Why finance is More Lucrative than Tech and What This Means for Job Stability
I have a cousin who studied Economics at the University of Pennsylvania and now makes over $400k working at a bank in Chicago with only 4 years of experience in finance. On the other hand, I have friends who have been working at Google for years and only earn $150k. Additionally, I know people in the tech industry who are currently unemployed due to layoffs, and I myself am also jobless for the same reason.
When I chose to pursue a career in tech in college, I believed that it was the future with high pay and excellent work-life balance. I also thought that job security would be guaranteed since tech companies were always hiring. Unfortunately, none of these assumptions hold true anymore. Work-life balance is nonexistent, salaries are decreasing, and layoffs are rampant.
Looking ahead to 2025, I wonder about the work-life balance in the finance industry. How is it possible for individuals to earn such high salaries with only 4 years of experience? I am starting to question if I made the right choice by entering the tech field.
Edit: For those curious, my cousin’s role is in Macro Strategy.
One response
Why does finance makes so much more than tech?
finance often pays more than tech due to the nature of the industry. finance is typically client-driven, where clients are willing to pay a premium for financial expertise and advice. In addition, the finance industry handles large sums of money, which can lead to higher salaries for employees. Also, the finance industry tends to have a more traditional compensation structure with high base salaries and bonuses, whereas tech companies often offer more stock options and equity compensation which may not result in immediate high cash compensation.
Are careers in finance more stable than tech right now?
In general, careers in finance tend to be more stable than in the tech industry. Finance is considered a more traditional industry with consistent demand for financial services. While there may be layoffs in the finance sector during economic downturns or market volatility, the industry overall is more stable compared to tech, where companies are constantly evolving and restructuring. Tech companies often face challenges related to market shifts, technological advancements, and competition, which can result in layoffs and job instability.
It is important to note that job security can vary depending on the specific roles within each industry. For example, roles in investment banking or corporate finance may be more stable than roles in fintech startups or hedge funds. Additionally, the level of experience and expertise can also impact job security in both finance and tech.
In 2025, the work-life balance in finance may vary depending on the specific role and company. Generally, finance roles can be demanding and require long hours, especially in areas like investment banking or private equity. However, there are roles in finance such as wealth management or compliance that may offer better work-life balance. It is important to research and understand the specific expectations and culture of the company you are considering for a career in finance.
It is not uncommon for individuals to question their career choice, especially when faced with challenges or changes in the industry. It is important to evaluate your interests, skills, and goals to determine the best career path for you. Consider exploring different opportunities within both finance and tech to find a role that aligns with your values and offers the stability and growth potential you seek.