Struggling VP (London)
Hi - I am a little worried about my friend who is a IBD VP in London. He has been asking friends such as myself for money as he seems to be struggling for $.
Today, he asked me to send him another £5k as he said he need to pay overdue rent and bills. I earn half of what he does and I lost it today, and told him to give me an explanation!
So this is what happened..
In 2022 he was paid a total comp of £300k-350k and had amassed savings of £350k-400k thru his career. I understand he made some bad financial decisions in 2021-2022 that led to his savings dwindling to around £50k of which he used the remaining £50k to pay off a loan he took out in 2021-2022. So effectively 0 savings.
Given inflation etc, his yearly spending on rent, food, holidays, clubs has increased from £75k to £100k-125k. 2023 was a bad year and he told me his comp was £250k for this year and he is just getting by. At the same time, he is unsure about his work given low activity and his landlord is demanding another 20-30% rent increase. Given he lost his monies, he is in a bad spot.
What should I do?
“asking for a friend” lmfao…
Person in question is a moron and deserves bankruptcy.
how do you spend over $120k USD on rent / food / vacations as VP in IB?
if your group is remotely busy or decent you won’t have time to spend that much on vacations or food. Needs to lower his rent as well.
Drugs. Don't give them money..
This is the worst troll post of all-time. The story doesn't add up one bit.
This is legit. Are you stupid, do the math.
For the record, the VP in question isn't me.
To address an earlier comment, I feel like it would be in bad taste to be a troll post - this touches on mental health. I know of some quite bad outcomes from people in that position, especially those with gambling debts or other cash flow issues.
I think you should intervene. Depends on how close you are with him, but get him a drink or dinner and try to understand his financial position and his reasoning for spending the way he does. He can't be in his position and stupid enough to see that the budgeting isn't adding up. It feels like there might be some denial or addiction here. You could suggest counseling.
Depending how that goes, it might be worth intervening further, through a close family member perhaps. It might be wise to notify him in advance that you're going to do this. It may alert him to how seriously his friends are taking it and be a bit of a "come to Jesus" moment.
Assuming that this isn't a troll, well done for thinking of how to help him and taking action.
Tell him to move to a cheaper place and cut out holidays and clubs.
del
He’s a grown man who earns £250k in a bad year. He doesn’t need to ask a friend for £5k. If he needs that cash he can just go on his banking app and get a personal loan.
Don’t lend him this kind of money - he needs to sort his shit out, and it’s just going to burn
Sit him down or zoom call the person and say enough is enough. I am not your Daddy. This is the best thing a friend can do. Bailing him out all the times makes it worse.
Do exactly what the IMF and the WB do with EM countries (or Southern European countries): lend the money but intervene in his finances imposing a restructuring & austerity plan. If he's struggling financially, he shouldn't keep his membership in clubs for instance. Give the cash but impose sound financial conditions.
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