3/22/10

With the high cost of living in nyc and annoying taxes, it seems that most analysts after a 2 year stint end up with about 10k - 30k in savings. I'd imagine that associates and up would save much more assuming they don't spend beyond their means.
I thought it would be interesting to get some data points from current 2nd year analysts/associates et al. on how much you are actually able to save from your ibanking years.

P.S. for analysts who end up going to business school, would schools like HBS, Wharton offer financial aid since 15k in the bank is definitely not enough to cover 100k in tuition?

Comments (120)

3/21/10

Loans, loans and more loans.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

Learn More

7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

3/21/10

By my calculations, I should save about 40-50k a year. I have non refundable tax credits to offset my first year taxes with, for my 2nd year I'll pay my siblings to transfer their credits to me and so wont pay taxes again. I'll be in Toronto
so I should get by easy with 2300 a month (1000 rent, 300 bills, 1000 for rest). Thats about 27600. that gives me about 22k to spend on suits, watches, gifts for my parents etc. leaves me with 50k initially which leaves me with 10k for unanticipated expenses..

3/22/10
IB13:

By my calculations, I should save about 40-50k a year. I have non refundable tax credits to offset my first year taxes with, for my 2nd year I'll pay my siblings to transfer their credits to me and so wont pay taxes again. I'll be in Toronto
so I should get by easy with 2300 a month (1000 rent, 300 bills, 1000 for rest). Thats about 27600. that gives me about 22k to spend on suits, watches, gifts for my parents etc. leaves me with 50k initially which leaves me with 10k for unanticipated expenses..

This prick is a FRESHMAN (1st year uni). He's been going around giving advice to people with actual jobs, and now he's posting about how much money he'll save as a banker ROFL..

He changed his username from Tradex after he got called out on the previous thread...what a loser.

3/22/10
Shimness:
IB13:

By my calculations, I should save about 40-50k a year. I have non refundable tax credits to offset my first year taxes with, for my 2nd year I'll pay my siblings to transfer their credits to me and so wont pay taxes again. I'll be in Toronto
so I should get by easy with 2300 a month (1000 rent, 300 bills, 1000 for rest). Thats about 27600. that gives me about 22k to spend on suits, watches, gifts for my parents etc. leaves me with 50k initially which leaves me with 10k for unanticipated expenses..

This prick is a FRESHMAN (1st year uni). He's been going around giving advice to people with actual jobs, and now he's posting about how much money he'll save as a banker ROFL..

He changed his username from Tradex after he got called out on the previous thread...what a loser.

Lol..you seriously have no brains. Knowledge is not measured by status. Your claim automatically carries with it a subordinate claim, that claim holds that every one who is in high school, in their first year of university, and working in physically demanding jobs are all stupid and cannot use RESEARCH skills to surf the web, interview professionals in multiple areas, and learn beyond the constraints of their curriculum.

You represent the word dumb royally. You come off as immature, and frankly irrelevant. I've been living on my own for 3 years now and know just how much things cost thank you.

P.S, I only pass advice to others when I have researched the subject and know what I'm talking about. You're an angry little man, sexually frustrated I'm going to assume from you're demeanor. Just because you were an absolute idiot as a Freshman don't assume that's the norm boy, I have a 3.8 GPA.

3/27/10
IB 13:

Lol..you seriously have no brains. Knowledge is not measured by status. Your claim automatically carries with it a subordinate claim, that claim holds that every one who is in high school, in their first year of university, and working in physically demanding jobs are all stupid and cannot use RESEARCH skills to surf the web, interview professionals in multiple areas, and learn beyond the constraints of their curriculum.

You represent the word dumb royally. You come off as immature, and frankly irrelevant. I've been living on my own for 3 years now and know just how much things cost thank you.

P.S, I only pass advice to others when I have researched the subject and know what I'm talking about. You're an angry little man, sexually frustrated I'm going to assume from you're demeanor. Just because you were an absolute idiot as a Freshman don't assume that's the norm boy, I have a 3.8 GPA.

hahahahaha only a 3.8 gpa from easy first year courses? That's fucking pathetic. I have a 4.0, please shine my shoes idiot 3.8.

3/29/10
ggrbc][quote: IB 13:

hahahahaha only a 3.8 gpa from easy first year courses? That's fucking pathetic. I have a 4.0, please shine my shoes idiot 3.8.

My SAT score is greater than or equal to both of yours', and IB13 is never going to settle down unless we give him a way to get out of this discussion while allowing him to save face.

//IlliniProgrammer taps his finger to his sideburns, gives both of you his mind-control stare, and forces both of you to stop bickering. : D

Seriously, everyone who makes it to NYC or into investment banking is pretty smart. 'Nuff said. No need to get into a pissing match in a discussion that's supposed to be about saving money.

As for saving money, the rules are pretty simple:

-Find a roommate your first year.
-DON'T live in Manhattan.
-Try to avoid NYC taxes
-Save 15-20% of your take-home salary. (Yes, it's possible if you follow the first three rules and are a moderate drinker)
-If you want to go to grad school, max out your 401k to shift income from years where you're earning lots of money (now) to years when you're not earning money (school, when you can withdraw money from an IRA penalty-free to pay for tuition.)
-Save all of your bonus money.
-Make conservative equity investments that are relatively uncorrelated with banking. (Pipelines, healthcare, utilities)

10/5/16

Misspost

3/22/10

IB13, here is what you initially wrote:

IB13:

By my calculations, I should save about 40-50k a year. I have non refundable tax credits to offset my first year taxes with, for my 2nd year I'll pay my siblings to transfer their credits to me and so wont pay taxes again. I'll be in Toronto
so I should get by easy with 2300 a month (1000 rent, 300 bills, 1000 for rest). Thats about 27600. that gives me about 22k to spend on suits, watches, gifts for my parents etc. leaves me with 50k initially which leaves me with 10k for unanticipated expenses..

You are clearly counting the chickens before they hatch pal. Being a damn freshman with a finance internship during the summer is light years behind having a full-time offer in hand. Focus on shit that is actually reachable at this point in your life, nailing 18 year old chicks, Christmas vacations with your family and having more than one semester with a 3.8.

3/22/10
BobbyLight:

IB13, here is what you initially wrote:

IB13:

By my calculations, I should save about 40-50k a year. I have non refundable tax credits to offset my first year taxes with, for my 2nd year I'll pay my siblings to transfer their credits to me and so wont pay taxes again. I'll be in Toronto
so I should get by easy with 2300 a month (1000 rent, 300 bills, 1000 for rest). Thats about 27600. that gives me about 22k to spend on suits, watches, gifts for my parents etc. leaves me with 50k initially which leaves me with 10k for unanticipated expenses..

You are clearly counting the chickens before they hatch pal.

I already know my tax credits for the year, from the past two post secondary years and my financial adviser gave me estimates for the 3 remaining years. I already live on 2300 a month and I live comfortably, so what egg has yet to hatch? The compensation is a median.

I don't really see the crime behind collecting data and making assumptions based on that data, do bankers not do that? create various scenarios based on various assumption? like the impact of giant oil rig fire on the price of oil when acquiring an oil company perhaps?

And I already do all the freshman crap. I don't need to choose between being informed and partying. I can do both as long as they dont' come in conflict.

Hypocrisy and elitism seem to be a running gag in this thread.

3/21/10

With trust-fund or without ?i bet half the people here dont need to worry about money for as long as they live.

3/21/10

The top tax rate for NYC residents will go up to 60% by 2013, once Obama's plans get passed. It will be tough to save.

3/21/10
jjc1122:

The top tax rate for NYC residents will go up to 60% by 2013, once Obama's plans get passed. It will be tough to save.

get your facts right man, the top bracket goes up to 110%, the more you work the deeper a hole you'll be digging for yourself. I'm planning on escaping to Mexico, I hear the richest man in the world is from there. If he can make it big, surely others can too.

3/21/10

Current Third Year Analyst - I've saved $100k (which includes 401k matching) still paying off the minimum payments on my student loans. Excludes my third year bonus which I've yet to receive.

3/21/10
madgames:

Current Third Year Analyst - I've saved $100k (which includes 401k matching) still paying off the minimum payments on my student loans. Excludes my third year bonus which I've yet to receive.

Nice. Did you live on a certain fixed budget? What happens when you leave? can you cash your 401k? I'm assuming you'd be able to but would be taxed your current tax level.

3/21/10

hi madgames, that's amazing
would you say that the amount you've saved is typical of a 3rd year analyst?
any tips on how to cut expenses/save on taxes (tax credits?) as an analyst?

3/21/10

Similar story here - slightly over 100k.

Threw my second year bonus into anything that was long risk and ended up making some good dough. Was long cash prior to Lehman - that 5% WaMu CD that I bought the day after Chase bought their deposits was a fantastic deal.

Rent has gone down. Vacations are cheap. Been taking a vacation a month and just living the life.

The Obama tax grab is horrendous.. real estate is looking more and more attractive as a place to stash cash.

3/22/10
eric809e:

Similar story here - slightly over 100k.

Threw my second year bonus into anything that was long risk and ended up making some good dough. Was long cash prior to Lehman - that 5% WaMu CD that I bought the day after Chase bought their deposits was a fantastic deal.

Rent has gone down. Vacations are cheap. Been taking a vacation a month and just living the life.

Your story sounds pretty similar to mine.

I graduated without any debt and I had managed to save a lot of money from salary my first 12 months and I was only 1/3 invested from my first bonus in September '08. Went with the 5% Wamu CD; bought lots of boring regulated pipeline MLPs in January, February, and March when they were yielding 12-14%; now they are yielding 7%.

Now that everything seems like a bad investment, including cash, I'm doing adventure sports. Since nobody can afford to do hang gliding and motorcycle racing right now, top-notch instruction and vehicles/supplies are CHEAP. We've actually got a whole contingent from work heading up to Ellenville to go hang gliding in a few weeks. If we get a double-dip and go into a depression, I would prefer to starve to death while doing something fun than starve to death while being bored.

3/21/10

what is the 401k matching plan at BBs? 50% of the first 6% of your salary? or dollar for dollar up to X%?

3/21/10

mine for 6% up to 100k. So basically 6k each year although that will drop this year.

I don't throw money around, but like to eat and live well. Have taken 6 weeks of vacation (you get 3 weeks between your 2nd and 3rd year). Eat out at a nice restaurant once a week maybe more depending on how much I'm working, etc.

It's important to enjoy the money you make if you have the time or you're going to have a really miserable 2 - 3 years.

3/21/10
Mandata:

P.S. for analysts who end up going to business school, would schools like HBS, Wharton offer financial aid since 15k in the bank is definitely not enough to cover 100k in tuition?

All-inclusive cost of business school (tuition + living expenses) is about $160k.

3/23/10

all the bschools offer financial aid packages in the form of loans or grants...lots of fellowships out there as well...no need to worry about savings, unless you want to pay for the full 160K yourself. you're really in all likelihood going to take loans and pay em off with your jobs post bschool

3/21/10

I think 100K is reasonable after 3 years when you factor in 401(k) matching. Figure less if you are aggressive in paying off your student loans. Honestly, considering analysts and associates working in NYC are going to be at or near the top tax bracket I would take every opportunity to sock away money in 401(k), IRA, whatever.

I will never, ever understand why anyone would support increasing taxes. I don't want rich or poor to pay more, Jesus, we pay enough already. Govt should try doing more with less like just about every American family has learned to do.

Masters in Finance HQ - The #1 site for everything related to the MSF degree!
MSFHQ

3/22/10

6 weeks vacation, are you a banker in Canada or France? 100K after two years is pretty impressive and questionable if living in NYC

3/22/10

Well we need to level out the discussion here. "saving" 100k in the 401k is not the same as saving 100k. You have to pay taxes on that when it comes out. About 60k of that prob was tax deductible going in, so aprx 30% of that will disappear. That about 80k. Still pretty impressive.

I'm sure some people ball out and spend it all. Anyone have any good tax suggestions?

3/22/10

Whoa, relax kid. All your research is great, but much like until you live on your own you don't really know what it is like so true with this topic. Relax and if you are going to spout gospel atleast qualify your opinion with the fact that you haven't even finished school yet.

Masters in Finance HQ - The #1 site for everything related to the MSF degree!
MSFHQ

3/22/10
AnthonyD1982:

Whoa, relax kid. All your research is great, but much like until you live on your own you don't really know what it is like so true with this topic. Relax and if you are going to spout gospel atleast qualify your opinion with the fact that you haven't even finished school yet.

Been living on my own 3 years now, got a college diploma in financial services along with a couple of licenses before moving to University. I'm not a child, thank you.

3/22/10
IB13:
AnthonyD1982:

Whoa, relax kid. All your research is great, but much like until you live on your own you don't really know what it is like so true with this topic. Relax and if you are going to spout gospel atleast qualify your opinion with the fact that you haven't even finished school yet.

Been living on my own 3 years now, got a college diploma in financial services along with a couple of licenses before moving to University. I'm not a child, thank you.

You are in college yet you've projected bonus savings for your "first and second year," do you understand how stupid that sounds at this point? Focus on getting internships and then a FT offer, it's not as easy as you'd like to think it is.

3/22/10
BobbyLight:
IB13:
AnthonyD1982:

Whoa, relax kid. All your research is great, but much like until you live on your own you don't really know what it is like so true with this topic. Relax and if you are going to spout gospel atleast qualify your opinion with the fact that you haven't even finished school yet.

Been living on my own 3 years now, got a college diploma in financial services along with a couple of licenses before moving to University. I'm not a child, thank you.

You are in college yet you've projected bonus savings for your "first and second year," do you understand how stupid that sounds at this point? Focus on getting internships and then a FT offer, it's not as easy as you'd like to think it is.

These are estimates based on Bay street median earnings. You seem to just look for a way to exploit my educational status. I'm a frshman, so what? Does that automatically disable me from asking other bankers about compensation?, from looking at the numerous publications on the issue? If your comment holds truth we wouldn't be able to write any assignments here at monkey freshman year classes.

P.S, I already have an internship lined up for the summer.

10/3/16

You're like, a huge douche. Also, Investment Bankers are good at sniffing out bullshit. Try and tone your personal brand of it down a notch.

3/22/10

Don't complain. Law school is $210k including living expenses. And the majority of law students didn't have cushy jobs pre-law school. And lawyers make less than post-MBA associates. That's okay though, lawyers have more job security than ibankers. Much rather be a bankruptcy lawyer right now.

Thank god I'm taking a withdrawal from the Bank of Mom and Dad and won't have any student debt.

That said, $100k seems possible based on wall street salaries. Then again, you never know with obama's tax increases.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

3/22/10

Listen, lets steer this pissing match back on topic or I will lock the thread.

Masters in Finance HQ - The #1 site for everything related to the MSF degree!
MSFHQ

3/22/10

Let's discuss this adventure sports further. I am VERY interested. Been skydiving, but nothing more than that.

How is hang gliding?

3/22/10

would the people with the 100k savings mind listing some more detailed figures or a breakdown?
i'm interested in any advice on how to cut expenses/save on taxes as an analyst
p.s. any tax saving tips?

3/22/10

^
me too

3/22/10

Living with roomates saves a lot. My first two years I lived with 4 other people. Mind you this was a HUGE apartment, but rent was reasonable and we split all expenses 5 ways.

Also you can use your "dinner" money for groceries which helps.

Also having a girlfriend and taking girls out can be killer, so you need to manage dates accordingly. E.g. never take a first or second date out to dinner, only do drinks etc etc

Learn More

7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

3/22/10

The only way i can see one saving $100k plus after a 2-3 year analyst stint, is if their parents paid for their UG, in other words, you would have to be debt free to rake in such a savings.

3/22/10

I don't know, when you figure in 401(k) with match it isn't such an outlandish figure. If with match your 401(k) contributions are around 10% your talking about ~21K with no growth. 3 years of bonuses with some reasonable savings could bring you fairly close.

Masters in Finance HQ - The #1 site for everything related to the MSF degree!
MSFHQ

3/23/10

Peter_27 - don't forget: you can have scholarships and grants/loans. Many also work multiple part-time jobs as well. Some of my previous part-time jobs were pretty lucrative - valet (drive cool cars, make cool tips), sat tutor (many rich parents will pay top $ for higher test scores - $100+/hour is a drop in the bucket for them and a ton of money for a college student).

For those thinking about business school, a 529 account is a great way to save tax free and gets you a NY State tax credit.

With pay going up and rent staying low, it shouldn't be too hard for incoming analysts to save. However, part of it also depends on what "bucket" you are in. There is a ton of talk about top bucket numbers, but that's only for the top 10-20%.

3/23/10

B-schools do NOT like to give financial aid to bankers. I had 0 savings and it was a pain getting a loans but no scholarship (despite stelar academics and emerging market experience) - I asked why other people were getting scholarships even though they clearly had no financial difficulties (i.e hink people with instantly recognisable last names that sound like big big existing companies, doctors, lawyers, familly business types). Answer: I put in my essay i wanted to go back to finance and therefore told that i would make back the money very quickly anyway.

So if you are smart you can do like my friends who i) hide all their savings in their parents bank accounts 2) understate all their assets iii) overstate all expenses iv) understate salary as much as they can v) mention that they want to set up hospitals in Africa after graduation and vi) go on to work for Goldman / Mckinsey anyway.

3/23/10

" can you cash your 401k? I'm assuming you'd be able to but would be taxed your current tax level."

if you withdraw early (ie pre retirement age, except for a few unique scenarios) you pay all taxes at current levels and a penalty rate. it's not a good idea.

for 401k matching it ranges. some places do 5% on the first 100k...some do more than that on total comp. I know shops where b/w pension and 401k matching you can be getting close to 10% of your salary, for free.

3/23/10

10% of your comp i mean...up to the irs limits.

3/23/10

401(k) match is entirely based upon deferral of salary. You can defer $16,500 this year into your k plan if you're under 50. Most companies are going to match anywhere between 3-6%. Some less some more. Anybody not taking advantage of the "free" match money is an idiot.

3/23/10

"Most companies are going to match anywhere between 3-6%"

but it can be 3-6% of your contribution...or 3-6% of your comp. quite a difference

3/23/10

6% of my comp up to 100k for me (at a BB)

3/23/10

"6% of my comp up to 100k for me (at a BB)"

ok take advantage of that. there are places who will match much more.

on the flip side, i know of no big law firm that does any sort of 401k matching...

3/24/10

just curious, anyone living in sf care to comment on the saving too?

3/24/10

2nd year analyst - have saved almost nothing. Most of my salary goes to living expenses while my bonus went to paying off debt, wardrobe, and a well-needed vacation. As an above poster said, girls are a total drain on funds. I think I modelled out that including dinners, drinks, and assorted entertainment, I've spent over $1,500 year to date on girls (figure includes spending on myself [e.g. my portion of the dinner] that I would have forgone had I not been with said girl).

3/24/10
Juwanna Mann:

I think I modelled out that including dinners, drinks...

You're not a banker, are you?

3/25/10

After 2nd year - I had about 135-140k

3/25/10

how did you guys save 100k+ in 2 yrs? what's your lifestyle like? please elaborate...like others, i'd be intersted to know. thx

3/26/10

I work in MO and my net worth is $110K. 2 Years ago it was negative $7k ($10K savings, $17K student loans). Of course, this includes retirement money (401K and IRA - $66K ROTH money), which B-Schools can't touch.

This was mainly due to two factors:
1. Investing in highly leveraged mutual funds at the beginning of last year
2. I still live with the parents so that obviously plays a factor (although I am moving out in July)

My lifestyle sucks. I am cheap and hardly ever drink.

3/26/10

not having to pay rent is awesome...that's almost $20k saving per year > $35+k over 2 years right there.

3/27/10
dairyman_crick:

not having to pay rent is awesome...that's almost $20k saving per year > $35+k over 2 years right there.

It may seem that way, but all of this constant bickering and fighting with my parents is really annoying. Hence, why I plan to move out in July when a few of my friends graduate and come to NYC. Not to mention I share a room with my sister, which sucks less since she's away for college until May.

There's like zero space in the house so it's really really hard for me to find quiet time to study for the CFA and GMAT (when the time comes). Usually I have to study on the subway or schlep an hour each way to the Main Library in Midtown.

3/28/10

IB13 is this you?
I'm "IB"_2014 from the other forum that you visit once in a while.

3/28/10

I am a third year analyst in i-banking and my net worth is $130k. I have only have 2 full bonus cycles. I live in NY. I graduated with 15k in net worth. It is possible, friends.

3/28/10
broadandwall:

I am a third year analyst in i-banking and my net worth is $130k. I have only have 2 full bonus cycles. I live in NY. I graduated with 15k in net worth. It is possible, friends.

come on dude, why don't you be a doll and explain HOW it is possible with telling us HOW you managed to save that amount of money. And, how much of that savings is bonus and salary?

3/29/10
BobbyLight:
broadandwall:

I am a third year analyst in i-banking and my net worth is $130k. I have only have 2 full bonus cycles. I live in NY. I graduated with 15k in net worth. It is possible, friends.

come on dude, why don't you be a doll and explain HOW it is possible with telling us HOW you managed to save that amount of money. And, how much of that savings is bonus and salary?

I work in capital markets and I'd like to think it's possible for a thrifty analyst in IBD. You can save $5-$10K out of salary your first year if your rent is less than $900-$1000/month and you're a moderate spender (eating out 1-2x/week, no ridiculous spending your first year). Second year, you get a $10K salary bump, so you can save more like $10-$15K your second year out of salary, plus the money you save from bonus. Third year, maybe $15-20K. So we're talking about $35K in savings from salary and then maybe another $33K/year from year-end comp. Also, we don't know how much of this money is pre-tax or post-tax.

You won't be able to wear Armani suits, go to Tahiti for vacation, or live in a penthouse with a balcony facing Central Park, and you might have to do some of your own cooking on the weekends, but you can have a comfortable life with plenty of room in the budget for occasional fun stuff (heading out to Jones Beach, going skiing in VT, doing ice dives on Lake Ontario, etc.)

3/28/10

to broadandwall: can you pls elaborate on how you saved up that much? lived at home? thanks.

3/28/10

yeah broadandwall, please elaborate.

3/30/10

I know this is irrelevant, but my brothers net worth is 1.1 million.

He was one of the first 100 employees to be hired by YouTube (Steve Chen) and when they were acquired by Google for 1.65 bill, he cashed out his stocks and fucking became a millionaire. In fact all his coworkers became millionaires or multi-millionaires off of that. How's that for 5 years out of college

3/30/10
Theteller:

I know this is irrelevant, but my brothers net worth is 1.1 million.

He was one of the first 100 employees to be hired by YouTube (Steve Chen) and when they were acquired by Google for 1.65 bill, he cashed out his stocks and fucking became a millionaire. In fact all his coworkers became millionaires or multi-millionaires off of that. How's that for 5 years out of college

You raise a good point- you don't have to do banking or finance to become a millionaire or a "baller". I think it's healthy for folks thinking about finance to realize this- both for their sake and the sake of the long-term economy. (The US will need a lot of start-ups- and brilliant people with good ideas- to go back to being a producer economy)

If anything, I think the aggregate income of a lot of folks hired into finance in the past 5-10 years would be higher if the folks who really enjoy doing something else got into those industries.

10/5/16

$1,000 month rent? Where the hell are you guys living? Middle America?

10/6/16

Doable in Houston, Chicago, LA, or Charlotte for bankers

...or get roommates

10/6/16

LA? Are you living in Compton near USC lol?

10/7/16

I'm in Houston which is way cheaper. I wouldn't personally live on that in LA but I've heard of people doing it since most people have cars and some don't mind the commute.

10/7/16
npa2392:

$1,000 month rent? Where the hell are you guys living? Middle America?

2010

10/7/16

$0.00 but would be about the same if I wasn't paying that in school loans.

YOLO

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."

10/7/16
yeahright:

$0.00 but would be about the same if I wasn't paying that in school loans.

YOLO

Yup

10/7/16

It's very possible to end up with over 200k. That's if you have self control.

10/7/16
BTbanker:

It's very possible to end up with over 200k. That's if you have self control.

???

"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower

Check out my blog!

10/7/16
BTbanker:

It's very possible to end up with over 200k. That's if you have self control.

Hahahah what????? That is the most ludicrous statement I've heard in a long time. Self-control like living with your parents and evading taxes maybe. And the best part is you even said "very possible".

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."

10/7/16
BTbanker:

It's very possible to end up with over 200k. That's if you have self control.

Is this serious?

10/7/16
BTbanker:

It's very possible to end up with over 200k. That's if you have self control.

Man I want some of whatever you're smoking. I'd be impressed if most people's take home reached 200K.

My goal for my first year is $25 - 30K - won't be in NYC so bonuses are smaller.

MM IB -> TMT Corporate Development

10/7/16

200k must be assuming you get a 70k+ bonus....or score some big return on some investment

10/7/16
wadtk:

200k must be assuming you get a 70k+ bonus....or score some big return on some investment

200k is completely impossible unless you are top bucket both years, live at home or pay next to nothing in rent, never spend money on going out / entertainment, eat seamless and save leftovers for lunch the next day, never party, don't have a gym membership and have no student loans. On top of all the above, you would also have to live in a state like Texas with no state taxes, and you would need to have a substantial return on investments...

What actually happens:

You might be top bucket, but top bucket is 50 or 55k instead of 70k. You don't live at home, but live near the office because you need to maximize sleep, there goes $1500/mo (reasonable estimate in Manhattan), you pay for lunch every day and drink a coffee every now and then. You also go out 1 night a week to blow off some steam and prevent yourself from ending your life. You pay state and local taxes to New York and Manhattan. You buy new suits because you wear through your old ones. You take a vacation because you haven't done anything fun or relaxing in longer than you can remember.

Long story short... NOBODY saves 200k in two years as an analyst post '07 unless they live at home and invest like Soros around their 90-100 hour weeks. I would argue that it would be pretty difficult for an MBA to come close to that level of savings.

Saying that it's reasonable to save 200k if you are diligent as an analyst is almost entirely laughable.

10/7/16

no chance of saving 200k.... Are you working in the Midwest? 100 would be possible then. MIDWEST IS SO CHEAP IT BLOWS MY MIND!

Fear is the greatest motivator. Motivation is what it takes to find profit.

10/7/16

100k

10/7/16

6/10 for troll effort on $200k. Next time, pick a less obviously fake number for better effect.

10/7/16

I saved ~50k which basically meant I spent about every dime of my salary (hard not to spend $300/weekend on food and booze in NYC if you want to be social) and hung on to my bonuses.

10/7/16

lol... I should have said 300k.

10/7/16

The sage rule is always live on your base, bank your bonus. I didn't follow that. At all.

YOLO.

if you like it then you shoulda put a banana on it

10/7/16

I'd say $300k is the norm

10/7/16

The average analyst in NYC is living off the base and at most saving 10k of it a year. Usually you'll save both bonuses which in these times can be 50k each (averaged out) or even less. Just to pick 100k pretax as a round number, you'll probably save around 65,000 if you live very frugally, but in my experience most analysts save between 0-50k.

10/7/16
SanityCheck:

The average analyst in NYC is living off the base and at most saving 10k of it a year. Usually you'll save both bonuses which in these times can be 50k each (averaged out) or even less. Just to pick 100k pretax as a round number, you'll probably save around 65,000 if you live very frugally, but in my experience most analysts save between 0-50k.

And so it goes

10/7/16
SanityCheck:

The average analyst in NYC is living off the base and at most saving 10k of it a year. Usually you'll save both bonuses which in these times can be 50k each (averaged out) or even less. Just to pick 100k pretax as a round number, you'll probably save around 65,000 if you live very frugally, but in my experience most analysts save between 0-50k.

Truth

10/7/16

They got banking jobs in the midwest? At Charles Schwab?

10/7/16
Disjoint:

They got banking jobs in the midwest? At Charles Schwab?

Minneapolis has quite a few.

"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower

Check out my blog!

10/7/16
Disjoint:

They got banking jobs in the midwest? At Charles Schwab?

There is this place called Chicago in case you haven't heard.
There, you can live off $1200-1500 a month if you live frugal lifestyle.

I'm not in IB so I have time to go out and spend a lot more, and I still spend on average less than 2000 a month.
100k is ambitious but reasonable after two years.

10/7/16

qweretyq:

Disjoint:

They got banking jobs in the midwest? At Charles Schwab?

There is this place called Chicago in case you haven't heard.

There, you can live off $1200-1500 a month if you live frugal lifestyle.

I'm not in IB so I have time to go out and spend a lot more, and I still spend on average less than 2000 a month.

100k is ambitious but reasonable after two years.

I am close to 85K now after just under year (granted I started with a 30K surplus and and only 5K of subsidized loans).

Key is this:
- Contribute 401K to maximum IRS limit ($17,500)
- Put your money to work
- Don't pay an arm & leg for a dumb apartment you will never be in

10/7/16

NY BB

I just calculated and I'm planning to save (POST-TAX) at the end of the two years
- 104k if top bucket
- 80k if middle bucket
- 62k if worst case scenario, bottom bucket

Pre-tax, these numbers are 180k, 140k, and 116k respectively.

This is including max 401k matching, so that's a portion of the money that's not touchable.

This does not taking into account pay raises and bonus raises in the second year, as I'll probably upgrade my quality of living spending accordingly.

Value drivers:
- Maxing out all pre-tax deductibles
- Rent and utilities add up to less than $1,350/month. I'm sharing a three-bdrm with two friends in Manhattan. My room is tiny but at least I get my own room and the commute to work is a 10min train ride
- I'm putting a hard cap on monthly discretionary spending. 50% of discretionary go towards drinks/going out (liquor diet). 20% go towards lunches not comped by Seamless. The rest go towards new clothes/random things that pop up.

Hopefully this is a helpful reference point for anyone wanting to leave frugally in NYC. Happy to clarify anything.

10/7/16
gdxx:

NY BB

I just calculated and I'm planning to save (POST-TAX) at the end of the two years
- 104k if top bucket
- 80k if middle bucket
- 62k if worst case scenario, bottom bucket

Planning

10/7/16
F. Ro Jo:
gdxx:

NY BB

I just calculated and I'm planning to save (POST-TAX) at the end of the two years
- 104k if top bucket
- 80k if middle bucket
- 62k if worst case scenario, bottom bucket

Planning

As the Bard said, the best-laid plans of mice and men often go awry

10/7/16
gdxx:

NY BB

I just calculated and I'm planning to save (POST-TAX) at the end of the two years
- 104k if top bucket
- 80k if middle bucket
- 62k if worst case scenario, bottom bucket

Pre-tax, these numbers are 180k, 140k, and 116k respectively.

This is including max 401k matching, so that's a portion of the money that's not touchable.

This does not taking into account pay raises and bonus raises in the second year, as I'll probably upgrade my quality of living spending accordingly.

Value drivers:
- Maxing out all pre-tax deductibles
- Rent and utilities add up to less than $1,350/month. I'm sharing a three-bdrm with two friends in Manhattan. My room is tiny but at least I get my own room and the commute to work is a 10min train ride
- I'm putting a hard cap on monthly discretionary spending. 50% of discretionary go towards drinks/going out (liquor diet). 20% go towards lunches not comped by Seamless. The rest go towards new clothes/random things that pop up.

Hopefully this is a helpful reference point for anyone wanting to leave frugally in NYC. Happy to clarify anything.

worst case scenario = you on the street bruh

10/7/16
gdxx:

NY BB

I just calculated and I'm planning to save (POST-TAX) at the end of the two years
- 104k if top bucket
- 80k if middle bucket
- 62k if worst case scenario, bottom bucket

Pre-tax, these numbers are 180k, 140k, and 116k respectively.

This is including max 401k matching, so that's a portion of the money that's not touchable.

This does not taking into account pay raises and bonus raises in the second year, as I'll probably upgrade my quality of living spending accordingly.

Value drivers:
- Maxing out all pre-tax deductibles
- Rent and utilities add up to less than $1,350/month. I'm sharing a three-bdrm with two friends in Manhattan. My room is tiny but at least I get my own room and the commute to work is a 10min train ride
- I'm putting a hard cap on monthly discretionary spending. 50% of discretionary go towards drinks/going out (liquor diet). 20% go towards lunches not comped by Seamless. The rest go towards new clothes/random things that pop up.

Hopefully this is a helpful reference point for anyone wanting to leave frugally in NYC. Happy to clarify anything.

On what planet are you making 180k pretax as first year analyst in banking at a bulge bracket?

10/7/16

Rufiolove - That's at the end of TWO years, read the first line.

For the first three months into the job, I've been under-budget. Have hope guys, this is definitely possible.

10/7/16
gdxx:

Rufiolove - That's at the end of TWO years, read the first line.

Thx for the clarification. My response was in reference to 2 years. Thx

10/7/16

@heuthan: worst case scenario - you on the street

10/7/16

1st year here at BB...at my current monthly savings rate, I'm saving a MINIMUM of 20k off my base..I save a MINIMUM of 1650 per month...some months i've even saved around 1800...it can be done

10/7/16
quag_mire:

1st year here at BB...at my current monthly savings rate, I'm saving a MINIMUM of 20k off my base..I save a MINIMUM of 1650 per month...some months i've even saved around 1800...it can be done

hey asshole where do you live?

10/7/16

I live in midtown in a doorman elevator building, and pay 1650 in rent for my own room + bathroom (i have the master bedroom)...the reason I can save that much is that i spend close to nothing on food, thanks to seamless, which saves around 400-500 a month, and I also walk to work (10 min walk), so that saves another 100 on a subway card...all my expenses are basically going out on weekends/random shopping for clothes etc...also i dont have any student loans

10/7/16

Yeah, dude, you clearly have no idea how much analysts at BBs make these days. I would say top bucket 1st yr is about 60k and bottom can be as low as 20k depending on the bank.

10/7/16
mrb87:

I would say top bucket 1st yr is about 60k and bottom can be as low as 20k depending on the bank.

This is accurate. It varies between banks AND groups within the bank (e.g. TMT vs FIG vs LevFin). I got second bucket and got 40k as 1st year bonus (BB industry coverage). Bottom bucket at my bank got laid off.

I was able to save 55k cash (not counting 401k and benefits) in my first year. Regional office. I live pretty modestly. I was also getting killed, so I wasn't able to spend as much time/money at the bars as I would have liked. But when I did go out, I would spend more money or buy more rounds for my friends because I was flowing with cash. I went out on average 1 night per week, but I usually didn't go as big as I would have liked because I was always too tired or had to work the whole next day/night.

If you're consistently working 90 hours a week, you'll save a lot more money than the analysts working 70 hrs/wk because that extra 20+ hours is what kills any life outside the office (and therefore significantly lowers expenditures). Also, you'll eat more Seamless and hopefully get a bigger bonus than the 70/wk pack.

Epilogue: I retired after my first year as an analyst with $75k in my PA (had $20k life savings before I started). Now, I'm enjoying the good life. What will I do? Not sure, but it feels good to have $75k in the bank.

Best Response
10/7/16

Being frugal and living within your means are all well good but I feel these threads turn into an orgy of "I'm the cheapest son of a bitch on the Street" and then IlliniProgramer comes in lays down his ultimate tales of thrift to be +1'd.

Things like vacations, girls, nice gifts for family members, etc are all expensive. That doesn't mean they are always a negative. There are two kinds of people who live in shithole apartments the size of a closet, eat the same food every day, work 100 hours a week, and are miserable: Foxconn employees and junior bankers trying to squeeze every nickel out of their salary.

When I sit down at the end of the year I'm not going to say to myself "Could have bought 15 extra shares of GOOG with the money I spent on vacations and golf" or "Gee shucks I'd have an extra 100 shares of GIS if I didn't take my girlfriend out to nice restaurants"

Go out and try to enjoy life a bit - I knew a very talented equity analyst with a sick job at a HF that got diagnosed with cancer at 27 and was dead within a year.

10/7/16
Gray Fox:

Being frugal and living within your means are all well good but I feel these threads turn into an orgy of "I'm the cheapest son of a bitch on the Street" and then IlliniProgramer comes in lays down his ultimate tales of thrift to be +1'd.

hahahaha, that made me lawl.

10/7/16

as gray fox puts it, live your life and that will not always be cheap but experiences are what makes it exciting and shape us.

"too good to be true"

See my WSO Blog

10/7/16

so you saved 75% of your after tax income?
....

10/7/16

I earned 40k in 2011 and 80k in 2012 (including bonus) as a first-year analyst. My effective tax rate for this 120k was ~25% I think, which means that I earned ~90k after tax. I was able to save 55k of this. So, I was able to save ~60% of my after tax income. This seems reasonable to me. My after-tax paychecks were ~$2k. I paid $1250 in rent and I usually kept my monthly credit card bill under $750. Jan-March were horrible months as far as hours and my cc bills were like $300! Didn't have cable (no time). I was able to save like 2-2.5k per month after tax plus my 40k bonus (~30k after tax). So my savings were somewhere between $45-55k (I made some money in the markets from this too). Note: my credit card bills were much higher in college when I was going out 5 nights per week + trips all the time. Since I quit, I spend more money on leisure (bars, sports equipment/gear, weekend trips), but I moved back home to save on rent and food. I'm retired for the rest of this year--at least.

10/7/16

my effective tax rate so far is 33% :|

10/7/16

16 months in as a consultant... I'm at 35k. Probably helped by the fact that I put a very large chunk of my paycheck into my 401k since its pre-tax.

10/7/16

I just plotted my credit card expenses for the last 3 years. The average bill was $900 before I was analyst. While I was analyst, average bill was $400! December 2011 was $60 and March was $160!!! Those were by far the worst months of my life. Since I quit, my cc bills have returned to $900 (on 2 months so far). Interesting.

10/7/16

I started out with 30k in the bank and ended my 2 years with 150k. I did invest like Soros though (through luck)

12/31/16

Is $2.25mm of savings after 7 years realistic in IBD? Just made a post about it but this girl (The Money Habit Blog) said she was able to save $2.25mm after 7 years (earnings plus index fund investing). Probably from like 2009-2016. Know the markets were up but this still seems high given NYC taxes and she was still spending ~24k a year. Of course I have never worked in IBD or maybe she was a trader. Believe she was working for JPM.

12/31/16

Yeah it's possible if she ended at VP or higher.

12/31/16

1-Click to Unlock All Comments - 100% FREE

Why do I need to be signed in?
WSO is a knowledge-sharing community that depends on everyone being able to pitch in when they know something.
+ Bonus: 6 Free Financial Modeling Lessons with 1-Click Signup ($199 value)
12/31/16
12/31/16
12/31/16
12/31/16
5/7/17