Broke Analyst - NY
Is anyone else who started in the fall feeling like they're broke? Assuming you max 401k, you're left with ~5k. 2500 to rent another 800 to food (that includes brining some stuff from home some days) 200 on skincare/soaps few for medication few for utilities, you're left with like 500-800 bucks maximum. For a job that's supposed to be the best out of undergrad this is not thriving. I haven't asked but I can tell other analysts are getting bankrolled by mom/dad when they're sending Casa Cipriani and Zuma every other weekend. I've gone a few times (never paid) but holy shit are we being stretched thin.
RIP
Maybe dont max out 401k?
My first literal thought lmao
Nah, power of compounding, maxing when you’re young is key
True, but cash flow management is also important. Contribute 10-15% each month prior to bonus and max out the remainder once bonus hits.
maybe stop eating food?
Yeah that’s why I don’t make out my 401K. I contribute about 12% between 401K and HSA. Would rather have a little bit of extra spending money for first two years of my career / while I’m young.
you contribute 12% of net comp or 12% of total allowable for 401k (~22500 401k limit)?
% of 110 base. I do the highest level of employee match for 401K ~7% and then ~5% to HSA.
...
Yeah similar situation to me though my medication costs $200+ after insurance, power bill / water / internet $300
$5000
-$2500 rent
-$800 food
-$300 medication
-$400 CC bill
-$400 power / water / internet
-$100 misc
ends up with about $500 leftover each month, which if you try to fit in a couple of dates a month, a streaming subscription, trying to save a bit, it does feel like I’ve been struggling a bit on money the last year.
When rent was $1750 it did feel like I was very well off on money, but with lease ending beginning in the summer and new studios looking to be $3kish have been having to find a roommate lol
getting to 800 on food was a journey. I still cook at home sat/sun and then bring lunch in or dinner in w seamless combo during weekdays. Are you meal prepping or how are you knocking it to 800?
I just don’t eat
~5,400 after 401K / HSA contribution
1,700 rent
200 gym
250 recurring monthly bills
300 loans
2,000 between food/entertainment/travel
200 misc
how are you at ~5,400 after 401k contribution? What is your salary and bi-weekly pay pre-tax? I'm at 110k base and each check is ~4,600 pre-tax and pre-contributions, which is way lower than you even after contributions... (Asking since you're A1)
Equinox or Lifetime im assuming
If your company doesn't match (Citi doesn't match until 1 year in), then it doesn't make sense to lock that money up with no benefit. Once a year hits, it makes sense. Live with one or two other people. Can find a nice shared apt for sub $1,800/month each. Plenty of ways to save
bro 3600 for a 2 bedroom.... or even 3600 for a 1 bedroom flex... not in 1 million years. not in an even remotely safe area and not one that is walkable or where there wouldn't be mold in your shower.
It's definitely a safe area, but yes, not a walkable distance to work, though that's irrelevant. The place is clean and gets the job done. Obviously not a high-rise with a doorman
3 bedroom with a post flex wall that's permanent and doesn't cut up the living room.
Then you don’t know how to look
Been in the city for 7y (college plus banking) never paid and still don’t pay more than 1800 by living only East village west village and Soho.
Just got to put in a bit of effort into finding some good spots
Anybody gonna comment on the $200/month for soap?
I meant 200 for all medication/skincare/shampoo/personal items and miscellaneous
Skincare is a really random thing to just throw in there. Like if I told you my monthly budget includes a few hundred for "weed & other" I think you'd just assume weed.
Anyways spend less on soap, and understand that after your bonus you'll have a cushion. Plus the 401k is real saving, even if you can't draw on it. You'd certainly be able to draw on it (less a 10% penalty) if you were in deep so it's as much a saving as anything else.
this boy can't afford to send it in zuma, so he sends it in the shower
My guy is just super clean
.
Incoming glock-19 shots are FIRED
Houston banking is paradise. Simply return fire.
Not wrong from a cost standpoint lmao
did my stint after undergrad in NYC but if I was doing it again in todays environment, I'd 100% do it in Chicago. QoL is much much better and still has most (not all) of the allure of NYC
How are y’all at ~5K with 110? I’m at around 5.8-6k after tax
is your rent less than $2,500 and are you maxing 401k to the limit or just company match? Still on parents health plan or your own? Feels like these are the drivers for this guy
Interesting. Couple questions
1) are you in NY/
2) are you mailing 401k?
if the answer is yes to both of these, it should be like 5.2ish.
Why aren't you factoring in bonus? Seems like it should be 8-10k after taxes including bonus
Because bonus is paid a whole year later in August, you need to have cash flow that entire first year to pay your expenses. You don't get $8k a month to live off of
high chance of not getting it this year, don’t have it yet and can’t tell my landlord ‘i’ll pay you when i get my bonus!’
Did you choose not to enroll in healthcare coverage
Why are you maxing 401k...? Yeah that is important, but having enough money to live is also important and you don't need to max it out so early on, get your feet under you first. Max up to the company match. You can also finish the 401k with your bonus if that is important to you.
At a minimum you should be doing enough 401k to capture the employer match. I'd argue if you fail to do that, you're failing to take your full salary.
Further, any dollar you fail to put into your 401k is being taxed around 35% city + state. You can either have $1 invested (and able to put 90 cents in your pocket if you're ever in real need) or you can spend the money now and it will only be 65 cents. That's effectively a loan. How much interest do you pay on that loan . . well I'd argue its only a 4-month loan today, because after you get your bonus this summer there's no more need to be floated. So you're paying 35 cents on a 65 cent loan, for a 4 month loan . . an annualized rate of 265%. Don't be a payday loan customer.
And let's not quibble about the fact that you'll owe taxes later on 401k because you'll either be rich enough to not care, or you'll be poor enough to strategically withdraw that money at a very low tax rate. I know entrepreneurs who empty out their 401k at 0% tax because they can time their income realization. They just pay a 10% penalty which is why I referred to 90 cents earlier.
I am confused by the second paragraph. Could you elaborate? Are you advising to find a healthy balance of going above employer match but not too high that you are counting pennies every month?
Lateral to Houston
"I save $20k a year in my 401K before bonuses - why am I so broke?" - 22 year old
Too true. The average person in America never even maxes out their 401k their whole career.
Come to office 7 days a week. Save on food and utilities
do banks let analysts do seamless on sat/sun if working at office? I thought those policies went away post covid.
WF allows lunch/dinner depending on how many hours you work in the office on weekends
Most/all banks still allow seamless sat/sun if in office - the policies that went away are ordering when WFH.
Think the reality is that very few teams go to the office on weekends unless underwater on a deal, while pre-covid everyone went in
Im at a mm firm (think Blair, HL, Baird) and can expense weekend meals even if WFH as long as I do just a couple hours of work.
Max 401k with bonus, not base. 800 on food... when you're not expensing meals, are you eating out for every meal? This figure could be a lot lower, even if you're eating quality foods.
Bro people were doing just fine in New York City on the previous $85,000 base salaries. If you need/want extra money, then reduce your 401k contributions.
when bases were 85 (2019 pre the vid) rents was way way lower and food was also min 20% cheaper. reducing 401k contribution is silly. would rather just bite it now and see benefits down the line especially since going to be hitting other tax savings ceilings
Then don’t complain about not having enough money to enjoy NY when you’re young.
There is no reason to max a 401k this early on using base salary
You can still find very reasonable rent if you put in a bit of effort and don’t expect to have doorman and new building
yeah, that's how it is. imagine if you also had student loans.
Is this for IB? If so, the numbers don't seem to add up
For a job that's supposed to be the best out of undergrad this is not thriving ---- not true. assuming you do 70hr / week (200k all in). You can do the same hours at 1 tech (200k all in) + 1 startup (100k + equity upside).
Agreed but I pretty much spend little to nothing on eating and am also not in NYC which helps a lot. Dinner expensed (never eat breakfeast so not an issue) and then bring or buy a small lunch. Most other meals are oatmeal or ramen. I know this will sound like a troll but it true and my breakdown below:
Non-NYC:
No 401K at all = $6,500 monthly
$2,100 Rent + Utilities
$200 Food
$200 Rare Misc.
That's it. No I don't own any streaming services or spend otherwise.
What's your base? I'm at 110k and I get ~4.6k monthly pre-tax without 401k, which is way below your 6.5k ....
How are you $4,600 monthly per tax at a 110 salary and before 401k? Mathematically something’s wrong there
no way you're at 4.6k post tax with a 110k salary
110K, zero 401k, but not NYC
Seems like you never go out to eat or on dates?
Unfortunately not. I've come to terms that life is mostly suffering for this generation unless we can make it out via investing aggressively, entrepreneurship, online social media, etc. I am optimistic though that one of these avenues shall work.
$2,300 a paycheck (x 2 a month)
-$1,300 month rent, parking and utilities (split in tier 3 city)
-$1,000 student loans
-$1,000 credit cards (always maxed, need bonus)
After a ~10% Roth contribution I am usually out of money by the end of the pay period and relying on credit cards again
I don’t go out as much anymore. Maybe 2 a month. I just can’t afford it/have time.
I don’t have enough money to even buy clothes
$2,500 in rent for a 22 yr old is absurd. Get a roommate in a non-luxury building if you're so worried.
tell me you don't live in NY without telling me you don't live in NY. 3000 doesn't even get you a luxury building. 2500 just gets you a place with no cockroaches to live alone