Breakdown your banking paycheck 
As perspective monkeys prepare to move to NYC I was wondering what the breakdown for a 1st year analyst paycheck was like????
Basically where does that money go or does it just disappear?
$5,800 Monthly = $70,000 annual
(1,900) Uncle Sam
(1,000) Insurance
(1,000) Travel
(1,000) Retirement
(1,000) Rent
(1,000) Food
(1,000) Women [Strippers or GF]
(1,000) Entertainment
(1,000) Travel
---------
??????
$10,000 Sign-on Bonus
(4,000) Uncle Sam
(3,000) 45in plasma (not LCD but LED)
(3,000) bunch of stuff you took for granted at home but need when living alone
---------
$0 Nothing left
$35,000 Y1 Bonus
(15,000) Uncle Sam
---------
$20,000 savings!!!
How would you fill in the $1,000's????
How do you spend your money? Do you save?
Any tips or word of advice much appreciated
I love to see how a banker
I love to see how a banker can spend 1k a month traveling.. and rent is going to be much more then 1k.
WSO Conf - July 28, 2012
35k Y1 Bonus? LAME!
35k Y1 Bonus?
LAME!
placeholders
I love to see how a banker can spend 1k a month traveling.. and rent is going to be much more then 1k.
...haha yeah, esp. in NYC. I think though OP meant all those (1,000)s as placeholders for others' estimates.
1k are for illustrative purposes only
I love to see how a banker can spend 1k a month traveling.. and rent is going to be much more then 1k.
The 1k's are just for standing in purposes only. I am staring a FT analyst position in 2010 and was trying to gauge expenses. I was hoping people could fill in how much they spend or at least list what they spend their I-Banking paycheck on.
Here's how I did it. 70k =
Here's how I did it.
70k = 1880 per 2 weeks or so aftertax. Let's just say $1,900 every 2 weeks. I had no loans so the signing bonus went to furniture and stuff for my apartment. I got in a good deal with my friend so it was only 1,200 a month (you should expect up to 1,500 if you're sharing, up to 2k a month).
Therefore I got around $3,800 a month aftertax, paid out $1,200 instantly for rent which left me $2,600 a month. I used 20 dollars a month on a haircut as well as $200 dollars a month on food and coffee.
The reason why this was so cheap was because we had a pretty good limit on free dinner so I would always be able to save what I didn't eat for dinner (ordering 2 sandwiches) and eat it for breakfast. Sometimes if a friend wasn't using his (eating with his gf or something) he'd order me his dinner and I'd eat his and order my own which would last me for tomorrow's breakfast+lunch. Therefore food is pretty easy to save on if you are a banker. I always ate lunch at my desk anyways so bringing it form home was a good way to go.
I also spent 80 dollars or so a month on the monthly subway. You will need this for going out at night and all that stuff, even though Lincolns drive me home every night.
Therefore you subtract another 300 and I am down to $2,300 a month. I use around 100 dollars for random things a month such as gel, shaving cream, shampoo, etc. I also spend around 100 a month on dry cleaning and laundry.
This leaves me around $2,100 a month. Now I spend around $100 on cable and utilities (sharing with friend helps). Going out with friends and stuff will mean at least $100 a month, even if you don't want to. This is due to coworkers and whatnot. This means $2,000 cash for you a month if you were frugal like me.
The rest can be spent how you want. Some analysts pay off loans while some spend up to $1,000 a month on clubbing and bars.
Personally, I take at least 1k to atlantic city every month and usually make 200 or so on the poker tables. I also play online poker and have put in 2-3 thousand there and I don't play much due to my job but I make a good hundred or so. I had a good upswing recently and made around a thousand profit.
My friend is a real gambling thief and goes to atlantic city just about every weekend. he has good days and bad days but he once won around 15,000 in a single weekend and spent 5k on strippers over the next month.
$15,000
My friend is a real gambling thief and goes to atlantic city just about every weekend. he has good days and bad days but he once won around 15,000 in a single weekend and spent 5k on strippers over the next month.
Just poker, or other games as well?
He does retarded things like
He does retarded things like high stakes on black (roulette) and won like twice in a row or something. The rest was from poker and craps (I have no idea why people love craps). His family is rich though (Columbia ugrad and dad's in private equity) so I guess it's not a big deal for him. I wouldn't suggest high stakes gambling if you're a normal kid like me though.
how much of the signing bonus
how much of the signing bonus would you say goes towards brokers fee (if you have it) and a few months rent deposit? All of it? Will i be left with around 2k to spend on furniture? It's still early and I havent looked for apartments so just wondering how that figured out for all you.
Where does the paycheck go?
Where does the paycheck go? Mortgage, retirement, groceries, car payments, wife, kid, and commuting to the city. Order something similar to that. I spend maybe a grand a month on fun.
saidso - don't pay a broker. go to craigslist. Brokers are a waste of $ IMO
Step 1: Dream the Dream || Step 2: Live the Dream || Step 3: Rinse, repeat.
$100 a month in going out?
$100 a month in going out? I'm fairly frugal as well but there will be nights where I spend 5 times that amount... Even if your frugal, $100 a month gets you like 5 drinks in NY. No bankers buy groceries - seriously. Almost no bankers "commute" to the city - almost everyone lives in Manhattan with a few exceptions (i.e. a lot of the the international people like Jersey City / Queens but not worth the savings in rent for the lifestyle compromise). Most analysts don't have a mortgage. Use a "no-fee" broker if you want, their fee is paid for by the apartment complex that they get you to sign up for. If you are familiar with NY, you could probably skip them as well.
Can't really breakdown a paycheck for everyone. For me, a lot of my money at first went to clothing as I never had really owned a wardrobe I was proud of in college. Then it goes into things like dinners, nights out, you really won't mind throwing down when you can get out of the office. You will also be paying for taxis at night on the weekend which will add up. After all of the expenses, you might save about a 1,000 - 1,500 a month but when the bonus comes - that goes "straight to the bottom-line".
Are taxes in NYC really that
Are taxes in NYC really that bad? I'm moving up there next year to start an analyst job. Is it really only $3100 monthly? I just calculated $2071 biweekly with federal and 6.85% NY state income tax.
Lets find out...
Calculate your paycheck based on a couple inputs here:
http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp
Thanks a lot.
Thanks a lot.
you retard its 3800 a month
you retard its 3800 a month aftertax on a 70k salary. i guess thats how stupid boa s&t is....
hey sternmasta, the OP took
hey sternmasta, the OP took his $5800 pre-tax earnings and deducts an estimated $1900 for Uncle Sam, giving him $3900 post-tax.
RETARD.
guess that's how stupid stern kids are.
others
anyone else can give a breakdown? i'm interested as well. it seems like you can save at least $1000 if you're not out partying every weekend...true?
35% taxes- monthly net of
35% taxes- monthly net of $3790
Rent- $1500-2000
Food (breakfast- $10/day, sometimes lunch, and dinner on most weekends)- $800
Miscellaneous (tooth brush, shampoo etc)- 200
Laundry/Dry cleaning (three times a month)- 250
Student Loans- $300
Net Savings (1500 rent)- $740
Net Savings (2000 rent)- $240
Overall, it seems like the only thing we'll really save is the year end and sign on bonus... 70000 is just not enough to live on in the city... imagine, they didn't pay for our dinner
taxes
regarding taxes...so each paycheck comes out to $1895 net of taxes? but do you get any of the withheld taxes refunded at the end? if so, how much?
STUDIO or SHARED?
So most first year analysts can, in theory, afford a place of up to $2,000. $1,500-$2,000 is enough for a studio or a one-bedroom apartment in Manhattan.
But what do most first year analysts actually do? What's the percentage that lives in studios vs. the percentage that shares an apartment an pays only $1,000 - $1,500. How does this change in the second/third year? Is it 'customary' to share an apartment the first year and then move on your own?
This depends on the person.
This depends on the person. But judging from friends most people will try and find a roomate if they can. It's much more cost effective and practical since you can split utilities and all that junk. Also, you can get a nicer place for less. After first year (most get 1 yr leases), I've seen that it's much more of a crapshoot. But the majority of 2nd yr analysts I know still share a place.
People with friends have roommates
People with friends have roommates, losers do not. But seriously, basically everyone I knew as a first year had a roommate. Most people first year lived with someone from college and continued in the same place for their second year.
After the first year, its more of a craps shoot as people make new work friends and fall out of touch with college friends from working so much. Also, as the second year rolls around you get more people moving in with significant others (your roommate in ops, not you).
Much easier to get a better place for less with roommates. Also, roommates give you a built in option to not be quite so much of a loser on any night your first year you get out before 11pm.
--There are stupid questions, so think first.
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Looking at these potential
Looking at these potential expenses I'm definitely going to be dead broke working in JPM's T&SS Analyst Program
My base is 70K and sign on is 10k but from what I’m hearing my bonus tops out at 10-20K, which sucks!
why is consulting pay so shitty?
especially McKinsey?
How is it "shitty" when the
How is it "shitty" when the average grad makes 45k a year? Bankers work 90-100 hours, surely they should be compensated more for that.
A bit off topic...
...so, if I don't end up snagging an analyst gig and take this non-profit spot I have been looking at in NYC which pays a whopping 50k I am going to be miserable huh?
Am I crazy if I took this spot? How bad is life going to be for me? I realize some people make it on much less but there are some things that I don't intend to compromise on which would be I would "have" to live somewhere in the city and would prefer to not be sleeping in a dumpster.
Anyone know someone doing a similar gig and making it fine? I realize it's a non-profit but I from what I have gathered, 60k is about as low as you can go and live comfortably in the city. Bear in mind there will not be a 30k+ year end bonus.
Regards
"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
- Ronald Reagan
CPH - you will obviously have
CPH - you will obviously have to make a sacrifice living-wise - 50k will be tough to get a nice apt like most 1st years, given the income requirements - me and roomate had to have bases over 121,000 combined - he was at 60k and I was at 70k so we just made it, and our apt isn't considered anything fancy by any means.
I think a lot about what I'd have to sacrifice here in the city if I took a lower paying job, largely bc I have been pretty miserable in banking lately.
I think it's doable on 50k depending on what lifestyle you have. Keep in mind, most analysts without family money were doing it on 60k (no 70k usually) since bonuses were a year later, so 50k can't be that terrible.
If you're the type to buy bottles every few weeks, you can clearly kiss that goodbye. Most analysts I know doing that are either in serious debt or have parents that are loaded.
Nowadays, you can find decent apts in walkup buildings for under $1300 in a shared room, and I think most young people's biggest expense in NYC is going out. $10-$15 for a drink, etc can add up....you clearly cannot go crazy on 50k post tax.
Your best bet is to visit a friend in the city, and see how much you like it and if you actually think you can live on a modest income.
cheaper
just live in queens/brooklyn/bronx, etc if you can't find a decent apt in manhattan for ur price range. i plan on paying off my student loans asap so i'll probably be doing that too.
how much is a studio in the outer boroughs?
$800
just live in queens/brooklyn/bronx, etc if you can't find a decent apt in manhattan for ur price range. i plan on paying off my student loans asap so i'll probably be doing that too.
how much is a studio in the outer boroughs?
You can get a studio in a not-so-grubby place in Queens/Brooklyn/Bronx for $800; basically 50% less than Manhattan (where the cheapest studio will cost you at least $1,200)
mortgage vs rent
why is everyone renting? why not take out a mortgage and buy a place? at least then you will see your money later once you sell..
Cheapest studio @ $300K
why is everyone renting? why not take out a mortgage and buy a place? at least then you will see your money later once you sell..
I once thought about it, but the cheapest 1-bedroom will cost you $300k. If you want something decent, I think it'll cost at least $400k. If you get a $400k 15-year fixed-rate mortgage at 4.5%, you're monthly payments are about $3050. And you have to add utilities and maintenance fees (which I still don't understand... if you check http://realestate.nytimes.com they give you a "Maint/CC" number.. what is it? is it monthly?).
The point is that it is unaffordable... even for an IB analyst!
Anymore thoughts
Anymore thoughts
this thread is actually
this thread is actually really informative. Any info on CA living as opposed to NY?
Haha...
... even for an IB analyst!
Mortgage payments are tax
Mortgage payments are tax deductible... For hot shots in high income brackets, it's a big deal.