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

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

Thank you comment icon A finance degree can help you gain insights into how money works, and can open the door to many career paths. salma

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Peter’s Answer

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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Rohit’s Answer

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.


Thank you comment icon Thank you! salma
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Michelle’s Answer

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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Tony’s Answer

McKenzie,

Working in FP&A for 12 years, currently within CFO Advisory. My answer is outside of investing, but more so towards strategy, budgeting and planning. By working in this field, it allows you to recognize patterns, and think strategically from a personal finance standpoint. By observing and analyzing, it allows you to do the same within your expenses on a granular and macro level. Over time, this will help more strategically in how you think of larger more strategic purchases like homes, land and investment properties. Lastly, working in finance I believe overtime will help you think more in life as a whole and be able to analyze your surroundings to make better decisions and have better outcomes.

Tony
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Tom’s Answer

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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Ann’s Answer

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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Daryl’s Answer

Having a degree in Finance will help you become savvy when it comes to personal financial spending. With a degree in Finance, you will feel inclined to evaluate all credit and cash purchase options available to you before making a purchase. You would be amazed at how interest rates can impact your purchasing power. You will also feel less likely to engage in impulse spending. In addition, you will realize that your degree in Finance will help you when it comes to making investments in stocks, bonds, or savings. A degree in Finance can also serve as a gateway to other careers involving sales and marketing.
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Luiz’s Answer

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
Thank you comment icon 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, Admin
Thank you comment icon 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
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Robert’s Answer

For myself, it exposed me to different ideas of finance that my parents did not teach me. While I was told to save money growing up, I didn't learn much else in terms of finance. What I truly learned was how to analyze different investments in my life to see if they were worth my time and money. Time is money, so if you think about it, are you receiving a positive return for the activities you are spending your time doing. I learned not only how to prioritize money, but to prioritize my interest.

When I left school, everything cost money. If I wanted to go on a trip, buy a new pair of shoes, or just hang out at a local coffee shop with friends, these activities cost money. I am now able look at my salary and make decisions based on how I want to save/invest for the future to decide if an activity is worth momentary gain or to invest into generational wealth. Through my finance degree, I was able to learn the principles to navigate those questions even if they were taught in theory.
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Yash’s Answer

Hi McKenzie, That's a great question. I have business administration and Finance/Accounting degrees and been in industry for 10+ years. I can assure you from my personal experience that the skills you will learn are going to help you build excellent career but also guide you in your personal choices. You will be able to better understand how to manage cash flow, time management as well as able to better assess the risks involved and make plans accordingly. You will also be able help your friends and family with their finances.
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Brian’s Answer

Business finance and personal finance share some commonalities, but there's a significant distinction - investing. Corporations aim to use their resources to tap into distinct business prospects that will strategically expand their operations. This could include launching new products, exploring different industry sectors, or making acquisitions. They also aim to achieve specific return rates that surpass their capital costs. This can be referred to as strategic investing.

On the other hand, personal finance investing involves setting individual objectives, recognizing your comfort level with risk, and occasionally making choices based on personal beliefs, such as sustainable investing. This is because the only person you need to justify your decisions to is yourself. Furthermore, personal finance offers a broad array of personal investment products that are not typically seen in the realm of business finance.
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lopez1868’s Answer

Earning a degree in Business Finance can provide you with valuable knowledge and skills that can positively impact your personal financial life in several ways:

Financial Planning: A background in Business Finance equips you with the skills to create and implement effective financial plans. This knowledge helps you set realistic financial goals, create budgets, and make informed decisions about saving and investing.

Understanding Investments: With a degree in Business Finance, you can better understand various investment options. This knowledge allows you to make informed decisions about where to invest your money, potentially leading to better returns and a more diversified portfolio.

Debt Management: Learning about financial management can help you handle debt more effectively. You can develop strategies for paying off debts, understanding interest rates, and managing credit wisely.
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JOSEPH’s Answer

Great question. This assists you in helping balancing your expenses in your personal life. Learning Profit and Loss statements as well as Balance Sheet. It can help identify how to learn to save for the future. In addition, if you want to begin your own company it will provide you the tools to get started.
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Jaya’s Answer

A degree in business finance is a great stepping stone to under Personal finance, being a finance professional, you will have exposure to understand the business requirements, analyse the facts and data, similar principle will also apply in your personal finances, when you are making big decisions personally, these principles will guide you to get your facts and data right and make the best decision for you long term and short term.

Good luck!!
Thank you comment icon same ideas Tom Hiddleston
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Tom’s Answer

A Business Finance degree can bring huge benefits to your personal financial life by providing you with the knowledge and skills to effectively manage your finances and make informed investment decisions. as well as creating and sticking to a budget. Understand financial concepts such as risk management, use support tools such as a time card calculator for investment analysis and financial planning, knowledge gained from the Corporate Finance major can also assist you better understand personal investing and develop strategies to grow your wealth.
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Misbah’s Answer

Hello McKenzie,

Ever since I was a child, I've had a deep love for Mathematics and Numbers. This passion led me to become an Electrical Engineer, and later, to earn an MBA in Finance. I am convinced that a degree in finance can be a powerful tool in both your professional and personal life.

In my career, my finance knowledge has been instrumental in every job I've held, and it continues to be invaluable in my current role. In any business, the bottom line is always about the financial outcome - the profit, loss, and return on investment. These are all measured and reported in numbers, the language I've loved since childhood.

In my personal life, my finance skills have proven to be equally beneficial. They guide my daily decisions and have provided me with a solid foundation for financial planning. Furthermore, if I ever decide to venture into my own business, I am confident that my finance studies will be a significant advantage.

I wholeheartedly believe in the power of financial education, and I am certain it will serve you well in your journey. Wishing you all the best!
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