Just wanted to see how much everyone is saving. I'll go first. Zero.
Some people just seem better at saving (or not spending)
Here's a girl from UBS IBD (NYC) and she doesn't seem to spend her money on anything.
| +152 | How to stop feeling like shit for not making it in IB? | 57 | 47m | |
| +115 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 58 | 24m | |
| +80 | Updated LA Banking Scene (2024) | 57 | 20m | |
| +38 | Ranking banks that went under | 20 | 8h | |
| +34 | Burnt Out M&A ASO | 18 | 3h | |
| +32 | A strategy for SA applicants late to the game like myself | 15 | 12h | |
| +29 | Relevance of A-Levels for U.K. London recruiting | 21 | 17h | |
| +26 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
| +26 | Intern Ettiquette | 4 | 15h | |
| +23 | What are hours like at BBs in London? | 47 | 14h |
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.
A lot
I mean, I started this year and have been spending maybe 5-10% of post tax comp (living at home). I also think depending on your hobbies, covid has helped people save
I think by the time I was done with my two years I might have had like ~$150K saved from both years? I worked for ~3 years before that so cumulatively I think I had like $300K saved. And I by no means lived an austere lifestyle. I honestly don't know how you can't save money as an IB Analyst.
You're paying like $1,800 a month on rent on an apartment so small you can't possibly own tons of shit, you don't buy your own food, you don't own a car, you don't have kids, and you can't take vacations or travel. Are you spending it all on constant bottle service? Legitimately curious.
so you saved like 70k first year and 80k second year? how much of the 150k was from investing? i'd imagine i can save like 50k first year and 60k second year but idk how 150k after 2 years would work
I'm not using terribly precise numbers here, but it's honestly a combination of a few things: (1) working in an absolute sweat shop, so having most meals paid for and having no vacation or leisure time to spend money on; (2) not having a taste for nightlife; (3) not buying flashy watches or clothes (just never cared about it); (4) saving 100% of bonus, maxing 401k contributions, and saving most of my monthly income not spent on rent; (5) coming out of college with no student loans; and (6) the bank also topping up 401k by a set percentage after bonus time.
Is this a healthy way to live? No. I absolutely hated my years in banking, but I also had enough sense to know that buying tons of shit or blowing $2k in one night at a bar wouldn't make me feel better about it. Now that I'm outside of it, I have way more leisure time and spend much more money on hobbies and traveling, but I also make a lot more money, so I still save a lot. Somebody with a less miserable banking experience probably would save less.
I'm firmly of the view that everyone should do absolutely anything they need to do to survive banking without permanently damaging their mental health. There is nothing wrong with saving nothing, because the money you make in banking should in theory be the least amount of money you make in your entire career.
150k in your first 2 years? That's amazing. How much did you get for your bonus?
I don't really remember. I was top bucket both years, so I want to say something like $60k - $70k?
Don’t know why you’re talking it up as if saving 150k in 2 years is easy. That’s >50% savings post tax for even an above average analyst. On top of rent and living “by no means austere lifestyle”? Not saying it’s impossible, but it sounds to me you had some extra advantages to get that far. Or you penny pinched more than you’re letting on.
I went to just about the most obscure state school possible in order to graduate with no loans and worked for 3 years before getting into banking in a satellite office of the same bank in the middle of nowhere while networking like a psychopath to do it. My parents had zero understanding of college or what banking even is and I've made more money than them every year of my professional life, including my first year out of college. Point being, I didn't receive any help here.
I'm just coming from a different perspective. Saying I didn't live an austere life, to me, means I would get a nice dinner once in a while and never had to think too much about money. I would never dream of (and still don't) of buying a $20k watch or $2k suit, like a lot of Analysts do. It adds up.
There's also probably something to me having worked a few years before doing banking because I had some time to make money (granted, much less) and learn what I needed to get by. As a result, my spending habits didn't change much when I made comparatively more in banking. I think a lot of what gets new Analysts is that they're suddenly flush with more cash than they've ever seen before and feel compelled to spend it.
Living at home right now and saving pretty much everything and investing really aggressively. Since a started ~4 months ago I've probably saved like 35k
what are you investing in out of curiosity
Putting like 20% of my paychecks into my 401k, some tech stocks, lots of SPY, a little QQQ, and large amount in bitcoin and ethereum which has given me the highest returns by far
Kinda weird how “Analyst 2 - IBD” keeps posting this chicks video. Feels like self promotion 🤮
Tbh, I was interested and watched the video. Better than a having an IB ranking post for the 100th time.
SIMP
Or
OP changed her title to Analyst 1 just to make it look like it’s someone else defending her
2nd year analyst (~1 year 5 months working) and started at basically $0
Roughly have saved: 401k - 20k Equities - 40k Cash - 30k
I feel like I spent pretty freely also, bought a nice car (non-NYC) and watch among other things, but as a result I do have a car loan for 15k so can deduct that from the numbers above.
Do you mind sharing what your comp was like? Having that much saved after 1.5 years and being able to spend freely seems pretty great!
Aut mollitia nulla at sed qui. Nihil eos minus et et deleniti alias laboriosam. Et quas voluptate perferendis minus libero qui. Vel nemo recusandae ab iste. Sed itaque eveniet quibusdam dolorem et. Explicabo quas eaque ut dolorem quia odit dolorum.
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...