Career path advice: Engineering or Finance?

[JLammy]

I am currently about to enter my final year of my Aerospace Engineering degree, and I think it's about time I start thinking about which route I'd like to take with my career.

Before anyone jumps at this point first... Yes, I know I chose engineering, so why am I not planning on staying in the engineering sector? I chose Aerospace Engineering as I have always been intrigued by aviation since a very young age and Aerospace Engineering has always been a degree I wanted to do. However, as I got older, I realised life sometimes is actually more than just doing something you're interested in - Money plays a big part in life! Yes, I'll be up front, I am personally motivated by money, so whatever job pays the best in the long run will be the job I'll most likely want to be in.

So back on topic, what I actually want is advice on these two sectors; Engineering and Finance.

I constantly hear that engineering doesn't pay that well and "you will never become 'rich' in Engineering", but I hear the complete opposite from people when it comes to finance, is this actually true? I've been told about many engineers moving into finance straight after graduating, so I certainly believe that finance is a viable option, it's just whether I actually want to try for it?

The only benefits I could think of right now when it comes to staying in the aerospace sector is that I'll be in a job that I'll hopefully enjoy and there is potential in the future to start up my own engineering business (I've alway wanted my own business). These two are the only things which I can't say the same for with Finance.

Could anyone from either sector give me insights to your daily job/roles etc?

Sorry for the long post & thank you for any advice in advance.

[Amateurish]

Check out this link, it may surprise you:

http://cew.georgetown.edu/whatsitworth/

(heard this on a Planet Money podcast last week)

[Amateurish]

From that report (US study: first major, vs median graduate earnings)

The top 10 majors with the highest median earnings are: Petroleum Engineer ($120,000);
Pharmacy/pharmaceutical Sciences and Administration ($105,000); Mathematics and Computer Sciences
($98,000); Aerospace Engineering ($87,000); Chemical Engineering ($86,000); Electrical Engineering
($85,000); Naval Architecture and Marine Engineering ($82,000); Mechanical Engineering, Metallurgical
Engineering and Mining and Mineral Engineering (each with an media earnings of $80,000).
The 10 majors with the lowest media earnings are: Counseling/Psychology ($29,000); Early Childhood
Education ($36,000); Theology and Religious Vocations ($38,000); Human Services and Community
Organizations ($38,000); Social Work ($39,000); Drama and Theater Arts, Studio Arts, Communication
Disorders Sciences and Services, Visual and Performing Arts, and Health and Medical Preparatory Programs
(each at $40,000).

[Landlord]

Having worked in Finance for circa 15 years I can tell you that yes the money is very good against a comparable role in another industry, but also the expectations of you are very high. You have to work for the money. Also, don't think everyone earns mega-bucks. Very few do as a proportion of all the people employed in Finance. I also find it monumentally tedious but whilst I've earned good money over the years I've spent better... so, I'm in a "trap" whereby I need to earn big to pay for living a fairly nice life before kids etc. My fault entirely, I have to confess. If I'd saved rather than spent, I'd be sitting pretty. Anyway, Finance pays well but can be very hard work and is pretty dull.

That said, you're an engineer. You're probably used to dull.

[spikeyhead]

Personally, I'd rather stick a fork in my eye than spend all day in a finance office. Outside of London you'll earn more in engineering than finance and presumably enjoy doing it too. Life's too short to be spending 60 hours a week, or more including travel doing something you don't like just to earn a little more.

[P-Jay]

Finance is st, did it for a decade, the rewards can be high (but not as high as you might think), but the expectations are even higher, the hours long, your colleagues verging on the psychotic and the price of failure severe.

[Chilli]

Landlord said:

Having worked in Finance for circa 15 years I can tell you that yes the money is very good against a comparable role in another industry, but also the expectations of you are very high. You have to work for the money. Also, don't think everyone earns mega-bucks. Very few do as a proportion of all the people employed in Finance. I also find it monumentally tedious but whilst I've earned good money over the years I've spent better... so, I'm in a "trap" whereby I need to earn big to pay for living a fairly nice life before kids etc. My fault entirely, I have to confess. If I'd saved rather than spent, I'd be sitting pretty. Anyway, Finance pays well but can be very hard work and is pretty dull.

That said, you're an engineer. You're probably used to dull.

Exactly this! I've done 20 years now, and echo Landlords post..it is so very true.

If I were you, I would do whatever you prefer. Don't think about the money, the opportunities, just do what you think will make you the happiest. You are more likely to excel at something and therefore have more opportunities if you are enjoying and are interested in what you do every day.

[Defcon5]

Is money your only motivator?

Do you like engineering things or do you like counting things?

I earn half what most of my friends do, yet I love going to work and they hate it

[JLammy]

Amateurish said:

From that report (US study: first major, vs median graduate earnings)

The top 10 majors with the highest median earnings are: Petroleum Engineer ($120,000);
Pharmacy/pharmaceutical Sciences and Administration ($105,000); Mathematics and Computer Sciences
($98,000); Aerospace Engineering ($87,000); Chemical Engineering ($86,000); Electrical Engineering
($85,000); Naval Architecture and Marine Engineering ($82,000); Mechanical Engineering, Metallurgical
Engineering and Mining and Mineral Engineering (each with an media earnings of $80,000).
The 10 majors with the lowest media earnings are: Counseling/Psychology ($29,000); Early Childhood
Education ($36,000); Theology and Religious Vocations ($38,000); Human Services and Community
Organizations ($38,000); Social Work ($39,000); Drama and Theater Arts, Studio Arts, Communication
Disorders Sciences and Services, Visual and Performing Arts, and Health and Medical Preparatory Programs
(each at $40,000).

The report definitely did surprise me quite a bit. So thanks for that. However, I think there is quite a big difference between the earnings of engineers over in the states compared to the engineers here in the UK? Engineers in the UK are generally less respected than engineers in many other countries, and the salaries of engineers reflect upon that quite a bit.

Landlord said:

Having worked in Finance for circa 15 years I can tell you that yes the money is very good against a comparable role in another industry, but also the expectations of you are very high. You have to work for the money. Also, don't think everyone earns mega-bucks. Very few do as a proportion of all the people employed in Finance. I also find it monumentally tedious but whilst I've earned good money over the years I've spent better... so, I'm in a "trap" whereby I need to earn big to pay for living a fairly nice life before kids etc. My fault entirely, I have to confess. If I'd saved rather than spent, I'd be sitting pretty. Anyway, Finance pays well but can be very hard work and is pretty dull.

That said, you're an engineer. You're probably used to dull.

Thank you Landlord for this post. I'll definitely keep what you said in mind when it comes to choosing which path I want to take. Do you mind telling me how many hours a week you work on average? Career progression wise, after your 15 years, how much further could you go up the ladder? Or does it come to a point where you would be stuck in that role "forever"? Lastly, do you regret working in Finance?

Without doubt engineering has become very dull for me, so I certainly do not mind dull if the rewards outweigh it.

spikeyhead said:

Personally, I'd rather stick a fork in my eye than spend all day in a finance office. Outside of London you'll earn more in engineering than finance and presumably enjoy doing it too. Life's too short to be spending 60 hours a week, or more including travel doing something you don't like just to earn a little more.

Being in an office could be very dull but at the end of day, I'll never be 100% certain that I will enjoy being an engineer either until I actually start working. Personally, right now, I just feel that work is work... Whilst still young, I'd really like to be able to make as much money possible. I will even consider going offshore to work if I could as the pay packets are apparently much more bigger due to the risks involved.

P-Jay said:

Finance is st, did it for a decade, the rewards can be high (but not as high as you might think), but the expectations are even higher, the hours long, your colleagues verging on the psychotic and the price of failure severe.

It seems as if this in the general feeling of many people in the finance sector. So it must definitely be true, which certainly makes me rethink whether finance is the right path for me. Is there a possibility you could give me ball park figures as to how "high" the rewards could be?

Personally, woud you say you regret working in finance?

Chilli said:

Exactly this! I've done 20 years now, and echo Landlords post..it is so very true.

If I were you, I would do whatever you prefer. Don't think about the money, the opportunities, just do what you think will make you the happiest. You are more likely to excel at something and therefore have more opportunities if you are enjoying and are interested in what you do every day.

Hi Chilli, I get this from a lot of people. I always get told to do what I enjoy instead of thinking about money. But to this day, I can't be certain I will enjoy being an engineer. I am extremely passionate when it comes to aviation but again, until I actually work, I can't be so sure it will definitely be something I want to do - If I'm honest, so far there has been far too many parts of my engineering degree which I found boring.

Defcon5 said:

Is money your only motivator?

Do you like engineering things or do you like counting things?

I earn half what most of my friends do, yet I love going to work and they hate it

Money certainly is ranked very high up with me and I honestly can't think of anything else that would motivate me as much as money. Maybe I am just still "young" and naive, but money to me could provide me many things which just happiness can't. Yes, life is short, but having grown up from a background where money has never been easy, I simply think... Money > Everything else.

I've always wanted to become a commercial airline pilot or even military, but eye vision issues has gotten in the way too many times. I know that I will definitely enjoy flying aircraft, but without having perfect eyesight and perfect colour vision, I've been given a dead end. It's not to say that I haven't tried "fighting" to keep the dream alive though; I had lasik eye surgery earlier this year to correct my vision, and although I now have perfect vision... I then found out that I am colour deficient, so again, another blockade. I paid to go through several colour deficiency examinations to see if I could jump through this hoop too, but it wasn't possible. So here I am now, not being able to do my dream job... So if I can't do something I enjoy, why not just aim for money instead? I am almost certain money could provide me with many things which could equally keep me happy with life.

---

Thank you to everyone that has replied to my post. So far, it really has helped me a lot.

[3000GT ANT]

What part of engineering are you interested in? Electrical/mechanical etc. also what level would you like to achieve? E.g test, maintainance, design. The reason i ask is, each potential area has massive differences in the job role and responsibilties, there are also other not so engineering positions i.e project engineering/ management and this role envolves dipping into most areas of a business so may suit you better.

[Landlord]

JLammy said:

Thank you Landlord for this post. I'll definitely keep what you said in mind when it comes to choosing which path I want to take. Do you mind telling me how many hours a week you work on average? Career progression wise, after your 15 years, how much further could you go up the ladder? Or does it come to a point where you would be stuck in that role "forever"? Lastly, do you regret working in Finance?

I'm fairly forunate in my current role as I don't work more than 50 hours per week... add 15 hpw commuting though and it does seriously impact your personal life. In my previous role there was an extended period where I was doing 60 hpw with 20 hpw commuting. 80 hpw is tough, I managed two years of it but I don't think I could have lasted much more. I am old though (41), so I don't have the energy I had 20 years ago.

I'm not the right person to comment on career progression as I've been a contractor pretty much all of the time. This, by it's nature, excludes any kind of career path as you're repeatedly employed to do the job you are skilled to do. Obviously as time goes on you become more "senior" which makes a slight difference to the rate you can command but IME it just means you're more likely to get the role.

I think though that there is always the opportunity to progress. Banking/Finance is a meritocracy so if you're good the rewards (salary and career) are there to be had. You do have to show commitment, sell your soul etc. and you have to buy in to the bullst that is the Finance area but if it floats your boat then it's a good career to have.

Do I regret working in Finance? Well, my immediate reaction was a yes but having thought about it, I actually think I fundamentally regret getting in to IT. I'm pretty good at what I do but I find it horrendously boring. I wish I'd done something more creative. If I could tell the teenage me what to do, I'd emplore me to forget about the money and do something I enjoy - I'd have to tell myself what that was too because I had no idea back then. I didn't have much information back then that there was a world of opportunities open to me. I kind of did what my Dad did. Knowing what I know now, I'd have looked at something like woodworking or architecture or something along those lines... something with a bit of a challenge but something that also would (may?) allow me some creative freedom. IMHO, if you're good at something the money will come.

Good luck in your choice. Remember that nothing is set in stone so if you try it and don't like it you can move on. The only caveat I can offer is save. Save 10% of your net take home without ever thinking it's yours. Thereafter, live within your means. Financial freedom (which doesn't just mean wealth) is so, so important. Toys are just toys and patience will benefit you in the long run far more than the buzz of having it now.

[Shirt587]

Landlord said:

Do I regret working in Finance? Well, my immediate reaction was a yes but having thought about it, I actually think I fundamentally regret getting in to IT. I'm pretty good at what I do but I find it horrendously boring. I wish I'd done something more creative. If I could tell the teenage me what to do, I'd emplore me to forget about the money and do something I enjoy - I'd have to tell myself what that was too because I had no idea back then. I didn't have much information back then that there was a world of opportunities open to me. I kind of did what my Dad did. Knowing what I know now, I'd have looked at something like woodworking or architecture or something along those lines... something with a bit of a challenge but something that also would (may?) allow me some creative freedom. IMHO, if you're good at something the money will come.

This. I work in what would loosely be described as Finance and about once a fortnight (more in spring and autumn where you get crisp cold days when I'd rather be outside) wish I'd not bothered with the university/qualification stuff and become a builder or other tradesman. Certainly something where the end result of a days work is more tangible than a screen full of words and numbers.

ETA: I do actually quite enjoy my job most of the time. But...

[P-Jay]

JLammy said:

P-Jay said:

Finance is st, did it for a decade, the rewards can be high (but not as high as you might think), but the expectations are even higher, the hours long, your colleagues verging on the psychotic and the price of failure severe.

It seems as if this in the general feeling of many people in the finance sector. So it must definitely be true, which certainly makes me rethink whether finance is the right path for me. Is there a possibility you could give me ball park figures as to how "high" the rewards could be?

Personally, woud you say you regret working in finance?

Not really, I enjoyed it for the most part, but the business changed a lot during my time and as I moved from my early 20's to my 30's I felt the pace of it more - when I started my division was full of guys in their 40's and 50's who'd been there in various guises since joining as wide-eyed grads, they were full of great stories of it being a bit of a wild west show in the 80's and 90's all the boozing and high jinks that went on, by the time the of the crash they'd either moved on our had heart attacks (seriously) the job had changed completely from an 'old boys club' where there was genuine camaraderie to a dog-eat-dog game of impressing the bosses. I blame the fking Apprentice ha ha, but the increasing rewards for performance (aka Bonuses) did causes a lot of the ruthlessness between people.

'Finance' covers a huge spectrum of roles, all are slightly different, I know dozens of people still in the industry and none are happy, some are content, lots wish they took the payoffs in 2009 and used the money / time to retrain, some are still hoping the 'good old times' of the mid-late 2000's will come back - it's been half a decade, so any time now then ha ha.

It really isn't the same 'game' it was in 2000, certainly not the same game it was pre-crash and I don't think it ever will be.

Edited by P-Jay on Thursday 19th September 14:00

[Chilli]

P-Jay said:

Not really, I enjoyed it for the most part, but the business changed a lot during my time and as I moved from my early 20's to my 30's I felt the pace of it more - when I started my division was full of guys in their 40's and 50's who'd been there in various guises since joining as wide-eyed grads, they were full of great stories of it being a bit of a wild west show in the 80's and 90's all the boozing and high jinks that went on, by the time the of the crash they'd either moved on our had heart attacks (seriously) the job had changed completely from an 'old boys club' where there was genuine camaraderie to a dog-eat-dog game of impressing the bosses. I blame the fking Apprentice ha ha, but the increasing rewards for performance (aka Bonuses) did causes a lot of the ruthlessness between people.

'Finance' covers a huge spectrum of roles, all are slightly different, I know dozens of people still in the industry and none are happy, some are content, lots wish they took the payoffs in 2009 and used the money / time to retrain, some are still hoping the 'good old times' of the mid-late 2000's will come back - it's been half a decade, so any time now then ha ha.

It really isn't the same 'game' it was in 2000, certainly not the same game it was pre-crash and I don't think it ever will be.

Edited by P-Jay on Thursday 19th September 14:00

Interesting. I was one of those who took a pay-off in 2009 after thinking that I'd had enough of Finance/Banking after almost 20 years. Don't get me wrong I wasn't earning millions, but it made for a comfy existence. I was due to go to NZ and buy a farm and raise cattle. I got as far as Dubai where I worked.......yep, for a bank! The money was st as a contractor, but then jumped nicely when I went perm. However, when they found out I didn't have a degree, I was made redundant....got paid out handsomely again!
So actually, a finance career has given me loads of opportunities and I've met some cracking people. However, as someone else said, I'd love to have been a builder or something....something that I can stand back and say " I did that"

OP, do both degrees and the world is your oyster!

[cerbfan]

Stick with Engineering but forget Aerospace and get into Oil and Gas.

Move to Aberdeen, get job in Subsea or Drilling if you can manage, work for 5 years staff, become a contractor and be on an easy £150K+ a year plus easy to travel and work abroad if you want and fairly interesting to boot. Doubt you will manage that in Finance.

[Landlord]

P-Jay said:

Not really, I enjoyed it for the most part, but the business changed a lot during my time and as I moved from my early 20's to my 30's I felt the pace of it more - when I started my division was full of guys in their 40's and 50's who'd been there in various guises since joining as wide-eyed grads, they were full of great stories of it being a bit of a wild west show in the 80's and 90's all the boozing and high jinks that went on, by the time the of the crash they'd either moved on our had heart attacks (seriously) the job had changed completely from an 'old boys club' where there was genuine camaraderie to a dog-eat-dog game of impressing the bosses. I blame the fking Apprentice ha ha, but the increasing rewards for performance (aka Bonuses) did causes a lot of the ruthlessness between people.

'Finance' covers a huge spectrum of roles, all are slightly different, I know dozens of people still in the industry and none are happy, some are content, lots wish they took the payoffs in 2009 and used the money / time to retrain, some are still hoping the 'good old times' of the mid-late 2000's will come back - it's been half a decade, so any time now then ha ha.

It really isn't the same 'game' it was in 2000, certainly not the same game it was pre-crash and I don't think it ever will be.

Edited by P-Jay on Thursday 19th September 14:00

Absolutely as I have found it. Are you me? My initials are PJ… … it’d explain the voices in my head. If so, stop making me do that stuff.

[Napper]

When I was at college (electrical engineering) about 20 years ago, one of my lecturers, who at the time we all thought was off his rocker, would say most weeks that if we could get paid for doing our hobby or something we really enjoyed and have an interest in we should do it. Thankfully I enjoy my job but I do know people who got into careers via a money trap, but Once they got into mid-life they realised they hated what they did but because of the specialised education and skillset they had achieved on their career path, they are now struggling to get into something they really want to do because they haven't got the capability & qualifications, and really don't want to go back to college after all of these years to retrain.....

Moral of this........

Do what interests you not what might make you more money.......

As has been said earlier, you'll find you only spend more anyway....