<p>I am wondering how much of a first-year analyst's salary it is possible to save. Assume living in NYC, BB salary (110k or so), taxes, expenditures, renting an apartment at 1.5k/month. Would it be possible to save $45k?</p>
<p>I don't think so...taxes and rent alone will eat up around $50-60K. It can be done if you live dirt cheap, but why the hell would you need to save almost 50% of your salary? 15-20% is a more realistic, manageable, and recommended goal.</p>
<p>It's going to be hard to find an apartment in NYC for $1,500</p>
<p>No...NYC does include Queens, the Bronx, Brooklyn and Staten Island. Though on Manhattan, yes, $1500 is very low.</p>
<p>first of all, the best option living-wise is to live with roommates. Secondly, no one will probably want to live in Queens or Staten Island while doing IB.</p>
<p>Secondly, after taxes your 100k 1st Year analyst compensation becomes something like 60K, so try to play off of that number.</p>
<p>As for why the OP wants to save 45k, my guess would be to pay off student loans.</p>
<p>"It's going to be hard to find an apartment in NYC for $1,500"</p>
<p>It's very possible to find apartments under 1500/month. Just not downtown. you can find relatively cheap apartments in upper east/west sides, inwoods, morningheights....etc not everyone wants to live in SoHo/TriBeCa/the villages. Also, most of the entry levels bankers share the apartment with another person or even 2 other people to reduce the cost. You don't wanna live alone, you know. ;)</p>
<p>I assume almost all investment bankers would like to live in Manhattan. I mean, c'mon, people with that kind of ego would look down on Bronx/Brooklyn...</p>
<p>You're probably only bring home $55K after taxes So if you can live on under $1K/month......The analysts all claim to feel poor!! You do travel a lot so food is often paid for.</p>
<p>"Secondly, no one will probably want to live in Queens or Staten Island while doing IB."</p>
<p>Someone who wants to save $45,000 their first year might ;).</p>
<p>Maybe the OP should consider New Jersey too :)</p>
<p>Just live in the office.</p>
<p>"Just live in the office."</p>
<p>Exactly:D.</p>
<p>I can't say I haven't calculated this either. I will get no aid as an international transfer student if I get in and go, and thats 45K/year right there. I don't think saving 45K/year afterwards is a good idea though. Can it be done? Yes, it is mathematically possible but it would be really hard. I think 20K is a more reasonable goal, but it all depends on various factors. When you first move you are going to have to get all new stuff, you need to calculate regular living expenses, travel, etc. And after getting such a nice salary, it will be extremely hard to not want to spend at least some of it and spoil yourself. </p>
<p>But yes, you CAN do it.</p>
<p>Taxes deduct ~20% of salary, correct?</p>
<p>Taxes will take almost 50% of your salary (assume 30ish% federal, plus 8ish% state plus 4.5% NYC taxes plus FICA). Don't forget you'll also be contributing to your health/dental/vision/life insurance plans. All of these costs are deducted from your paycheck before you ever get a dime.</p>
<p>50%!!</p>
<p>How about in California?</p>
<p>If you live right outside NYC (ie Fort Lee or Hoboken or something) you're exempt from the 4.5% NYC tax. Plus rent is cheaper in NJ, and the commuting time is relatively equal. I especially suggest Fort Lee. I saw some 1bdrm apartments for under 1k. It's also 15 minutes from the Wall St area. :D</p>
<p>You may pay 20 - 25% in Federal income taxes but then you have state taxes 8 - 10%, city taxes 4.5%, FICA, SS, medicare, healthcare etc,. In NYC, you're looking at 44 - 52% total. </p>
<p>In California you're looking at 34 - 42%. </p>
<p>The only way to supplement this is to buy a home, condo, etc, - which I heard is near impossible in NYC. It's more realistic in CA (most areas at least). </p>
<p>If you live at home you may have a chance but you'll still have to eat and buy a PATH card.</p>
<p>Fort Lee is not 15 minutes from Wall Street. It is across the GW Bridge way up near the furthest reaches of northern Manhattan.</p>
<p>Most young investment bankers that I've ever encountered want to live in Manhattan, so that they can spend the very limited time that they have outside of the office in the City instead of commuting to it.</p>
<p>Is the OP still in high school ?</p>
<p>Well if the OP desperately wants to save money, then he/she's going to have to cut expenses somewhere. The easiest way to do that is to move across the Hudson. :D</p>