Experienced bankers, what is your net worth?
For those of you who spent few years in IB, what is your current net worth? Suggested template:
- Location
- Role / years of experience
- Net worth
For me:
- London
- Associate 2 / 4 years of experience
- Net worth: £220,000 (all in stocks: via the pension / ISA / GIA) + £15,000 in a saving account (emergency fund). No debt
Overall I feel like this is not much given how burnt out and unwell I am, but hoping to reach £900,000 net worth when VP3 bonus hits
bump
I’ve got about $10
London
Assoc - 4 YOE
Not enough
How much £?
It converts to about £2.78
Roughly tree fiddy
Isn't that pretty good for UK? What's been your total comp for analyst and aso years?
I'm in Texas and saving about 35-40% of comp, with expectation to hit 400k net worth by end of Aso2 bonus if I get a2a and don't return for business school. Obviously have higher expenses over here (healthcare/housing/etc)
West Coast US
Currently Director level Strategy, 13 years total experience with 2 years banking, 2 years PE
$1.5mm net worth
currently at cvp/qatalyst, have a nw the size of a small african nation
Alot
25$ (I work at UBS)
Including debt your net worth will only worsen when you take out a mortgage before recovering very quickly under the form of equity. Especially in the UK, net worth (even for bankers) is property-based. Having 200k invested is great. Alot of people say "it's better to invest than buying a property because the returns are better". Sure, but you still have to throw out £2/3k out the window in rent every month. Assuming a very optimistic 20% pa investment return, and £2.5k rent per month, that means you need to invest at least £150K just to be at net zero returns including rent. While the guy with 0 invested in stocks and who just got a mortgage builds £30K equity in what will turn-out to be a million-pound investment.
~5 YOE in IB
across everything probably 500-600
VP 1 going to VP 2
32 years old
13 years work experience, 7 in IB
$2.3mm
Long story but have been working full time since 18, still finished undergrad by 22 and ultimately got into IB around age 25. Have always prioritized saving / investing above all else
How has your net worth climbed by age?
-$67,000
You're going to get very skewed answers with posts like this people not making that much don't like to talk about it.
Mm
i did 4.5 years of banking but blow money like it is water. net worth:
$100k in stocks
$10k 401k (i moved from hong kong / to uk / honestly never contributed and it was matching system)
GBP 25k pension
GBP 55k invested (part liquid)
so overall 110usd and 90 gbp = $230usd or 172,000 gbp
not a lot at all but salaries are so low here i imagine a lot people poorer?
Stop blowing your money like water. I recommend reading Morgan Housel's books 1) the psychology of money and 2) the art of spending
I get that it's easy to spend and want nice things. A framework that's helped me in the past (for stuff I deem beyond my minimum 'staples' like purchases -- ex. 1 good meal out with wife per week & 1 takeout / supplement stack / gym / rent / etc) is to ask how badly do I want it? on a scale of 1-5 (5 being you really want it), I just don't bother getting it if it's not a 4-5
Same thing with dieting / food for example. I really love great ice cream. But I just won't bother with mediocre ice cream. I enjoy fruit tarts. But I won't bother with brownies since I don't really love them.
You can apply that same logic with cars -- sure, a Mercedes would be nice. But tbh, the most I'd enjoy a car is 3 out of 5. Same thing for a nice watch like Omega or IWC. That's not enough to warrant spending so much on it. In contrast, the stuff that is a 5/5 is a really good restaurant or traveling to a cool destination (Japan, Bologna, Singapore, etc). That said, most stuff you order in Doordash is at best a 3 out of 5 (at least for me). So I don't bother with it much (order maybe 1x per month). I'd rather have 1 really excellent meal out a week vs. ordering Doordash 3-4x per week for a decent but not great meal.
Using this framework really has helped me rationalize spending. Likewise, put together a monthly budget man and pay yourself first with the implied savings. After 2-3 months of spending, you'll see where you are over / under and can recalibrate. Good rule of thumb is to save >40% of your total comp (or at least 35%). I'll admit I struggle to get to >40%, I tend to bounce around the 35-40% range. Either way though, putting together a plan on paper will at least get you to be 10pts higher in savings rate than otherwise (in your case, it might be 15-20pts or more -- which would be amazing)
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