How do you spend your money associates ?

The typical investment banking analyst's salary spending is known to be fairly tight if you live in NYC or SF and practically save nothing, but how do the pre-MBA/post mba associates at IB/PE/HF that make 200k-400k spend their salaries ? Like do you guys actually blow everything too or live the same lifestyle whilst saving more?

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Comments (85)

Aug 15, 2018 - 10:27pm
KOL A, what's your opinion? Comment below:

I blow everything on my student loans needed to fund my MBA.

  1.  
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Aug 16, 2018 - 3:10am
Synergy_or_Syzygy, what's your opinion? Comment below:

Spending it on stuff you don't have to ... wife, kid, house, MBA student loans...

Be excellent to each other, and party on, dudes.
  • 1
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Aug 18, 2018 - 11:46pm
MonacoMonkey, what's your opinion? Comment below:

The best way to spend money is on things you cannot see. And if it must be visible, said item should provide a visceral feeling of euphoria.

Any item bought for the pure purpose of vanity (Picasso art, Panerai watch, etc) should be illegal.

Funniest
Aug 20, 2018 - 7:29pm
Pump and Dump, what's your opinion? Comment below:

Werent u just flexing ur Maserati like 2 weeks ago? wtf?!

Array

  • 58
  • Intern in IB - Gen
Oct 11, 2021 - 6:17pm

maserati isn't even a flex lets be real.... 

Aug 27, 2018 - 2:27pm
Jamie_Diamond, what's your opinion? Comment below:

That is so fucking stupid. You WANT to spend your money on tangible items and not things that you can't see such as rent or the 18 yr old tinder dates u talk about lol

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Aug 27, 2018 - 3:28pm
xyzzz, what's your opinion? Comment below:

Completely agree, though it's best to save/invest.

Array
Sep 1, 2018 - 11:06am
GoldenCinderblock, what's your opinion? Comment below:

tell that to my instant pot's face, fagot

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/
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May 14, 2019 - 2:35pm
Sterb, what's your opinion? Comment below:

Would love to meet the associate that can afford a Picasso painting

Aug 19, 2018 - 6:59pm
OnlineMoneyMan, what's your opinion? Comment below:

I am not an associate but make about 350k to 400k.

Tax man takes a lot but what's left I spend probably a third. I don't know what to do with and it's just cash savings. Tips?

Aug 21, 2018 - 3:35pm
Nightman Cometh, what's your opinion? Comment below:

Is your username A) Mo Is The Man B) Moist He Man

I prefer B tbh

Also nowhere near being an associate

Dayman?
  • 12
Aug 27, 2018 - 4:46pm
Nightman Cometh, what's your opinion? Comment below:

Fuck that you're Moist He-Man now DAWG

Dayman?
  • 2
Most Helpful
Aug 22, 2018 - 12:19pm
Quaneaser, what's your opinion? Comment below:

You can easily save money on an analyst's salary especially today when its 85k+ starting vs. 70k back when I graduated. No reason you can't max out your 401k with just the base salary and live off the rest (plus be able to bank your entire bonus).

As an associate, monthly take home after taxes, health insurance, and maxing 401k (assuming equal contributions over the 24 pay cycles to get to ~18K) is about $6,500 in NYC.

Salary: $6,500 Less: Rent (studio @ 3,000) Less; Utilities (100) Less: Internet/media (Netflix, HboGo, no cable): 70 Less: Food (groceries/lunch, excl. dinners/brunch etc.): 400

Remainder: 2,930 which is quite a bit monthly for traveling, dinners, going out, dates, buying stuff or just saving

Firm pays for cell phone, 80%+ dinners are comped by work, no debt, no car payments, walking distance to work. The math up there allows me to bank 100% of the bonus and including the 401k contribution savings are well over 100k annually.

Aug 22, 2018 - 1:11pm
Quaneaser, what's your opinion? Comment below:
Marti Kahn:
85,000/12 = 7,083 Minus taxes (25%) = 5,312 Health care, 401k (Max) = 3,712 Rent (2k) = 1,712

Not to be a dick but not sure you math is adding up. 1,700 on all other expenses and trying to save is not much...

Was more referring to all in comp for analysts. Though the 401K max is real savings (though granted not liquid) and you'll have an additional ~30K after bonus+taxes which is pretty sizable savings for a 1st year analyst

Aug 27, 2018 - 10:49am
earthwalker7, what's your opinion? Comment below:

Quaneaser You can easily save money on an analyst's salary "

Yup. Always save money. It gives you that place of fuck you that John Goodman's character talked about in the Gambler. That's what you want - to make sure you've got $ in the bank for when the bad times hit, and the banks slash jobs. Again. Like they ALWAYS do in a downturn. Make sure you've got your bases covered. Always have money in the bank.

Aug 27, 2018 - 10:49am
earthwalker7, what's your opinion? Comment below:

Frank: You get up two and a half million dollars, any asshole in the world knows what to do: you get a house with a 25 year roof, an indestructible Jap-economy shitbox, you put the rest into the system at three to five percent to pay your taxes and that's your base, get me?

That's your fortress of fucking solitude. That puts you, for the rest of your life, at a level of fuck you. Somebody wants you to do something, fuck you. Boss pisses you off, fuck you! Own your house. Have a couple bucks in the bank. Don't drink. That's all I have to say to anybody on any social level. Did your grandfather take risks?

Jim Bennett: Yes.

Frank: I guarantee he did it from a position of fuck you. A wise man's life is based around fuck you. The United States of America is based on fuck you. You're a king? You have an army? Greatest navy in the history of the world? Fuck you! Blow me. We'll fuck it up ourselves.

Aug 22, 2018 - 3:25pm
dr_mantistoboggan_MD, what's your opinion? Comment below:

I definitely chuckled at your post but real talk, you get taxed on your base which for $85/yr puts you in the 25% bracket, and if you wanna get really douche-technical only dollars $37,950 through $85,000 are taxed at that rate. after about $92,000 you jump to the 28% bracket and that's all the way through ~$191,000. your bonus is taxed differently but the math above was straight up just doing an $85,000 base.

Source: the day I jumped my base into the 28% bracket I got some real amazing bragging rights over my brother who is an engineer, and by all measures much smarter than me haha.

  • VP in IB - Gen
Aug 22, 2018 - 1:40pm

I'm in the camp of spend your salary (less 401(k)) and save ~80% of your after tax bonus.

Thankfully, I live in a relative low cost of living city, so the IB comp goes a long way and allows for some frivolous spending... like a fast car. I also enjoy some expensive hobbies like range / target shooting - couple hundred bucks of ammo and range fees every time I go.

Aug 22, 2018 - 1:57pm
xyzzz, what's your opinion? Comment below:

do you live in chi/charlotte?

Array
Aug 22, 2018 - 4:09pm
TheBuellerBanker, what's your opinion? Comment below:

Piqued my curiosity. Which car?

Aug 22, 2018 - 2:57pm
abacab, what's your opinion? Comment below:

Most associate bases are now 125/150/175/200. You generally lose 40% to tax / 401K / benefits. If you can keep rent to 2000 (w/ roommate) to 3200 (self) - you can start ripping some FCF depending on student loans. Tbh ppl spend most extra money on add ons like drinking / eating out, 1 bedroom that costs 5000, buyin fancy stuff, etc. You shouldn't need the bonus beyond first year - even for some fancy trip. Now if you want to buy a NYC apartment - different story.

Array
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Aug 22, 2018 - 4:16pm
KOL A, what's your opinion? Comment below:
IntlBaller:
Ask my wife

The only way to keep her relatively sane with IBD hours.

  1.  
Aug 24, 2018 - 12:52pm
greenspud, what's your opinion? Comment below:

In NYC, you upgrade your apartment to one that's a normal size for a Midwest apartment and with fewer roaches.

Or, you stay in the tiny studio and save the extra money hoping that your investments will allow you to live in a place outside of Manhattan that actually has some space after you get burned out from IB.

Aug 24, 2018 - 4:34pm
Hocikto, what's your opinion? Comment below:

I didnt read any of the comments and went straight to the comment section here to make a point -

Writing: 'The typical investment banking analyst's salary spending is known to be fairly tight if you live in NYC or SF and practically save nothing' - wtf, so whatever a starting total comp is nowadays, $100-150k leaves someone saving nothing?!?! Yeah, only if you spend all your dough on nighclubs, booze, models, and maybe drugs. Wtf people, lets get back to reality. If someone cant save a cent on that kind of salary theyre just wasting their money away on nonsense. I get that people do that but dont start a damn thread saying how you dont save money on starting IB salaries - dont think you'd have many baristas and waiters in NYC if that was the case...

Aug 30, 2018 - 8:31pm
The Invisible Hand, what's your opinion? Comment below:

From my 3 years in IB as an analyst, I saved a little less than $250k living in Manhattan (a little bit less when you factor in the deferred taxes on 401k). My first year and a half I paid $2,900 a month in rent, which was just too much. Otherwise, I didn't travel at all, buy any fancy watches, bottle service, etc. I stayed on my parent's health insurance and cell phone plan (only child, so it would be my money eventually, right?) Frankly, I wish I had spent more of it and enjoyed life more. I have everything in cash right now since I rolled my 401k, so I need some ideas on how to deploy it. My biggest issue is figuring out what asset classes should go in my IRA vs. my taxable accounts, etc. Any advice would be appreciated.

Aug 30, 2018 - 9:29pm
cantstopworking, what's your opinion? Comment below:

works in finance. on a finance website. says most of money in cash. doesn't understand opportunity cost of not investing. ??

not trying to be mean, but kinda of surprising to me... invest in stocks

Aug 30, 2018 - 10:53pm
The Invisible Hand, what's your opinion? Comment below:

Hey, I've read all of the typical value investing books, MPT, etc. What I also understand is the opportunity cost of the 30%+ I'd lose if and when this market tanks. That being said, I don't disagree with you, but the opportunity cost in today's market is not exceedingly high on a month to month basis. I'm looking to structure my portfolio as efficiently as possible to manage the cycle and what costs I can control such as taxes, fees and all that. My new job gives me some insight into my sector, so when I have some time and experience I would like to build a L/S portfolio to leverage that insight (not MNPI, just the perspective of an informed industrialist). It makes sense to have some beta risk too, though.

Aug 31, 2018 - 8:49pm
Mimbs, what's your opinion? Comment below:

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May 14, 2019 - 8:18am
The Best Guy, what's your opinion? Comment below:

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May 14, 2019 - 2:51pm
ConservativelyLeveredCat, what's your opinion? Comment below:

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Cash and cash equivalents: $138,311 Financial instruments and other inventory positions owned: $448,166
Oct 11, 2021 - 11:32am
NonTarget5, what's your opinion? Comment below:

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