A recent report showed that Google is paying a number of its developers half a million dollars or more. Facebook, not to be outdone, is offering six figure starting salaries. Seeing this, many would think that the tech sector is where all the money is and that banking is where fortunes used to be made. However, they would be wrong. In finance, it is still the bonus season. For those who want to get rich, finance may be the key that opens that door, according to a study conducted at the London School of Economics’ Center for Economic Performance.
1/ Many Wealthy People are in the Banking Industry
The most recent study on the wealthy was conducted in 2008, noting that 28% of all top income earners in the United Kingdom were bankers in London.
2/ These Wealthy Bankers are Attaining Even More Wealth in Recent Years
In 2008 the average wage for the top earners (not just banking) was £278,000. Three years later it’s risen to £284,000, which is not a large increase (only 2.3%). Bankers in the same category, by comparison, have seen a rise from £325,000 in 2008 to £353,000 in 2011, which is more than three times that of their contemporaries (8.6%). This means that the bulk of the rise in wealthy people’s pay was because of how much more those in banking in are making.
3/ Huge Bonuses Bring Incredible Wealth
The study above noted that nearly half of all top banking compensation packages were from bonuses. For those who are fortunate enough to earn the recognition of a bonus, many feel that receiving a week’s salary in addition to their regular income is very nice. For bankers, they live well all year and then live opulently off of their bonuses.
4/ Unemployment is not Higher in Banking Than Other Sectors
Some may reason that banking must be ultra-competitive (like professional sports) to have such potential, but the truth is that the unemployment rate among bankers is comparable to that of other sectors. In fact, the study showed that bankers were more likely to be employed than other people, and this makes sense. The financial services sector is one of the most controversial areas of business today. For those who are looking to make good money in business, it can lead to more wealth and security.