How much did you save as an investment banking analyst?

Just wanted to see how much everyone is saving. I'll go first. Zero. 

Some people just seem better at saving (or not spending)

Here's a girl from UBS IBD (NYC) and she doesn't seem to spend her money on anything.  

Comments (31)

Dec 7, 2020 - 9:40am, what's your opinion? Comment below:

A lot

Money can purchase freedom, if you have the guts to buy it

  • Analyst 1 in IB - Cov
Dec 7, 2020 - 9:46am

I mean, I started this year and have been spending maybe 5-10% of post tax comp (living at home). I also think depending on your hobbies, covid has helped people save 

Dec 7, 2020 - 10:25am
gufmo, what's your opinion? Comment below:

I think by the time I was done with my two years I might have had like ~$150K saved from both years? I worked for ~3 years before that so cumulatively I think I had like $300K saved. And I by no means lived an austere lifestyle. I honestly don't know how you can't save money as an IB Analyst.

You're paying like $1,800 a month on rent on an apartment so small you can't possibly own tons of shit, you don't buy your own food, you don't own a car, you don't have kids, and you can't take vacations or travel. Are you spending it all on constant bottle service? Legitimately curious. 

  • Analyst 1 in IB - Gen
Dec 7, 2020 - 1:15pm

so you saved like 70k first year and 80k second year? how much of the 150k was from investing? i'd imagine i can save like 50k first year and 60k second year but idk how 150k after 2 years would work

Dec 7, 2020 - 1:52pm
gufmo, what's your opinion? Comment below:

I'm not using terribly precise numbers here, but it's honestly a combination of a few things: (1) working in an absolute sweat shop, so having most meals paid for and having no vacation or leisure time to spend money on; (2) not having a taste for nightlife; (3) not buying flashy watches or clothes (just never cared about it); (4) saving 100% of bonus, maxing 401k contributions, and saving most of my monthly income not spent on rent; (5) coming out of college with no student loans; and (6) the bank also topping up 401k by a set percentage after bonus time.

Is this a healthy way to live? No. I absolutely hated my years in banking, but I also had enough sense to know that buying tons of shit or blowing $2k in one night at a bar wouldn't make me feel better about it. Now that I'm outside of it, I have way more leisure time and spend much more money on hobbies and traveling, but I also make a lot more money, so I still save a lot. Somebody with a less miserable banking experience probably would save less.

I'm firmly of the view that everyone should do absolutely anything they need to do to survive banking without permanently damaging their mental health. There is nothing wrong with saving nothing, because the money you make in banking should in theory be the least amount of money you make in your entire career. 

  • Analyst 2 in IB - Cov
Dec 7, 2020 - 1:36pm

150k in your first 2 years? That's amazing. How much did you get for your bonus?

Dec 7, 2020 - 1:55pm
aspiringfinancemonkey, what's your opinion? Comment below:

Don't know why you're talking it up as if saving 150k in 2 years is easy. That's >50% savings post tax for even an above average analyst. On top of rent and living "by no means austere lifestyle"? Not saying it's impossible, but it sounds to me you had some extra advantages to get that far. Or you penny pinched more than you're letting on.

Most Helpful
Dec 7, 2020 - 2:04pm
gufmo, what's your opinion? Comment below:

I went to just about the most obscure state school possible in order to graduate with no loans and worked for 3 years before getting into banking in a satellite office of the same bank in the middle of nowhere while networking like a psychopath to do it. My parents had zero understanding of college or what banking even is and I've made more money than them every year of my professional life, including my first year out of college. Point being, I didn't receive any help here.

I'm just coming from a different perspective. Saying I didn't live an austere life, to me, means I would get a nice dinner once in a while and never had to think too much about money. I would never dream of (and still don't) of buying a $20k watch or $2k suit, like a lot of Analysts do. It adds up.

There's also probably something to me having worked a few years before doing banking because I had some time to make money (granted, much less) and learn what I needed to get by. As a result, my spending habits didn't change much when I made comparatively more in banking. I think a lot of what gets new Analysts is that they're suddenly flush with more cash than they've ever seen before and feel compelled to spend it.

  • Analyst 1 in IB - Gen
Dec 7, 2020 - 1:51pm

Living at home right now and saving pretty much everything and investing really aggressively. Since a started ~4 months ago I've probably saved like 35k 

  • Analyst 1 in IB - Gen
Dec 7, 2020 - 3:45pm

Putting like 20% of my paychecks into my 401k, some tech stocks, lots of SPY, a little QQQ, and large amount in bitcoin and ethereum which has given me the highest returns by far 

  • Analyst 1 in IB - Gen
Dec 7, 2020 - 10:20pm

Tbh, I was interested and watched the video. Better than a having an IB ranking post for the 100th time.

  • Intern in IB-M&A
Dec 7, 2020 - 9:45pm

Do you mind sharing what your comp was like? Having that much saved after 1.5 years and being able to spend freely seems pretty great!

Dec 7, 2020 - 10:38pm
nontargetfromtarget, what's your opinion? Comment below:

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