A financial manager has the responsibility of looking after the financial health of a company.
While being a financial manager comes with a lot of responsibilities, it comes with a variety of pros and cons.
It is important to look at the advantages and disadvantages carefully when determining whether a job will suit you.
Below, we will discuss the pros and cons of becoming a financial manager and whether or not you should pursue that job title.
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Pros of Being a Financial Manager
If you want to be a financial manager, it is important to know what the pros and cons are.
Let’s first discuss the pros of being a financial manager.
Great pay
Financial managers can make a pretty good amount of money.
The average amount a financial manager makes in the United States is $131,710, according to the Bureau of Labor Statistics.
That is over two times the amount a large number of people in the United States make.
The average amount most people make is somewhere between $25,000 and $50,000 per year.
While it is true that financial managers are paid well, there are other factors to consider besides just the amount you can get paid.
Can be hired in various settings
Various settings pay differently.
You can be hired as a financial manager in a variety of different settings, such as business finances or a personal financial advisor.
Even lower-paying financial manager job settings can pay well.
You can choose the type of businesses or individuals to work for as a financial manager.
This gives you a little bit of wiggle room in the type of financial management work you do.
Typical standard business hours
Some industries have random work schedules that can get confusing and stressful when it comes to scheduling anything outside of work.
Some people work 12-hour shifts during the day or the night, and some people work different days each week.
As a financial manager, you usually work standard business hours.
Business hours are usually Monday through Friday, from 8 or 9 in the morning to 5 in the evening.
Only requires a bachelor’s degree
Most jobs that have a high salary require a higher degree of education, such as a master’s degree or higher.
To become a financial manager, you only need to have a bachelor’s degree.
You can spend less time and money on schooling and work towards getting a job as a financial manager faster, meaning that you can start making money faster instead of reaching for a graduate degree that you don’t even need.
Can pay off debts faster
Being a financial manager can provide significant advantages when it comes to paying off debts faster.
The role entails an in-depth knowledge of financial planning and budgeting, which can be applied to personal finances.
As a financial manager, you have the skills to analyze your income and expenses, identify areas where you can cut costs, and create a realistic debt repayment plan.
Additionally, you can utilize your expertise to optimize your investments and generate additional income, which can be used to accelerate debt repayment.
This professional advantage puts you in a better position to manage your debts efficiently and ultimately achieve financial freedom.
Less physically demanding
Some jobs require lots of physical work, like plumbers, contractors, restaurant workers, healthcare workers, and many other job roles.
If you don’t want something physically demanding, a financial manager position might be a good fit.
While a job as a financial manager is not physically demanding, it can be very mentally draining and stressful.
You can become specialized
As a financial manager, there are various areas in which you can specialize.
One of the primary areas is financial planning and analysis.
In this role, you will be responsible for creating and implementing financial strategies, analyzing financial data, and providing insights to support decision-making.
Another area of specialization is risk management, which involves identifying potential risks and developing strategies to mitigate them.
You can also specialize in investment management, where you will be involved in managing a portfolio of investments and maximizing returns for clients.
Other areas include corporate finance, financial reporting, and treasury management.
Each specialization offers unique challenges and opportunities for growth as a financial manager.
Cons of Being a Financial Manager
Now that we have discussed the pros of being a financial manager, it is time to talk about the cons that this job brings.
Lots of stress
Financial managers face numerous stresses in their roles, stemming from the immense responsibility they carry.
The pressure to make sound financial decisions while ensuring the financial health of an organization can be overwhelming.
They must constantly navigate complex financial systems, keeping up with changing regulations and industry trends.
Meeting deadlines for financial reporting, budgeting, and forecasting can create constant stress.
Dealing with financial risks, such as market fluctuations or economic downturns, adds to the pressure.
Additionally, financial managers often have to handle delicate situations like layoffs or budget cuts.
The constant demand for accuracy, efficiency, and strategic thinking can take a toll on their mental and emotional well-being.
Job opportunities require lots of experience
Job opportunities for financial managers typically demand a significant amount of experience.
This is primarily due to the nature of the role, which requires individuals to possess a deep understanding of financial analysis, risk management, and strategic decision-making.
A financial manager plays a crucial role in an organization’s financial health, overseeing budgeting, forecasting, and financial reporting.
Given the level of responsibility and the potential impact on the company’s bottom line, employers prefer candidates with a proven track record in managing financial operations.
Experience allows financial managers to navigate complex financial challenges confidently, make informed decisions, and effectively mitigate risks.
Therefore, experience is a key requirement for professionals seeking job opportunities as financial managers.
High competition for jobs
The role of a financial manager is highly sought after, leading to intense job competition in this field.
As businesses continue to grow and expand, the need for skilled financial managers becomes more pronounced.
With their expertise in managing finances, analyzing data, and making strategic decisions, financial managers play a crucial role in the success of organizations.
However, due to the high demand for these professionals, the competition for financial manager positions is fierce.
To stand out among the crowd, aspiring financial managers need to possess a strong educational background, relevant experience, and exceptional skills in financial planning, budgeting, and risk management.
The job market for financial managers is expected to remain competitive as companies strive for financial stability and growth.
Complex tasks
The role of a financial manager encompasses a multitude of complex tasks.
Firstly, they are responsible for developing and implementing financial strategies that align with the organization’s goals.
This involves analyzing financial data, forecasting trends, and making informed decisions to ensure long-term financial stability.
Additionally, financial managers oversee budgeting and financial reporting, ensuring accurate and timely information is provided to stakeholders.
They also assess investment opportunities, weighing potential risks and returns.
Risk management is crucial, as financial managers must navigate the complexities of financial markets and regulatory frameworks.
Overall, the tasks of a financial manager require a deep understanding of finance, strong analytical skills, and the ability to make strategic decisions in a dynamic and ever-changing environment.
Limited job opportunities
Limited job opportunities for financial managers can be a significant drawback in the field.
With a restricted number of available positions, competition becomes fierce, making it challenging for individuals to secure employment in this role.
The scarcity of job openings also leads to a higher degree of selectivity among employers, making it difficult for many qualified candidates to find suitable positions.
Moreover, limited job opportunities can result in insufficient career growth and advancement prospects for financial managers.
This can lead to a stagnation of skills and professional development.
Ultimately, the con of limited job opportunities in this field can hinder individuals from pursuing a successful and fulfilling career as a financial manager.
12 Pros and Cons of Being a Financial Manager – Summary Table
| Pros of Being a Financial Manager | Cons of Being a Financial Manager |
|---|---|
| Great pay | Lots of stress |
| Can be hired in various settings | Job opportunities require lots of experience |
| Typical standard business hours | High competition for jobs |
| Only requires a bachelor's degree | Complex tasks |
| Can pay off debts faster | Limited job opportunities |
| Less physically demanding | |
| You can become specialized |
Should You Become a Financial Manager?
Becoming a financial manager is a decision that requires careful consideration.
This role comes with a range of responsibilities and challenges that may not be suitable for everyone.
As a financial manager, you would be responsible for overseeing financial operations, analyzing data, and making strategic decisions that impact the company’s financial health.
It requires a strong understanding of finance, accounting, and business operations.
Additionally, you will need to possess excellent analytical and problem-solving skills.
The job can be demanding and stressful, as it involves managing budgets, forecasting, and ensuring compliance with regulations.
However, for individuals who enjoy working with numbers, have a passion for finance, and possess the necessary skills, becoming a financial manager can offer opportunities for career growth and financial rewards.
Ultimately, the decision to pursue a career in financial management should be based on your interests, strengths, and long-term career goals.
