Rent for 1st year Aso - $5k?

First year associate in IB, in a group that pays well on bonus side relative to hours (175 base). Live in a 1 bed right now in LES paying ~3k, and kind of tired of having a “janky” apartment. Enjoy living alone so I am not looking to do roommates. Would it be really dumb to get an apartment that’s $4500-5000 on this salary? While obviously on just that base that would be foolish, but considering bonus of 50-100%, is it really that dumb to get a luxury apartment and improve quality of life assuming all in comp of $250-300ish?

Using the 40x rule, 5k*40 is 200k, which is right where my salary is (goes to 200 next yr), and does not account for bonus.

Also, I don’t spend my bonus at all - maybe a couple hundred bucks on clothes, rest goes straight to the bank / brokerage.

 

Honestly, suck it up and save the money. 3k for a tolerable apartment in LES isn’t bad. If anything, shop around LES for an apartment that’s slightly better for 2.8-3.2k a month. Maybe try and meet someone who has an uncle who owns a building and lock in a family discount. Save as much as you can.

 

I understand saving, but in the end if an apartment is 1,500 more, that’s like 12-15k in a year. Is that really going to move the needle long term? I’m not disagreeing with you, just playing devils advocate.

Also, from your perspective, at what point would you “upgrade” to something like this - after all, can’t live without a dishwasher and a washer dryer forever as an adult lol

 

I don't see why dishwasher and washer/drier is necessary the standard for being an 'adult'. Plenty of families in NYC have never had those in-unit.

And speaking as someone who grew up internationally, those were not standards in even middle class households. 

 

$15K/yr extra won’t move the needle in the grand scheme of things - as long as you’re in a well paid spot.

Obv if you get laid off, or move to a corp gig that won’t have rapid increases in comp - then you got reevaluate

 

I think it’s worth it for something that takes you from janky to good, but not for something that’s truly luxury. You probably shouldn’t be paying extra for a sick view, rooftop pool etc. at this budget, especially if you don’t have the savings to easily live there after being laid off or getting a donut bonus. However, I do think living in an old building with bad appliances weighs on a person and it’s worth the additional spend. Maybe trade off with living in a less trendy area as well to make the move more affordable

 
Funniest

Suck it up man. Live in a dumpster floating off the coast of Maine and take the 8 hour commute. You’ll save 2000 a month. Bag that in your 401k for when you are 85. If you get fired at least you will already be homeless so there’s no downside risk to you.

 
Monty Burns

I love how this implies that the dumpster setup would cost $1k a month

Dumpster floats off the coast of Maine are very prestigious these days. Girls love dumpster float guys and see them as salty, rugged, and independent. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

Financially, it is a bad idea because you are spending more than half of your base paycheck on rent. You are basically tied to your job once you sign that lease. Also, bonus is not a guarantee. That said, it is a subjective question so do what you think is best for you. 

 

It doesn't matter how good your specific team is doing; your bank will find some reason to give you a small bonus this year due to market conditions. I'd budget based off of a $175k annual income.

 
Associate 1 in IB - Gen

Enjoy living alone so I am not looking to do roommates. 

haha “do roommates” - yeah that’s what happens

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

This is not a great idea in this market. Even if your group is busy, the industry is down like 50%+... layoffs are happening even to top performers in top groups. In the non-zero chance that you get laid off and have to take a lower-paying job, you would be in very deep shit with a $5k rent bill every month.

I do think you can upgrade from the $3k place - $4k-$4.5k will be a meaningful upgrade without overextending yourself. Base your rent on the 175k base, if you go a hundred or $200 a month over that is fine. But tacking on a 50-100% bonus assumption is absolutely ridiculous in this market, my dude. Tell me you're a first year associate without telling me you're a first year associate.

Also, I would get something with a dishwasher/laundry in building rather than paying the $1k upcharge for WD in unit. Unfortunately it's not like $5k even gets you a super luxury apartment anymore.

Array
 
eloquence

Also, I would get something with a dishwasher/laundry in building rather than paying the $1k upcharge for WD in unit. Unfortunately it's not like $5k even gets you a super luxury apartment anymore.

This got me thinking:  I'm in the middle of (hopefully) closing on a condo-- What is important to you, in what order, and for how much?  I (me and SO, no kids, small dog) went 1) 2nd bedroom 2) W/D in unit (drops to #5 if in building) 3) parking spot, 4) central air/controllable heating, 5) DW.  I can't really say where a view would rank, because there is much more of a gradient than "have/not have."  What's your ranking?*

Also, OP:  Way too much.  What extra are you getting for that?  Stick with what you have if possible, or consider crossing the river.  It might even cut down on the commute--From BBG, LIC is closer than the UES.  

*For the record, I'm *hoping* to get #1, 3, 5, ( +in-building laundry) and a nice view a couple blocks from the river on the BK/Qns side.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

Very personal preference - i.e. is this a home for 3 years before you guys move to the suburbs, and you guys have never had a dishwasher anyway - or are you planning to stay here forever and personalize the crap out of it? Dishwasher is really easy to put in, is there just not one there or does the building not allow them?

My own ranking is 1) location 2) 24/7 doorman 3) W/D or laundry (slight preference for W/D but my laundry in building is really not a hassle) 4) nice kitchen or at least not a total gut to update kitchen, I'm a big chef.

I don't have a car, it sounds like it's important to you and you intend to use it but unless going to LI, getting anywhere from that area of BK/Queens is going to be a traffic nightmare. I'm sure you have weighed the options but if you don't already have/truly need a car, Zipcar may be a lot cheaper. I don't care about the view, but light is important. I would do a slightly obstructed view with great light all day long.

I think you're thinking about the right things though

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The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

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