I got a 1 bedroom for $3750 pm as as associate 1 when my base was $150k. Total all-in ended up being $300k that year
Now I’m a VP with base of $250k and all in should hit $450k this year (hopefully more but budgeting a low bonus % wise) if not more.
I feel comfortable in my current apartment where rent has gone up to around $4k now.
Should I be switching apartments. People find it weird that I haven’t upgraded from apartment I had as a first year associate.. but I feel I probably took an apartment back then which my salary didn’t justify and it’s only now where the apartment matches what my salary can get.
Would make sense to but if you want to avoid lifestyle creep, upgrade less than what you can fully afford.
Could your VP salary/income cover the higher rent expenses? - yes.
Best to spend what you’re comfortable with on rent. This reminds me of a VP I had many years ago, who was renting a 3k/month apartment. When I asked him why he didn’t want to get a nicer place as he obviously could, he said he only wanted to budget his yearly rent to less than 2-3 months of annual pay / severance in case he was ever let go (and this was coming from our best vp). Been renting based on that logic ever since.
I won't because I 1. overpaid a bit for rent in my early analyst days, 2. saving up for a house / condo (not NYC, san fran), 3. generally try to avoid lifestyle creep - my apt is nice enough with many amenities. If your bank isn't WFH past ~6 or a hybrid cycle and you're in the office at a facetime shop, it'd be a waste of money to move up in apts anyway since you wouldn't use it nearly as much
I am currently pay about 2k/month on my dorm. I would expect to do similar for analyst years. For associate I would probably have 3k per month and vp some where between 3-4k monthly.
I don't see the point of doing this job if you're going not forgo the lifestyle perks but maybe I'm crazy
I actually have the opposite take - what's the point in working those jobs if all you do is burn your money on things you can't enjoy because you work all the time?
Wb if you do have the time to enjoy ?
All depends, I was in a studio right out of grad school, then upgraded to a 1bd after a big promotion. My gf ended up moving in so we looked to buy or rent a bigger place. I budgeted off base leaving out Bonus. I continue to do this and have upgraded and now paying 4500 a month but needs changed, my gf moved in, we decided to rent for a while, until housing market stabilizes2, she is looking for a promotion as well, so we kept upgrading. But we don't plan to upgrade space or size if we rent somewhere else or buy a place. Even if our salaries are higher in 2-3 years. If i was still single I'd probably still be in a studio since I'm in the office 5 days a week and went out all the time when I was single. I think only upgrade if you need the space or your building starts having issues.
lol, what? If you're comfortable and like the apartment, why would you feel the need to spend more?
Would suggest hanging out with less insecure people.
^^^^THIS
It's like everyone wants a fancy car, tell you the top producer I know drives a Old honda, I'm looking at 4Runners!
I like 4 Runners
My rent expenditures and total comp:
- $80K: $1,400/m
- $140K: $1,800/m
- $225K: $2,200/m
- $280K: $1,600/m
Until 3 years ago I also drove a 2005 Outback though, so I don't know if I am a good litmus test.
I was the same had a 2003 outback. Loved the thing. Didn't care if it got beat up, scratched or whatever. I even did an engine replacement on the thing, but when the clutch went out 6 months later, I finally bought the bullet and bought a new car.
Answering your direct question - moved, but always have been well under market no matter where we've lived. Our incomes could easily afford a more expensive place, and we do plan to 'upgrade' as we will need more bedrooms and space in the coming years. Even then - we certainly won't be stretching ourselves. I've found lifestyle creep is hardest to roll back when it comes to your living situation - once you get that upgraded space, nice location, room, amenities - tough to go backward there more than anywhere else at least for me.
What should you do? I'll answer it a different way - the only thing you shouldn't do are overspend or get a new place because others find it weird. If you secretly need permission to upgrade a bit within your budget and really do want a nicer place, then great!
Personally, if we didn't need the space I wouldn't be inclined to take on a higher rent or up my expenses at all next year. Call me cynical of a soft landing if you will, but the last thing I want to do is fix my costs higher. Most of ours are variable as it stands.
You don't have to be a VP renting a 10k a month apartment to be happy lol
There's plenty of places that are nice and cost only 3-4k/month (check out jersey city/hoboken, that's where I'm currently based out of). Plus there's a risk of getting laid off and your landlord could invoice you if you can't make your monthly payments, although your salary should be able to cover the rent expenses. But I heard that happened with some guy who used to work on my floor when I was an intern lol
Bump
I usually go for apartment in the $2-3K range. Don't plan to be a long-term renter, majority of my net worth currently is saved up for a mortgage downpayment. Just struggling with where I want to live (NYC area or explore other pockets of the Northeast).
That being said $3.75K given your situation is really solid. I know folks who make similar in NYC / Manhattan and gave into the lifestyle creep and got a ~$7-8K+ apartment.
Not in NYC so not as relevant since all the numbers will be lower, but we're still in the same house we bought 6 years ago despite salary increases. HHI is $185k base, and mortgage is $1,389 at 2.6%. We bought 17acres of hunting property outside of town as well just because we could. No state income tax, all 3 cars are paid off. Our monthly debt burden is right at $2k/month and our take home pay is $10.5k/month. We'll move at some point to a nicer area/house, but we'll keep this first house and rent it out for double what the mortgage is.
would encourage you to stay put for as long as possible. these professionally managed "luxury" rentals really squeeze every dollar out of you with each renewal. and the % increases in $ dollars start to become meaningful when you move into a 2+ bedroom. ideally, move into a 2+ bedroom when youre within 2-5 years of being able to buy an apartment
3750 sounds more fitting to your current salary, as you said. I'd stay put. Lifestyle creep isn't worth it and you probably already have a decent place at that price point. That rent sounds insane to take on at your previous salary though, especially at that base.
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