Building Wealth and Saving Money (Regrets)

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.