So I've recently come across a small dilemma. I am on the verge of having the opportunity to work at a few small boutique IBs over the summer as an unpaid intern. I have spoken at length to a few of the bankers at each of the banks about the work I'd be doing and it seems like good experience to leverage for next fall.
My problem is this; I'm from Montana, parents have virtually no money, and these unpaid internships seem to be my only opportunity to earn some experience before next fall. I plan on taking out a student loan (my first) this summer being that tuition has increased and my parents can't keep up. I also plan to take out an extra few grand in order to subsidize myself for this summer. Does this seem worth it? If it leads to and IB job next fall, I'll be very happy with my investment in my future, but I'm still a little nervous about this. Any advice would be superb.
Regards
check to see if your university offers any type of bursary for your situation!
I was in the same position as you but then saw my university would offer £200 for people taking unpaid work experience that would benefit their career - its not a great amount, but would help
but that didnt matter because my work experience has just told me out of the blue that they can now pay me, which means im gonna end up making money, not losing it!
Good call ^
Yes, do it if you're serious, and I get the impression you are. Realize that you are racking up debt that you can't get relieved of, and use this angst to fuel you. $2,000 is worth it in the big picture and you're already in debt, so don't get cheap now and fuck yourself....look at it this way: you're $50K in the hole, and if going up to $52K nets you a job paying $30K a year more than otherwise, you come out ahead. Use debt wisely. This mindset will help you in finance down the road.
Your parents will tell you "just get a job at shoprite like your friends" and "why would you work for free???" so they already don't understand. You have to rely on yourself and others in industry for solutions even if you live in their home. They have no concept of what you're trying to do.
Thanks. I don't think my school would help much. Already maxed out credits for internship experience and they are real assholes here. A kid from Sweden I am friends with worked at a CF internship last summer and took 1 credit for $2500 dollars. I will check into it though, worth a look.
Also consider the recruiting from your school....if you're really serious, make sure you get the best shot possible.
Haha, if there was anything below non target, my school would be heading that list. I've been networking all spring and its late, but hopefully it'll pay off next fall.
Where are the boutiques located? how tough were the interviews?
One's in NYC, the other in CT. And not hard at all. I'm visiting both soon, and while they haven't extended an offer yet, they seem willing and really indifferent about my actual qualidications. I spoke with a few guys on the phone that asked about my grades, prior exp, etc. But they said I'm really just coming in to discuss the details of the job, at least that's what I believe.
how much you need?
This depends, NYC I will need more since I will likely have to get an apartment or take the train from CT where I could live with my girlfriend.
In CT I could hopefully invest in a cheap car, but I could live with my girlfriend as mentioned above.
It's all so up in the air, and with time running out I'm really quite worried. But I'd figure (in excess of my original loan for just tuition), +$5000 for NYC, or approx. +$2000 - 3000 for CT.
First off - sorry that you have to go through this. I'm sure it'll be worth it in the end.
My university has these "scholarships" where you apply to get funding for unpaid internships. You should check with your university to see if they have something similar.
OP have you thought about using http://www.kickstarter.com/ to raise a portion of the fund? Do you have some talent (playing piano like our Mr. Stephen Ridley) and a good storytelling ability to let people finance the internship for you?
Haha, no. Unfortunately I'm an untalented useless cunt. But that's an entire different story.
Thanks though. Maybe I can write a good sob story. I am after all from MT, but after reading the stories on there, I'm not sure how many people in that sort of community would actually help someone trying to break into banking.
I had to do the same thing while I was doing internships. go for it, it will be worth it in the long run, trust me...
Working on the weekends is also a possibility. I was in a similar situation to you once and its not very fun at all but it can be done. There's all types of random weekend jobs (promotional, etc.) so look around on craigslist and stuff
I think that is what i plan on doing. Seeing as its unpaid, they shouldn't be expecting 80hrs / week from me. I want to work weekends. Its only for 10 weeks or so anyways.
I think this is a very bad idea imo. Personally, I think that unpaid internships should be illegal. And often times you end up learning less b/c the company is not as 'invested' in getting work out of you. (That is, if a company is getting labor for free, then they don't worry as much if that labor is unproductive or not learning.)
Maybe your best bet is to talk directly to the bank once you have an offer. Say that you are in the position of needing to take out additional loans to work there as an intern. Maybe ask them if there might be a possibility for a small stipend (1 or 2k) at the end of the summer if you do very well as an intern.
But otherwise I think you would be better off working at a gas station, painting homes, etc, where you can actually earn some $. In this market, your chances of landing an IBD job are low even with an unpaid internship.
I've thought about this (the stipend) and may ask for a little something ($40/week?). But also, I have considered what you said above, because in my mind, unpaid = uncompetitive = unstructured = not learning much. But I've talked with guys at each of the banks just to make sure I'm not getting coffee and printing 40hrs/week. They've told me a would assist analysts in their tasks which seems pretty legit. E.g. @ the real estate in IB, prepping a report on Dallas housing market and economic atmosphere surrounding that market/ our client.
While I agree with most of your post, its all about gaming the system. Regardless of how much you learn, he can always throw the internship on his resume, hopefully get a reference or two out of it, and then leverage that into some FT interviews. The financial upside is more of a long term outlook imo. As a current public sector employee, if it was always about the pay, I would be better off freelance writing/waiting tables/etc. but I know that this job will greatly improve my chances of getting into a top MBA/grad program, then hopefully the pay will follow. Gotta think about the long term.
That having been said, your rationalle is actually accurate and getting a stipend would be a good move if it can be pulled off.
I did an unpaid internship and the experience was awesome. I literally was just like any other Junior guy.
was it at a boutique bank or other sell side? I just finished an unpaid at a managed ETF and mutual fund, it was pretty good experience but I wanna transition to the other side.
My point is that the logic behind "If they are not going to pay you they don't care about you and your experience is going to suck" is stupid. So don't decide based on that.
Try to negotiate for expensing after you get an offer. My last unpaid let me expense transportation and lunch... negotiated with my new unpaid and they are letting me expense transportation and dinners after 7. Still not close to 15k that interns usually get but lunch and transportation does add up...
I know this may seem like a probing question, but GPA?
There has been good advice given in this thread. once you have secured the offer, let them know your situation or ways they can alleviate this financial burden. I hope you get great experience.
Are you asking me what my GPA is at?
If it really makes a difference, 3.4 right now. 3.5 after this semester ends. It is quite low, I'm aware of that. However, my first year sucked. Been getting 3.8s since first semester of sophomore year, so I'm not quite as stupid as I may appear on paper (even though I really don't see any real difference in intelligence between people with 3.4 and 3.9s).
LOL, no. My post was two-fold, one about your GPA, one giving you the extra push to pursue the loan. My intentions were not disrespect you. Sorry you misconstrued what i said.
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