Related Posts
If I leave big law for ADA will I get canceled?
Using coin on Robinhood vs a wallet?
More Posts
Any thoughts on BNP M&A in nyc
Does Citi have Cloud Projects?? And which cloud?
Additional Posts in Compensation in Consulting
Community Builder
Have you ever taken a pay cut? Do you regret it?
SM promoted from M salary range? EY
What's the salary for a SA at KPMG London?
Rising Star
Deloitte MBA manager salary? S&A
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Same boat but I have a paid off car.
I make $85k in DMV area and have been able to save $45k (not including 401k that has $20k) over the course of around 20 months
I see the biggest mistake people make is renting a nicer place just because they can afford it. I can afford to live on my own but choose to live with roommates because I’m able to save $2k+ a month by doing so.
My spending summary:
$4.4k take home pay
-$1k Rent/utilities
-$400 bills (cell, car insurance, fitness related)
- $500-1000 for other spending (electronics, eating out)
Save $2k-$2.5k a month
I still take small vacations (on average spend $150/day by splitting with GF), do things like ski, have nice electronics, go out drinking, bottomless brunch etc. I feel like I’m living life!
-Evaluate your rent, aim for 30% or less of your take home pay and you will save like crazy
-Limit your eating out such as twice a week spending on average $30 or less per meal
-never order delivery. Always pick it up yourself
I cut my rent in half by moving from Virginia Square to Falls Church. I have one more roommate (so four of us in a 4 bedroom house) but its not nearly as bad as I thought it would be. I'll be 100% debt free by August, which was my goal. Anything is survivable for a time -- you just have to want something bad enough to make sacrifices for it.
Have you spent any time really imagining what you could be doing if you saved more? Who you could help, the experiences you could enjoy, the ventures you could start, the peace of mind you could have? Once you know what matters most to you, it becomes clearer what is a waste of money.
@OP Did a little analysis for you here.
TC: 225k
401k : 19,500 (savings)
Balance: 205,500
HSA : 3500 (savings)
Balance: 202,000
After taxes (-33%): 135,340
(-)current Rent : 36000
Balance: 99,340
Reduce your rent by 500 and save $6000
(-)Food: 24000
Balance: 75,340
Seems a lot, don’t you get to expense food at work? You could easily save 12,000 by changing your lifestyle and cooking yourself or getting meal kits.
(-) clothes: 30000
Balance: 45,340
You already know this bit too much.
(-) vacations: 15,000
Balance: 30,340
(-) monthlies, entertainment and misc: 10,000
Balance: 20,340
Just a guesstimate but you prolly save:
Balance + 401k + HSA : $43,340 right now. Not bad, but you could easily double it.
Just for context: my wife and I make 400K and our annual savings are about 200k may be more this year due to covid-19
Our monthly burn rate is about $6k in NYC
Your monthly burn rate is about $9k, control this and you’ll save more. Which means prioritizing what you spend your money on.
Then again you can keep your burn rate same but try to earn more.
This is SDA1, title change in fish bowl blocked me from posting anything.
@consultant3 here is my personal breakdown.
@Deloitte 7, you can follow a similar template.
TC: 400k (me + spouse)
401k : 39,000 (max it)
HSA: 7,000 (max it, healthcare is expensive you’ll end up using it later in life)
Balance: 354,000
Balance after - 33% tax: 237,180
Target savings: 200,000k (includes 401k,HSA)
Max Annual Expenses Budget: 83,000 (rounded)
Rent + parking + utilities + insurance : 41,000
Groceries: 6000 (500 per month)
Entertainment : 6000 (500 per month)
Shopping: 6000
Vacation: 12,000 ~ 15000
Misc: 6,000 ~ 8,000
Are you living above your means? (In terms of rent, etc) I recently doubled my income and haven’t been able to get used to it but after 6 months of this now I finally have a handle on how to save and buckle down
I hope you are putting these charges on a Platinum Card and utilizing the rewards benefits.
This is my favorite Fishbowl post EVAR.
The 1%
You my friend have a spending problem
Don’t get so discouraged though. With your income you can save up a lot in a few years with some budgeting and good investment decisions.
Mba helps
technically I’m in VME, but it’s about to changing next FY, but idk where they’re placing us yet, my partner hasn’t given us all the info yet. I mostly do M&A strategy work or performance improvement projects, so being in the valuation practice is strange to me.
But yeah, I’ve been with EY since I was a staff so I guess being homegrown is a factor in the lower base salary.
Rising Star
Www.ynab.com
Pro
225K is good but not a lot of money in NYC. That said yo I should still be saving comfortably
Chief
Weird, I make 205k and max out my 401k, save all of my stock, pay 3.2k rent, and still have some savings. That being said, I don’t drink though I enjoy eating out.
Chief
EY3 205k TC not base. Base is 125k +15% bonus and the rest equity.
Sounds like you’ve never been poor and are living lavishly. Single no debt and can’t save on $225k? Absurd. Hope you don’t vote Republican to make it worse (assisting in defunding safety net programs for the less fortunate when you “struggle to save” at $225k). Try this: spend less money... like a lot less. Live on $150k, and save the rest, and you’ll still be quite comfortable.
I make about $100K less, pay 1K/month toward student loans, and support my wife while she finishes grad school. I saved 50K in about 9 months. I still eat out and travel quite a bit. However:
-I live in an apt that is a really good deal in a lower cost city (about to buy a house)
-I have two cars that I paid about $4K each for
-I bought most of my furniture used
-I have company/points pay for most travel
I live a good life, don't feel like I'm in austerity at all. I just maximize the value I get out of everything I pay for. I think living in a low cost city and then choosing a cheaper (but still nice) apt is by far the biggest factor. <1K/month for 2 bed
For the record, calling BS. Only at 70k salary, life at home rent free and food bill free, don’t go out to clubs, don’t go to concerts, don’t leisure travel, don’t have any student loans and STILL only saved 39k my first year after all taxes etc
Another whiny coastal elite. Median NYC household income is like 57k. If you can’t manage your finances at our income you simply don’t belong in a job telling companies how to manage themselves.
I’m not at all - but thanks for the advice
Zero based budget your take home pay. Make sure savings is a part of that and have it as an auto deduction/transfer into the savings account.
Also, for you young kids out there it takes 20 years to be an overnight success.
Damn son you’re doing everything wrong. I made half that at 27 and was able to buy a home in a HCOL location
lol same here
A few questions:
1) how big is your closet?
2) where do you live?
3) do you go clubbing a lot?
4) can I get a small loan?
In all seriousness, you can save money with a few minor habit changes. Don’t stress. You’re doing well for your self. Work out a budget that includes a certain amount of each paycheck that goes to savings immediately and then cut other spending categories as needed to accommodate. Good luck!
I feel you but I also spend execessively.
For a fee I'd be happy to manage your money for you :-)
Spend what is left after saving not saving what is left after spending -Warren Buffet
It will never be about how much you make but rather how much you save.
Sit down and plan how to use your money