A credit score is a three-digit number that represents your creditworthiness, that is, how likely you are to repay a debt. Credit scores range from 300 to 850, with higher scores indicating better creditworthiness. A credit score is calculated based on various factors, such as your payment history, credit utilization, length of credit history, types of credit used, and new credit accounts.
How are credit scores calculated?
Let’s take a closer look at how credit scores are calculated. Payment history is the most important factor, accounting for 35% of your credit score. It refers to how you’ve paid your debts in the past and whether you’ve made payments on time. Late payments, defaults, or collections can significantly lower your credit score.
The second factor is credit utilization, which makes up 30% of your credit score. It’s the amount of credit you’re using compared to your credit limit. Keeping your credit utilization below 30% is considered good, and exceeding it can negatively impact your credit score.
The length of your credit history makes up 15% of your credit score. The longer your credit history, the better, as it indicates a more stable financial track record.
The types of credit you use also matter, accounting for 10% of your credit score. Having a mix of different types of credit, such as credit cards, car loans, and mortgages, is considered good, as it shows you can handle different types of debt.
Finally, the last factor is new credit accounts, which make up 10% of your credit score. Opening too many new credit accounts in a short period can negatively impact your credit score.
Why are credit scores important?
Now that we know how credit scores are calculated, why are they important? Your credit score can affect your ability to get approved for credit cards, loans, or mortgages. A higher credit score can lead to lower interest rates, saving you money in the long run. Additionally, employers and landlords may also check your credit score to evaluate your financial responsibility and trustworthiness.
Now, let’s look at some examples of credit scores and how they’re typically categorized:
A credit score of 750 or above is generally considered very good or excellent. This indicates a strong credit history and may qualify you for the best interest rates and terms on loans and credit products.
A credit score between 700 and 749 is typically considered good. This shows that you have a solid credit history, but there may be some room for improvement in certain areas.
A credit score between 650 and 699 is generally considered fair or average. This means you may have some negative items on your credit report or a shorter credit history, but you may still be able to qualify for credit products.
A credit score between 600 and 649 is typically considered poor. This indicates a higher risk to lenders and may result in higher interest rates or less favorable terms on loans and credit products.
A credit score below 600 is generally considered very poor. This indicates a significant risk to lenders and may make it difficult to qualify for credit products or result in very high-interest rates.
It’s important to keep in mind that credit score ranges and categories can vary depending on the scoring model used and the lender’s specific criteria. However, in general, a higher credit score is typically viewed more positively than a lower score.
CONCLUSION
In conclusion, understanding credit scores is crucial for your financial health. It’s a three-digit number that represents your creditworthiness, calculated based on various factors such as payment history, credit utilization, length of credit history, types of credit used, and new credit accounts. A higher credit score can lead to better financial opportunities, while a lower score can limit your options. So, be sure to monitor your credit score regularly, pay your debts on time, and keep your credit utilization in check.
Deciding whether to buy or rent a home is a big decision that can significantly impact your finances. In this post, I will discuss the pros and cons of both options and provide you with some tips on how to make the best decision for your finances.
Pros and Cons of Buying a Home:
Let’s start by discussing the pros and cons of buying a home.
Pros:
Potential for long-term financial gain through property appreciation
Freedom to make changes to the property and customize it to your liking
Building Equity in your home
Stable housing costs (fixed mortgage payment)
Cons:
High upfront costs (down payment, closing costs, etc.)
Responsibility for maintenance and repairs
Potential for the property value to decrease
Limited mobility (selling a home can be a lengthy and expensive process)
Pros and Cons of Renting a Home
Now let’s move on to the pros and cons of renting a home.
Pros:
More flexibility and mobility
No responsibility for maintenance and repairs
Lower upfront costs (typically just the first and last month’s rent)
No need to worry about property value fluctuations
Cons:
No equity building
Rent payments can increase over time
No control over property changes or customizations
Potentially less stable housing (landlord could sell or choose not to renew the lease)
How to Make the Best Decision
So, how do you decide whether to buy or rent a home? Here are a few tips to help you make the best decision for your finances.
Determine your budget and what you can afford
Consider your long-term goals and plans for the future
Think about your lifestyle and how it may change over time
Research the housing market in your area
Weigh the pros and cons of each option carefully
Conclusion:
In conclusion, whether to buy or rent a home is a complex decision that requires careful consideration. While both options have pros and cons, it ultimately comes down to what is best for your unique financial situation and lifestyle. By considering your budget, long-term goals, and the local housing market, you can make an informed decision that will benefit you in the long run.
Thank you for reading this post on the economics of buying versus renting a home, and I hope you found this information helpful.
A stock market is a place where people buy and sell shares of publicly traded companies. These shares represent ownership in the company and can increase or decrease in value based on various factors such as the company’s performance, economic conditions, and investor sentiment.
When a company goes public, it issues shares of stock that investors can purchase. People can then buy and sell these shares on the stock market. The stock market provides a platform for investors to trade these shares with each other.
How does the price of a company’s stock move?
Supply and demand determine the price of a stock. If more people want to buy a stock than sell it, the price will go up. If more people want to sell a stock than buy it, the price will go down.
The bull represents a growing market while the bear represents a falling market. The name comes from the way these animals attack.
There are two main types of stock markets: primary and secondary. The primary market is where new stocks company issue and sell to the public for the first time. The secondary market is where investors trade previously issued stocks.
Overall, the stock market plays an important role in the economy by allowing companies to raise capital and investors to participate in the success of these companies.
How’s the stock market related to the economy?
The performance of the stock market can be an indicator of the health of the economy, as it reflects the collective sentiment and expectations of investors about the future prospects of companies and the economy as a whole.
When the stock market is doing well and prices are rising, it often indicates that investors have confidence in the economy and expect companies to perform well in the future. This can lead to increased investment, job growth, and economic expansion.
But, when the stock market is performing poorly and prices are falling, it may indicate that investors are pessimistic about the economy and the future prospects of companies. This can lead to decreased investment, job losses, and economic contraction.
In addition, changes in the economy, such as interest rates, inflation, and government policies, can also impact the stock market. For example, if the Federal Reserve raises interest rates to combat inflation, it may lead to higher borrowing costs for companies and decrease their profits, causing their stock prices to fall.
Therefore, the stock market is an important component of the overall economy. It can be affected by, and also impact various economic factors.
I will cover more on the main types of stock exchanges in the US and globally in my next post. Thanks for reading!
If you want to watch my videos on the same topics, you can check out my Youtube channel here. https://www.youtube.com/channel/UC1wFKF1FTBI90qdn4HH2QhQ
So, there’s been some big news in the banking world. First, Silicon Valley Bank, which had a lot of high-profile tech investors as clients, collapsed on Friday. Federal regulators have taken over the bank since then. It’s actually the largest U.S. bank to fail since the 2008 financial crisis. Then, on Sunday, regulators started worrying about New York’s Signature Bank. This bank had a lot of money tied up in the unpredictable cryptocurrency market.
Both Silicon Valley Bank and Signature Bank are under the Federal Deposit Insurance Corporation (FDIC) control. This happened after Silicon Valley Bank experienced a run on the bank last week, with people withdrawing billions of dollars in deposits.
men with finance business report and money vector illustration
The different business model of this bank
Do you know how Silicon Valley Bank wasn’t really a name you’d hear outside of Silicon Valley and the tech industry? Well, that’s because their clients were mainly venture capital firms, startups, and wealthy tech employees. They were in the game for around forty years and even managed to compete with big financial institutions. But in the end, SVB collapsed in just a few days.
Apparently, around 90% of SVB’s accounts had over $250,000 in deposits, which is higher than most banks. This means most of their deposits weren’t backed by government insurance, according to a report. Also, experts pointed out that SVB’s business model was more like a local bank from the 1800s or 1900s, focusing on deposits and local customers, while bigger banks had more diverse funding sources and customers.
In 2020, SVB’s deposits surged, but unfortunately, they invested those extra billions in long-term Treasury bonds just as the Federal Reserve raised interest rates. This led to a decline in the value of government bonds, and more depositors withdrew their money. Last week, SVB announced a loss of $1.8 billion from selling some of its bond holdings, leading to a run on the bank. Federal regulators ended up taking control of the bank last Friday.
In today’s post, I will talk about what you should consider if you haven’t started investing in stocks yet or if you are a beginner investor.
Why do people fear investing in stocks?
Before we do that, let’s look at the reasons why people may be afraid to invest in stocks. Here are some of the most common reasons:
Lack of knowledge: Many people are afraid to invest in stocks because they don’t understand how the stock market works or how to analyze stocks. They may feel overwhelmed by the amount of information available and worry about making a mistake.
Fear of losing money: Investing in stocks always carries some degree of risk, and many people are afraid of losing money. They may worry about a stock market crash or about investing in the wrong company.
Past negative experiences: Some people may have had negative experiences with investing in the past, such as losing money or being scammed by a fraudulent investment scheme. These experiences can make them hesitant to invest in stocks again.
Perceived lack of control: Investing in stocks can feel like a gamble to some people, and they may worry about not having control over their investments. They may feel more comfortable with traditional savings accounts, where they feel they have more control over their money.
Peer pressure: Some people may feel pressure to invest in stocks because of their friends or family members, but they may not feel confident in their ability to make good investment decisions.
So what is the solution?
Infact, investing in stocks for long-term growth can be a great way to build wealth over time if done correctly. By following some simple tips, you will mitigate the risk associated with investing and will grow your wealth over time. Here are some tips on how to invest in stocks (and other assets) for long-term growth:
Set your investment goals: Before you start investing in stocks, it’s important to define your investment goals. Do you want to save for retirement, a down payment on a home, or another long-term goal? Understanding your goals can help you create a long-term investment plan.
Determine your risk tolerance: Investing in stocks comes with risk, and it’s important to understand your risk tolerance before you start investing. Conservative investors may want to focus on blue-chip stocks with a history of stable returns, while more aggressive investors may be comfortable with higher-risk, high-growth stocks.
Research companies and industries: When investing in individual stocks, it’s important to research individual companies and industries to make informed investment decisions. Look for companies with strong financials, competitive advantages, and growth potential, and consider investing in industries that are poised for growth in the long term. This does require quite a bit of research by looking at companies’ financials. For conservative investors, it is best to start with a broad-based index fund or an ETF. By setting up monthly or weekly contributions, you can ignore market fluctuations. Predicting the future of a specific company is uncertain. Thus this risk is much higher compared to investing in a fund, which is a pool of many companies from different sectors.
Build a diversified portfolio: Diversification is key to managing risk and maximizing returns when investing in stocks. Invest in a variety of companies and industries to spread your risk (through index funds or ETFs). Vanguard, Charles Schwab, and Fidelity are all good brokerage companies offering index funds. It’s important to research and compare the fees, historical performance, and other factors of different index funds and providers before making any investment decisions. Also, consider adding other asset classes, such as bonds and real estate, to your portfolio.
Invest regularly and stay disciplined: Investing in stocks for long-term growth requires discipline and consistency. Set up automatic contributions to your investment account and stick to your long-term investment plan, even in times of market volatility. As I mentioned in my previous posts, investing in funds is a great way to do that. Also, by following a strategy called dollar cost averaging you can remove emotions from your investment decisions.
Monitor and adjust your portfolio: Finally, it’s important to regularly monitor and adjust your portfolio as needed. Rebalance your portfolio periodically to maintain your desired asset allocation, and consider adjusting your investments as your financial goals or risk tolerance change over time.
Conclusion
Overall, investing in stocks can be a great way to build wealth over time. However, it is important to do your research and understand the risks involved. If you are feeling hesitant about investing in stocks, consider consulting with a financial advisor or taking a course on investing to gain more knowledge and confidence.
Whether investment should be done for the long term (retirement) or short term (if you are looking to pay for downpayment of a house), we should consider these key points:
Short-term gains can be risky: While making quick profits through short-term investments is possible, it often involves taking on more risk. Fluctuations in the stock market can cause investments to lose value quickly, making short-term gains unsustainable.
Long-term investments offer more stability: By investing for the long term, you are able to ride out market fluctuations and take advantage of compounding interest over time. This can provide more stability in your portfolio and increase your chances of achieving your financial goals.
Patience is key: Investing for the long term requires patience and discipline. It is important to avoid making impulsive decisions based on short-term market movements and instead focus on the long-term potential of your investments.
Diversification is important: To mitigate risk, it is critical to diversify your portfolio by investing in a mix of different asset classes and sectors based on returns and risks. This can help to offset any losses in one area with gains in another.
Consider your goals and risk tolerance: Your investment strategy should be aligned with your personal financial objectives and risk tolerance. While long-term investments may be suitable for some, others may prefer a more active approach to investing. Some safe ways to make a reasonable return in the current market situation are investing in CDs and high-yield savings accounts. These are currently giving around 4%-5% interest rate annually. The US treasury bills and notes are also offering similar rates. It is essential to consider what works best for you and your financial situation and how soon you need the money.
In summary, while short-term investments can offer quick gains, long-term investments provide more stability and the potential for compounding interest over time. By focusing on a long-term investment strategy and diversifying your portfolio, you can mitigate risk and increase your chances of achieving your financial goals.
Start with a low-cost index fund: One of the easiest and most effective ways to invest for beginners is to start with a low-cost index fund, which tracks a specific market index, such as the S&P 500. These funds offer broad diversification and typically have lower fees than actively managed funds.
Invest regularly and consistently: Investing is a long-term game, so it’s important to invest regularly and consistently over time. Consider setting up automatic contributions to your investment account weekly or monthly to ensure you’re investing regularly. Also, it is best to start early to get the maximum benefits.
Diversify your portfolio: Diversification is critical to managing risk and maximizing returns. Invest in a mix of asset classes, such as stocks, bonds, and real estate, and within each asset class. You can easily invest in various companies through index funds and properties through REITs to spread your risk.
Keep your emotions in check: Investing can be emotional, especially when markets are volatile. However, it’s important to keep your emotions in check and avoid making impulsive investment decisions based on fear or greed. Stick to your investment plan and focus on the long term. Dollar-cost-averaging is a great stregy to use as it takes the emotions out of your investments.
Monitor and adjust your portfolio: Finally, it’s important to regularly monitor and adjust your portfolio as needed. Rebalance your portfolio periodically to maintain your desired asset allocation, and consider adjusting your investments as your financial goals or risk tolerance change over time.
Remember, investing is a long-term game, and success comes from consistency, patience, and discipline. By following these simple strategies, beginners can set themselves up for long-term investing success.
The bureau of labor statistics (BLS) just released the inflation number for January 2023 for the United States.
There is a 0.5% increase from the December number, and inflation sits at still a whooping high of 6.4% over the last 12 months from January 2022.
As you can see in the BLS chart above, the year-to-year inflation is 6.4% for all the items, 10.1% for food, 8.7% for energy, and 5.6% for all the things except food and energy. Also, in their press release, they mentioned the index for shelter was the largest contributor to the monthly inflation number.
By shelter, they mean rents and owner equivalent rent cost of housing.
If you look at this detailed table from them, it shows the breakdown in prices for all the individual items.
Source: BLS
Under the energy category, fuel oil is still up by 27.7% for the 12 months. Natural gas is also up by 26.7% in the 12 months.
There is a 14% rise in Dairy and related products in the food category.
You can see that the highest inflation happened in cereal and bakery products. This was mainly because of the rise in egg prices because we felt that in the grocery stores.
What caused egg prices to rise so much?
Economists think the bird flu was the main reason behind increased egg prices because about 40 million egg-laying hens died in 2022 because of this disease.
At the same time and the demand for eggs continues to rise because it provides a cheaper source of protein to many Americans. Thus both these supply and demand factors contributed to a significant rise in egg prices.
Was this inflation expected?
This came as a little bit of a disappointment because people were expecting the overall inflation not to rise if not fall from the December level, even though fuel prices seem to be falling.
Inflation is still high on many essential things, and it continues to be the biggest hit to poor Americans. It acts like an indirect tax on them.
Unfortunately, most of this inflation we are experiencing is caused by supply-side factors, which are difficult to fix in the short run.
Policy implication
The government can only focus on controlling the demand aspect of inflation in the short run. As a result, the Fed will continue to tighten the monetary policy and raise interest rates until inflation reaches around 2%
The federal reserve has been trying to control inflation using interest rate hikes to slow the demand in the economy.
To learn more about inflation, how it is calculated, and the factors that cause it, please see my post here.
How does this affect us individuals and the economy as a whole?
In their most recent meeting today, the Fed increased the key interest rate or the federal funds rate by 0.25%. Until their next meeting, the target federal funds rate range will be between 4.5% to 4.75% compared to the previous level of 4.25%-4.5%.
But what is the Federal funds rate and why does it matter to us?
It is the short-term interest rate that commercial banks pay or earn to maintain their required reserves. Commercial banks can borrow from other banks overnight (if they fall short of required reserves) or lend the extra money to other banks overnight (if they have more than the required reserves).
The Federal open market committee (FOMC) sets this target federal funds rate range in their meetings after looking at the overall economic data on prices and the job market. They meet 8 times in a calendar year.
Then the Fed uses its monetary tool – interest on reserve balance to steer the Federal funds rate in its target range.
This federal funds rate is critical because it affects all the short-term rates such as those on mortgages, car loans, and credit cards, basically, the interest rates you and I care about.
The federal funds rate also has an impact on the stock market because investors keep a close eye on the Fed announcements to predict how the economy will likely perform in the coming months.
This is the key rate through which Fed controls inflation and unemployment level in an economy.
So now, hopefully, you understand why this rate is essential.
Why did Fed raise the interest rate by 0.25%?
Coming back to today’s news, Fed raised this rate again to control inflation. This rate hike was expected because the Fed has been raising the interest rate since mid of 2022 to control inflation.
It is important to note that this rate hike is smaller than the previous hikes. Last year, Fed was very aggressively raising interest rates by 0.75% or 75 basis points and 0.5% or 50 basis points.
This is because inflation, though, still above the Fed’s target rate of 2%, is now rising at a lower rate than last year and the Fed’s tight monetary policy is working.
“Inflation has eased somewhat but remains elevated,” the Fed noted in their press release. The current year-on-year inflation rate in December 2022 from the BLS report is 6.5%.
The Fed restated today that they would keep raising this key interest rate until inflation comes back to their goal of 2%.
The FOMC seeks to achieve maximum employment and a long-term inflation rate of 2 percent.
What is inflation and what caused it in 2022?
Inflation happens when the prices of everyday items we consume rise over time. It happens because of demand and supply imbalance.
While some inflation is normal if it is at a level that is noticeably visible to everyone, it becomes a cause of concern. This is because your dollar loses its purchasing power.
In 2022, the United States and many other countries in the world experienced really high inflation from their average level. This was because of supply chain issues and Russia Ukraine war.
Some people even blamed the Biden government for giving too much money into people’s hands through stimulus checks. People thought the American rescue plan, was meant to give economic support to people who lost their jobs, but people got their purchasing power back and thus the demand for everyday items didn’t slow down.
However, this demand was not matched by the supply because of shipping constraints. The United States imports a large number of everyday items from China. But because of China’s zero COVID policy, there were many supply chain bottlenecks.
Thus, overall, the demand for goods and services in the economy exceeded the supply of the same and therefore the prices of many items rose.
Additionally, the Russia-Ukraine war caused the price of oil to go up globally, as the price of oil is set in the international market supply and demand forces.
So how does interest rate affect inflation?
The Fed has tried to cool the economy by taking tight monetary measures. These measures aim to reduce money circulating in the economy by raising interest rates.
When the Fed raises the Federal funds rate, it’s indirectly increasing short-term borrowing costs in the economy. This makes everyday loans such as auto, home, credit cards, and education more expensive.
Once the cost of borrowing increases, people buy less of goods and services, and businesses borrow less for expansion and hire fewer people. Both of these will slowly bring the total demand for goods and services down to its optimal level and inflation gets under control ultimately.
Today’s post focuses on students who want to major in economics and the career options available to them.
I feel there are some key considerations you should have before you decide to be an Economics major or want to do a specialization in Economics at graduate school.
Math is something you can’t escape
Even though economics is part of social sciences, it is the only course that requires a considerable amount of quantitative analysis. Thus, one of the prerequisites is that you must be good at math. College-level economics involves calculus in both Macroeconomics and Microeconomics. This is in addition to the required math courses you will have to complete in your four-year degree. Below I list the core courses which you will be taking at most universities:
Macroeconomics 1 and 2 (focuses on a country’s inflation, GDP, Growth, unemployment, and policy-making – the macro or the big picture)
Microeconomics 1 and 2 (focuses on the economics of an individual, a firm, and the government – the micro/smaller picture)
Statistics (focuses on data analysis and its inferences)
International trade (the advantages and disadvantages of it, country’s balance of payments, etc.)
Econometrics with basic programming skills (focuses on how we can explain a certain phenomenon by a variety of other phenomena using data and regression analysis. Also great for predictions and forecasting)
Mathematics for economics 1 and 2 (Economics theories explained through mathematical models)
Money and financial systems (Banking and monetary system of a country)
These are some of the required core courses that you will have to take in addition to many electives such as development economics, public economics, labor economics, environmental economics, behavioral economics, financial economics, and other such courses. Please note that the electives I listed are not comprehensive and are just for an overview, as each University will have slightly different options.
Further, if you plan to do a Masters or Ph.D. in Economics, the level of math needed increases manifold. Thus, you must understand calculus well. There will be a lot of mathematical models you will be studying which explain how our economies work. A lot of these models would involve complex math functions and differential equations. For that, having a solid math background in high school is a must.
What are the career options for economics majors?
Economics teaches critical and analytical thinking, so there is a wide variety of career options available to economics majors. Someone with a bachelor’s degree in economics can work at entry-level in the following industries:
Consulting
Banking
Investment banks
Actuary and insurance sector
Teaching at a high school (requires a teaching credential or a master’s degree)
Economic research firms
Other firms requiring research and data analysis
Not-for-profit organization
The finance department of the government
Bureau of Labor Statistics (BLS) or equivalent in your country
US treasury or equivalent in your country
Fed or central bank in your country
World bank
IMF
United Nations
Policy-making
Economic think-tanks
However, the last eight usually require a graduate degree in economics. Most of these jobs will involve data analysis, so having some type of programming background will be very useful. Knowledge of SAS, STATA, or any other econometrics software will give you the edge at the interview.
My two cents on Economic Consulting as a career choice
From my experience working in economic and financial litigation consulting previously, I noticed that people with good quantitative analysis and presentation skills had a higher chance of moving up the corporate ladder. Intermediate advanced MS excel skill and knowledge of statistical software such as SAS was critical for the work I did in my company.
Finance and accounting knowledge will be essential to work in financial consulting, commercial banks, stock exchanges, and investment banks. So my advice is to take a few basic accounting and corporate finance courses in college if you are considering these options.
Most economics entry-level jobs start with a salary of $70-$85K per year. The amount of income that economics majors make is above many other majors.
As a career choice, it is very financially rewarding with a huge potential for monetary and intellectual growth.
I can explain the nature of the litigation consulting industry better as I had worked there. Most people with an undergrad degree in economics start with an analyst position and move up a level or two gradually with experience.
However, after a certain level, most consulting firms and investment banks require a Master’s degree/MBA or Ph.D. in economics or related fields such as finance, accounting, or Law.
So typically economics majors work for 3-4 years as entry-level analysts and then apply for graduate school.
What do most economics majors do for grad school?
There are many possibilities for economics majors but most of them chose one of the following fields.
Masters in economics
Masters in public policy
MBA
Ph.D. in Economics
Graduate Law degree
Job options for people with a graduate degree in economics.
One of the most widely available job titles for people with a graduate degree in economics is an Economist. These professionals analyze economies and how to optimize an area’s resources for its production, output, and material wealth. They collect and analyze data, research trends, and evaluate economic issues for the resources, goods, and services.
As of September 8, 2022, BLS lists the median salary for an economist as around $106K per year.
This article from the American economic association also supports what I have mentioned in my post based on my observation.
Job options after a Master’s degree or more always start at the managerial level. The industries or fields are essentially the same, except you start at the mid to upper level. Investment banks, commercial banks, consulting, and economic research firms are always looking to hire economists.
People with Ph.D. in economics also go towards the academia and research side, with many teaching Economics at the University level.
Here is another article listing various career options for economics majors and their respective salaries.
Also, having an economics degree can help individuals start their businesses as they can do a cost-benefit analysis of their resources.
Last but not the least, you can always write an economics blog as a side hustle and perhaps make it your full-time job like me, if you are passionate about the course. Since I didn’t teach economics at a college, I am fulfilling my long-term desire through this blog. 😊
What are the challenges of careers in economics?
As most economics majors end up working as an analyst in consulting firms and investment banks, they have a hard time maintaining a work-life balance. Both of these industries require an immense amount of time commitment as they focus on client needs. I remember working all night several times. For me, managing my family in that very demanding job with no support at home was quite challenging.
Again, I am only aware of consulting and investment banking, as these are two industries I had experience working in. I also worked directly in conjunction with financial lawyers, so I am aware of how demanding the work schedule could be.
On average people who work in consulting and investment banking work 60 hours a week. There is also a considerable number of late-night and weekend work. Some of these jobs also require frequent travel, so just be aware of that when you consider applying for these positions.
Conclusion
It all depends on what is more important to you and the stage of life you are in. An economics degree, if you are working in the corporate side or with the government can be a great choice for reaching your financial goals. Also, you get to work on a wide variety of cases, so it satisfies and enriches your intellectual curiosity.
People who teach economics at colleges or universities publish papers in addition to teaching classes. So, if this is something you will enjoy in the future, a graduate degree in economics is a great choice.
