A question for the London bankers: What is reasonable to spend on accommodation as a first year Analyst?
Base is PS50k almost everywhere, which amounts to about PS3k per month after taxes. However, even in Canary Wharf “nicer” studios start at about PS1.4k per month.
I’m a bit older than the usual first year and lived in shared apartments for almost a decade now, so I would really like to have my own place finally and have a very high preference for a decent and modern apartment (doesn’t need to be big).
Yet, I don’t feel entirely confident to spend more than 45% of my net base on accommodation, save at least c. PS450 per month and still be able to live without crunching every penny.
What in your experience is a fair budget for London First Years?
Congrats on getting the job!
I believe that you know the answer but it doesn't make you happy because you probably expected to be in a better financial situation by now. You will probably have to downgrade a bit especially if you don't have parents that can cover your back if need extra money for a month or two. Some people will say "don't save pennies when you'll make pounds in a few years" but make sure you're in a reasonable range..
Don't get peer pressured into doing what other "London bankers" are doing. Everyone has a different background. I know a guy that rented a 3200 pm studio when he was a student. It probably took him like 5 years of working in high-finance before he could actually afford it on his own.
Now you're comparing where you rent, in a year you'll be asking how much to spend of your bonus. "I don't feel entirely confident to spend more than 45% of my net bonus on a Rolex but that seems the norm". Don't fall into that shit.
My point is, don't compare yourself to others. You know your situation best. Be reasonable.
Thank you and I appreciate the advice!
I totally agree with your first paragraph. In this case however, it’s less about the peer pressure and more about my personal preference. My group is quite intense and a nice environment is very important for me to recharge in terms of energy levels.
Imagining coming home from an exhausting week to dirt and chaos, because my 21 year old roommates don't know how to clean after themselves will probably make me want to punch a wall (well, a bit of a hyperbole here but you get my point. I might also be a bit OCD about it). I‘ve endured situations like that for the past years and generally speaking I was fine, but I am a bit worried, entering a more stressful working environment, that this will cause additional stress, which I would like to prevent.
I would have no problem rocking my Seiko for a few more years, if I can get a nice studio in return ;)! But yeah, deep down I know I actually don't want to spend that much money on accommodation with that level of salary..bummer.
perhaps you could ask around in your social circle? I bet there's someone else in the same situation who is neat and tidy but has to share. I know exactly what you mean. If you have to share I hope you're lucky..
Do you need a studio? I know plenty of people that rented rooms in houses they shared with other people. It worked out for me and it's worked out for others too. Can easily go to £1,000/month.
Don’t get a studio, stick with a shared flat. You will barely be spending time there as an analyst anyway, so money spent on a nice apartment just for yourself is wasted in a sense.
I would stick to ~£1k a month in a shared flat.
Thoughts on living in the direct vicinity of CW? Is it very depressing as some people put it? Looking at Shoreditch as it's close to the city as well and quite an easy commute into CW.
if you are in S&T dont as who would want to spend their weekends there, if you are at MS (known for BS last minute edits) in IB its fine as you'll spend you weekends in the office anyways.
Well, I think it depends on your group. As most, we tend to work quite long hours and I will have to come in for last minute edits every once in a while, so there is no way I’m giving up 40 more minutes of sleep per day (assuming about 20 min longer commute from one of the more sought-after areas).
Most of the Analysts of my group live close to the office in CW for their first 2-3 years and then move into nicer areas if they stay with the firm or exit to buy-side roles. I will do the same.
I actually think CW is not as bad as everyone says. Living close to the water is nice, most apartments are very modern, (you get more for your money than elsewhere), and the whole district infrastructure was created to cater to (finance) professionals, which can be quite convenient. Given, it‘s very dead and dull on the weekends - but then the more central areas are just a 20 min DLR ride away.
For CW I would live in either Baker St or London Bridge and take the Jubilee direct in the morning. And I would aim to spend 1-1.2k in the current market for a decent shared flat.
I personally would prefer to live further West (think Earl’s Court) but the commute to CW in the morning can be quite long...
It might be a good compromise to go for a very nice 2-bedroom flat for about PS1.2k/person. Appreciate the insight!
To stir the discussion in another direction: Judging from your experience, what budget do you need as a first year in London to get by without having to worry about anything (excluding rent expenses)?
I lived comfortably on about EUR1.6k/month (including rent) in one of the major continental European cities for the past two years, although I wasn’t able to save much.
I feel PS1.6k without rent expenses would be already quite tight in London?
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