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How does an degree in Business Finance help in your personal financial life?

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Did your major of Business Finance help you with learning personal investing?
#finance-major #finance #investing #budgeting #business #business-finance

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6 answers

Rohit’s Answer

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Even though I do not yet have a degree in finance, I am at final stage of two highly reputed Finance oriented courses and I think I am qualified enough to answer this.

Severe exposure to financial disciplines coupled with ardent interest in personal finance has obviously had a great influence on my personal financial life. What further adds to such influence is my bias towards frugal living. I am qualified as well as determined enough to manage my own money.

It’s not that I don’t make large expenses. I do. My most important criteria in deciding whether to buy something or not is how much would I use it. My annual expenditure on coffee is more than my two month income, but I never intend to lower it, because it gives use to my daily being.

Warren Buffet said “Price is what you pay, value is what you get”

Value in this context refers to Value-in-usei.e. what value do you derive from it. Measure of value will always vary person to person. My value-in-use for coffee is greater than a lot of people, so I spend more on coffee, but at the same time I cut back on many other things. It is important to balance your monthly spending by cutting back on certain things in case you go overboard on some other things.

Having said that, I don’t think that pursuing finance for the mere purpose of self financial planning is a worth your time. You should specialize in what you do for a living and learn basics of personal finance on the side. What I wrote above could be expanded, modified and used according to your needs.

See an expert and use professional management for your money.

And lastly, don’t let frauds fool you into taking unnecessary risks.


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Ann’s Answer

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Hi McKenzie,

It absolutely helped me! The most important thing to learn about is long term investment like IRA and mutual funds. I recommend looking for a school that offers personal finance courses. You can even become certified in personal finance once you finish your degree. Good luck!

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Michelle’s Answer

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Hi McKenzie,

A finance degree can help you gain insights into how money works, and can open the door to many career paths.
My finance major and MBA helped me personally and professionally in areas of investments, corporate financing, banking, budgeting, and other personal finances that I didn't learn in high school.
All the Best!

https://www.thebalancecareers.com/top-jobs-for-finance-majors-2064048
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Luiz’s Answer

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I will give you an overview of the main careers in finance, in which we will include the average salary you can expect.

Financial analyst
It will help you decide how much you need to invest and how to get financing for it by working in for-profit and non-profit companies. For that, you will need a lot of knowledge of statistics, probability and financial mathematics.

Financial manager
It will mainly deal with budgets and market analysis. Your objectives will be to make decisions based on financial reports, for that you will have to add knowledge of human resources management, as you will have to deal with a team of analysts, statisticians, etc.

Financial Consultant and Auditor
In a private company to carry out financial audits, provide financial advice and manage financial systems and budgets, you will deal with the short and long term problems of companies in situations of financial difficulties. That's what I've always done in my professional life. It is necessary to add to the previous knowledge those related to accounting sciences.

Salaries range from $ 40,000 to $ 80,000.

Good luck!

Luiz recommends the following next steps:

  • Accounting sciences
Hi Luiz, this is good information about careers in finance but it doesn't directly answer the student's question. They want to know if having a degree in the subject would help personal finances Gurpreet Lally Translate
I have said throughout my life as a graduate and undergraduate professor in finance, that anyone who moves away from finance will have a tendency to lose money. This means, from 47 years of experience working in the sector, that by understanding finance at least you will not lose money. As for getting rich, it depends on other factors, which are systemic. For example, the coronavirus pandemic has brought problems to anyone. I hope I have met your demand. Good luck! Luiz Belmiro Translate
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Peter’s Answer

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McKenzie,

That's a great question. Having studied an MBA with focus on finance, I think it provides a perspective that can inform how you make investments (diversified stocks, bonds, etc), in addition to providing you with background on accounting concepts and skills. You also develop a framework to help make decisions based on financial /benefits factors . However, this may or may not translate directly into how well you manage your own personal finance. Although you may have all the financial management tools and perspectives, not having the discipline to put it into practice will not help you better manage your budget or spending. In summary, having a business degree will help but is not sufficient unless you apply what you learned.

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Tom’s Answer

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It teaches you 2 very important concepts:

1) It teaches you the most basic equation of Revenue - Expenses = Profits. Translating that to personal finance: Income (Salary) - Expenses = Wealth. Your wealth can then be compounded by investing (see point 2)
2) The time value of money and the effects of compounding. This is the fundamental premise of long-term investing success.
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