I recently read about the rule of 30 for renting a property.
What percentage of your income goes to rent on average?
For me is around 40%. To get a decent accommodation in a decent place in London I think hard to go below this percentage... Thoughts?
| +20 | How do we get as sharp as possible? | 8 | 47m |
| +17 | Q&A | Analyst | 8 | 1d |
| +14 | Best way to kill time? | 7 | 19h |
| +12 | Upselling yourself when you’re unqualified | 1 | 18h |
| +5 | Deciding what Keyboard is the best | 12 | 13h |
| 0 | Analyst Y1 - Messed up In First Week | 0 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Depends on where you work. If you consider a starting salary of 50K for the average analyst, that's 37.5K net so 3,128 per month. 30% is about 950 meaning you'll most likely be limited to studio apartments on the outskirts of Zone 1 or be in Zone 2. Or you need roommates.
I'm a 24 year old living in downtown Toronto, Canada.
For myself, total annual rent is ~15% of my gross annual income (2 bedroom condo in the financial district shared with a roomie)
Rent is 17% of my net monthly income, excluding bonuses. I live in a ~1200 square foot 2 bedroom/2 bathroom. It's nice to not be getting raped in a high COL city.
Assuming you work somewhere in the City or CW, only way to really abide by that rule at the analyst level is to have roommates. Assuming a budget of around 1000 PS, you can easily find an ensuite in a decent area/building with a reasonable commute to work.
It's another story if you're working around Mayfair tho...
16% in a LCOL City. 1000 Sqft, no roomates.
Commute is important to keep in mind too. Mine's 25 minutes.
Consequatur hic voluptas omnis ducimus. Delectus mollitia tenetur sed amet natus saepe. Fuga vitae quisquam blanditiis numquam consequuntur ipsam cumque eum. Laborum ea dignissimos et fuga at ratione alias. Earum cupiditate in nisi placeat occaecati dolor quod. Possimus et unde eligendi magni temporibus iusto et.
Aut commodi quia dolores rerum ea. Enim aut itaque odit est.
Voluptatem est aperiam et sit dolorem molestiae et debitis. Magni dolores possimus et officiis. Nemo sapiente aut sint. Et nostrum nisi rem quaerat debitis odit qui quis. Quia rem iste qui earum et nisi. In magnam sed enim ipsum recusandae tempora. Placeat omnis expedita debitis officia.
Laudantium ut praesentium molestias laudantium quia. Assumenda repudiandae ut nihil. Molestiae minima est quasi aut sunt placeat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...