NYC Associate Budget
Ignore my current job title. I recently accepted an IB Associate gig in NYC and will be relocating from a LCOL city in September. I'd appreciate some guidance on budgeting for NY, particularly when it comes to rent.
My base salary will be $190k, and my office is near Hudson Yards.
Ideally, I'd like to rent a one-bedroom apartment within a reasonable commute of the office. What would be a realistic monthly rent budget?
Also, do most investment banking associates live alone or share apartments? Which neighborhoods are most popular among young finance people?
I've also been considering living in NJ or even CT to save on taxes, but my group is known for very long hours, so keeping the commute as short as possible is a priority. Plus, I would also like to get to know what living in NYC is like.
Invest in a nice apartment. IB is tough.
I am at $175K base and ~$125K bonus and pay $5100 for my 1BD apartment in SoHo. Worth every penny. I love being in a nice, action packed neighborhood and it lets me have fun during the few hours I’m off. Having a good space is so critical to your mental health in IB, trust me lol.
You also probably won’t have a car in NYC so think of that as an extra ~$700 difference with insurance when telling someone how much you rent for when they probably also pay for their car. f
That is kind of a high amount of your base salary going into rent. OP I would not go this far personally...I would probably target closer to $4k per month spend if you're making $190k base...never assume bonus when you're making these decisions. That being said, different strokes for different folks.
Which shop is paying $190k base lol
I'd imagine a boutique/EB?
is that considered high or low
High
I lived with roommates for the first half of As1 (cause I went A2A and was already living with them).
It was honestly hard to focus on work and relax properly. Don’t get me wrong I loved living with those guys but 5 out of 7 days in the week I had to be pretty dialed in. Would’ve been nice to have my own space (like I do) on my off days / time.
invest in a nice unit man. I love coming back to a clean/ amenitized building
Unless living alone is a big deal for you, I would recommend sharing with 1 or 2 people.It does make a massive difference in savings.
I kept my housing expenses below $3.5k until I was promoted to ED and I moved in with my fiancee.
What are the best areas in nyc for luxury style / feel studio apartments in nyc? It would be great to be under $3.7k/month
I’ve only seen good ones in FiDi and maybe Murray Hill on street easy
A lot of the other areas like EV or even UWS / UES look like old units / walk up style
You might be able to find some gems in Central Park South. Lincoln Square has a lot of new builds that fit your budget too
Agree with another poster. What works for me personally is to keep costs as low as i can, especially since I’msingle. That extra money worst case goes to my investments (which is a VERY good worst case) and best case becomes freedom units I can blow at will without guilt on nice things or experiences.
There is tremendous value psychologically, not just financially, to knowing you are living below your means. You sleep and breathe easier, and make decisions easier. It gives you leverage over your employer AND it gives you leverage over your personal life. People who spend at or above their means always have to be on their knees using two hands at work because they need the salary. But if you live below means, someone asks you if you want to ski trip in France or hike on a Pacific Island and you can say yes without hesitation.
You have to consider how much you really value sleeping in a building with floor to ceiling windows. The view is nice for first night, then the $60k/yr annually you’re spending for it is a permanent drain on your capital, making someone else richer. I’ll upgrade apartments when I have a woman living with me who expects nice things and is worth spending on, otherwise my studio works great. I’m constantly out of the house, whether for work or training or play, so I don’t feel much loss.
For reference make $325k, working off $200k base and excluding bonus my max rent would be $200k/40 = $5k/mo. Instead I spent $3.5k and live in a studio. That $1.5k a year of buffer goes a long way mentally and financially, because that’s money going to me making me richer whether in investments or experiences or things I love, not going to some landlord making him richer. This isn’t advice, just what works for me.
Totally agree about living below your means. It’s not even like you need to be a penny pinch a ton. Spending 3k instead of 5k on rent will save you $50k over 2 years and a lot more than that if you throw it in the market. You could spend $100 on dinner before going out every weekend and still have $40k
The ability to say “no” or be assertive is such a blessing in disguise in this industry, especially as a junior. “No, I cannot move my summer holiday”, “team, I will be OOO on x for a wedding.” “Team, my parents will be in town and I am leaving at x for dinner” Meanwhile, a lot of my colleagues are stressed about money and they need to be top bucket to maintain their lifestyle which means they constantly. Meanwhile, the difference between upper mid (around 80 percentile) & top bucket is made up by my investments.
At the end of the day, if I was let go it wouldn’t be stressful and would be freeing. I get someone to sublet my apartment and a 1 way ticket to the beach to evaluate my life. Not desperate for a job and can wait for the right opportunity and feel pretty confident with my resume I could find something.
But you will be exceptionally better at your job, healthier, and happier with an apartment that makes you feel good.
A 3k APT in NYC is dog shit unless you’re in the Bronx, let’s be real here.
If having a comfortable set up to sleep well, exercise, and enjoy life while working so hard you will do much better in your career. That is more valuable than the incremental “40k” you save over 2 years for a life time of 80+ years lol
Iusto alias pariatur eligendi sint cum et consequatur. Omnis tempora fuga quas cupiditate incidunt. Sed ea commodi sapiente.
Nam quibusdam atque aperiam et aut unde. Est accusamus sequi optio voluptas. Et voluptas expedita excepturi a aliquam. Itaque sapiente recusandae sequi et assumenda amet impedit.
Dolore in sint qui autem qui adipisci recusandae. Assumenda impedit officiis placeat dicta. Rem sequi voluptatibus exercitationem sequi tempore pariatur. Perspiciatis debitis eos aut sapiente. Mollitia est non perspiciatis ut quas.
Adipisci voluptas et voluptatibus porro eos. Rerum molestias qui eum ipsam est reiciendis. Amet itaque quasi quo dignissimos sint. Ex adipisci ea sint. Aut ipsam sit laborum fugit unde et. Earum vel architecto minima qui illum provident.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...