Just saw a thread on here about someone who is wondering what to do with the 60K they have saved after 2 years in banking. I'm going into banking myself (in a city with a similar cost of living to NYC but outside the US; banking pay is comparable) and am curious about how much bankers can/do feasibly save. If living frugally, how much can one realistically save?
How to Save in an Expensive City
While investment banking is a lucrative career, it's also very easy to spend all of your earnings. How much you can save depends on a number of factors, but here are some steps anyone can take to make sure they're building their personal savings while working:
- Set up a Personal Finance Budget Template
- Live off salary and save all the bonus (minus taxes of course)
- Take advantage of perks at work such as coffee/water/beverages, dinner, lunch, cab home, etc.
- Assess what you would be willing to sacrifice - ex: apartment, diners out, weekends out, etc. - but remember that the banking lifestyle is so intense that you'll probably be willing to pay for these things after working long hours