Personal Finances in IB
Hi all,
I am an incoming IB analyst in the regional European office of a BB bank who wants to start building saving habits.
My salary after taxes and deductions will be c. 1900€/month and I was thinking of creating a separate bank account to track my expenses that would split as follows:
- 1120€ (58%) on rent, utilities, cleaning, and food
- 450€ (24%) on savings of which 300€ would be invested on equities' ETFs and 150€ on cash savings
- 350€ (18%) on discretionary items like gym, restaurants...
Going to the point, the main concerns I have are:
- Would investing 1/2 the money in an ETF replicating the Nasdaq and 1/2 in an emerging markets ETF be enough to have a relatively diversified portfolio with expected positive returns in the long run?
- Is 350€ a month on discretionary items too little? I feel that building social capital/bonds by going to eat out with people from the office/colleagues is money well spent. How did you guys manage to strike a balance between going out and saving money? Also, would it be worth asking the firm to pay a certain amount of money in species if I already know I will be spending that amount on eating out?
- Does anyone have any specific advice regarding personal finances when you are starting out in IB?
Thanks a lot in advance!
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