How much have you saved?
I feel like I don’t save enough money. How much money have you saved from IB? Please include your age too.
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24, wrapping up year 2 in IB. Have ~$45k saved up total, but also paid off ~$70k of student debt over the past 2 years - amazing feeling to be debt free. Not planning on any large purchases soon, but maybe a nice trip in summer 2021 once COVID is a lesser issue
24, 2nd year analyst -- $0 (made $150k last year)
Edit: I'm now 25... and a 1st YR PE associate.. I've saved 95k (75k cash / 20k in a 401k if you count that..)
COVID externalities.. lol
Honestly, I'd argue it's been worth it. This is ~$400 / weekend. If you include ubers, dinners, drinks, SoHo house dues, Apollo circle membership, balling out on vacation a few nights in Aspen and Ibiza etc. it's not that hard. I'm not going to be young and single forever and just because we work 90 hours / week doesn't mean we need to be miserable. I plan to start saving soon as my income will double next year, but lifestyle remain more or less the same with fewer large expenses.
gotta be simping at those levels
For sure.
Personal Finance Budget:
I use an Excel template that is set up with two halves divided into annual expenses and annual sources of income. Annualize every single monthly expense you can think of and list those out under expenses, as detailed as possible. For example, you can break it your expenses into the following: rent-related, transportation-related, medical, grocery, personal care, etc. Do not include discretionary (not mandatory) spending. Under income, list your AFTER-TAX income (just easier this way). First half of year as an analyst (June-Dec), you will fall in the lowest taxable bracket (~12%) because only half a year of income. Going forward, you can just check your pay check for the correct full year, after-tax amount. To calculate net income, subtract the total annual expenses from your total annual income. Then, set a savings goal! For example, I set my goal (without bonus) to 20k. If you divide by 12, that is the average amount you have to save each month (ex. ~$1,650). Subtract that annual savings goal from your net income and the remaining balance is your annual "Discretionary Spending" total for going out, big purchases, etc. I took that total, divided by 12, and that was the amount I could freely spend each month.
Calculating my monthly expenses, saving goal, and spending held me so accountable and made it easy to know if I was on-track, or not. Also, you can easily update your projections as the year progresses to factor in unexpecteded expenses that eat into your spending allowance, or require you to update your savings goal.
Investing / Interest:
Each month, I immediately moved the set savings to a high-yield savings account (~2% interest) so that I could build up a comfortable reserve for emergencies or other large expenses (ex. medical, car damage, etc) that compounds interest monthly. Comparable safe investments include linking your savings to money markets or CDs. In addition, (conservative approach, yes) I put about 5% in my Roth account (matched / 100% equities). If you are debating how much to put in savings versus retirement account, I would consider how much outside financial support you have in the case of emergencies and your large short-term expenses.
Any "discretionary spending" money that I do not use, I add to my stock portfolio (blue chip, tech, infra). I take a long-term approach with my stock portfolio and do not attempt to day trade. (Personal stock portfolio v. Roth account?? Again, personal preference on cash liquidity).
PM me if you have questions or want me to help set you up with a financial planning model - it's a bit more detailed than outlined, but those are some high-level points!
I am originally from China, my parents bought me $ 2 million worth of properties in China with no debt. I am 25 and I just started my career in big 4 audit in Australia. My salary is really low compared to you guys. I really want to get high salary like you guys but don't know how. Some people said I should try the Partner track or the CFO track, but it's takes a long time and they not very high-paying compare to IB and asset management. I am considering to transition to asset management roles but don't know how, can anyone share any insights with me about what I should do?
I am not showing off anything and would really appreciate for advices. I am 25 and I just started my career I don't have any full-time working experience prior to this big 4 audit because I spent too much time at uni. My bachelor's degree was in Environmental science obtained in one of a top university in China. I did my master's degree in Accounting at a non-prestigious Uni in Australia and now I am also doing my second master's degree in analytics (I am doing this part time and online, the program is provided by Georgia institute of technology in the US).
I am very hard-working and really want to get into a top-paying role. I'd really appreciate for advices.
Easiest way to make the jump to IB or AM would be to get your mba. But since you already have a masters in accounting, not sure more schooling makes sense... Might just rise in the ranks at audit firm and then lateral into industry. If family really dropped that much real estate on you, then probably worth considering getting involved with whatever they’re doing
Ill send you my venmo
In the early days I had very little saved, I was trying to save 20% of my income (really just base), but it was hit or miss (mostly just into 401k). Larger expenses would come up every once in a while and I would end up wanting to take a vacation, etc. even with a budget it was hard to stick to it. I am surprised at how many people here can manage to save so much in high COL areas. I thought I was reasonable my first few years but not even close to what others have posted here.
Probably had about 40k after the first couple years.
Saving started accelerating in my mid/late 20’s, as did income. Started putting away 6 figures annually (and getting high 6/low 7 figure equity and bonuses) and being able to comfortably live off of salary and not touch bonus (except for special occasions...). Equity in firm also started building up.
Now (early 30’s) have enough saved to be happy, much more than I’d ever thought I’d have at this point in my life. Most in equity at firm.
Life is hard to predict and if you are successful (and the world doesn’t go crazy) you will all be fine. The first few years build good habits, but later years really start helping to build wealth.
As an Associate 1 I had ~300k in liquid net worth + 100k in 401k.
I discovered 2 years into my analyst stint that I did not have the "reinvest dividends" button clicked and I was very angry at myself...
shut up