As a popular career choices for new graduates, investment bankingtends to offer tempting salaries. The allure of a six-figure salary in your early 20s and being immersed in Wall Street culture can be enticing when you're fresh out of business school.
However, even if you have the rare combination of education, experience, and enthusiasm that could land you a coveted investment banking gig at a bulge bracketfirm, this demanding profession still may not be the right path for you. Here are seven reasons why investment banking may not be a good fit for you.
Key Takeaways
- Even with education, experience, and enthusiasm, investment banking might not be for you.
- Investment bankers work long hours and often earn a high income.
- Lack of work-life balance is one reason to avoid becoming an investment banker.
- Investment bankers must also be able to manage high-pressure situations.
1. You Strive for a Work-Life Balance
Investment bankers are notorious for working long and demanding hours, with work weeks well exceeding 40 hours being the norm for entry-level investment banking analysts. In a competitive culture where putting in extra-long hours is regarded as a badge of honor, a 9-to-5 routine is pretty much unheard of.
If you strive for a work-life balance, investment banking is not the field for you.
2. You Can't Perform Under Stress
A typical workday for an investment banking analyst can include: the analyst works frantically into the night andwee hours of the morning to complete a pitch book, rushes home in the morning to shower and change, and then heads straight back to the office for the meeting.
In such high-pressure situations where there are multiple competing deadlines, the ability to not just cope, but to thrive under pressure, is extremely important.
If you do not handle stressful situations well, you may need to consider another field than investment banking.
3. You Have a Relaxed Approach to Life
If you don't believe in getting needlessly stressed about anything—and that includes not getting stressed aboutwork—investment banking is not the career for you. If youdo your best to meet a deadlinewhen you deemitreasonable, but feel compelled to speak out and object when you see it as unreasonable, this field is not for you.If you're not OK with working tirelessly without complaint, no matter how massive the task, this field is not for you.
4. You Have a Rebellious Streak
You speak your mind and have a somewhat rebellious streak that prevents you from following orders without question. This may not be welcomed by your investment banking superiors, who often expect unquestioning obedience from their subordinates.
5. You Do Not Have the Right Skill Set
If you've bluffed your way through several rounds of interviews and tests on financial modeling, you may not be as successful in a real world investment banking position. You need to know genuinely have the right skills set and ability to manage your time.
6. You Do Not Want to Be a Career Investment Banker
Perhaps, you do not want to spend the next 10years climbing the investment banking ladder but would prefer to explore other areas such as equity research orportfolio management. The thought of preparing endless pitchbooks and presentations for at least the next two years as an investment banking analyst—all for the reward of becoming an investment banking associate—is not one you find very appealing.
7. Money Isn't Everything
If you do not subscribe to the old saying, "Money isn't everything; it's the only thing," investment banking may not be right for you.While this is not meant to imply that all investment bankers only care about money, the ability to eventually make a lot of it is one of the primary motivators for those who can ride out the harsh working conditions. If making money isn't a key driver for you, you may want to consider another career.
What Do I Need to Become an Investment Banker?
To become an investment banker, you will typically need a college degree in business administration and an internship at a reputable firm. Once you are hired, you will need to earn more credentials, such as a master's degree in business administration, to advance in your career.
How Much Do Investment Bankers Earn?
An investment banker can earn in the range of about $251,000 to $468,000 in a year, which includes a base salary and additional pay, according to Glassdoor estimates as of Oct. 29, 2023.
How Is Success Defined?
Success is defined very differently from person to person. For some, success means earning a large amount of money. For others, success may simply mean achieving their goals. Some people consider living a meaningful life that contributes to society as "success" while others say it is about human connections such as with family and friends.
The Bottom Line
If you possess even one of the above traits, investment banking may be a poor career choice for you. But there are plenty of other choices that may be suitable for you that may provide more time for work-life balance or less pressure. Conduct an honest self-assessment to find a career path that would be more fulfilling and rewarding for you.
