How much to spend on rent first year BB NYC

Working at BB downtown and have a 100k base and post-tax 10k sign on. Does 40x rent rule apply to bankers given bonus heavy comp structure? Also, am I silly to drop about $3k per month for a studio as a first year since I don’t want roommates?

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I don’t agree with this. I agree you want to save money and not blow all your cash, but for many people the transition from college to FT work is tough, and that is more true in IB. If you are about to work 80-100 hr weeks, then splurge a bit on your health, and I would argue a decent place to live is beneficial to your health (physical and mental). This is more true now with WFH than ever before. 

When I was starting out the last thing I wanted was a long commute, not have easy access to a gym, a dirty/crappy apt, no personal space, etc. The key to saving is to live within your means (pretty obvious) and not scale your entire life as you become more successful. For many people a quiet and nice apt (and a comfortable bed) will be a huge help that first year, but it all depends on what you prioritize in life. 

 

The consensus on here leans heavily towards saving the absolute maximum possible, so few people are going to tell you to spend $3k on rent since you won't be there much.

That said, are you the type of person stressed out by roommates? Will having your own space make a tangible difference in your sleep/relaxation at home? If so, do what's best for you. If I could go back and do it again, I'd do the studio first year even if it lowers savings a bit - the extra $1k a month would have been better invested in making sure I was comfortable at home than padding my quickly growing savings account. I didn't like my roommates and it added more stress to a very stressful job. 

Finally, just so you're aware, the landlord won't consider a non-guaranteed bonus towards your income (i.e. you can only show them your contract for 100k+signing bonus, your discretionary bonus that is not in writing won't count) so you need to either have a guarantor lined up or use one of the guarantor companies (Insurent, Rhino, etc) if your rent is more than 40x your base salary and signing bonus alone. Also, make sure you get a no-fee place (was banned for a minute in NYC, now it's back) so you avoid paying an extra month in rent to the broker.

 

Thank you! I'm definitely a particular person and having roommates would probably bother me if I was spending significant time at home. Everyone who says to get roommates and save money makes it seem like I won't be in the apartment. However, my bank has taken the 3 days per week in-office approach, current analysts tell me people filter out after dinner. It seems to me if I'm not going to spend every day in the office but will be working from home every night I wouldn't want to be cramped into a smaller bedroom with roommates.

FIDI seems a little isolated and depressing. Thoughts on studios in the EV or LES for about $2,750 if I can find a place on a street in the back of the building or do you think the noise would just be too much? FYI office is in Tribeca and living on the west side seems too pricey if I want a studio all for myself.

 

Yep, get a studio. Life has changed significantly in the last 2 years, the advice that you're never home isn't really true anymore and you should be mentally figuring out where your home office is going to go.

EV and LES are great for nightlife and restaurants, truly awful for commuting west. Highly recommend looking up addresses on Google Maps and click transit. You may have to walk 10+ blocks to a subway station, and then subway uptown/downtown to transfer west.. just a rough commute. Also, you should visit/look at apartments in person for a myriad of reasons, noise being one - go for a weekend and check out your top buildings at night to see the area and noise. Some parts of the EV you might get a quiet studio, and sometimes you're across from a popular nightclub that gets going 4 days a week. Videos hide a ton of sins.

Honestly I like FiDi and the deals are great right now, they are putting a lot of money into the area at the moment and it's an easy commute up to that office. Hells Kitchen is also surprisingly nice, especially if you get close to Columbus Circle/the park, and a super quick commute to both work and over to downtown for nightlife. I'd just avoid Hudson Yards, there's a big homeless problem in the area atm and I wouldn't want to be coming in/out very late at night - this might change in the next 2 years as firms move into the new buildings, but any cheap deals you see are there for a reason.

 

I mean, you're obviously working at GS, right? Why not live up in Hell's Kitchen? It's pretty hard to travel from EV/LES horizontally to Tribeca and at that point, you're almost better off living in Murray Hills as you get easier access to the necessary subway stations.

I recommend Hell's Kitchen for ease of commute and FlatIron as a good compromise.

 

I can't comment specifically on prices. But there is absolutely nothing wrong with wanting to live solo especially in the new era of increasingly hybrid/remote I think most people would probably be happier and better off in their own place. 

With 100k + signing, you can most definitely find a studio for yourself. This is where you LIVE you need to be comfortable especially if you are going to be WFH. Believe me most of these guys with 4 roommates and 1.5k rent are probably also spending hundreds a weekend on dinner/drinks/entertainment so they can not be stuck in their busy apartments. I bet you actually come out ahead in savings at year end. 

 

I lived with roommates and it was a nightmare. Get a very small studio and be alone. You can find below 3,000 in upper east/west side in an older building. As long as it has proper heating/AC and contracting is fairly new, it should be a good deal until next year. Avoid being on floor level.

Do not underestimate the relief when you go home after a long day and you have your own space and you can do what you want over the weekends.

I definitely overpay now compared to my salary and I don’t regret it the least bit. I have a very nice one bedroom and I can work from home on Fridays/weekends and be very comfortable. It feels nice having a place you look forward to getting back to. Why live in an uncomfortable situation to save 10K? You can save in other ways and your mental health is definitely worth it.

When you join as a first year you will find guys who have 2-3 other roommates. Some people are not bothered by the noise and the mess, I personally am so much but don’t compare yourself to them. Do what works for you

 

I am all for savings but having your own place is worth the money. The mental relaxation you get from being alone is incredibly nice. Removes all the issues that might occur when another person or two people are thrown into the equation. 

If you are working at Goldman in Tribeca I would suggest looking at Hells Kitchen or Chelsea (North side is probably cheaper). Lower East is kind of difficult to travel to the office unless you are near the J train. Anywhere along 14th street near Av A, B, C & D would work nicely as well as you have the L train right there.. ** Feel free to ignore this if Goldman is just gonna Uber you in. 

If you don't mind commuting a bit longer places like Bushwick, Greenpoint or LIC could be nice alternative places. Hope this helps.

 

I pay $2,250 at 110k base for a studio. Definitely on the higher end but I don’t necessarily will regret it. This is SF but the price point could be helpful, so I’ll share my perspective. I love where I live - walking distance to bars, easy commute to office, safe area - and get to enjoy it because of remote work. It makes my down time a lot more enjoyable.

I still manage to save 25% pre-tax for my 401k (pretty much all of my savings with 300-500 extra per month for personal brokerage and crypto), and will save my entire bonus. with the 25% out of my paychecks it forces me, quite literally, to save money because I have a thin margin for rent and credit card bill, but it prevents frivolous spending. 
 

at the end of the day I could easily save a few hundred a month (and a few thousand per year) but I love where I live, it’s safe, no homeless, I have tons of stores, restaurants, coffee shops, and a gym in walking distance. Of course all of this is only worth it because we’re WFH right now, so consider that. 

 

Appreciate it, yeah definitely some bias on what rent #s get posted. I think on a relative basis I could have easily stayed in the 1700-1900 range with a good-not-great place and a roommate or two, but don’t regret it at all. That’s really only $5k difference per year and I couldn’t be bothered with the compound interest argument of what that’s worth in 40 years (because having a nice place to yourself *now* is also cool)

 

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