their customers understand fully what they are going into before they begin their journey in investment banking.
Financial analyst Vs. Economist Which is Better?
Well, we can’t say one is better than the other because they both contribute to the growth of the financial sector. Financial analysts look at how assets can be managed for both companies and individuals to make a profit while economists focus on how the profit made by a company is affected by the relationship between price, demand, and supply