Building Wealth and Saving Money (Regrets)

Incoming full time analyst. Doing calculations on living in NYC. All in rent + utilities + wifi around $2600. After taxes, looking at sub-$5000 a month. How much of this would you guys usually be saving/investing. Based off a $110,000 salary. If I'm off on my calculations, please correct me too.

Kind of regretting spending so much on expensive dinners/eating out instead of making food at home over the last year (senior year). I also could've definitely spent less on drinks when I went out. Rent could've also been cheaper (I was spending $2100 total every month senior year for rent + utilities + wifi + furniture rental).

I'm planning on not going out as much and if I do buying cheap beers and also pretty much just meal prepping. Wish I was better with my money over the last year with going out, but such is life.

Anyone face similar regrets?

8 Comments
 

I spent it all in my 20s and have no regrets. Damn NYC living is expensive but worth it. I created a wealth of connections.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

Based on the most helpful WSO content, your calculations seem fairly reasonable, but let’s break it down further to give you a clearer picture of your financial situation as a full-time analyst in NYC.

  1. Income and Taxes:

    • With a $110,000 salary, after taxes, you're likely looking at around $5,000/month in take-home pay. This aligns with your estimate of being "sub-$5000."
  2. Expenses:

    • Rent + utilities + WiFi at $2,600/month is a significant chunk of your income.
    • Other costs like food, transportation, and discretionary spending (e.g., going out, gym memberships) will likely add up to $1,000–$1,500/month, depending on how frugal you are.
    • This leaves you with roughly $900–$1,400/month for saving and investing if you stick to a disciplined budget.
  3. Savings/Investments:

    • If you aim to save $1,000/month, that’s $12,000/year, which is a solid start.
    • Many analysts save around $1,000/month by leading a Spartan lifestyle, as noted in WSO threads. This includes having roommates, meal prepping, and cutting back on unnecessary expenses like frequent dining out or expensive bar tabs.
  4. Regrets and Adjustments:

    • It’s common to look back and wish you had been more frugal, but the key is to learn from it. Meal prepping, limiting expensive outings, and being mindful of discretionary spending are excellent steps to take now.
    • Consider having roommates for the first 2–3 years. It’s a great way to save money and build a social network, especially since you won’t be home much as an analyst.
  5. Long-Term Perspective:

    • NYC is expensive, and taxes eat into bonuses (up to 40–50% effective tax rate). However, if you save consistently and invest wisely, you can still build significant wealth over time.
    • Focus on maximizing your 401(k) contributions and consider opening a Roth IRA if eligible. Automating your savings can also help you stay disciplined.

In summary, your plan to cut back on going out, meal prep, and save more is spot on. Regrets are natural, but what matters is how you adjust moving forward. Stick to your budget, and you’ll be on track to build wealth even in a high-cost city like NYC.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

No regrets, I obviously invest what I can in my PA and 401k but what makes me enjoy working is using the money I save to upgrade my wellbeing and lifestyle such as:  signing up for nice gyms/taking on new hobbies, going out with no worry about money, going to multiple concerts & festivals, taking girls on dates to cool bars, living in a nice apartment with the ability to host/have friends over without having to accommodate multiple roommates, buying nice clothing, sending money to siblings for their bday/holidays, investing in decent cookware & furniture, etc.


Hoarding for the sake of it and being overly frugal with no intent to use the money is a mental illness. I have acquaintances who make similar to me and will text me the next day about a $15 Uber he called…don’t be that person please.

 

You won't have to worry about meal prepping as an Analyst - your dinners will be on the firm.

Just max your 401k and throw it in a low fee target date fund or something. If you have too much as an Analyst you're going to go insane. 

 

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