Hello All,
So I am starting as an associate at a bank in midtown this summer. My dilemma is about commuting and rent expense.
Situation:
1. My wife will remain in my present city for about 15 months after I move out east. So, I have rent to pay in this city for that duration (~$2,000 per month). She works but her income won't cover all the expense in this city.
2. We are also having a baby right after I start working (read: flying back and forth as well as additional baby expenses).
3. I'll be working in a group that is known to be working pretty long hours (even by rest of banking and rest of the firm's standards).
Now I have two alternatives:
- Live in Manhattan (probably stay in Hell's Kitchen, MTW etc.) and pay at least $1,900-$2,100 per month for a studio in rent. This option's highlights include:
- Commute would be at most 20 minutes one way. - Have some privacy so when the wife and the baby come visit in NYC, we'd have our own place. - Total annual housing cost (including utilities, commute etc): ~$24k(NYC) + $24k (present) + $1200 (NYC annual Commute) = ~$49,200
- Live with family around Edgewater, NJ: With this alternative my one way commute in the morning will be about 50-55 minutes (NJ transit + NYC Metro + walking). On the way back, I understand I can take the black car home almost every day (25 minutes). This option's highlights include:
- Rent: $0 -$500: This is my close family and I don't pay rent. (just take it face value, $500 is max if they agree to accept). - Now, I won't have much privacy when the wife and kid come visit (which is not terrible for us because I can always have that privacy when I fly back to our original city). - Total annual housing cost: $6k (NJ rent) + ~3k (NJ Commute) + $24k (present rent) = ~$33,000
NJ saves me around $16k annually which would be very helpful given flying expense, student loan repayments, baby expenses etc. kicking in.
Now, I keep reading that NJ commutes are just terrible, but keep in mind - this is a temporary situation while the wife and kid are in our present city. After a year, when they move east with me, I can definitely get a place in NYC and reduce overall rent expense.
Questions:
1. I know hours are crazy, especially in the first year. How bad will they get for a "busy" group as a first year associate?
2. I can also sleep in the black car on the way to NJ everyday. Does this seem practical to have a 50 minute commute on the way in but a 30 min commute in return?
3. Is this worth the $16k savings in your mind?
Appreciate any serious comments.
Rick
In my opinion, living as close as humanly possible to a job that you work late at is invaluable. As a first year associate, I'm assuming you're making a base of at least 80K. Your bonus will be at least 50-100% depending upon your firm. In the grand scheme of things, 16K is not a whole lot of money in comparison. When I worked in NY, I stayed with family in Jersey. I took the train to Jersey City from Parlin, then from Jersey City I took the PATH train into NYC. I saved alot of money, but it damn near killed me. Looking back, I would have chosen to stay as close as possible.
If your finances can handle it, be close to work. A best case scenario would be to get a place for 3 months with an option to extend it longer. Try out the commute from Jersey as a basis for comparison while you have the place in NY for about a week, and then cement your decision. Good luck.
you're a f**king adult you should now your shit by now. Live within 20-30 minutes of your job.
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