For those of you who don’t know, I started my college days as a Mechanical Engineer (ME). First year went fantastic (that’s what happens with no job and too much time on your hands) then second year I got a full time job working over 40 hours a week and things got rough pretty quickly. I chose to go to business admin instead because work/homework/sleep balance was in a range I could deal with. I also REALLY like/need my sleep. For those of you that went through college with a full time job AND studying to be an engineer, I applaud you!
So how are mechanical engineers ANYTHING like financial advisors? Math is about the only thing I can easily see. Well, I’m glad you asked! Every field has a foundation of knowledge you have to build from, ESPECIALLY engineers. You need to know physics, calculus, statistics, etc. But once you get your basics down, you really start to deep dive into specifics of your field (the mechanical part of ME). Most of the beginning classes were meant to weed out people. Statics & dynamics are the first 2 that come to mind. They try to make it WAY more complicated then needed when in reality all static equations were = 0 and dynamics is taking the objects that were in statics and making them move (so now 0 is another equation of fun). In finances when we’re working with a client we have to see what is the impact of no change (equation = 0) and the impact when we change or create “moving” parts (new equation).
As you go through the program you get to take Solids, it helps young engineers calculate what a certain material can handle given certain situations. For example, how much can a steel bar hold if it’s a foot long and an inch think? What happens if you increase the thickness or the length, etc? In finances we try to figure out the risk tolerance of each person. If this happens in the stock market, how do you feel about your portfolio, or where you are in life? What happens when your portfolio is changed? There is always a stress point for people and their finances. Solids is to engineering as risk tolerance is to finances. I’m sure you missed those statements from school!
Last point I’ll touch on is Thermodynamics. This obviously builds on the previous dynamics class. Thermodynamics deals with moving liquids given stresses and pressures, etc. I’m a little rusty, so please forgive me if I miss some details now. With the slightest change in pressure, your whole situation can go completely awry very quickly. In finances, I would say this is the planning part. You’ve got a lot of moving parts that directly or indirectly effect each other. If you save $X per month where should you put it given that you want to save for your kids’ college, save for retirement, save for a new house, and save for emergencies. If you don’t put too much in your kids’ college fund, what about retirement? Thermodynamics looks at moving liquid, while finances looks at moving money.
Now that you may be crossed-eyed, especially if you’re not in a rich engineering background, I hope to hear your questions or comments (good and bad). If you have an engineering background, what are your thoughts?
Stay productive out there!
Sincerely,
Your wonderful Financial Landscaper
