Why do I like finance?

Why do I like finance? 

As a young student, I didn't really understand why people would want to study finance, and not psychology or other domains that are more related to our development as humans. It's only after my employment at AON that I understood the importance of finance, and it's metrics.

Numbers speak, and are a great measure of value. By balancing numbers in a company book, we can understand what operations are worth continuing or discontinuing. Financial professionals work with large amounts of data, including industry and economic forecasts in addition to the company's own accounting information.

Finance staff members are heavily involved in the company's planning process, from annual budgeting to long-range strategic planning. Analysts find this to be among the most exciting aspects of the job – you are right there as the future of the company is mapped out. It is a fair tool to measure and forecast key areas of organisations. 

Not only that, the learning and application of key finance skills, can also be used to ameliorate life at home and budgeting for one's self. As quoted by Victoria Duff in the chron, Finance is the elixir that assists in the formation of new businesses, and allows businesses to take advantage of opportunities to grow, employ local workers and in turn support other businesses and local, state and federal government through the remittance of income taxes. Finance therefore encompasses so many factors or daily lives, of our countries economies and societal development. 

A rise in the company's community development budget, can impact community greatly, by creating more jobs, by allowing money to circulate, and by ameliorating general life conditions. I am more flexible and skilled in the investment side of finance, because for me this is specifically the sub category of finance which creates the most value. How is it possible that Warren Buffet by investing made 100 Billion dollars ha ha. Well he understood how to move numbers around and create value. 

This is where my passion for investment banking grew. How you can invest one dollar and gain another. And in turn, double that too. Finance has many wonders, and as Einstein said, compounded interest is the 8th wonder of the world. 

The flow of finance starts on Wall Street with the creation of capital used to fund business through the issuance of common stock to provide capital, bonds to lend capital and derivatives (packaged groups of securities that help to hedge against financial risk and replace the money banks lend out to borrowers). Public companies and municipalities use this capital to help fund their operations, and banks use it to lend to companies, municipalities and individuals to finance the purchase of goods and services.

I realized growing up that Finance is about the same as someone’s physical weight. By that I mean it is usually visible if someone is taking care of their finances poorly. It is also a subject that the majority of people avoid talking about due to embarrassment, lack of knowledge, or motivation.