Rent NYC - Associate
What do you all consider a fair number to pay for rent if I’m making $160k base and $175k bonus?
I’m penciling for $4k is that a fair number?
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Based on the most helpful WSO content, a general rule of thumb for rent affordability is to allocate around 30% of your gross income to housing. With a $160k base and $175k bonus, your total annual income is $335k. This means you could comfortably spend up to $8,375 per month on rent if you strictly follow the 30% rule.
However, many in NYC finance roles aim to save aggressively, especially early in their careers. A $4k monthly rent would be approximately 14% of your gross income, which is a very reasonable and conservative choice. It allows you to save a significant portion of your income while still affording a decent 1-bedroom apartment in neighborhoods like West Village, Soho, or similar areas.
If you're looking for more flexibility or amenities, you could stretch to $5-6k, but $4k is a solid, financially prudent number. Just ensure you account for other costs like broker fees, security deposits, and upfront payments when budgeting.
Sources: Millionaire by 30, How much money to "feel rich" in nyc?, Best neighborhoods to live WITH GF in NYC (and timing) - 1st year IB Analyst Midtown Summer 2019, How much do you spend on rent as an associate making 275-325?
$4-5.5k. Trust me, a poor quality or small apartment will enormously hinder your mental health if you have long hours in IB/PE.
I am an associate making $400k TC. Is spending 5k for a one bedroom reasonable or irresponsible?
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