Financial analysts and financial consultants perform very similar jobs. Both are experts in financial, economic, and investment matters and both help other♑ professionals make more informed money decisions. But analysts and consultants focus on different areas and they enjoy very different work schedules.

Financial Analyst

A financial analyst often works for an 澳洲幸运5官方开奖结果体彩网:investment bank or asset management company. These professionals examine financial and non-financial information, 澳洲幸运5官方开奖结果体彩网:micro and macroeconomic data, and other variables to evaluate the 澳洲幸运5官方开奖结果体彩网:financial health of a company. They frequently use this analysis to make recommendations about the company they analyze, such as to buy or sell a stock.

Analysts must have excellent math and analytical skills and they should be comfortable working in a team-focused environment. Most begin at a junior level and assist a senior team member while gaining work experience.

Financial Consultant

Financial analysts focus on evaluating external companies but financial consultants provide internally-focused advice to corporations. A financial consultant helps a business increase shareholder value and improve capital 澳洲幸运5官方开奖结果体彩网:efficiency.

Their job may involve helping to put a 澳洲幸运5官方开奖结果体彩网:mergers and acquisition (M&A) package together or designing a compensation strategy for company executives. Many consultants work in the 澳洲幸运5官方开奖结果体彩网:corporate finance division of a business. Others may work independentlyℱ or within third-♐party consulting firms.

Many personal financial advisors refer to themselves💮 as financial consultants. These consultants focus on individuals, not businesses, and this is a different type of consultant.

What Type of Education and Skills Are Needed?

A lot of analysts and consultants study economics or finance in undergraduate school and many go on to earn a 澳洲幸运5官方开ꦕ奖🍬结果体彩网:master of business administration (MBA) degree. Many begin their careers iওn banking or working with financial advising firms. Each career path lends itself nicely to a reputable financial certification.

Financial Analyst

Analysts often pursue the 澳洲幸运5官方开奖结果体彩网:Chartered Financial Analyst (CFA) designation. Applicants should have either a bachelor's degree or b🍎e in the last year of a bachelor's degree program to enroll in the first🤪 of three CFA exams. Their other option is 4,000 hours of applicable work experience or a combination of work experience and education. This requirement must be met over at least three sequential years before registering for the first level's exam.

An applicant must pass all three levels of the exam and have at least four years of applicable work experience to receive the 澳洲幸运5官方开奖结果体彩网:CFA designation.

Financial Consultant

Consu🍌ltants come🐠 from a variety of career paths but there are two broad types of consultant backgrounds:

• A 澳洲幸运5官方开奖结果体彩网:contractor usually works independently and on short-term projects for much of their early professional life.
• Other consultants join 澳洲幸运5官方开奖结果体彩网:consulting firms. They can benefit from a network of prior professional connections.

A consultant may be eligible to enroll in the 8-course program for the 澳洲幸运5官方开奖结果体彩网:Chartered Financial Consulಌtant (ChFC) designation after they have three years of full-time business experience along with at least a high school diploma.

What Types of Jobs Are Available?

Analysts are often divided into buy-side or sell-side positions if they don't work for large banks. A buy-side analyst researches investments for their firm, often for an in-house fund. A sell-side analyst provides research and makes recommendations, often to buy-side firms, or they work to help promote certain inv🐬estments.

An 澳洲幸运5官方开奖结果体彩网:investment banking analyst uses models and predictive forecasts in support of senior partners for 澳洲幸运5官方开奖结果体彩网:venture capital deals, stock valuations, or other institutional decisions. Some even perform similarly to financial consultants and make recommendations for 澳洲幸运5官方开奖结果体彩网:initial public offerings (IPOs) or M&A transactions.

Independent consultants tend to have variable incomes. The most lucrative independent consultant positions normally go to former high-ranking financial professionals. These individuals o🐈ften decide to advise other busine💃sses later in their careers.

Job Outlook

The Bureau of Labor Statistics (BLS) periodically releases a report known as the Occupational Outlook Handbook. The BLS outlines the average salaries, required experience, and projected future demand for common jobs in the United States in this report.

There were 376,100 financial analysts in the U.S. in 2022 and the industry is expected to add 29,000 in the decade between 2022 and 2032, according to the most recent figures from the BLS handbook. This is a projected 8% growth rate, which is faster than average. The median annual salary for professionals in this category was $99,890 as of 2023.

The BLS doesn't release specific figures for financial consultants, perhaps due to the vague and generic nature of the job title. The agency does note that business and financial occupations are expected to increase more quickly than the average, however.

Comparing Work/Life Balance

Financial analysts tend to work standard 40- to 50-hour weeks except at the most senior levels with time off during the weekends and normal vacation packages. Their hours on the job tend to be very busy and even intense but there's still 澳洲幸运5官方开奖结果体彩网:ample time left over during the week for family, friends, and r🐭ecreat🔥ion.

This is rarely the case with financial consultants, particularly those who work for major firms as associates. Junior-level consultants report working 60-70 hours a week. This works out to 11-plus hour days. Most work Monday through Friday but projects can occasionally run two weeks including weekends. Consultants also tend to travel a great deal so they experience extended time away from home.

The COVID-19 pandemic caused hiccups in business travel for the financial services sector as many companies looked to cut costs following the pandemic. Changes were also made to the overall work environment. Many financial services companies implemented 澳洲幸运5官方开奖结果体彩网:work-from-home policies when lockdowns were lifted with as many as 69% allowing employees to work from home at least once a week.

The financial industry is well-known and even infamous for its long hours and rigorous job demands. There's some evidence that major financial institutions are trying to curb workloads and reduce burnout among their employees but most aspiring financial professionals should be prepared for many extra hours at their worksites.

The Bottom Line

An aspiring financial professional who's torn between a career as a financial analyst and one as a financial consultant should focus on the two areas where these careers are most distinct. The first is work/life balance and compensation. Financial consultants have a greater earning potential but they also tend to work longer hours and spend more time away on business travel. Financial analysts tend to have steadier jobs and less stressful careers.

The second consideration is the type of investment analysis that each job performs. Big-picture thinkers who want to per💖form research at a macro level typically find it more suitable to work as analysts. Those who love com🐽pany fundamentals and capital management may feel more at home in consultancy roles.