1st year analysts: stupid to move into NYC right now?

Analyst 1 in IB-M&A

1st year analyst that just started working remotely and it seems like I won't be required to go into my office until some point in 2021.

I've been living with my parents for the last few months and while it's been great to save some money, I am definitely eager to move out of my childhood home and into NYC with some friends to finally have some independence while I'll be working shitty hours. We also found a solid deal on a new apartment that has plenty of room to WFH.

It does feel pretty stupid to pass up on the option of saving ~6 months of rent and expenses by living at home (especially with the limited social scene in NYC right now), but I'd be very curious to hear anyone else's thoughts on the situation.

Comments (96)

Jul 28, 2020

Resist the urge to move to Manhattan. You're going to save an unbelievable amount of money if you stay in the suburbs. Regardless, I can sympathize with you wanting to move forward with the next chapter of your life too. Should you have student loans, I'd highly encourage you to stay at home and pre-pay, if possible.

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  • Associate 2 in IB-M&A
Jul 28, 2020

This.

Also, deals will continue to be found in Manhattan as this drags on, you might be better off on rent in 6 months. People's leases are starting to expire and they're not renewing.

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Jul 29, 2020

I read that 25% of NYC tenants haven't paid rent since April or May. Even if it's half that, it's still insane.

Aug 3, 2020

great way to find rent is to take a look at the residential REITS and such, do some analysis as an investment analyst you may be able to create a target date for signing a lease at a discounted price

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Jul 28, 2020

the social scene in NYC is practically non-existent right now..and will probably stay that way for the next 6 months. there is zero reason to move to NYC until next year...don't be an idiot..stay home and move to the city next year.

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Jul 28, 2020

Your last few sentences contains the answer. Limited social scene in the city coupled with saving a lot can-beyond just saving rent, you will also not be subject to city payroll tax. I assume you'd have more space in the suburbs than a small apt in Manhattan.

  • Associate 2 in IB - Ind
Jul 28, 2020

You can also mooch off the parentals with groceries, meals, and laundry.

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Jul 28, 2020

Probably covered by company for dinners past 8pm, which is most nights in IB

  • Analyst 1 in IB - Ind
Jul 28, 2020

Banks aren't doing seamless rn

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  • Analyst 1 in IB-M&A
Jul 28, 2020

Only the poor banks aren't doing seamless right now.

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  • Intern in IB-M&A
Jul 29, 2020

What's considered a "poor" bank?

Funniest
  • Analyst 1 in IB - Gen
Jul 29, 2020

One that isn't doing seamless right now

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Jul 29, 2020

I am in manhattan and watching my roommate getting seamless every night while I cook dinner and try to update decks simultaneously is putting me on tilt

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  • Intern in IB - Gen
Jul 28, 2020

My bank's currently reimbursing dinner

Jul 28, 2020

If you must be away from your parents (understandable if you want some independence/be able to bring people home etc). I'd move to a much CHEAPER city for a year.

Nashville, Savannah, Austin, Chicago, etc. If you must stay local move to Philly. Anywhere but LA, NYC, SF

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  • Analyst 1 in IB - Gen
Jul 28, 2020

Why not somewhere nice that's not NYC? Same position and I'm thinking the beach.

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  • Prospect in IB - Gen
Jul 28, 2020

That's what I was thinking as well. Wouldn't renting out some place near a beach or a tropical area be the move? Get some friends and rent out a beach house on jersey shore for a couple months. If Florida wasn't getting fucked I'd move my ass there.

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Jul 30, 2020

Florida is definitely the move. Red state with low tax burden and beautiful weather year round. Only cons is it's filled with insane people ie Florida man and Hurricanes year round. If Miami had a tech scene I'd pack my bags and never look back at NYC.

Jul 28, 2020

No point coming in here right now

Social scene is non-existent and the weather will go to shit in a few months. Why pay obscene rent for that?

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Jul 30, 2020

Perfect username for this thread lol

  • Analyst 1 in IB - Ind
Jul 28, 2020

I'm going to another tier 1 city and I'm holding off. Made $12k this month and spent $200 lol

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  • Analyst 3+ in RE - Comm
Jul 28, 2020

Manhattan is dead my man.. why would you move there? move to JC or suburbs of LI

Most Helpful
  • Analyst 1 in PE - LBOs
Jul 28, 2020

As another recent grad / current first year, I have to totally disagree with everyone above. I personally moved out to the city my role is in when it started. Even though the firm is largely WFH.

The biggest reason? I needed to get the fuck out of my parents' house: This cannot be overstated. The second-year Associates commenting on this thread probably don't even remember what it's like to live at home for a prolonged period of time. It's nice for about 72 hours and then suddenly you'd give your left testicle to be in a shitty, expensive apartment somewhere as long as it's not in your hometown with your parents. Especially if you come from a town where you don't have many friends and there's not much going on, every day is just painful.

Sure I'm spending a fair amount on rent and more on food than I would if I were at home, but now that I'm making a salary I can actually afford these expenses so it's really not the biggest deal. What was I really going to do with that extra money saved on rent anyways? Sure I get the value in savings and everything, but it's not like I'm renting out the Penthouse at the Ritz or anything.

And on your last point, yeah there's not much social life, but my city right now has WAY more to do than my hometown on a given day. I can go for a hike, a road trip, or just a walk around some neighborhoods and have an amazing time, whereas at home I straight up didn't leave my house for like a month at one point. Having to work long hours in my childhood bedroom with my only potential form of recreation being a walk down to the living room was a hard no from me.

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Jul 28, 2020

Definitely agree with this - can't put a price on your mental health especially with a job like IB

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Jul 29, 2020

This right here. This is highly applicable especially if you are in a small town. Plus most of us have been home since March. I had to get tf out and start my life.

There can only be one Dirty Dan, the rest of you are Pin-head Larrys...

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  • Analyst 2 in IB - Ind
Jul 30, 2020

i can relate to this so much. ive been home since spring term and i am going absolute nuts. all i do is stay in my room and either game or study. my firm just notified us that we wont be starting till Jan of next year so ripppp

  • Prospect in IB - Gen
Jul 30, 2020

Is this a bb eb or mm

Jul 30, 2020

Yes. But the point is that you should move anywhere other than Manhattan. 70% of my co-workers are not living in Manhattan anymore, some permanently and some part-time. Paying bookoo dollars for no space to live in a ghost town is dumb.

Got a co-worker that threw his stuff in a storage unit, broke his lease and has been living in Florida the past 3 months. Why not do something like that? It will be cheaper and more enjoyable

Manhattan you really can't do any of the things you listed, go for hikes, road trips etc.

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Jul 31, 2020

The reason not is many leases are 12 months and with the uncertainty on timeline back to the office it'd be unfortunate to have to double up on rent as an analyst, depending on personal finance situation of course

Aug 1, 2020

I know exactly how you feel on that. After we went into lockdown, I didn't step outside for 94 days straight.

I am slightly jealous that the additional savings some people will make will quickly accumulate and if they invest these, they will be able to get a down payment on a nice home far faster than me, but at the same time, I'm happy to hear that people in the industry can reach their goals considerably quicker.

Aug 2, 2020

Preach!

Aug 4, 2020

Imagine being so soft and retarded to not take advantage of saving once-in-a-lifetime amounts of money and spending time with parents/family given they can die any second. It's only 6 months dude, its not that bad.

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Aug 5, 2020

I agree with this. I just started my training a month ago, am moving to NYC at a friend's place till mid-August and signed a lease for September 1st. I figure it's better to take advantage of rent prices dropping (you can sign a lease in NY for ~$300 - $500 less than it would've cost pre-covid), although this might not net out to more money in the long-run, it'll be nice to lock in something at a low month-to-month cost. On top of that, apartments are far less competitive than they typically would be so you can find some luxury places at a steal and qualify for them despite being a first year analyst.

Personally, I'm also looking to move prior to being fully-staffed and at capacity so that I can manage the move and furnishing the new apartment. I think it might be nice to take advantage of the last months of nice weather in New York and few weeks before things ramp up at my bank to explore the city (i.e. walks and bike rides). As New York enters phase 2 we should expect S&T and Bankers to be the first to be called back to the office. If you contact someone in your HR department they might be able to give you further guidance on what your bank's plans are. Hopefully any 1st year analysts who do make the move to NYC can connect since despite not have the same training timelines.

If your bank is continuing to WFH for the foreseeable future one good option is to move to Brooklynn where you can get a shared apartment for less than $1000/month and still enjoy being close to Manhattan.

At least the New York governor is taking Covid seriously and the city has already felt the shock from the first wave. NY seems to be on a much better path to recovery than some states (i.e. Florida) that might be enticing to move to. If you move to another state you'll have to pack up and move across the country once your bank opens up. Seems like a waste of energy in my opinion and as a first year analyst expect to have excess money and limited time & energy.

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Aug 5, 2020

I am very glad I kept scrolling to find someone who was thinking the same thing because good god it's mind numbing having to start your job from your parents couch, especially when you spent the last few years working so hard to be able to not do just that lol

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Jul 28, 2020

move

but live in jersey city, long island city, hoboken and the like

Array

Jul 29, 2020

If Florida wasn't such a shitshow, I would be planning to move there for the Fall / Winter.

NYC blows right now. If you don't want to live with your parents, move to a low COL spot, preferably with a beach or a house with a pool, with some friends.

Do not come here though.

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  • Prospect in IB - Gen
Jul 30, 2020

I'm in Florida rn (my home state). It's mainly the Miami/Dade area that is getting crushed. Idiots are partying in the clubs of Miami and south beach. There's also higher cases (but nowhere near as high) in Ft lauderdale/Tampa/Jacksonville/Orlando. But outside of those cities, the case increase isn't really higher than anywhere else and actually lower in some areas. You could definitely move to a beach town and totally be fine (def less chance of getting than NYC and you can go to the beach every day since outside of the cities above the beaches aren't that crowded and social distancing isn't hard). That said you may find yourself culturally out of place if you're from NYC. People will be blunt about how they feel about topics and could care the less about whether you get "offended". It's not that people are mean, (they're actually nice -southern hospitality) it's just that the whole "politically correct" movement isn't existent in these areas.

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Jul 30, 2020

Yea Miami was the plan, but people there are acting a fool

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Aug 2, 2020
Prospect in IB - Gen:

That said you may find yourself culturally out of place if you're from NYC. People will be blunt about how they feel about topics and could care the less about whether you get "offended". It's not that people are mean, (they're actually nice -southern hospitality) it's just that the whole "politically correct" movement isn't existent in these areas.

When the fuck did NYC get so soft?

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  • Analyst 1 in IB - Ind
Jul 29, 2020

Just a data point, I'm a new analyst at a BB in NY, expectation is for us to be back in the office around labor day and our group told us to secure housing ASAP.

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Jul 29, 2020

What bank are you at? I'm also an incoming first year in ib at a BB and just haven't heard of any banks doing that yet and am nervous mine will follow suit

  • Incoming Analyst in IB - Gen
Jul 30, 2020

JPM is doing this. Anyone else chime in with thoughts? 50% capacity with all 1st years back - surely they cant force us

Also why are we the only fucking bank doing this shit?

  • Principal in PE - LBOs
Jul 30, 2020

Other banks will follow in the coming days/weeks

Jul 29, 2020

Keep in mind it's very possible rents begin to go up again should people continue scheduling returns to the city in the realm of Labor Day. Staying at home with the parents is by no means a guarantee to save in the long run considering you can lock in a 1 or even 2 year lease now at the lowest rates ever. If you do hold off, you may be forced to sign a pricier deal in a few months. You'd potentially wind up paying the exact same net effective - and not have had the luxury of being on your own during that period. I'd take the current discount.

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Jul 29, 2020

This makes no sense at all, sorry. This is a simple math equation / breakeven analysis. Even if rents were 20% down right now (news flash, they're not) you would only be saving yourself ~$5k over an entire 1 year lease assuming the rent was initially $2,000 per month. Rather for every month you live rent free, you're pocketing an additional $2,000 in addition to the COL adjustment for everyday expenses during that time. A few months or more of that and you will have twice the amount of savings, in half the amount of time (actually probably more). Rent would have to absolutely explode from here in order for that math to not work, which obviously isn't realistic.

A single digit dip in rent is nothing to get excited about. Not sure if you've noticed but the move-out rate is exceptionally high in Manhattan right now. Speculation of course, but I would imagine rents keep going down as existing leases up for renewal in the next 2-6 months are vacated and left on the market and more companies push for early 2021 returns instead of post-labor day (my firm included). This has only just begun in my opinion.

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Jul 30, 2020

Rents are fully down 20% right now lol. Apartments that were $2,000 per roommate are now $1.2-1.4k per roommate. Also, leases are being created with not one but two months free, which makes it worthwhile considering firms are sending out updates about a potential September return, which I mentioned. Lastly, kids shouldn't be nickel and dimeing it if they truly want to move out. If not, no issue, stay home as there will be leniency to return. But consulting WSO as opposed to just doing what one really would prefer to do is not the move imo.

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  • Prospect in IB - Gen
Jul 30, 2020

This is some poor math skills buddy

Jul 29, 2020

Don't do it, Manhattan is a total shit-hole right now and I am born and raised here. The value proposition is as bad as its ever been. Once winter rolls around they're going to shut the entire city again and it's barely open right now.

  • Intern in IB-M&A
Jul 29, 2020

I would 100% go somewhere fun (not NYC). Get a bigger place in a suburb or a beach town and enjoy it. I think people here predicting a Labor Day return to the office are wrong- google said no ones coming back until July 2021, and they were the trendsetters in initially going WFH and eventually finance followed. Traders and the like might be in earlier, but I'd be shocked if IB analysts were called in before 2021 (though obviously this is firm specific so ask around).

I totally get needing to get away from the parents tho- my college is remote and me and my friends are looking into getting a place in Montana for the year. We've seen some massive houses for crazy low prices and we'll be able to go hiking, skiing, and the like.

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Jul 30, 2020

Thats sweet, is that an actual plan or more of a pipedream ?

  • Analyst 1 in IB-M&A
Jul 30, 2020

Google's wfh until July 2021 is completely optional and by no means reflective of wall street adopting the same policy - this is inaccurate

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Jul 29, 2020

Stay at home. No point in paying all that rent when there isn't even anything fun to do these days. You gonna go to Broadway? Nightclubs? Hole in the wall restaurants? You'll essentially be wasting your money on rent just to walk around Central Park.

So long as you get to work from home use the opportunity to save/develop skills/whatever.

Jul 30, 2020

As someone who is currently moving out I'd tell you to not bother. You will be stuck in an apt all day and it's honestly depressing. All the glory of the city is pretty much not available right now and certainly not worth the price tag. We had an analyst join the team last summer and he got a really nice apt in midtown with amazing amenities. Fast forward to a few months ago he pretty much became a prisoner due to the protests and Covid. He pretty much broke his lease and ran to Miami and rented a huge 2bd condo with wrap around balcony for a fraction. Sure Florida is not doing better but he can still hit the beach early to avoid crowds and can bbq on his balcony (not every apt allows this). He is doing 3 month contracts Incase we are called back into the office (although we were told 2020 will be all wfh). If you don't want to go to that extreme and really want to come to the city I'd say battery park city is your best bet. It's where I live now and isn't doing as bad as other areas. You can hit up an outdoor bar with no reservations as the area is pretty quiet not just for bars but you can go for a run and chill outside without 1000 people on top of you fighting for a spot. Prices have also dropped a lot here. I can say that on my floor alone 4 apts have cleared out. And looking out my window I can easily spot empty apts in buildings near by. Anyway my advice is plan for the winter as if this doesn't get better there will be no bars to go to and you will be stuck indoors and it's honestly brutal. It's not different than club fed so if you plan to end up there at some point I'd say it's some good mental training for the future.

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Jul 30, 2020

First year analyst at PE MF...moved to NYC in May before I began training. Can say I love having the space to myself away from parents and other distractions. Got a great deal on apt (with the help of my firm, but most rent is still at a discount or they offer good concessions). Feel like I'm much more organized / productive with my setup in Manhattan than I would be at home. Granted I am spending a bunch more cash but IMO the increase in retained earnings from these few months is marginal in comparison to expected lifetime earnings. Just my take

"I'm talented in a bunch of different areas" -Kevin Durant

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Jul 31, 2020

love the username

Array

  • Investment Analyst in PE - Other
Jul 30, 2020

You and your boys should rent a house out in the woods somewhere with good enough internet access. Save money while gaining independence and enjoying some nature

Jul 30, 2020

happy to offer my own anecdotal advice.. I left the home very early (in my teens), quickly gained independence from my parents and gagged at the thought of moving back in with them for an extended period of time.
I had some crappy paying jobs out of college and while I was jealous of the kids saving money at home, I was happy "struggling" to pay rent and living my own life, paying my own bills, etc. For me, this struggle played a major role motivating me to get better and better (paying) jobs while many of my peers found comfort in living at home, making OK money and sure, they saved up a deposit for a place after 5-6 years (not NYC), but ultimately our career trajectories are on completely different hemispheres due in part to this discomfort. Others will disagree and maybe be offended but I completely believe.

DISREGARD all that in this environment, you're not missing much in NYC right now and work will be an absolute grind. Take advantage of this time to save those 6 months for a rainy day fund and anticipate the rental market will be be even cheaper in January or later. Give yourself a strict 6-12 months window and get into the city then - you can take advantage of the benefits of both scenarios without limiting yourself financially (rent), personal development (taking care of yourself), or professional development (pushing and being in the mix)

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Jul 30, 2020

I understand the desire to get out of the parents house - why not rent a cheaper place in the same timezone on a month to month/airbnb basis? You can get a whole house in smaller areas for 1500/month, if you bring your same 3 buddies you'd rent with in NYC you can have a good time and probably be in a place with less restrictive lock down

Jul 30, 2020

I just want to reiterate how bad NYC is right now. I was paying pretty heavy rent and still moved elsewhere to get out of that disaster. Way happier. The place looks bombed out and when the weather gets colder all of the outdoor "dining" (read: eating on the street with taxis about to hit you and inhaling garbage) will shut down and the place will be literally barren.

Find something temporary somewhere cool, think beach etc. NYC is going to take a while to recover, some of the highest unemployment in the country and the shootings have gotten out of control. Not a good look right now.

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Jul 31, 2020

Nice username.

Aug 3, 2020

You know Ace, I tell ya...thanks

  • Analyst 2 in Consulting
Jul 30, 2020

Do you need to pay tax in both the state you're living in now AND New York?

  • Associate 2 in IB-M&A
Jul 31, 2020

New York will tax you regardless of where you are if your assigned office location is NY, but you'll get a credit in your home state. You won't be double taxed but will likely pay more than your state rate because NYC tax is high

Jul 31, 2020

Yep so live in TX / FL with no state tax and only NY state tax instead of NY and NYC

Aug 3, 2020

I'm still in NY, but on the beach far far away from NYC. I have zero plans of returning any time soon.

  • Incoming Analyst in IB-M&A
Jul 30, 2020

delete

Jul 31, 2020

Would not go to any red states + Cali.. People are acting like fools

  • Intern in Other
Jul 31, 2020

That's fine. We don't want you here anyways lol

  • Prospect in IB - Gen
Aug 1, 2020

I'm the same Florida dude from above. Trust me, the stupidity crosses party lines here. Plenty of college liberals as well as MAGA types refusing to wear masks/ partying, etc. That said the economy is picking up pace here so that's a plus (just avoid the huge cities for now).

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  • Analyst 1 in IB - Gen
Aug 1, 2020

Where are people living to ride out quarantine if not in NY or at home?

Aug 1, 2020

I'm the first to say usually get to NYC and use this time to acclimate living by yourself with no obligation to go into the office. And I think it could hold true, however, I would recommend seriously assessing your financial situation and whether saving on rent would behoove you with regards to loans etc. If you can afford it, come to the city. If you think you'll be more financially comfortable sticking it out with family for half the year, then I'd go with that because you'll enjoy the city that much more when you actually move.

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Aug 1, 2020

I faced this decision a little over a month ago and decided to move up, sure I may have saved a few grand by staying home but by locking a lease in July I was able to find a really nice luxury condo at a good discount that I otherwise wouldn't have been able to afford. It all depends what you value right now, in the grand scheme of our careers, 5k here or there seem rather minuscule.

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Aug 1, 2020

I think this 5k number is slightly underplaying it. If you saved on general living costs and rent/utilities then across 6 months since number might be in the range of 15 to 30k, less if you were splitting with others.

Aug 1, 2020

I think NYC rents have a ways to fall although I can see the trough being closer to 6 months from now than a year (one can only hope).

IB hours at your parents sounds horrible. If you can get something month to month or a 6 month renewable lease in a state with no income tax that might be your best bet.

Aug 1, 2020

you have no idea how much more your parents will love you for staying with them when you didn't have to

Array

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Aug 2, 2020

I totally understand not staying with the fam for mental health reason (even winter break in the childhood bedroom is tough for me, and I'm not even working then), but paying SoHo or Murray Hill rent to escape that (and as many people have mentioned, live in a dead NYC) is dumb as shit. Outdoor dining is back, but if you're seriously going to piss cash just to have the opportunity to have overpriced Penelope brunch with some college buddies for six months (if you can escape work)...reconsider.

If you live near a "secondary market" style city, I'd honestly consider paying cheaper rent and just making a dope home office setup for like $1000-1400 a month as a transition. The one thing I wouldn't recommend is going full Tahiti / a remote beach area with your buddies because WFH is no joke and if you're right next to the water that you can't enjoy bc you're making pitch decks, that is depressing as f. In PE we call that the "Ares effect". Plus, you might think you're best friends with the 10 college buddies you're going to do that with, but life is different when they're your roommates and you guys have to get shit done beyond securing school supplies for a pregame. WFH doesn't mean you're going to be able to recreate the Hype House with your friends.

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Aug 3, 2020

This was an amazing read. Full-time work hits different.

Aug 3, 2020

WSO's COO (Chief Operating Orangutan) | My Linkedin

Aug 3, 2020

I graduated in May as well and faced a similar dilemma but ultimately decided to move to my new city rather than live with my parents. I have been out here for ~2 months and it has been great so far because a. financial independence feels great even if you're saving less, b. freedom and privacy, c. more opportunities to network and get to know your team, even if you're not seeing them in person very often, and d. opportunity to explore a new city (which again is limited by the virus, but still very possible). Like others said, may be better idea to move to nice, but cheaper city for a bit, but trying to get a 6 month lease can be a massive pain and can be a lot more expensive than a 12+. My advice for that would be try to find a building that was built recently. My building finished being built in late february and they were offering a multitude of discounts and specials to attract new tenants because of the large amounts of units being unoccupied because of the timing of the virus.

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  • Analyst 1 in IB - Gen
Aug 3, 2020
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Aug 4, 2020
  • Analyst 1 in IB-M&A
Aug 4, 2020
Aug 6, 2020