How do you analysts and associates manage your money?
I'm an undergrad entering MBB full time in an HCOL next year hopeful for tips you may have on managing money.
A friend told me that because of travel (if it happens again soon), I'll be saving at least some of my income because costs are covered 3-4 days per week. Is that reasonable?
Also, any tips you have on planning expenses, finding housing/roommates, or any other pre-start advice would be appreciated!
If you're traveling every week, then yes, your costs will be covered when you travel. If you're in a HCOL, you may still pay a lot in rent.
Get your financial plan in order before you start--you won't want to learn about everything once you're busy. Know how 401(k)s and IRAs work (the difference between trad and Roth, the difference between a back door and a mega back door, all the contribution limits, etc.). Know what to invest in (the answer is probably a target-date fund, but know why). Make a rough budget/income statement. Get all your accounts linked to an aggregator like Personal Capital or Mint. Get a travel credit card (or if you don't qualify, have a plan for getting there). Understand how Marriott Bonvoy works, as well as whichever airline point system is most convenient for your airport. Understand how health insurance works and have a plan for setting that up once you start (i.e., regular primary care, dental, and eye visits).
It all seems like a lot but I promise it's not that bad. Oh and plan a trip next summer and have a blast!
Thanks, this is helpful! Any cards you’d recommend?
Chase Sapphire Reserve if you have the credit.
I've heard Amex and Chase Sapphire, but ask people at your firm before you get one.
Lifestyle creep is a real killer. Don't spend more just because you can 'afford' to. Instead, consciously optimize for spending more money where you really enjoy it
A big example of this is rent - IMO too many people spend on the nicest place they can afford, which really forces you to budget a lot harder in other areas (e.g. if you can spend $1100 instead of $1800, think about how much less budgeting you'd have to do on things like travel, food, or going out). Especially if you're back to full 3-4/day wk travel (which as of now I don't think will happen for you by the time you start), you're spending tons on a place you're only at half the time (less if you travel on any weekends)
Another example is going out. Don't make a habit of buying tables/bottles and avoid hanging out with people who only want to go to the most expensive spots in the city
> I'll be saving at least some of my income because costs are covered 3-4 days per week
You should be saving a decent amount even if you're not traveling. If you can't save money on a $100k/yr base salary, you've got a spending problem (assuming no extraneous circumstance)
I am definitely guilty of lifestyle creep – even before earning a salary. Thanks for pointing it out; I never considered how that affects my thoughts.
And yes, you're right. I should be saving a ton because of my income...
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