How much saving per year from MBB consulants?

How much can a post-MBA associate/consultants from MBB save per year? What's a good amount to spend on rent per month for a MBB associate/consultant's salary? How much money per much do you spend on paying back your MBA loan?

 
Best Response

Do you include loan payments as savings? You can allocate money to savings, or to loans, depending on interest rates and other preferences.

I'm a pretty big saver. Here are my stats for first year post-MBA (not including sign-on bonus, including performance bonus).

  • Rent = $1325 / month, but I split rent with my girlfriend, so call it $663

  • Savings + loan payments in first year out = ~$65k.

Taxes really suck. Between federal income, payroll taxes, and state income (I live in California, so state income taxes add up), I'll pay nearly 40% in taxes.

$180 income - 40% going to taxes = $108k after tax.

108k after tax - 65k savings = 43k to live on

Keep in mind, expenses during the week are covered, and vacations can be mostly paid for with miles/points

Hope it helps

 

@moosen: 80-90k/yr pay, assuming 35% tax --> $50-60k take-home pay. My target savings is $10k/yr.

All expenses covered during the week, only expenses are rent+car, and weekend food+drinks. This comes out to $2k/month for me, so something like $25-35k left. Vacation travel and hotel can usually be covered with alternate travel arrangements and points, so it basically comes down to how much you spend on miscellaneous purchases/expenses (think drinks, parties, gifts, gambling, etc.).

 

xmasboy,

like any 401(k), the limit is ~$16.5k per year of personal contributions, or +5k if you're over 50 years old. Or something like that. It changes every year (adjusted for inflation). Maybe it will be more than 16.5 in 2014...

you can also contribute a few thousand to IRA, and if younger, a roth-ira (there ar eincome limits on roth ira. Something like 110k or 120k or something...post-mba MBB you will make too much for roth ira)

finally, just a heads up for the 401(k) -- company contributions are almost a regular 401(k). However, your personal contributions often can be a roth 401(k) if you choose. The upside here, besides the whole "is it better to be taxed now or later (exactly equal assuming tax rates are the same)" is that 16.5k of post tax money (roth) is more than 16.5k of pre-tax money (regular), so it allows you to up the contribution limit a bit.

 

Are you an analyst? As an analyst, the real impediment to saving a huge pile of cash is that your salary is ~$75k and your bonus is smaller than a bankers'. It's more than enough to live comfortably, but even in a non-NYC/SF city I'd be shocked if you managed to save more than $10k per year.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
 

^

wait, what? as an MBB consultant you should be capable of saving well north of 10k a year, easy... unless you go out to shop at ferragamo's or gucci's every weekend.

i saved 25k last year as a consulting analyst, and i don't make mbb analyst level salary. and, i live in nyc.

this brings me to wonder how much a typical mbb analyst saves per year.

 

Saving 25k in NYC will be difficult. Elsewhere it's pretty achievable. Taxes and rent will also be your largest expenses. Not sure if you're including 401k, but that's a good way to boost your savings. 3 years in MBB should net you around 100k in savings (part of it in 401k) in an average CoL city.

 
IvyGrad:

^

wait, what? as an MBB consultant you should be capable of saving well north of 10k a year, easy... unless you go out to shop at ferragamo's or gucci's every weekend.

i saved 25k last year as a consulting analyst, and i don't make mbb analyst level salary. and, i live in nyc.

this brings me to wonder how much a typical mbb analyst saves per year.

I'm with you, granted I don't have expensive tastes...I'm able to save a lot more than 10k in the city.

My drinkin' problem left today, she packed up all her bags and walked away.
 
IvyGrad:

^

wait, what? as an MBB consultant you should be capable of saving well north of 10k a year, easy... unless you go out to shop at ferragamo's or gucci's every weekend.

i saved 25k last year as a consulting analyst, and i don't make mbb analyst level salary. and, i live in nyc.

this brings me to wonder how much a typical mbb analyst saves per year.

Maybe I'm a bigger spender than most. I excluded my retirement account - that's another $15k, so maybe $25k in all. That said, most of my friends aren't ascetics, so I stand by the $10k cash savings per year as an upper bound.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
 

It all depends on how badly you want to save. Longer commute? Roomates? Not partying every weekend? Getting staffed out of town and couch-surfing in town? People run the whole spectrum.

 

At doloremque voluptas et aliquam. Nihil alias aut voluptatum numquam est animi. Labore dolor ut in rerum beatae id. Vero assumenda voluptas dolorem enim. Natus quidem repellat aspernatur doloribus hic accusamus. Voluptas velit deleniti et quia.

Career Advancement Opportunities

March 2024 Consulting

  • Bain & Company 99.4%
  • McKinsey and Co 98.9%
  • Boston Consulting Group (BCG) 98.3%
  • Oliver Wyman 97.7%
  • LEK Consulting 97.2%

Overall Employee Satisfaction

March 2024 Consulting

  • Bain & Company 99.4%
  • Cornerstone Research 98.9%
  • Boston Consulting Group (BCG) 98.3%
  • McKinsey and Co 97.7%
  • Oliver Wyman 97.2%

Professional Growth Opportunities

March 2024 Consulting

  • Bain & Company 99.4%
  • McKinsey and Co 98.9%
  • Boston Consulting Group (BCG) 98.3%
  • Oliver Wyman 97.7%
  • LEK Consulting 97.2%

Total Avg Compensation

March 2024 Consulting

  • Partner (4) $368
  • Principal (25) $277
  • Director/MD (55) $270
  • Vice President (47) $246
  • Engagement Manager (99) $225
  • Manager (152) $170
  • 2nd Year Associate (158) $140
  • 3rd+ Year Associate (108) $130
  • Senior Consultant (329) $130
  • Consultant (584) $119
  • 1st Year Associate (538) $119
  • NA (15) $119
  • 3rd+ Year Analyst (145) $115
  • Engineer (6) $114
  • 2nd Year Analyst (341) $102
  • Associate Consultant (165) $98
  • 1st Year Analyst (1046) $87
  • Intern/Summer Associate (187) $84
  • Intern/Summer Analyst (547) $67
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
kanon's picture
kanon
98.9
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
Secyh62's picture
Secyh62
98.9
8
CompBanker's picture
CompBanker
98.9
9
numi's picture
numi
98.8
10
pudding's picture
pudding
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”