How much do you save per year?
IB
Tags:
(Senior Chimp, 25
Points)
on 11/27/06 at 12:14am
Everyone always asks how much ibankers make per year, but the net gain is what interests me. One analyst I know saves about 10-15k per year.
What do you think analysts and associates should be able to save per year? Perhaps just the bonus after tax? Thanks.





in a 401k or bank acct?
in a 401k or bank acct?
Just savings
I mean, like you worked for a year and got your bonus, but you spent money all year long as well and stashed money in retirement.
I'm thinking about cash on hand after a year, after normal living expenses and normal retirement investments.
where do you live though?
where do you live though?
As analysts in nyc
Most ppl I know lived pretty well, maxed their 401k and saved their after tax bono. So maybe 20k into retirement accnts (including company match) and then another 25k or so outside that.
A good guideline is to spend your salary and save your bono, that works well I think.
Jimbo.
Varied First Years
As a first year analyst, chances are you're coming in and trying to dig yourself out of debt, so I made sure to pay that 30K off in student loans quick and get debt free so that I could have a fresh grave dug for grad school. So for first year analysts, the 20/25 save might be kind of a stretch...
"Cut the burger into thirds, place it on the fries, roll one up homey..." - Epic Meal Time
unless its private loans,
unless its private loans, why would you ever pay of govy loans unless rates were at like 1%?? this confuses me. i carry around like 30k of govt loans and im very happy to keep them for the next 20yrs.
Debt
For some people, being in debt is just an awful feeling. Paying it off can be a sense of relief, regardless of whether or not the most economic path may be to hold onto it.
CompBanker
so they also pay in full for
so they also pay in full for their house or car? PE shops of the future are going to write a full check for the companies they are buying? hehe .. oh well.
I think we both recognize
I think we both recognize the difference of the two situations =)
CompBanker
naturally, but this still
naturally, but this still bugs me. you can add that too "i dont want to give the govt a 0% loan", hehe. i know its true, i just dont know why everyone says it like that. oh well.
in any event, i laugh at some of the numbers people have been quoting on how much its possible to save (for someone completely on their own -- ie. no parental aid) it just doesnt seem that realistic esp with taxes taking close to half. You have to be pretty frugal to live in nyc on a 60k salary alone.
Depends
To be honest, I think that depends. Personally, I very rarely spend money. I don't go out to eat and will opt to eat a bowl of cereal for dinner over a full meal. The only non-essential purchases I have made over the past 6 months have been books and education sorts of things. Then you take my brother. He receives the same amount of "Parental Aid" yet manages to find himself in debt constantly. He bought a paintball gun on an impulse 2 years ago and has yet to use it. People like him can't understand how / why others save whereas people like me can't understand why others spend!
Of course, once you move to NYC you are screwed. I have an analyst friend paying $1,500 a month for a crappy 1/3rd of an apartment. At some point you have to stop being frugal and start paying for things to make your life livable. Personally, I'm beyond glad that I won't be doing my 2 years in NYC.
CompBanker
Re: unless its private loans,
why would you ever pay of govy loans unless rates were at like 1%??
Because the govt loans aren't even the subject of discussion here. The govt loans someone receives to pay for tuition at an expensive college like Hopkins are peanuts compared to the private loans he/she has to take out in addition.