How Much to Save / Spend
Hi all,
I am starting full time as an IB Analyst in SF next year and am curious how much I should think about saving a year? Assuming I get a mid-bucket bonus at a BB and spending ~$2k a month on rent and utilities, and living a standard IB lifestyle (going out/drinking whenever I get a chance) what is a reasonable amount to be putting away and/or investing long term? Thanks!
Save your tax return and a portion of your stub. Create an LLC and put 2k in, and do some reasonable expensing to reduce your total income come tax time.
How much to save during your entry level job? (Originally Posted: 04/05/2017)
I will be graduating in May and starting in NYC as a consultant making what I consider to be a good salary by my standards including base, sign on and what I assume the end year bonus will be. I will be living at home and commuting to NYC until I know my first or second project location (If NYC, move in earlier, if bumblefuck, stay at home for about 6 months then move in with friends). - Obviously if I am going to live at home and commute I hope to save a lot, but how much is a lot to save? Lets say I make 85k the first year all in and live at home for 6 months, what is a solid number? I thought that I would invest in some actively managed, equity based funds along with some others, but what is a realistic strategy for someone at my level? - If I am on the road M-Th, then I doubt I will really be spending a lot as meals and flights are written off or expensed by the company.
Solid would be maxing out 401k and Roth IRA for around 23k
Agree with Charizard on maxing retirement contributions if that's possible. I would add a few suggestions:
Even while living at home, you should still "charge" yourself rent in the form of an automatic transfer from checking to savings, or paying down student loans. This amount should be equivalent to the market rent in the area (~$1,200-1,500 for NYC). I know a lot of people who lived at home to "save" money and ended up spending more because they were not disciplined and viewed the "savings" as money they could afford to spend.
I'd also open a separate savings account as an "emergency fund'. This account should contain at least six months of living expenses to cover your a** should the SHTF (medical expenses, laid off, etc). Being able to deposit this is difficult/impossible off the bat so drop $1,000 (or more) to get started and contribute monthly (about $150). Set up an auto transfer so you don't have to think about it.
You mentioned investing, I'd suggest checking out low fee services such as Wealthfront or Betterment which allow you to make regular contributions online and it's really easy to set up. You can also get a Roth set up, which was mentioned above. Given your age, I wouldn't worry too much about timing the market and just focus on constant contributions instead.
Hope this helps
Thanks! Luckily for me I do not student loans from a combination of scholarships, etc. I like what you said about allocating a portion of my salary to 'rent.' I think this is a good idea as is the part about the emergency fund. I haven't heard of betterment but I will check it out! Thanks!
How much do you spend ? (Originally Posted: 07/05/2011)
Hi folks,
For comparison purposes, how much do you spend per month ? Please specifiy: -marital status; -city; -whatever you deem relevant.
You can provide the breakdown as well (accomodation, food, hanging out, school etc).
Cheers.
On average I would say bout 3.50
hahah..."the monster bent down and said 'I need about tree fiddy'"
4-5K/month.
god damn loch-ness monster!
1500 for rent and utilities. Approx. $300 for other misc. cab rides, lunch, hanging. Major west coast city.
I spend $5.99 on a 6-pack of Bud Light 1-2 times a month depending on schedule.
Wife spends about $4K a month.
around $100 a month on cheep vodka. $40/month on fast food (mainly loose change) $20/month on blankets and shopping carts
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