Do BB bankers really make that much money when you adjust for the cost of living?
Most of the big banks are in New York and Glassdoor has their salary between $100-$150k first year. $150k is like $60-$70K In Texas dollars.
You can always work for the BBs in their energy groups in Houston and make the same amount of money in Texas... people don't do these jobs for the salary out of the gate, they take them because of the long term growth and career opportunities.
True, but energy sucks.
To each their own. Energy banking is one of the most lucrative fields out there (no pun intended) - and for those who enjoy it, kudos to them.
Also, some people actually like NYC. Personally, Texas is great, but I'd rather live in NYC than Texas.
Agreed with that, but OP clearly thinks NYC is too expensive for him.
It's worse at the analyst level, most need to have a roommate or two in order to survive off their salary. But that's partly because when they do get out of the office, many go all out with vacations, dinners, bottles at clubs etc. If someone is frugal they can save a good chunk of cash even as an analyst. $150k is basically what a first/second year analyst makes all in, and to anyone outside finance that's a very good comp.
Once you get to associate comp and later, you should be fine in New York. You wont be able to ball out in a two bedroom apartment all by yourself, but on the flipside a $300 dinner every once in a while wont kill you.
I've frugal as hell. What do you think?
You've grammar as hell too.
Oh god its like $35k/year. Might as well work 3 jobs. To me, IB comp doesn't make much sense. My dad works 2 jobs that require an associates degree for around 70-80 hours week and makes 100k/yr.
Have even taken high taxes into consideration.
Nobody works IB for the analyst comp - they do it for more lucrative opportunities or to climb the ladder. If you're such a chimp that you can't understand the difference between your dad earning 100k near or at the peak of his career, vs. an analyst that STARTS at 150K and can make $1MM or more as an MD in 12-15 years, then I don't know how else to explain this to you. Now of course, that's not guaranteed, but that's why IB is a hard industry to be in. And yes, while most people I know who went to IB left after their analyst years - ALL of them are in comfortable 9-5 jobs that pay 200K+ now (before 30), or are in PE making quite a bit more.
You're comparing apples to oranges when you're comparing somebody in his 40s or 50s to somebody who's 22.
What I'm trying to say is there are better career opportunities. VC and PE hire out of undergrad. Elite Boutiques have much higher compensation. Tech. Corporative Development. The list goes on.
Dawg, I made an active choice to leave IB and pursue consulting.
BTW - how many opportunities are there in VC/PE out of undergrad? You'll be doing bitch work, same as IB analyst. The best opportunities generally only hire after IB analyst years.
Same thing holds for EBs. And not everyone wants to pursue tech.
Also, arguing with some random college student from some shit state university on the internet that spells 'corporate' as 'corporative' is a waste of my time. See ya later.
Edit: WAIT, EVEN BETTER. I looked up your old threads and you're the moron from community college with a 2.8 GPA. Great story, still a moron.
I think the OP's main questions is if you look at people at equal points in their career, let's say 2 people are VPs at GS and one lives in NY while the other lives in (insert random smaller city here) etc, is living in NY worth it (Do you get paid more in NY than in small city)?
That answer is most likely a case by case analysis. Consisting of how much the individuals make, how far the dollar goes in their respective city, and as I mentioned in my post below - what are the extras that people are spending those dollars on. (I used 5 star hotels as an example).
I would say that yes, all else being equal and assuming that the VPs above have the exact same salary perfectly adjusted for CoL. The NY VP makes more overall than the small city VP because the NY VP can buy more "extras"
Why is nobody here talking about the kid from Colgate University who's gonna work at the M&A department of Goldman Sachs? Isn't he going to make 7 or even 8 figures after 10 years at GS?
Just because you couldn't break in because of the 2.8 from a community college, doesn't mean you need to look down on those who could. It is a great career path and opens a ton of doors for those who are there.
Sounds like paradise to me.
Wow - so much IB defensiveness and bashing here.
I grew up in the suburbs in a Southern state. The mortgage on the house I grew up in (middle/upper middle close) was approximately half of what I now pay to rent a small one bedroom in Manhattan. I used to be of the "this is way too expensive stupid cold why does anyone live here" variety but I've come to appreciate it.
Five (or 3) years ago me would kick me in the balls for saying it, but I can understand why people that can afford it pay up to be in NYC. NYC is a city on a scale different from any in the U.S. (I say this having lived in SF and Chicago, though not LA/Miami). World class everything (food, transportation, entertainment, culture, arts, social opps, diversity, job opportunities). In exchange you have one good that is stupidly expensive: housing (ok, alcohol too). If you are over the threshold where your salary can absorb a few GS a month of rent/housing (say guaranteed $150K/yr) it is, dare I say, worth it.
Obviously, the calculus changes as you age/ go through different phases of life. Once you have kids (or even a serious relationship), the value of a lot of NYC amenities (esp. entertainment and social opps) plunge b/c you no longer take as much advantage. Your costs also tend to rise and become less flexible (kids). At that point I can see why you'd want to go elsewhere (elsewhere being Chicago/SF/ parts of Virginia, think it would be hard to go back to a Southern suburb).
+SB, I agree with this 100%. Obviously people have varying opinions but Dazedmonk says it perfectly. If you want to live in NYC and have an opportunity there then take it. I personally chose a second tier city with a high salary. My decision was driven on giving me the ability to focus on things outside of work (sports/traveling) while still making good money.
Disclosure: I live in Texas
The only reason I would leave Texas for my industry's higher COL location (Silicon Valley) would be for that opportunity that one believes could take them to the top. Until that time comes, I'll be grinding hard and stacking my chips.
Reasons why I no longer feel the urge to move: 1. My current job positions me uniquely for Business School in the future (if I so choose to) 2. I live like a king (750SQFT 1BR Apartment, Truck paid-off, Saving 20%, Maxed 401K, plenty of spending money) 3. Fantastic women, weather, shopping, dining and nightlife
The cons of living here would be: 1. The amount of time spent driving -- Mitigated by listening to podcasts, new music, catching up on the phone 2. The lack of general culture -- Mitigated by reading, good cinema and travelling
I used to feel the urge to move because I thought I was being surpassed by my, perceived, peers in these cities with more energy, drive and opportunities than I have here in Texas. But given where I am at currently from a career-profile point of view, I feel as though I am still on pace for having a competitive profile for an M7 Business School (my preferred general, industry-agnostic benchmark for evaluating career progression).
I feel as long as I remain competitive and duly networked, then it boils down to lifestyle. For me, I'll take Texas > NYC/SV/Chicago until further notice.