Saving in London
How much of your total comp do you typically save in Ldn? Especially analysts
How do you split your comp across rent/leisure/etc…
Trending Content - Investment Banking Forum
Career Resources
Based on the most helpful WSO content, saving as an analyst in London can be challenging due to the high cost of living. Here's a breakdown of typical expenses and savings patterns:
Rent: Rent is often the largest expense. Analysts typically spend a significant portion of their income on housing, especially if living in central areas like Zone 1 or 2. For example, a 1st-year analyst earning around £50k base (approximately £3k/month after tax) might allocate 30-40% of their net income to rent, depending on location and whether they share accommodations.
Leisure and Lifestyle: London offers a vibrant social scene, but it comes at a cost. Dining out, nightlife, and other leisure activities can quickly add up. Analysts often spend 20-30% of their income on these activities, though this varies based on personal preferences.
Savings: Savings rates vary widely. Some analysts report saving 10-20% of their total compensation, while others struggle to save due to high expenses. Bonuses can significantly boost savings if managed wisely.
Other Expenses: This includes transportation, groceries, and miscellaneous costs. These typically account for 20-30% of monthly income.
If you're aiming to save more, consider sharing accommodations, limiting discretionary spending, and leveraging your bonus for savings or investments.
Sources: London Rent / Living Arrangements 2019, https://www.wallstreetoasis.com/forum/investment-banking/investment-banking-in-the-uk-an-overview?customgpt=1, How much are you able to save as Analyst in London?, Investment Banking in London (EMEA) - Strongest Players, League Tables, Salaries, Differences..., https://www.wallstreetoasis.com/forums/compensation-differential-nyclondon?customgpt=1
Let's say
70K base + 50% bonus.
Save the entire bonus and you have roughly 16k. That is what you dump into your ISA.
Month to month depending on your expenses you can save between 500-1000. (6-12k)
And then also max out pension matching. At my firm it is 6% + 6% match, so you get 12k in your pension at a real cost to you of around 2k.
Bonuses don't usually get matched for pension contributions. The real cost to you is probably more like ~3.5k with ~10.5k going in pension (assuming you contribute 6% of bonus). Still a good deal.
I was working off 70K base for my calculations according to Claude. My contribution (70k * 0.06) = 4.2K, mandatory contribution from employer is 6% so another 4.2k and employer matches up to 6% so another 4.2k
12.6k going in. Calculations for the real cost taking into account the tax saving below.
Ah then you should've said so. What you said was 6% + 6% match. Not all employers give non-contributory allocations too.
Dolorem consectetur qui facilis sint hic. Voluptas earum doloribus quia ex repellendus. Quisquam saepe natus corrupti at quia. Tempore quo nostrum eos voluptas voluptas deserunt ipsa. Reiciendis eveniet adipisci at id et qui repellendus. Qui dolor at temporibus sint. Natus autem unde culpa magnam cumque architecto aut.
Sed ex fugit nostrum delectus qui. Non explicabo voluptatibus quia dolores ipsum et perferendis. Dolorem voluptatibus quas est ut aliquid et. Ut quisquam voluptas eum sed molestias laudantium corrupti. A veniam neque est omnis. Numquam ut autem officia sed molestiae blanditiis blanditiis et.
Quia distinctio autem et aut a. Et accusantium in sit dignissimos laborum. Sapiente eos dignissimos ut sit qui facilis dolor corporis.
Deserunt perspiciatis ut quis provident numquam repellendus. Laudantium molestiae aliquam velit hic delectus. Earum odio consequatur et cupiditate sequi.
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...