What does your budget look like?

Hello!

I am curious to know what either 1st or 2nd year analyst budgets look like. It would really help if you could give a detailed breakdown of your expenses and expected costs of specific things.

Also, location does not matter. Just curious to see what each individuals looks like.

Thanks!

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (51)

Mar 27, 2020 - 12:31pm

You must have had free food at work and not done anything but work or sleep.

Array
  • 5
Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Mar 27, 2020 - 1:01pm

After tax spend:

Rent: $2175/mo (1BR, justoutside NYC)

Parking: $195/mo (same)

Transportation: $100/mo (outside of this current situation)

Utilities: ~$100/mo (Edit:~200 adding Cable+nternet)

Rest: ~$2000/mo

Not a first year Analyst, and I don't keep track of the detailed spend. My concerns are the top-line bank account number and the CC bill that the "rest" basically all lands on.

I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
  • Analyst 1 in S&T - Equities
Mar 27, 2020 - 1:08pm

So in my case I live in NYC so everything is expensive.

Monthly take home: ~$5k (after taxes)
Savings: ~$2,700
401(k): ~$100
Insurance (health/dental/vision): ~$80
rent + utilities: $1,250
food/coffee: ~$500
Random shit: ~$300

Few notes:
1. I decided to not spend a lot on rent as I work ~14 hours/day so I just go home to sleep. (yes, I have roommates).
2. As soon as I start receiving matching contribution from employer I will increase 401k allocation significantly
3. I'm not on a very strict budget so there are months where I spend more/less on different categories of spending but I do always aim for $2,500 monthly savings at a minimum.

Mar 27, 2020 - 1:23pm

There's a psychological aspect here. Watch out about listing savings and 401k in the budget--That implies that they can be variable, and makes it easier to justify cutting them. If there is a way to make these automatic given items before thinking about the budget then it can be easier to win.

I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
  • 1
  • Analyst 1 in HF - Event
Mar 27, 2020 - 1:27pm

is that salary typical for S&T? 60k post-tax seems a bit low no?
Is this a BB?

  • Analyst 1 in S&T - Equities
Mar 27, 2020 - 6:57pm

As I mentioned, I still don't get any matching. So until that happens, my focus is on building up my emergency fund as well as having some cash on hand that I can invest as opportunities arise or simply save.

Will significantly increase my 401k allocation during my second year, once I start getting employer matching.

Other than that, the other benefit would be tax deferred contribution. Which really might or might not be a benefit, as taxes might be higher by the time I take the money out (up for debate). I could pay taxes up front and invest it now at lower fees. It's the same thing as having an IRA vs roth IRA. Pick your poison. Without employer matching, the 401k is nothing special.

Mar 27, 2020 - 3:19pm

How do you guys typically track your finances? Mint? Excel? Something else?

  • Analyst 1 in S&T - Equities
Mar 27, 2020 - 3:26pm

In my case, I don't earn a lot nor I have a lot of different expenses. So I just worry about meeting my monthly savings goal/paying rent, which I consider to be fixed expenses. The rest sort of falls in line.

As my expenses/income grow over time, I will probably take up mint or some other finance app in order to always have a go-to place to monitor my finances.

Mar 27, 2020 - 6:43pm

Pen & Paper, Excel... whatever works best for you

Money can purchase freedom, if you have the guts to buy it

Mar 31, 2020 - 10:54am

Mint isn't bad - I haven't spent much time, probably the issue, with it but I always hated how transactions show up - it's always a mess and half the time doesn't categorize transactions correctly. I'm sure there are power users who can tell you how to actually use it effectively.

I keep it simple - setup savings transfers (incl. 401k and HSA), and whatever hits my checking account is free to spend. No more, no less. That gives me a rough estimate point for how much I can spend. That's all for now. I'm sure it will get worse eventually, with a family and all that.

  • Associate 2 in IB - Ind
Mar 28, 2020 - 8:09pm

Non-NYC, but expensive city.

Rent: $1,750 (shared 3bdrm w/ parking)
Utilities / Cable: $150
Food / coffee: $350
Other monthly bills: $150
Misc: $3k

I go to a decent restaurant 4-5 times a month. Go out to bars 2 times a week. Ski frequently in the winter and golf every weekend from spring - fall.

Some of you guys seem like you have no fun. I am still able to save $3k/month and also max out 401k from my base.

Mar 29, 2020 - 12:24am

3rd yr associate at an EB in NY:

Monthly take home pay: $9.1k (after taxes and 401k contribution of $1.6k per month)
Rent: $3.2k (1BR in a luxury building)
Recurring monthly expenses: $250 (utilities, wifi, amazon, HBO, netflix, Headspace, etc)
Coffee + Lunch: $300
Food/Entertainment: $1.6k*
Savings: $3.75k**

*mostly includes weekend seamless/eating out, Ubers out on weekends, bar tabs, and gambling losses

**balance at the end of the month, obviously fluctuates throughout the year. Over the past year I've put away 45k from my paycheck. lower monthly total around the holidays/summer, higher in the dead of winter. Usually spend 2%-5% of my bonus then bank the rest. Not included in this breakdown

  • Analyst 1 in IB - Ind
Apr 12, 2020 - 1:30am

did you ever thinking about getting a mortgage? you already pay a sum for rent

  • Associate 1 in PE - Other
Mar 29, 2020 - 12:59pm

My monthly budget for the first 2-3 years in NYC went roughly like this (after building up an emergency fund):

$1.4K in rent (roommates, shitty apartments in good locations (Chelsea, West Village, etc)
$120 metrocard
$1K restaurants/bars
$140 squash club junior membership
$200 social/charity events
$300 clothing, random stuff

Was still able to max the 401K, gradually invest a bit on the side, and not have to touch the bonus (went straight to investments). Yes, I probably could have saved more, but I think by spending a bit more and having an active social calendar allowed me to not go crazy, plus I built a strong network of folks I can call on for basically anything (one even got me the intro to my first buyside gig post-banking), which is way more valuable than what little I could have saved up on an entry-level salary anyway.

  • Intern in IB - Gen
Mar 10, 2021 - 10:38pm

What are some examples of the social/charity events you attended? I would like to get involved in somethingΒ post-covid

Jun 11, 2021 - 4:04pm

St. Jude has good events if they ever update this site.

https://www.stjude.org/get-involved/find-an-event/new-york.html

I went to one event on a yacht with friends and it was $150 to attend and it was open bar and everything - was awesome. The boat did a lap around Manhattan. The proceeds went to charity.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

  • 1
Mar 31, 2020 - 11:27am

I don't budget, but I do track my expenses pretty religiously.

1st year Analyst at a MM in LCOL city:
Take home pay: ~4,600
Rent & Utilities: $900 (cheapest unit in a brand new building, 5 min walk to work)
Car Insurance and gas (rarely use): $135
Gym: $185 (my only current hobby)
Lunch/Groceries: $85
Eating out/bars/alcohol: $400
Clothes: volatile but averages $250
Everything else: $250
Total: ~2,300

Expecting expenditures to increase in my 2nd year as I will likely move to a nicer apartment and hopefully be able to take a vacation. I have also only been going out 2 nights/mo because I've been getting absolutely crushed. I also expense a lot of food including weekends. Of course I would rather pay for my own food and be able to enjoy my weekend...

  • Analyst 1 in IB - Ind
Apr 12, 2020 - 1:24am

i use mint. I am living with my parents until I move in a couple of month so no rent. here is mine.

net pay: $4,134 (after~700 in 401k and 127 metro card)
savings account: 2K
gym: 59

entertainment/shopping/weekly brunch/drinking/ food/amazon/ everyday lunch: the rest
I have many credit cards so I try to balance if I spend too much in one month, I spend less in the next. most of the times, I get carry over from past month.
I am starting to invest $150 a month.
actually now that I wrote it down, I realized I might be spending too much

Mar 10, 2021 - 11:10pm

1 yr AN in high COL city (not NY or SF) Net ~4.9k / mo after 401k. 1850 rent + utilities, 500-700 groceries/food, and the rest is spent blacked out at a bar or on dumb shit. I'll save my bonus not my salary

Jun 11, 2021 - 1:28pm

This is in a MCOL city working in CMBS/RE, only working around 50 hours a week. All numbers are per month

Gross = $4,583

Taxes -Β $1,018

Pre-tax benefits (parking FSA, medical/dental insurance) -Β $338

Maxed out 401k contribution -Β $230

Rent -Β $658

Car payment + insurance (bought my affordable dream car because prices rare stickshiftsΒ are going up and I'll be able to enjoy it and not lose money to depreciation) -Β $529

Student loans (totally forgot about them because most areΒ in federal forbearance) - $53

Net Cash Flow after all of my major expenses ~ 1,750.

Other reasonably large expenses = gas (v8 lol), food & drink, dog-related expenses, utilities.Β 

All in all I'm not saving a crazy amount because I'm not going to have kids (vasectomy soon once I find my new primary care doctor, last one was stupid religious), and I'm already maxing out my 401k to get my company match.Β 

Jun 11, 2021 - 1:48pm

wow nice you must have a baller houseΒ 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Jun 11, 2021 - 3:10pm

Bought my daily driver and weekend cars in cash. Probably should've gotten a loan given low interest but this was a year ago.

If you break out the service fee's / insurance etc. it's about 1K a month for the two combined.

Jun 11, 2021 - 1:43pm

$2190 rent (2bed 2bath luxury building)

$3000Β food / gym / fitness gearΒ 

$1000-1500 misc expensesΒ 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Jun 11, 2021 - 1:56pm

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Start Discussion

Total Avg Compensation

June 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (35) $364
  • Associates (203) $232
  • 2nd Year Analyst (115) $151
  • Intern/Summer Associate (97) $145
  • 3rd+ Year Analyst (27) $145
  • 1st Year Analyst (420) $131
  • Intern/Summer Analyst (338) $82