It's honestly baffling to me how people survive in NYC without finance type pay. With a salary ~62K, rent of $1,450 and student loans of around ~$550 a month, it's almost impossible for me to save any money. Any other first year monkey's in similar situations or have any thoughts? Granted I'm in CRE as opposed to IB, but it' still very frustrating to supposedly have a "quality" job that doesn't allow me to really even live a middle class life.
Do people actually save a lot during their analyst years or just scrap by until you can get promoted to a higher salary/bonus?
Other than changing the job, #1, move elsewhere. There are plenty of places in the boros or Jersey where you can live for less. Heck, in 2008 I had a 1br in Harrison (NJ) for $900/mo. Also, $62k/yr in Manhattan is barely above the poverty line. Minimum wage is $30k/yr with a little overtime.
I had an a bedroom in Murray Hill for $950 a month in 2009. What were you thinking?!?!
heh heh, Murray HIll? What were YOU thinking?!?
SF living is even worse.
You don't save anything. If you work in IB, you'd probably save some and a lot of your bonus. Or as mentioned above, you move to a lower COL area and commute.
NYC isn't a good place for W2 earners. If you have your own business, things look a little different, but taxes and COL rob you hardcore.
Also, you have student loans. Having a reasonable safety cushion is obviously smart, but unless you are getting a return > what your student loan debt is costing, you should focus on repaying that first.
No one tell him about...
Chicago.
Hate to say it but Chicago CoL is starting to get just as ridiculous, at least down town. If you want to live away from downtown, it is for sure better. But it's hard to find a decent studio within a mile or so of downtown for less than 1500 as well...unless you really want to live in something that you always assumed was reserved for part-time retail employees. Good thing is that the outlying neighborhoods are still semi-reasonable and might stay that way for at least a little while. And of course, taxes are a fraction of what they are in NYC, that's really what helps the most.
Agreed with the above. However, I can get a studio in Lennox Hill (NYC) for $2,200, whereas I can get a 1 BR in the Loop (Chicago) for $2,000. Either way, I'm splitting with my spouse. The 1 BR is in a "luxury" high rise with a gym and pool. The Lennox Hill studio? Walk up and probably no AC.
Agree on the taxes. Brokers aren't a thing in Chicago either.
I don't think it's on the ridiculous level yet. It's not on the same level with DC or Boston or Seattle. Agree with the poster above that you get to rent a much higher quality place for the price too.
Lol you can buy a pretty nice condo in Chicago under $700k in a nice area ez all day. Good luck doing that in NY.
This is typical. Live on your salary and save 100% of your bonus.
Tough to enjoy NYC on less than $250-300K/year if you're single.
You're not supposed to save any money in NYC when you're making less than $100k base. Pretend like it's the army or boot camp, you signed up for 2-3 years for a shot at something better. Think of your first job as a launching pad, similar to an MBA but getting live experience.
Manhattan is about "making it" which usually means mid-six figures all-in. If you can't get there in a few years, accept it and move to a lower COL city. At least you gave it a shot.
Most likely you'll end up in a much better spot in your mid/late 20's and you'll laugh at your first salary the way Gekko laughed at his first real estate deal in the movie Wall Street.
NYC salaries/positions aren't linear, they usually go in plateaus and massive leaps (i.e. 2-3x upon hitting the next level). If you can't make the leap you need to move out and switch it up.
so much this.
I know plenty of now millionaires who were living on a shoestring well into their 20s because of everything OP describes, keep the faith bro pesci
What? Not sure I follow the part about getting to mid-six figures in a few years. Even if you're in banking, this would presumably take six years, assuming entry point as an analyst, to attain at the VP level. Most big law associates will never see that kind of money before partner level.
Also, you don't need to move out if you've plateaued at a very comfortable 3-400k a year as a mid-level white collar worker. Actually, this entire train of thought doesn't make much sense. NYC is high COL but there is commensurate earnings upside. While you can always manage your lifestyle by cutting fat, a job paying 300k in NYC may well pay 200k or less elsewhere in the states. You can manage certain aspects of your lifestyle, but you can't manage the economics of your earnings as a salaried employee.
My last NYC apartment had a 5m walk to subway, 15m ride to downtown manhattan, a backyard, and cost $980 in rent. I lived off another $500 or so a month and was able to save and invest the remainder of pay and bonus. I had a pretty incredible savings rate. To the person saying you need $250k to live comfortably in NYC- that is crazy. Save the money for experiences and not do not blow it on drinks and cocaine and not getting laid. Which brings up another point- get laid and find a girl to split rent with if you're that worried about it.
On the flip side my ex-girlfriend mad similar to you, overpaid in rent to be in a fancy neighborhood and had a difficult time saving.
how far back in time was this and did you pay a broker's fee?
trying living where the housing market is spiraling out of control *upwards* AND having a a nearly $1000 student loan payment. My savings account has been breaking even every month for the past 7 months. Not too mad cause I know its just a starting point and the bonus will roll around soon enough, but still... hard out here for a millennial
**queue older dude saying you damn millennials don't work for shit**
Don't know too much about housing in NYC, but I know that after taxes, you're getting crushed by your rent and loans. You need to move to a better COL city or get paid more. $60k in the south/midwest and you could be living alot better.
This thread put me at ease. Im in a constant panic about my balances/situation. If anyone could start a thread on how to survive these first years in NYC on this kind of salary I think many would extremely appreciate it.
Now that's an idea.
I went ahead and skipped NYC for this very reason (plus I hate the cold, plus whenever I visit it feels like I am in a sardine can, plus I prefer the south..)
I've come to the realization after 3 years of living here there's really no upside to living in NYC.
how do you figure that? I'm in SF and see plenty of upside to living in a major city.
There's a lot of truth in this statement. It's truly mind-boggling how $150K provides a single person a middle class lifestyle in NYC.
Opportunity and access that, despite how much people want it to be true, doesn't exist almost anywhere else.
That said, it's hard early on. I'm with OP. My first job in NYC I made 75k and felt poor af, and that's not a bad salary. That was years ago and now I can save more a year then I made in that first job while still in my twenties. Same with my wife. It's just all about risk/reward and hoping it pays off with hard work and a little bit of luck. Especially for those of us who didn't previously have connections or family money to fall back on.
I think NYC is awesome and likely will never move, but I put an age where I said "if don't make it by then and be comfortable, I'm out of here and back into a lower COL city". Luckily I don't have to move, but I think most people should do something similar where they "give it a chance" and then leave if it doesn't work out.
God speed OP, a lot of us have been there.
how many hours you work/week? drive for uber or some other PT gig for discretionary income? not fun but gotta do what you gotta do. and def doable if you're only working 40-50 hrs/week.
You basically don’t have the option of living in Manhattan if you are trying to save money. Look at Queens, Brooklyn (beyond just Long Island city and Brooklyn heights), north jersey and westchester. That is the reality.
It's worth noting that the two biggest drivers of NYC's high cost of living-rent and taxes-are due to awful liberal policies. With rent, NIMBY regulations, 80/20 housing, and rent stabilization have artificially deflated the number of quality apartments available for rent at the market price, thus driving up rent across the board.
Despite the new tax law capping state and local deductions at $10K, NY State and NYC will not lower taxes. Unreal.
I had a similar starting salary my first year. Definitely live outside of Manhattan - not only will you save on rent, but buying groceries will be cheaper, cook for yourself as often as possible including lunches, try to limit to only one big bar tab per week, and eliminate any unnecessary costs. There are plenty of threads on how to save money, follow that advice.
I was able to save about $1,000 average per month (including 401k) with $1,300 avg rent (I did month to month for a few months at a place above my budget until I found a place for $1000/mo) and $300 monthly loan payments.
Serious question, unfortunately I did have to take out about 40k in loans to get through school with about an 8% average interest rate. Assuming I end up working full time at a B.B. in NYC, is that gonna be a type of financial situation I should be concerned about / could cause problems, or is it just gonna be a matter being frugal, and living the way I do now in college? I’ve ran the numbers assuming just a base salary of 85k and it seems I should have some cushion, but if anyone actually living in NYC could give insight.
Take advantage of the seamless option if your team has it. Otherwise it’s pretty much true paycheck to paycheck. It’s probably the main reason I’ll never vote for a democrat, NYC and the surrounding metro area pays some of if not the highest state and local taxes and it is never enough to city hall, Albany, Trenton, or Hartford. Look at all the other lower COL states and they’re able to provide the same services (even when adjusted for population size) as NY/NJ/CT for a fraction of the cost.
Housing Costs in NYC (Originally Posted: 06/07/2012)
How much should an incoming 1st year analyst expect to spend on housing in NYC? Is it worth trying to cut costs by living somewhere crappy and far away from office?
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