How to maximize net income out of undergrad?
I've noticed that in the experience of many in banking, across a lot of posts, that even those who succeed in securing highly compensated positions at BB's and EB's tend to burn up a lot of their income, due to high taxes/high COL, and end up not saving a whole lot. For example, someone doing M&A at Evercore in New York might be taking home less than someone in a less compensated position and lesser known firm in Dallas.
Since there a ton of different groups at different firms, which are spread out across geographic locations, I'm wondering where people have the highest net income and are able to save the most, in terms of sector/firm/location, in the first 5 to 10 years out of undergrad? Moreover, in a general sense, which trajectory (i.e. IB to PE/HF) allows you to save the most?
Obviously, tackling this question is quite subjective, as some opportunities are unique to a particular location (VC in SF, HF in NY), but as I'm trying to eliminate student debt and help my folks with some future expenses, I thought it may still be worth asking.
Any and all input would be deeply appreciated!
Generally the highest net income is likely to be in NYC or tech/VC in Cali. I've generally seen a tenancy for the IB crowd to spend more money on stupid shit than PE/HF, lowering IB net income.
Stupid shit meaning strippers / blow / bottle service. Although blow isn't stupid, its required.
Thanks for the input! So is the net income in NY the highest when you only consider PJT/EVR type firms, or is it consistently higher across every 'tier' and group?
yeah, I was with you until you started badmouthing blow.
I grew up with blow seeming like a big negative. Like, you're a drug attict if you do blow.
Then, I moved to NYC. Blow seemed to be the ingredient of a good time. I hung out with lots of people in IB who just loved blow. Lots of techno/house people that liked blow. It became an ingredient to a crazy party rather than a bad thing. Also, in NYC blow is generally accepted really well. Its just blow, its not like its heroin.
If you want to make a poor long term career decision over 50k your first 2 years then that’s up to you, but if you’re making 200-400k your 3rd year out of college and applying good saving principles then you’ll be better off than most secondary positions.
Unless of course they pay the same. But they don’t. Things are adjusted unless you start your own business. All things equal you’ll be ahead in high COL cities. Evercore you may make up to 400 all in your first 2 years and including tax probably equal to 140 at a regional bank, and other MM or BB 300-330 all in for a 2 year period. After that the sky is the limit with the exit opps and promotions which will always be more (head of North America will be bigger than head of mid market M&a for example). Big cities are the land of opportunity for a reason, albeit you give something up to be in that position.
Thanks for the advice, I didn't know there was such a disparity. Definitely not trying to be willfully stupid- just trying to operate within a set of unique financial obligations.
I see, it's just that you have to balance short and long term. Do your parents really need 20-30k over 2 years or can they wait 3 when you get an associate job? You still need to make a good long term choice.
It just so happens that the short-, mid-, and long-term situations actually line up. Short-term mayyyyyyyyyyyyyyyyyyyyybe you're slightly better off. But probably not. Haha
dont go to college is how you maximize net income for starters
you and Elon would get along
Maximize income, minimize expenses
It doesn't matter, maximize your career income, not your income the first couple years out of school.
Sack groceries on the weekends.
Live with your parents
Understand where you're coming from here but its a very shortsighted perspective. While I will admit the only guarantee in life is the position you have currently, the guy doing M&A at Evercore NYC will have so many doors opened that greatly increase lifetime earning potential. Not to say that the guy at a random bank in Dallas can't make it big, but the odds are in NYC's favor. You have to consider more than just pure comp especially for your first job.
Start capitalizing your operating expenses
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