Rent for Associate Comp

1. Never count bonus as a given for living expenses.

2. Pay what you are comfortable based on your financial and living goals. Don’t need to follow a general rule of thumb.

The 1/40 rule is another way of saying 30% of annual salary. That is a lot of money with your numbers. I would try to keep it under $4k. 

Find a decently nice 2bd or 3 bd and a roommate or two, it generally costs less than getting a studio or 1bd for yourself.

I really wouldn't look at it in terms of max rent you could pay before you hit above some threshold, that's how you end up constantly spending more each time you get a raise. The most you should spend on rent is not a penny more than what you need to, in order to meet all of your absolute needs and most of the wants that will actually make a difference in your day to day life. Avoid new and shiny buildings - they're way more expensive for fancy architecture and often have more problems than solidly managed, well-maintained renovated places that god forbid have black appliances instead of stainless or are made out of brick instead of curved glass. 

I’m still an analyst but have a solid budgeting system and a really good grasp on what I’m spending. For context, I’m typically saving a small portion of my paychecks and 90% of my bonus and am currently just north of 20% of my gross salary going toward rent.

I ran the numbers on what I can comfortably afford at the associate level and even at 30% I’d still have a significant amount leftover. Not saying I’d want to spend that much, but I think it shows how if your every day spending stays in check, it offers you a lot more flexibility on housing expenses. I think avoiding the lifestyle creep starts with assuming the bonus isn’t guaranteed.

The obvious answer is as low as possible while checking off your criteria for an apartment.

My general rule of thumb has been:

- Analyst: under $2k (2 roommates)

- Associate: under $3k (1 roommate or basic 1 bdrm)

- VP: under $4k (good 1bdrm)