Living outside of NYC as an IBD analyst

Is it advisable for IBD analysts to live in Jersey city? (Or would you have any other recommendations for housing outside of NYC?)
Living outside of NYC would save about 4% of the salary (saving the NYC tax), plus the lower rent/cheaper cost of living. I'm guessing it would save about 10k a year.
The only downside I see is that it may take a bit longer to get to the office in the morning (maybe about 20 minutes more?). Getting back home shouldn't be too much of a problem since there's free car service and the tunnel is fairly empty at night.

I guess the question is, is it worth it?

 

You suppose it saves 10k/yr. You also suppose that you lose 40 mins each day.

I would value one hour of sleep at a minimum of $80. Then in terms of sleep value, you are losing roughly $53 per day. If you gave yourself 30 days of not working in a year, then you are losing $16,695 ($53*315) of sleep value.

So in that sense, no not worth it.

----------------------------------------------------------------------------------------- I tend to think of myself as a one-man wolfpack Buyside strongside
 
rooster:
You suppose it saves 10k/yr. You also suppose that you lose 40 mins each day.

I would value one hour of sleep at a minimum of $80. Then in terms of sleep value, you are losing roughly $53 per day. If you gave yourself 30 days of not working in a year, then you are losing $16,695 ($53*315) of sleep value.

So in that sense, no not worth it.

Brooklyn is $10K in savings based on cost of living. JC is more like $10K in savings plus 4% of income on top of that because of the city tax. (Hoboken is $5K in expenses plus 4% of income).

It depends on your schedule. If you're working less than 15 hours a day, Jersey City or Hoboken makes sense for the first year or two. Bear in mind that if there is a recession and your firm announces layoffs, the fact that you have a lower cost of living and more money saved up (or student debt paid down) will give you back an extra 20 minutes per night of lost sleep.

I would recommend doing it until you get eight months' NYC living expenses saved up. Then you can move to Manhattan.

Remember, one of the reasons you probably got into banking was to save money for something (retirement, an MBA, a business, or something of that sort). Don't get distracted by the less intelligent first-year analysts living in UWS penthouses or dropping $1500 at the Pink Elephant in a single evening. Your goal is to save money. It will be easier to save money if you are not paying NYC resident tax and enjoy a lower cost of living.

If you are working in mid-town, downtown Hoboken may be a good compromise for the first year.

 

Stupid Stupid Stupid Stupid Stupid.

Live where you work. Preferably within walking distance (even avoid subways)

If you were doing S&T, you could rethink things. But for IBD?? No way

********************************* “The American father is never seen in London. He passes his life entirely in Wall Street and communicates with his family once a month by means of a telegram in cipher.” - Oscar Wilde
 

if ur bank is downtown nyc, jersey city (as long as its near the path) is doable. even hoboken.

but it makes ur life much easier if ur 10-15 minutes walking distance away from ur company, much easier.

------------ I'm making it up as I go along.
 
Best Response

You're going to be upset with yourself for making the choice to live outside the city. If you're pulling 80-100 hours per week, you're already not going to be going out much, and if you live in fucking New Jersey, you're going to regret your living decision. Each way, how much time are we talking about? Door-to-door, you're (at best) doing half an hour each way. Probably closer to 40 minutes. If you live 10 minutes walking distance away from the office, you get an extra 40 minutes-1 hour of sleep per day. You might not value it that much now, since you're probably sleeping 8-10 hours per day as a senior in college, but when you're pulling 4-5 hour per night, you're going to be willing to pay 10k per year for an extra hour of sleep per night. AND you're not going to have to deal with commuting each day. It's a headache. You have to put up with the other people on the train (not always Ivy-league educated) and the general mind-fuck from living in New Jersey.

Is saving 7-10k per annum really worth it? You're still going to be paying for train fares at $200 per month, so how much are you really saving?

For me, it's a no-brainer, but if you have some massive student loans to pay off, maybe it's worth it. Just maybe, though.

 

i do have a lot of student loans so being able to save 20k over 2 years was very appealing and esp when you jump to the associate level, i'd imagine the 4% tax break becomes quite significant... from the way i see it, i should have no problems on the weekends as the firm pays for taxi both ways on weekdays, i'm thinking if the hours get long i could just sleep at the office to maximize sleep or maybe even sleep in the taxi/on the subway?

 

Its not worth it. The most dreadful parts of my day are the travel. (I can only speak for jersey) I will be moving in Manhattan full time before the summer. Maybe Maybe going from Hoboken to downtown/tribeca (i did that for a year), now midtown for work, NO.way I"ll save more money by getting rid of my cars and all that by being in Manhattan. Even if I didn't, the savings in time and sanity ar worth it to me. If it gets late the path only runs one train, and not from down by WTC area, you have to go up to catch the loan packed rail. the further I remove myself from a travel schedule set by a bureaucrat the better. The random sleepovers get annoying. And I'm only a busy student who works full time. The idea of sleeping on the train or taxi, you are trying to justify a shity situation. I used to do that.

 
Commuter:
Its not worth it. The most dreadful parts of my day are the travel. (I can only speak for jersey) I will be moving in Manhattan full time before the summer. Maybe Maybe going from Hoboken to downtown/tribeca (i did that for a year), now midtown for work, NO.way I"ll save more money by getting rid of my cars and all that by being in Manhattan. Even if I didn't, the savings in time and sanity ar worth it to me. If it gets late the path only runs one train, and not from down by WTC area, you have to go up to catch the loan packed rail. the further I remove myself from a travel schedule set by a bureaucrat the better. The random sleepovers get annoying. And I'm only a busy student who works full time. The idea of sleeping on the train or taxi, you are trying to justify a shity situation. I used to do that.
Hoboken and JC- at least on the east side of the Turnpike- do not require a car. Sure, a car makes it a heckuvalot more convenient, but if you are OK with walking 1/2 a mile to get groceries, you'll be fine.

I'm still a big fan of keeping your expenses under control during the first year. Having more money in the bank- and knowing that your rent is only $700-1000/month- makes it a heckuvalot easier to sleep even if the commute sucks.

Remember that if you work late, you're generally entitled to take the car service home. Hence, no 1/2 hour wait for the PATH train.

 

Believe me, I understand what you're saying. I live further out, have a yard, zero crime, have saved a bajillion dollars and just cant do it anymore. I could but don't want to any more.

I have heard some banks explicitly discourage outside living for analyst at least. Im not sure how far the cars will go either. Id check with a superior first.

 

This site is becoming a joke.

Live in Manhattan. Get a roommate (or 2) in an apartment near your office. You can find something for $1000-1200 per month. Anyone worrying about taxes should not be doing banking in NYC.

It's not that hard to figure out folks.

********************************* “The American father is never seen in London. He passes his life entirely in Wall Street and communicates with his family once a month by means of a telegram in cipher.” - Oscar Wilde
 

Actually you'd be saving about $5k on income tax (NJ income tax is lower by a percent or two). Manhattan is overrated. If you want to live in Manhattan, save $200k for a down payment on a condo in Manhattan and buy your own place before you move there. It's ridiculous to throw $2,500 a month down the drain every month. That's exactly where your rent is going-down the drain.

Manhattan is 27% more expensive than Jersey City. Take your estimated COL in NY and chop off 20% and that's about what it will cost to live there. So would you pay $15k more to sleep an hour more each day? Plus nobody said you can't sleep on the train. http://www.bestplaces.net/col/?salary=100000&city1=53436000&city2=53651…

Oh, and I've seen rents in JC for $600 a month-I don't know how crappy they are, but you only need it to be safe and have working heat if you work 17 hours a day.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 
IlliniProgrammer:
If you work 100 hours a week, that's one thing. Fine; live within a 1/2 mile of work.

Most people that I know at the firm I work for don't do that. It's more like 50-80 hours a week. If you are in that situation, it makes a lot of sense to live in Jersey City or Hoboken during your first year or two.

50-80 hours a week in nyc IBD? That's the norm?

 
BobbyLight:
IlliniProgrammer:
If you work 100 hours a week, that's one thing. Fine; live within a 1/2 mile of work.

Most people that I know at the firm I work for don't do that. It's more like 50-80 hours a week. If you are in that situation, it makes a lot of sense to live in Jersey City or Hoboken during your first year or two.

50-80 hours a week in nyc IBD? That's the norm?

NYC S&T, research, and origination (our bank has it in capital markets rather than IBD) at one of the top five banks.
 

That sounds like a good idea. People will diss you on this board left and right for it, but the bottom line is that most of your check would have gone to rent so you'll be saving a huge amount of money. Which means you'll have more money for drinking/partying/eating/whatever.

 

That's true, you'll be saving at least $1,500/month, that's a lot of money to spend on other things. Although the downside is you'll be told to go to your room if you misbehave.

 

What about places like Hoboken or Jersey City instead of living in the city?

Working at JPM IB which is in Midtown, I think, will the commute-work be possible?

------------ I'm making it up as I go along.
 

Are you going to be in banking at the BB? I've honestly never heard of anyone in banking (at the analyst level) living outside of Manhattan.

Just remember that you're going to effectively be a high school student again. I know when I'm at home for summer vacation, my parents still yell at me not to drive out late at night or in bad weather, make me call them if I'm not coming home, etc. Can you take living like that?

Also, you will have no sex life. Girls in NYC (or at least the type of girls you'd actually want to be with) are fairly stuck up. First, there's no way they'll jump on the train with you to NJ after a night out (also, I'm sure trains to NJ stops running after like 12am). And there's no way they'll keep talking to you if they learn you live in NJ (what more, with your parents). Actually, even living in Jersey City, Queens, etc. is looked down upon. Just something to note.

Also, I thought trains to NJ stopped running by like 11pm/12am? I'd venture to say 3-5 nights of the week you won't even be able to make the train home! So where are you going to sleep for those nights?

 

Amet eos debitis ratione earum aut quis. Et quas nihil amet veniam rem possimus. Cumque et ullam consequatur sit magnam. Placeat harum porro minus veritatis optio voluptatem inventore. Doloremque voluptatem occaecati esse consequatur alias et ut. Earum aut non est voluptas. Omnis beatae sit et error. Sit nulla illum molestiae vel sint est repudiandae.

Quas non et explicabo et sint et et. Commodi deserunt ea fuga quia commodi et. Maxime pariatur aut beatae fugiat quia corporis illo. Et quo et natus ut. Aliquam ut laboriosam magnam voluptatum in. Iste ad nemo nihil voluptatem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”