Just accepted consulting job offer (100k base salary) and now I'm deciding whether I want to live in NYC or in NJ after graduation. I know I can "afford" NYC, but I also am aware of how much expenses can pile up, and I do want to save a solid amount for long-term goals (down payment, retirement, etc.) because housing/retirement is not cheap and I want to set myself up well. Given the insane tax rates, what would a budget look like in NYC? I know a bunch of you all live/have lived there, so I'm sure you have experiences (that's why I ask on this thread). I aim to save 2k/month and do not intend to get a car. How much do you spend on subway passes, utilities, groceries, etc. in NYC?
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on 100k, max your 401k contributions (19.5k p.a.) and you should have ~5k take home monthly. Budget anywhere from 1.5 - 2.3k for rent (find a roommate or two, IMO it isn't worth saving 200 or 300 bucks a month if you have to live in a shithole vs. a nice doorman building with amenities), 1.5k for monthly discretionary spending, and save the rest. 19.5k pretax 401k savings + ~15k post tax savings p.a. on base is solid.
Utilities anywhere from $50/100 per person, subway can be $50 - whatever the monthly pass is nowadays depending on how frequently you use it, groceries can be $150 - $400 depending on how often you cook for yourself, etc. Eating out will likely be a big part of budget, but depending on if your firm expenses weeknight dinners, you can comfortably go out on weekends and still be fine
Hmm if you @parmesan123123 are a girl, avoid having roommates. Chicks r crazy and you don't want a random ass dude in your apartment. Live in NJ (like Newark) and commute to NYC.
Yeah, a girl living alone in one of the most dangerous cities in the country, brilliant idea
If OP maxes out 401k within a given year, he will have almost 1,000 less available per month. I would highly recommend for a person that just graduated to max up 401k only up to a company's match. That 1,000 could be used for traveling, as well as setting up an emergency fund in case shit happens.
Don’t go to NJ, live in Manhattan.
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It’s very doable to live in Manhattan on 100k base. Keep rent w/ utilities at or below 2k ideally. With 401k maxed you’ll still have plenty of budget for fun and groceries and a nice gym membership. Feel free to save the last few hundred each month for rainy day (or a vacation lol) and you’ll still have employer 401k match and a bonus to look forward to. No sweat, just make sure you either have a bunch of savings or family support for the first month getting on your feet. Security deposit + first month’s rent + waiting a few weeks for your first paycheck which goes straight out the window for second month’s rent is brutal lol. After the first month working you’re 100% in the green though
Not sure if/how much student loans you have but otherwise:
1. Roth IRA max out now easy $6k (backdoor it if you want to be safe takes a second)
2. 401k max out 19.5k...if no match just elect for 40%+ contributions on your pre-tax income so you can max it out quickly especially since a new year will start in 4 months and limits will reset
3. Agree with the other post and don't bother skimping on rent or going too far/shithole it's just not worth saving the $3000 over a whole year
4. Dump the rest of savings as much as possible into investments and not things that will suck your cash flow for temporary pleasure ETFs, SPY, emerging markets, dividend stocks, covered calls, crypto, gold, etc. just do it all
Would you all recommend pre-tax or Roth (post-tax) 401k? Assuming post-tax if it's offered?
Think the consensus is (for first year analyst) pre-tax 401k up until company match, then Roth IRA up to max of 6k, then rest into 401k at your discretion.
Do pre-tax unless you're in the very top tax bracket (like over 400k). You already have roth exposure with the roth ira which you should have maxed first before anything. This way you get best of both worlds.
get a stealth camper
I've been working a theory on the best way to go about this, and I think I've come to a pretty solid conclusion on it: A used hearse
dress up as the undertaker corporate ministry era for extra stealth
Staten Island or bust
In all seriousness are you working on the West side or East side? Midtown or FiDi? These questions will help better assess the situation.
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