Net Worth And Savings Topic
I’ve been seeing some posts on here about some fellow monkeys in my age group with what I would say are massive savings. I still feel like I have decent savings and steady growth in my about 4 years post grad but I’m impressed with others on here.
I’m in the nyc area so that could be a factor. Other than living expenses + taxes + rent I don’t blow my shit on extravagant things but I’m not frugal either.
I have a little over 200k total across savings, checking, trading account, 401k, Roth IRA, and regular ira that I’ve built up. I’m living comfortably and comp is around 200-250k a year and am choosing to do 9-5 where I just grind hard so I can leave and forget about work turn off emails and thoughts until the next day.
I’ve seen some analysts and associates in groups on here mention savings etc of 350-700k. I’m just curious how it’s done estimating around 150k-300k total a year analyst and associate levels.
Am i missing something that’s eating into me heavily? Pretty happy with my situation just curious if there’s more to do as I save and wait to buy a spot at the right time. Don’t see too much to change but if I can continue to build better for my house or own apartment I’d happily switch more things around. Appreciate the help and info in advance fellas!
Hey there, fellow monkey! It sounds like you're doing pretty well for yourself, but I get it, we all want to make sure we're maximizing our potential.
Based on the most helpful WSO content, it seems that most analysts after a 2-year stint end up with about 10k - 30k in savings. This is due to the high cost of living in NYC and taxes. Associates and up would save much more assuming they don't spend beyond their means.
In another thread, an analyst in Chicago shared that they pretend to live on a $120k salary to keep expenses reasonable. They also mentioned the importance of avoiding lifestyle creep - the tendency to increase spending as one's income increases.
So, if you're looking to boost your savings, you might want to consider a similar strategy. Keep your lifestyle steady even as your income grows. It's also worth noting that everyone's financial situation and priorities are different, so what works for one person might not work for another.
As for the analysts and associates with savings of 350-700k, there could be a variety of factors at play. They could be living in areas with a lower cost of living, they might have additional income streams, or they could be extremely frugal.
Remember, it's not just about how much you earn, but also how much you save and invest. Keep grinding, and you'll reach your financial goals in no time!
Sources: Analyst Budget Thread Follow Up--Actual Expenses For An Analyst & Associate In Chicago, Net worth/savings of analysts and associates?
Bump, cause your savings seems like a normal amount and the others seemed very high so would love to see others answer
Would like to know how other 1st year analyst are budgeting. I save 1k a month, 7% to 401k with 6% match. Estimate a gain of $45k to my NW by the end of the 1st year, from working. Overall NW will be around 60k. Would say my spending habits are also above average.
Agree with the comment above, in prior topics I've read the savings numbers don't seem realistic... I'm an An3 and have $150k net worth. I save about $1-2k per month, max out my traditional IRA ($6500), max out my 401k ($22500), max out my own individual HSA (~$3000) and save a lot of my bonus. I definitely could be saving more on a monthly basis, but I enjoy convenience (doordash expenses) and social activities (dates, bars, etc.) to help keep me sane in IB, which I think has really helped me out with burnout. What I like is that I haven't had too much lifestyle creep, and I'll make so much more as an aso, vp and higher, assuming I'm competent enough. Really think I'm a lifer in IB (at a MM now, will move down to a boutique that has more of a lifestyle fit), and that means I don't have to have a massive portfolio savings wise when I'm only 24 and have a lot of years ahead of me
I’ve been working full time for just over 4 years, and am at ~150k saved between 401k, Roth, cash, and some liquid investments. I also own a home with my wife (mortgaged, but still). Doubled my comp in the last 18 months and have doubled my total saved in that time frame as well. Currently pulling in ~225k and will be leaving the city soon.
I imagine I am behind most that went the IB / PE track, but knowing my circumstances and career switch I’m personally happy with where I am at and where I see my trajectory (career and finances wise) over the next 3-5 years.
Most of mine came from the massive run up in real estate and stocks since I started working 8 years ago. I've always aimed at saving ~15% and piling that into stocks and real estate. I don't live in NYC (more of a second tier market).
22: $36k
23: $53k
24: $92k
25: $133k
26: $161k
27: $201k
28: $293k
29: $386k
30: 400 something individual, 600k something household.
Can you talk about career moves you made to reach that kind of comp?
Those are net worth numbers not comp.
I used to get caught up in my net worth calcs. I’m 6 years out of school now, around $375k net worth after stocks have pulled back recently. It’s not a ton, but I don’t care.
Reality is that our future net worths will largely be determined by the big bonuses or carry checks we get in our 40s. You have to throw out the conventional personal finance wisdom of save x% every month and let it compound, because it just doesn’t apply to people who have the potential to make millions in their 40s but only pull $200k in their 20s.
You analysts who are saving any % of your base salary need to chill. $12k of extra savings annually will mean absolutely nothing to you in the long run. But $1k extra per month in spending means a couple more fun trips with friends, nice dinners with the GF, and overall a much better lifestyle. Live your life to the fullest in your 20s and worry about getting to the level where you can make millions.
If anything, I feel like I’ve saved too much for my age. Should’ve spent more on experiences
I have two experiences I wish I had done in my 20s:
- Trip to Tahoe from NYC to snowboard with friends. I didn't want to take the days off of work at the time and didn't take much vacation that year.
- Trip to Austria with the hottest girl I have ever met in my life. She said I should visit for "Sex and Snowboarding" - again I didn't want to take time off of work and didn't want to spend the money, but maybe she could have been the one. She later married the Austrian snowboard coach.
Post piccc
Agreed, not a financial advisor but I also think that instead of maxing out your 401k, why not spend the extra 20k yearly on trips, nice food and other fun stuff for the first 5-10 years out of undergrad to treat yourself, and then start saving more after that
It’s better to maximize more experiences during your youth, you’re just sitting inside all day when you’re 65+ anyways.
*Sitting inside all day at 65 **alone**...
Maxing your 401k has such a massive tax benefit, you should first reduce your savings from elsewhere before eating into 401k
About 150k net of student loans, which I’d like to pay off over the next decade. Then at that point I’m hoping to have enough for a down payment on a suburban house somewhere near nyc
At about 200k so far. Generally try to be frugal with my largest non-rent related expense being travel. I try to take at least 3 vacations yearly, usually one is through points. It prob costs sub 10k total and creates good memories when I go with friends or family. Fewer opportunities for these trips as you get older into your 30s or 40s as friends move or drift away and family gets older
I also spend a little more on red meats at the grocery market. Unsure why but my general mood is boosted when I consume these meals
I’m an interesting case
While I’ve never made that much money, I’ve been savings rate > 70%
Age 29
Net worth: 550K (all low cost index funds)
Comp: 150k
Honestly I’ve just been a rat, living at home, and saving haha. I started at like 40K too.
Wait, just to be crystal clear: everything is in stocks? No liquid to act as a buffer?
like 10-15k cash. Lean, but doable.
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