Interested to hear everyone's thoughts/experiences during their first year making IB money.
Also interested to hear about how your background/upbringing was.
I didn't grow up with much, so I imagine I'll be pretty stoked despite the hours.
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Grew up lower middle-class, so usually living pay check to pay check. I remember a couple land marks like getting my signing bonus or first time getting paid at that level felt really cool. I will say, however, that often high wages come with high expenses due to the limited number cities that you can do IB in, and that until your bonus, things stay somewhat tight. One thing to keep in mind is that you shouldn’t feel like you’re making $170 a year (or whatever your all-in will be). For the first year or so (depending on Stubs), you will need to just live on your base.
Following
Sucks, worst year of life
What‘s it like to earn an IB salary (street) in a low cost city?
gave an answer below.
This honestly depends most importantly on where you are living.
Bump, curious how LA compares to NYC
While CoL in LA can be incredibly expensive depending on your lifestyle or if you choose to live in the most expensive areas, you can find nice apartments for 1600/month with ample room, which is pretty much unheard of in NYC.
Grew up middle class so it seemed like a lot of money to me coming into it, which it is. I got 150 that year with an 85-65 split. Honestly once I was in it, the salary was nice in that it covered the bills and then some, but it is really nothing crazy after taxes and expenses in NYC. It's not like your swimming in bread. The bonus was nice too, but it got hammered by taxes as well. Still, seeing about 40k hit my account all at once was uniquely hype feeling. I had just never seen that much money before, and all of a sudden, there it was. It was basically just numbers on my bank's website, but still pretty cool. Part of me wanted to take it out in cash and put it on my bed and just lay down on it like Huell from Breaking Bad lol but that would not have been a good idea, plus it wasn't Walt's 80 mil. I think the associate rank where you get 250-300+ in a year is where it really starts to feel like a lot of money, where you can do a lot of things with it and still have some to spare.
Feel bad for those who gotta pay for their own Seamless. Adds up.
Taxes.
Just crossed the 1 year mark in a LCOL city. Have spent the last year aggressively saving, 25% of paychecks go straight to retirement accounts, then I throw another 30-40% of whatevers left over into my savings account (~1400-1500 i don't see per paycheck). Crazy how quickly you can build up when your expenses are low (sorry my NYC dudes) I essentially have the ability to live like I make 55k/year after putting everything away and still have enough to have fun. Have a nice lifestyle bonus inbound and my first FY bonus in August, grateful and lucky to say the least. Will hopefully have ~100k to my name by the end of 2021. Plan to live the same way through my 2nd year giving me the freedom to hopefully pursue something relatively care-free post banking.
This is why I chose a LCOL over my other better "ranked" options in NYC and SF. It may seem a marginal difference in the first year particularly before bonus, but it ramps up fast and freedom can come quick. Would it be possible to say which city? Would be helpful, thank you.
H-town.
Houston for the win
How does Chicago COL compare to Houston?
It is definitely more expensive, not as much as NY/SF but being in Texas is really on a different level in terms of COL imo.
I don’t understand the purpose of being so stingy when you work so hard.
Don't really view it as being stingy. Its honestly an absurd amount of cash for someone who just turned 23, what do most 23 year olds spend money on anyways? I have plenty left for going out every weekend and my rounds of golf. Didn't have to worry about paying for Mexico trip this summer, have plenty of clothes already but if i see a nice polo I can buy it without thinking twice. Have a cheap gym membership 2 blocks from my house. I've had a blast my first year out of school and honestly don't really know what else I could spend money on without it just being wasteful, so why not build up my wealth?
It's a ton of money for a 23 year old with no real expenses other than rent. I don't really think twice about spending money and am still saving a good chunk.
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