Curious how other people stack up and if I’m spending too much / should be saving more. Sitting at right above six figures (not including 2nd year bonus). I’ve seen other threads where analysts had net worths of over 200 or 300. Is that really true?
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I was pretty good on saving since I did banking in Houston and cost of living was cheap af, after my 2nd year bonus I think that got me to around that 200k mark in savings. You're doing more than fine.
They must live in low cost cities. no way you could get above 200k in NYC. 300k would only be possible if you invested your money really really well. aka. NVDA
If you're in NY and above six figures already you are doing very well.
I've known some of those people who have that "net worth" but they're frequently not including that their parents paid their rent, or gifted them $50k upon grad. Think about it, $200-300 NW after analyst is basically having zero expenses so anyone with that much cash got it from somewhere else.
Also saving is great but you should be living a bit in your early 20s. sounds like you have struck a good balance
Yeah, 200k is about right
So guess I should feel like a piece of shit for having like no savings lol
(Plus my measly 401k and Roth IRA contributions)
Probably won’t feel like a piece of shit when you’re 80 thinking back on the fun you had with that money
Thanks, that’s what I keep telling myself but friends and family disagree haha
I’m sure the real answer lies somewhere in the middle
Just do the math, it isn’t very likely unless you have 1) family help/money 2) live in an extremely low cost of living city 3) got very lucky with investments.
For all the modeling people do, I don’t know why these questions keep coming up.
You know the range of comp for these roles (there isn’t a lot of differentiation) and the tax rates. You know how much life costs (depending on location and personal preferences). And you know how much investments could dependably return.
If you total comp in your first year is $150-200k its not likely you have $200, let alone $100k after 18-24 months.
would think:
220 in salary, 250 in bonus, 100 in return, 300 in expenses = 870k
or a little over a stick by the end of the summer
Wtf?
Apparently $300k in expenses is an income item
Yes. Where do you think the 300 goes? Its all circular.
Someone needs to go through the M&I 400 again
Assuming someone starting with a zero net worth (no prior savings and no student loans - both big assumptions), and a "regular" NYC lifestyle without additional outside support, I'd assume saving maybe $1k/month off base and most of your bonus as a reasonable target. In this case, slightly into the six figures after both analyst bonuses would be a pretty decent place to be.
I think that this is pretty reasonable in terms of savings and according to my math should put you at about $100k in savings after an analyst stint.
Negative, student debt baby
+1 negative net worth analyst 2 checking in (pre bonus)
im at like 230k as an An2 but I live with my parents lmao. a sacrifice for sure, but was the only way. Banker junior pay wittles away if you're paying 3k+ a month on rent
Same here, saved about 220k thus far, except I just live in a lcol city so rent is ~$1.5k per month. Was fortunate that I had some great investments hit before starting this job which are over 100K now. Should be at ~400 by the end of the 2 years
nice nice, we should suck each other off
Saved basically 0 other than 401k and have no regrets. Unless you’re planning on leaving the rat race and being a teacher or something, comp scales massively and you’re only 21-25 once. Sure, some people I did banking with saved 100k over 2 years, but I had a hell of a lot more fun and can save when I’m old…
I’m planning to stay in PE and even as a 2nd year associate now my banking savings wouldn’t mean much - live life while you’re young
Why would you say something so controversial yet so brave
I mean I got a little fucked by the layoffs and was glad that I had some more savings that not.
currently sitting at ~320k in savings (factoring upcoming bonus payment), non-US office tho
There are LMM GE shops out there that will let you become an LP for
If you save >100k per year as an analyst you either have no life or parents subsidise you…
why not both?
This is very dependent on market returns...especially the unique situation of the last two years...surprised people here seem like they didn't take a drawdown on returns last year. If it wasn't for my drawdown I would be around the numbers here.
I am finally breaking even on my portfolio.
An1 in ER here, close to 100k in savings.
Isn't an ER analyst a few jumps up the ranks?
It's surprising for a finance oriented field for people to have such a short sighted view of their personal finances…it's not like it's a binary choice between saving and not enjoying the fruits of your labor
100k+ with a bonus for a junior position, let's say it's 175k grossyou max 401k at 20k. Post tax let's just say is 60% of that, so you're at 105k post tax. Let's say you live in a nice apartment for 50k a year. You're at 55k, with remaining expenses like car insurance, fees, etc. you're at 45k. Discretionary spending is like 10k so you're at 35kEven if a nice apartment and spending pretty aggressively, you should be able to save 30-50k a year (401k plus post tax). Anything less than that and you have to come to grips that you are spending aggressively compared to your net pay
In my view it’s unlikely you make much more than 200k that first and second year out. Sure the past few years bonuses were crazy, but now they are sub 200 most places. It’s also unlikely you are paying less than 4k in monthly expenses. 4k*12 is roughly 50k a year. I think realistically, people are closer to 5k, 6k or 7k having done the role and job. Heck, it’s easy to pay 3-4k on rent alone, but I’m assuming you can get roommates and are trying to find a good deal and unideal but cheap living situation.
Some basic math:
You save 25k each year in a 401k for 2 years giving you 50k (includes a little extra for internships or past savings assuming you had no loans).
So 50k in your 401k. Then on the income side, you have 175k after contributing to your 401k and you pay about 20% in federal taxes and 5-10% in state taxes. So your take home is 122k annually (70%). Your expenses are likely 50k-84k leaving about 50k saved a year.
Reasonable to think you could have 50k in a 401k, and 100k in brokerage two years out. I would argue this would be responsible saving and what I would recommend for new analysts.
The counter argument is “I’m a big baller and will continue making a lot of money, so I should live it up” don’t disagree with that approach, but it’s how you have a life trapped on the hamster wheel and major life altering events because you can’t pay for unforeseen circumstances (layoffs, health issue, etc). Obviously, this ignores market returns—if you put your money in Tesla your net worth might be pretty impressive.
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