Is salary alone enough??
We are all aware of the handsome salaries that investment banking offers But the question is: Is the salary you receive enough to go by the expensive NY lifestyle, or any other hotshot city as such. If spent conservatively, will i be saving some cash at EOY ??? Will i be amassing at-least tiny fragments of wealth(well obviously over time) or will i have to wait for the “your salary is credited” message to splurge a little here & there
Ps- student preparing to enter IDB
IB* 😅
You should be able to save 20-30% of your salary
It's not fucking enough bro. No where fucking enough bro. You make $100k base and keep like $68k. Sorry, I'm still pissed because I didn't know that going in, especially in NYC.
The fact that you didn't know that there were taxes taken out of a paycheck explains why nearly 6k a month post tax isn't enough for you. Yes this should be absolutely plenty with some left over to save each month as well while living a quite comfortable lifestyle. 2k a month on rent is leaving you with 4k a month to attend to everything else you could need.
68,000/12 = 5,666.6666667
Where am I making nearly 7k a month?
Thanks for the insight mate
You tell him, intern
Who else is gonna pay for the welfare?
It is all about how much you pay for your apartment. There can be a thousand dollar or more difference between you and your peers. If you have Roomate(s) and don't live in that great a spot, you'll have enough money (AFTER BONUSES), to save more than 25% and go out on weekends (as work allows). You won't have enough money to save 25% of your base salary and go out etc.
How much is too much for an apartment in 2021 honestly? There seems to never be a consensus between people on here who say the several hundred a month difference won’t matter in the long run and others who say to cheap out as much as possible on housing since you will never be there anyway (not sure how true now with WFH or hybrid)
1400? 1700? 2000+ ?
Not OP, but IMO $1800-2200 for half of a 2 bedroom is a reasonable amount to spend these days considering the salary increases. Having laundry in building, 2 real bedrooms, and not a 6th floor walk up are all things that make a huge difference even if you're not there much.
Honestly I just started FT and I am shocked with how little I am able to save from paychecks...basically none at all. However I have definitely been going out a ton and I think as work ramps up (only just got done with training) there is no way I will be living the same life so I am not freaking out yet, just enjoying it while I can. But the NYC lifestyle is shockingly expensive for sure
What’s your base and how much for rent? Also do you do 401k deductions at all?
100k, $1700 for rent (have a roommate), yes I do the max 401k match. Honestly my spending habits have been terrible recently just been blowing cash at fancy spots in the city. I think the 100k base is definitely enough to live a normal lifestyle and I am trying to get my spending in check. You should be fine
Not sure how 100k as a single young person can be seen as "not enough." Also consider that much of your weekly food is covered, gym is covered, transportation is half covered. After rent, what exactly do you have left to spend several thousand of after tax dollars on where you're just ~getting by~ on this salary?
Gym is covered?
Deleted
Replied to the other user but we have a general "fitness stipend" of $700 per year
people think they are wealthier because of the 10-15% pay bump but there is something called inflation and if you factor in housing prices / rent prices you can get an estimate of 10% for inflation. so basically you are working more hours with relatively the same wealth. but if inflation goes down then that’s a different story. These numbers are always hidden because the government is constantly changing its consumption basket measurement.
And they’re assuming if they got 100% bonus this year, that they’ll get it again next year on the higher base. For all we know they’ll lower bonuses to keep comp in line.
Not at my bank, according to my staffer
I thought this might happen as well (decreased bonuses so total comp stays about the same), but doubt it after hearing more detail. Cutting bonuses like this after acting like they'll be in the same range is a great way to truly piss off all your employees at year end.
Spend the base, bank the bonus. In a high COL city like NYC even at a $100k salary it is difficult to accumulate any kind of substantial savings without having to make sacrifices. In my opinion spending more on a nicer place and enjoying the little things is well worth the cost when working in a high stress job like IB. Even if you were to spend every penny of your paycheck each month and put 70% of your bonus in the bank you would still be doing quite well.
I hear this “spend the base bank the bonus” saying but I feel like that is very high risk no? There’s no guarantee of a solid bonus or you could be screwed last minute. Maybe I am paranoid but I feel like you should save more of your base. You’re assuming maxing 401k contributions to 19.5k at least correct?
Don't get me wrong I'm not advocating blowing your paycheck each month just because you can, it's always good to have few grand laying around in the event of an emergency and maxing out your 401k is always a good decision. Personally, I save a few grand a month but I'm also an Associate and have a much higher salary than a first year Analyst so it's a lot easier. If you can save then by all means do so but pinching pennies to save as much as you can just isn't worth it, especially when it comes to housing. Not saying it isn't possible but the odds of not getting a bonus is pretty slim, any bank that wants to retain and continue to attract talent won't do that.
It's pretty tough your first two years as analyst to save much with bonus, will have to live with roommates if you want any money leftover to enjoy yourself. Once you hit Associate level, things start to get a lot better. I also basically went with the spend salary, bank bonus approach (it worked out pretty well for me). Ended up investing my bonus each year basically.
Note I have dividend income so thats why the pay per period doesnt agree to the total.
Y only 5% in 401k
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