Saw some guy on another post say he spends over $300k/year (but makes over 7 figures annually). Curious to hear what your annual spend breakdown is on stuff like rent, food, clothes, vacations miscellaneous etc?
And what income are you making to support that?
| +227 | Coverage Banking is Paradise | 29 | 5d |
| +111 | London Recruiting is Paradise | 45 | 15m |
| +101 | UBS preparing for a October Layoff Massacre | 72 | 3m |
| +77 | My Motivation Is At An All Time High | 13 | 3d |
| +48 | Is 7 years in banking enough to retire, or am I delusional? | 26 | 3h |
| +41 | Do actual investment bankers despise IB TikTokers as much as I think they do? | 25 | 1h |
| +39 | Work and Suicide | 19 | 2h |
| +33 | MM IB --> NYC IB? | 17 | 22h |
| +24 | Negotiating VP Sign-On Bonus (NOT Tied to Deferred Comp)? | 22 | 12h |
| +24 | Should I escape the matrix | 3 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Based on the most helpful WSO content, I can share that I use an Excel template to track my annual expenses and sources of income. I list out every single monthly expense I can think of under expenses, such as rent-related, transportation-related, medical, grocery, personal care, etc. I do not include discretionary (not mandatory) spending. Under income, I list my AFTER-TAX income.
To calculate net income, I subtract the total annual expenses from my total annual income. Then, I set a savings goal. For example, I set my goal (without bonus) to 20k. If you divide by 12, that is the average amount you have to save each month (ex. ~$1,650). Subtract that annual savings goal from your net income and the remaining balance is your annual "Discretionary Spending" total for going out, big purchases, etc.
Each month, I immediately move the set savings to a high-yield savings account (~2% interest) so that I can build up a comfortable reserve for emergencies or other large expenses.
As for the breakdown of my expenses, I'm afraid I can't provide a detailed breakdown as it varies based on various factors. However, I can share that there's an age-old adage that your monthly housing expense should never be above 30% of your after-tax income.
Remember, everyone's financial situation and spending habits are different, so what works for me might not work for you. It's always a good idea to tailor your budget to your specific needs and goals.
Sources: How much have you saved?, What percentage of your after tax income is devoted to housing?, Is my IB analyst personal budget realistic?
Currently a VP3. No kids yet. Estimating that I spend roughly ~150k/year
80k on rent
25k on food
10k on clothing
20k on vacations
15k on other/misc
My base salary is 275k and wife makes 200k.
Is that combined spending or how do you split the expenses with your wife?
Quidem rerum ut at maiores nulla. Ut alias sequi earum tempora quaerat. Quaerat blanditiis autem aut non. Sint voluptatibus hic quam ad qui et nam aliquid. Quae facere qui qui voluptates. Deserunt vel praesentium nihil iste et.
Fuga optio vitae voluptatem est ex consequatur nemo ipsam. Quo aperiam qui qui cupiditate. Corrupti sed impedit ut blanditiis voluptas. Natus dolorum tenetur aliquid quae dolores. Dolor ipsa et esse asperiores placeat distinctio.
Quia dolore est in dolor. Quisquam repellendus nostrum ratione et qui voluptatem enim. Nisi est quia aut magni. Aliquam placeat doloribus dolores voluptas. Ullam quaerat quidem aut consequatur suscipit. Sed illo debitis animi sit.
Omnis et suscipit ut. Sed explicabo alias aliquid. Dolorum quia magnam dolores ipsa. Accusantium enim quis dignissimos provident quod. Assumenda vero vel non consequatur debitis. Eum tempore quaerat natus inventore totam.
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...