2025 Incoming IB Analyst Rent Spends
Wondering how much people are spending on rent. So far, among the people, Ik. People are spending anywhere from 2k on the lower end to 3k on the higher end, with most being in the 2200-2500 range, but wondering what the case is for everyone here. Additionally, what is a reasonable amount? The 30% rule seems to imply 2,750, which seems logical, but wondering if it makes sense to spend above/below this. Asking for the incoming An1's since it seems like rents have gone up quite significantly since the initial pay bump to 110k and the whole FARE act has made the sticker price of rents slightly higher.
You answered your own question. The personal finance guide is 30% of your income. You should budget your first-year income as 120k, assuming you're at a BB or 130k if at an EB, since the signing bonus is guaranteed. Do not budget anything for the bonus, assume it's always a $0 bonus unless it's specifically outlined in your contract, which for it isn't for IB analysts.
Edit: Afaik, a good savings rate per personal finance guides is 15-30%. Now, obviously in IB, the analyst years are going to be your lowest earning years by quite a lot, so for IB careers, you can get away with less, but that range is a good target to shoot for. Think you should look to fully max 401k, and if you can do means you are doing great financial planning wise. If you can do more, you're frugal; if you're doing less but still saving something, you are still probably fine in the long run, as long as you don't let costs spiral later on.
Sounds like a true UBS-er budgeting $0 for a bonus
That's just a typical personal finance rule. Have always lived by the rule of live off the base and save the bonus. Didn't start my career at UBS, was at a top BB, and was told the same rule back then. Think it should still apply.
Should you only max 401k if employer matches? Mine doesn’t match for the 1st year
~2300
How much in utilities/internet/phone etc.?
Zero: shower at the gym, use the restroom at work, and uber eats Cava/Chipotle/SweetGreen for every meal, so no need for water. Your work should give you a phone—and internet at office—so why would you need to pay for another? You don’t need electricity at your apartment because you will only have time to sleep there, and when you sleep the lights will be off anyways.
3050, but with utilities / internet prob 3200
It is what it is, know it’s a bit high just praying no layoffs lol
Wow
Am I cooked
2150, was hoping for 2k but didn’t work out. I also once thought 2500 was no big deal, but then I made a line by line budget, and realized even when 2150, I’m basically at no money left over each month assuming strategy of living on base & banking bonus.
My biggest line items post 401k & rent are trying to save around 6k for travel by start of An2 year ($500/month), fun money ($400/month), emergency fund build out ($400/month, then top off with bonus to get to 6 months of living expenses), etc. there’s others but basically point I’m making is there’s nothing insane in there and after everything I’m literally at $0 left over.
As for signing bonus, idk about you guys but after first month rent + 15% brokers fee + security deposit my 10k signing bonus went to 2k. And the 2k will go towards buying nice work clothes, bed, desk, WFH set up, comfortable chair, kitchen appliances like air fryer/coffee machine. Will have basically nothing left over.
I can only assume that ppl paying 3k for month have either significant help from parents or just aren’t actually saving (to each their own).
I don’t have a broker fee
So ig my rent is closer to 2650 if u take out the 15%
Assuming 110 base
~6k / month post tax, 3200 all in w utilities. Grocery is the only other “necessary” expense prob 3-400. Gym in apartment and only have Spotify for subs
Staying on my parents phone bill for as long as possible lol
Idk. I still might be cooked I’m ngl. Shld I start doing uber eats on the weekends
I might be missing something, but can you please share the math here? If you max out your 401 (k) (with an effective savings rate of ~20%), your monthly income is $4,950, as reported by my friends at the bank. Depending on your contribution, your income will be somewhere between that and ~ $6,500. 2100 + 500 + 400 + 400 only get's you to 3400, which is well below whatever it is, even with the 4950 number, and gives you 1500 dollars to spend (which should be more than enough for food/groceries since you are already including fun money). Even if you increase that to 2500, you get 1100 left, etc.
If we follow the advice of the SVP earlier, it seems pretty clear you can spend ~3k, especially if you cut back on such an aggressive travel budget and consider the emergency fund savings as part of savings (because that's effectively what you're doing). As mentioned, brokers' fees and security deposits are essentially covered by your signing bonus.
Spending 3k in West Village
Me too
Do you like it there? We all make trade offs and that’s a great neighborhood.
I was particularly frugal in search so my rent + utilities + brokers fee amortized over the next 12 months is 17/1800 a month. It’s a walkup in bedstuy, but I think for a first year it’s acceptable.
How'd you get this, and how many roommates? This is by far the lowest number I have seen for any first-year, even the frgual guys Ik paying like 2000 in rent are getting to 2150 or 2200 with utilities included and not including broker's fees.
I have 3, but 2 of us have our own bathrooms in decently sized rooms (fitting a queen and desk). Some downsides of course (e.g. small common space, busy street), but it’s 30 mins from work and I had few non negotiables with my group when it came to the search.
I think it’s very easy to overspend but $2.6-3ish is about what you’ll need to pay in NYC / SF for a decent place. You’ll do better at your job if you have a reasonably comfortable and safe living situation. Saving $1000 on rent living somewhere sketchy or with too many housemates will hurt your productivity IMO.
Year, job, rent, and TC since graduation, for reference:
1 IB 3600 $140
1.5 PE 2800 $155
2 PE 3000 $170
3 PE 3200 $190
Chill hours. Lived alone since graduation. I was way overpaying my first year bc I was a retard. Also got laid off and moved lol.
$3,080 for in unit laundry and gym/sauna in the building
Seems reasonable enough/in line with others, even if on the higher end. Thanks for the data point!
where? I did LIC for 2850
$4,100. Perplexes my mind that 1st year analysts are maxing out their 401K, beyond stupid. Why put away thousands of dollars that are not matched (based on vesting schedule, varies each bank)?
Much higher utility out of money now in early 20s in NYC than 40+ years away. You all should have thought deeper when learning about retirement accounts for the SIE (fun fact, you get taxed at a lower rate with LT cap gains than taxed as income from 401K).
Just a way the gov. keeps people patient: "In 40 years you'll potentially have enough money to not go broke!"
Bro this is dumb lol, long term capital gains taxes but you also pay taxes on the money you invest lol, a 401k is tax deductible lmao
How do you even get approved for 4100? Also, that's over 50% of your paycheck? I understand going to 3000 or 3200 even if technically over the 40x rule, since it's not like spending is much as an analyst and you can still save something at that spending, factoring in bonuses. Unsure how you plan to save anything at 4100 in rent.
Not sure how that guy did it but you can generally get over it by showing proof you can pay for 6 months of rent
A little-known finance hack called “using your rich parents to guarantee your rent”.
This method also eliminates the need for saving for retirement, hence why a 401k is apparently unnecessary. Not sure why more people don’t do this.
You are correct, I did not satisfy the 40x rule which the rule itself is absurd. I used a guarantor service for a work around. My plan is to spend all of my base and save my bonus. Was willing to pull the trigger on this given I made more than 2x my monthly rent on TSLA options when around $230. Wasn't a "panican" which is what most of these people commenting are.
Bump, would love to know how much others are spending.
1900
What kind of place/neighborhood, and how many roommates? 1900 seems pretty good, should be around 2000-2100 with utilities and internet, which is pretty good for NYC. Should be living it up even if you max out 401k.
Hells Kitchen 3 bed 1 bath. Yeah I’m excited feel super lucky
Around 1900/month including utilities. Good price but it is a small flex and sharing bathroom with two roommates. In unit washer/dryer though which is great.
3 bed 1 bath is going to be tough tho esp in the mornings
Yeah you’re right. hopefully we can stagger our wake up times so it isn’t too busy
Associate 3, $5,250 in SoHo / WV / Chelsea lol
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