What did you spend your sign-on bonus on ?
Hey guys, keeping it short!
Signed onto an EB for AN1 (graduate) this upcoming fall, and being giving a pretty hefty sign on bonus (in the range of 20-30k). Just curious as to what everyone spent their sign-on bonuses on? I'll be living at home with the parents, so not much bills to worry about and was fortunate to have university fully funded via scholarships so no debt either. Would it be a bad decision to YOLO it on a first Rolex? I obviously won't wear it to office, but just to have a first sentimental Rolex as a stage of accomplishment in life.
Based on the most helpful WSO content, here's what you need to consider:
Financial Priorities: Since you're living at home and debt-free, you're in a great position to allocate your bonus wisely. However, even with no immediate financial obligations, it's worth considering saving or investing a portion of the bonus for future goals or emergencies.
Rolex as a Purchase: If you're set on buying a Rolex, the advice from WSO threads suggests going pre-owned to get a better deal. This allows you to own a luxury watch without overpaying. Additionally, think about whether you want an everyday watch, a sporty one, or a dressy piece. Some recommended brands and models include:
Sentimental Value: A Rolex can indeed serve as a milestone purchase to commemorate your achievement. Just ensure it aligns with your long-term financial goals and doesn't deplete your bonus entirely.
Alternative Uses: Some WSO users suggest splitting the bonus—investing a portion, saving some, and then using the rest for a meaningful purchase like a watch. This way, you balance indulgence with financial prudence.
Ultimately, if a Rolex holds sentimental value for you and you’ve accounted for other financial priorities, it could be a worthwhile purchase. Just make sure to research thoroughly and consider pre-owned options for better value.
Sources: Can someone help me with budgeting? 170k as a 22 year old is absurd to me., Should I spend my paycheck on a Rolex?, What are you spending your bonus $$ on???, Rolex Oyster Perpetual or Tudor Pelagos
Throw all that shi into TQQQ
TSM, S&P 500, and paying the last of my student loans off.
A wonderous adventure in an OceanGate submarine
If you're trying to be responsible, invest early. Time and compounding is a big thing. At least put $10k of it to work in an S&P index fund or something.
I'd spend a couple grand on updating the work wardrobe if you haven't yet. FIT IS KING. Don't look sloppy, make a good first impression. Get a dress shirt/dress pants rotation, pay attention to your skin tone and what colors make you look good. Get 2 pairs of dress shoes, 2 belts, etc etc.
If you've already got the wardrobe locked in then spend the other $10k on whatever. My Miata needs a supercharger (well, it wants one), so that's what I'd be blowing $10k on right now lol
As far as buying a Rolex and then not wearing it at all - that's a really bad decision. If you truly love watches, and this is truly meaningful to you beyond just a status thing, go buy an older model that's sensibly priced (that might be an oxymoron for Rolex). That's something you can wear, has some history to it, and upgrades you to a questionable, though still ill advised decision.
I'd agree with Kilted here - I'd get yourself setup, invest in a few pieces that you won't replace for years with shoes, outerwear, blazers, a suit if you need one. I think that separates you more than a Rolex - ultimately though, it's your money - so do what you want with it!
Thanks so much for your response!
I do plan to wear the rolex, just not at the office. I already have my wardrobe already for the most part sorted out, so not much to worry there!
you’ll prob spend at least 10k of it on just the process of moving (first month rent / security deposit / brokers fee if you go that route) + getting ready for work (wardrobe, shoes, bag, cologne, etc)
Honestly, I don't plan to move out anytime soon! I'm fortunate to have a pretty good sized home, and will take on the responsibilities of utilities which I have no issues on! I also already have my wardrobe etc sorted from previous internships (charles tyrwhit, ralph lauren, tom ford, etc). Thanks for the advice though!
ergonomic desk at home (spend generously) + good quality clothes/fitted suits
and what's left invested
I got a Cartier santos L blue dial with my signing bonus years back. My year end bonus ended up being 2x my salary so it ended up working out.
Given the market is kind of a dip right now, maybe just hold on for a bit and invest your bonus. And start saving a few hundred each month for a watch purchase. Living in the city while making decent cash is an adjustment. It’s up to you though. I was at a hedgefund so bonus expectations were a bit different
I've been eyeing that watch massively! Good looks, maybe I'll get that lol.
I'm not too sure what my year-end bonus will look like. Afaik graduate analyst at my bank have their bonuses capped to 50% assuming good performance. AN2 onwards it's uncapped so I'll be looking towards that. However I'd say purely off the base alone I'd be very very comfortable. I am planning on investing some of my bonus, but I do already have money in the range of 20-30,000 already invested so I'm not TOO worried about that at my age - however of course never hurts to put in more.
Honestly just get it and wear it. Which model?
Moving costs and investments. Back then signing bonus was $10k, so you got like a $4.5k check.
If you have a "good sized family home" in NYC it really doesn't matter what you do with this check or any of your money. I hate this website.
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