How to Become a Financial Analyst

06/10/2025

Money rules everything around us: it impacts what we buy, how much we save, the trajectory of our careers, and even how we spend our time. Beyond understanding your own personal finance, becoming an expert on the financial workings of businesses, organizations, and economies can lead to impactful—and lucrative—careers. One option for experts in finance is to become a financial analyst, which is a role that combines theoretical knowledge with data analysis.

Financial analysts play an impactful role in organizations and the overall finance industry. In fact, U.S. News & World Report ranks it as the #5 best finance job to pursue in 2025. In this article, we’ll discuss what financial analysts do, how you can become one, and how an online M.S. in Finance can support your career as a financial analyst.

What Is a Financial Analyst?

Financial analysts are specialized data analysts who are experts in collecting, organizing, and making decisions based on data. These professionals will use data and research to support sound financial decision making for businesses and other organizations.

Financial analysts need to be comfortable with data, math, statistics, economics, communication, and, of course, finance. They can work in a wide variety of environments, from Fortune 500 companies to federal governments.

What Does a Financial Analyst Do?

A financial analyst collects and analyzes data, conducts extensive research, and monitors various trends in order to support their organization’s monetary health. Some areas where they may seek out financial health indicators include:

• Financial statements
• Revenue and profit reports
• Market trends
• Inflation rates
• Employment rates

Once they have collected and organized their data and research, financial analysts will conduct extensive analyses to support their organization’s strategy and decision making. Typically this involves providing ongoing recommendations relating to investment opportunities.

Financial analysts provide a variety of recommendations for success, and may also support planning, reporting, and budgeting. They also will communicate their findings to various stakeholders through written reports or presentations.

Financial Analyst vs. Financial Advisor

Two common career paths for aspiring finance professionals are financial analysis and financial advisement. These roles are both excellent career paths with high-paying salaries. They also both require a strong understanding of investment expertise and market analysis, so the path you choose depends on how you want to apply your expertise and your preferred work environment.

Financial analysts typically work for organizations in their finance or accounting departments. They are important to nearly every organization, industry, and sector, and so can find roles in many environments. Financial advising usually involves one-on-one advising with individuals, families, and small businesses, supporting their investments and long-term wellbeing. Financial advisors may be self-employed or work within a firm.

How Do You Become a Financial Analyst?

Earn a Bachelor’s Degree

The first step is to earn a bachelor’s degree, which is typically the minimum education needed to be a financial analyst. In addition to fulfilling job requirements, bachelor’s degrees teach important skills, knowledge, and critical thinking abilities, setting you up for a successful career and strong salary potential.

To save yourself time in the future by developing career-focused skills early, a major in accounting, finance, or economics will be the best options. Majoring in these areas during your bachelor’s degree is not necessarily a requirement, but could put you one step ahead.

Benefits of Earning a Master’s Degree

Graduate-level education may be a requirement for some high-level financial analyst roles. According to a CareerBuilder survey, 33% of employers are hiring workers with master’s degrees for roles that were previously held by those with just a bachelor’s. Even if a master’s degree isn’t required, it does make you a more desirable applicant, which can be crucial in a highly competitive field like finance.

Many aspiring finance professionals debate between an M.B.A. or an M.S. in Finance for their master’s, but for financial analysts, the Master of Science in Finance is often the better choice. An M.S. in Finance is more specialized, allowing students to gain tailored expertise that prepares them for their careers without unnecessary coursework.

Reach the Next Step in You Finance Career

A key benefit of an M.S. in Finance is career advancement. You can position yourself for high-level leadership roles later in your career, even working your way up to positions like Chief Financial Officer or Chief Investments Officer. Discover more jobs you can do with an M.S. in Finance.

At MTSU Jones College of Business, the online Master of Science in Finance curriculum was specifically designed to prepare students for financial analysis roles, and it serves as a key stepping stone toward this career path.

Master the Necessary Skills

Professionals will need a wide array of technical, strategic, and interpersonal skills to become a financial analyst. Since this role combines collaboration with technical prowess, the big-picture skills that they need include:

• Finance and accounting
• Data analysis
• Research
• Communication
• Strategic thinking

Each of these categories can be broken down into more specific skills. For example, under the “communication” umbrella, financial analysts will need strong presentation and writing skills in order to communicate their findings effectively. Under the “strategic thinking” umbrella, financial analysts will need both problem-solving skills and the ability to prioritize their recommendations.

At the end of the day, the most important technical skills for financial analysts are the areas where finance meets data analysis:

• Financial modeling is a key part of financial analysis. These models are mathematical representations of how a company is performing, using programming and statistics to optimize company portfolios and measure risk.
• Financial data analysis involves a variety of technical tools, most notably Python, R, and SQL. By mastering these tools, financial analysts will be able to efficiently collect and organize data, allowing them to spend more time making meaningful insights and providing recommendations.
• Excel and other spreadsheet softwares enable more effective financial modeling and data analysis. Oftentimes, advanced Excel skills are the most important technical skill for financial analysts. The tool itself simplifies calculations, makes it faster to organize datasets, and enables better modeling and reporting.

Get Your License and Certification

While getting certified is not a legal requirement to become a financial analyst, many employers prefer to hire candidates with some sort of certification, as these certifications demonstrate advanced skills, knowledge, and expertise.

The main certification that all financial analysts should consider is the Chartered Financial Analyst Certification, widely considered to be the gold standard. The process for becoming a CFA is rigorous, but the effort is worth it for the doors that it opens in your career. In order to become a certified financial analyst, candidates will need to:

Pass three exams

Gain work experience in the investment decision-making process (this can occur, before, during, or after the exams)

Apply for CFA Institute membership

Gain Work Experience

Once you hold a bachelor’s degree, you may be ready for entry-level finance positions. Gaining experience as a budget analyst, junior financial analyst, or associate financial analyst will provide real-world experience. These early-career roles are critical, as they help you develop a deep understanding of how to apply theoretical knowledge to actual situations. Networking can also be key, as you may get access to job openings early or receive valuable referrals from your peers.

If you haven’t already earned a master’s in finance, your early career is a great time to consider applying. A part-time, online M.S. in Finance provides preparation for more advanced roles without requiring you to put your growing career on pause.

Financial Analyst Salaries and Careers

Something that surprises some individuals is that financial analysis actually encompasses a wide range of career paths, and are not limited to one title. They can leverage their skills in specialized areas, including risk management, securities, and leadership.

Average Salary for Financial Analysts

The U.S. Bureau of Labor Statistics reports that the median annual salary for financial analysts is $101,910. Lightcast, a market data analytics platform, notes that the median annual advertised salary is $85,400. This indicates individuals will potentially earn a starting salary in the $80,000-$90,000 range, but can reach salaries of over $100,000 with time and experience.

Salaries will vary greatly by location, experience, organization, and industry, so it is important to do your research on the specific companies you are applying to. In addition, salaries will vary by specialty, with certain areas (like risk management and analysis) tending to be higher-paying than other areas.

Source: Lightcast

Deep Dive: Three Financial Analyst Careers

Financial Risk Analyst

Median Annual Salary: $90,400 (Lightcast)

Financial risk analysts focus on assessing, forecasting, and understanding financial risk. They might work internally or in a consulting role, helping organizations understand, mitigate, and avoid potential risks relating to credit, liquidity, market fluctuations, and operations.

Financial risk specialists might start out at the associate level in financial analysis or risk analysis before moving into the specialized role. As they gain more experience, they can become risk managers and finance managers.

Securities Analyst

Median Annual Salary: $105,200 (Lightcast)

These professionals apply their financial analysis knowledge to securities in the market in order to help their clients or organizations identify sound investment decisions. Typically, securities analysts focus on providing buy, sell, and hold recommendations based on the performance of stocks, sectors, industries, and overall economies.

Securities analysts typically begin as financial analysts before specializing in securities, and might eventually seek roles such as portfolio managers or assets managers. The securities area of the finance industry typically requires additional training and certifications, such as FINRA’s qualifying exams.

Portfolio Manager

Median Annual Salary: $124,200 (Lightcast)

Portfolio managers are typically in charge of an organization’s whole suite of investments. They create various strategies to help businesses meet their investment goals, including making important decisions on buying and selling, timing, and where to place investments. However, portfolio managers are typically focused on the analytical and research side of financial analysis, and not as much on the sales side.

Portfolio management roles typically are not entry level positions, but some portfolio managers can begin as associates before moving to the senior level. Over time, portfolio managers can advance to director levels.

Earn your M.S. in Finance From the MTSU Jones College of Business

Gain the skills you need to succeed in the competitive finance world. We blend asynchronous coursework with virtual synchronous components, granting students the flexibility to pursue their finance degree from any location while fostering valuable connections. Whether you prefer a part-time or full-time schedule, our program accommodates your needs, with all synchronous classes held Tuesday and Thursday evenings via Zoom to ensure the success of full-time working students.

MTSU’s Jennings A. Jones College of Business is among the top 1.5% business schools in the world with Association to Advance Collegiate Schools of Business (AACSB) accreditation in both accounting and business. Our faculty of award-winning educators, researchers, and entrepreneurs provide students with cutting-edge education in management, finance, big-data tools, and business communication.

Download a program brochure to learn more or start your application to the M.S. in Finance.