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?
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.
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.
Income and Taxes:
Expenses:
Savings/Investments:
Regrets and Adjustments:
Long-Term Perspective:
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.
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.
Don’t ever regret blowing money before the age 30, it’s the best time of your life man.
Unless you’re in debt to fund your degen behavior, don’t worry about it.
I once blew mid six figures gambling, but sometimes when I’m bored sitting in the office, I wish I was back in time blowing that money all over again.
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.
Saved a little over 100k in cash / stock over my analyst years, while traveling consistently and living very comfortably. Put away 10% to 401k each year. Was paying 3k in rent. Meal prepping is a good way to save money and be healthy
As others have mentioned, enjoy your new $ and make the most of your free time as an analyst… otherwise you’ll be miserable for two years.
Base salary: max out 401k and spend the rest
Bonus: save 100%
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