How To Become A Financial Manager
Financial managers are responsible for ensuring that the organizations they take care of are financially sound and in good health. They have a number of job duties to perform, including the production and analysis of financial reports, investment activities, and long-term financial planning. This is one of the most vital roles in any company.
Why Become A Financial Manager
This occupation is ideal for someone who enjoys working with numbers and taking responsibility. The financial manager’s job is crucial; if you perform well in this role, you ensure that your company is on the road to long-term success. If you perform poorly, your company will sink. You need to be able to handle a lot of pressure, and you also need to be an expert in investing. You will handle not only your own financial future, but that of every person in your organization. This is typically a highly paid position, because it is so vital.
Companies need financial managers to make sure that their finances are on a healthy and stable footing. Those who love to work with numbers and don’t mind a position that makes them take on a lot of responsibility will love the challenge that this career gives.
Financial Manager Work Environment
You may work for a bank or insurance company, or for any other company in any other sector. Not all companies employ financial managers, but many do, particularly large businesses. You will probably work full time, and you may also put in a fair amount of overtime.
Financial Manager Salary
In 2010, the US Bureau of Labor Statistics (BLS) recorded the median annual wage for financial managers as $104,910 per year, or $49.96 per hour. The lowest 10% earned less than $56,120, while the top 10% earned over $166,400. How much money you make will likely depend on the structure of the company where you are employed, as well as how much experience you have.
Although the work is typically stressful and requires a lot of overtime, financial managers tend to make six-figure incomes on the average. Those working for smaller companies may not earn much but their pay can still be considered above average.
Average Financial Manager Annual Salary
The average annual salary for financial managers is $143,530 a year. Salaries start at $66,480 a year and go up to $208,000 a year.
Average Financial Manager Hourly Wage
The average hourly wage for a financial manager is $69.01. Hourly wages are between $31.96 and $100 an hour.
Stats were based out of 569,380 employed financial managers in the United States.
Highest Paying States For Financial Managers
- 1. New York $98.80 / hr $205,500 / yr
- 2. New Jersey $84.27 / hr $175,290 / yr
- 3. Delaware $79.47 / hr $165,310 / yr
- 4. District of Columbia $77.19 / hr $160,550 / yr
- 5. Connecticut $76.91 / hr $159,970 / yr
Top Paying Cities For Financial Managers
- 1. New York, NY $102.01 / hr$212,170 / yr
- 2. San Francisco, CA $93.01 / hr$193,450 / yr
- 3. Bridgeport, CT $90.18 / hr$187,580 / yr
- 4. Newark, NJ $85.56 / hr$177,960 / yr
- 5. Philadelphia, PA $83.99 / hr$174,700 / yr
Data provided by the Bureau of Labor Statistics (BLS).
Financial Manager Career Outlook
There are new positions appearing for financial managers, but this occupation is growing at a rate of only 9%, which is slower than the average for all occupations. There is also going to be stiff competition in this field, as there are going to be far more job candidates than openings. That is why it is important to invest in your education. Those who have higher degrees are more likely to be offered jobs in this field.
Financial Manager Degree
At the very least, you will need a bachelor’s degree. If you have a master’s degree, you will be considerably more competitive, which is important for the reasons discussed above. You also will want to get a certification in your field. Additionally, the majority of financial managers have more than five years of previous experience in a related field.
Most financial managers previously worked as loan officers, private investors, accountants, auditors, financial analysts, securities sales agents, or so on. It is essential to get real, hands-on experience in investing and accounting before taking on the tremendous responsibilities associated with becoming a financial manager.