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Appreciate the honesty in this question and I’ll be real with you as a partner at a Big 4: yes, there are plenty of us who, despite earning what many would consider a dream income, still feel the financial pressure. The numbers on a paycheck don’t always translate to financial peace of mind, especially in NYC. Between taxes, cost of living, private school fees, mortgage on a home that was overpriced to begin with, and lifestyle inflation (which creeps in more subtly than you’d think), it adds up quickly.
I feel this. Have a HHI of 600k and am not really saving after taxes besides maxing retirement and 529 plans. I’m very comfortable but surely not living what you would consider a luxury lifestlye at all.
Its poor financial management if one is still broke at partner specific 6 figured salaries. One can always spend beyond their means and this is what these guys are doing
This is a bit short-sighted. Broke at $100k in HCOL areas, that’s a real thing. Student loans being a big impact. But broke at partner level, GTFOH. That’s poor financial management.
Goal posts move. Growing up, or even 10 years ago I couldn't imagine what it would be like to make 7 figures like I do now. But my social / work circle now includes multiple people making 8 figures + which makes me feel like I need to leave consulting to make "enough."
Intellectually I know this is ridiculous but you asked for an honest opinion
It’s sometimes an issue of cash flow with taxes, kids in college and whatnot. Most of us generally have solid net worth, even if most of it is tied up in a house and retirement assets (and, you know, a couple Porsches).
Definitely. Money comes in and goes out. Cash flow management is key
My wife calls us the “working rich”. We make a very good income. We are pretty modest with our outflows, but it’s a car for each of us, private high school, very comfortable house. We are surrounded by the super-rich in South Florida, so it always feels like we are on the poor end of things. Once college is fully saved for, we will feel very flush. But we would also need to drastically reprioritize things if one of us lost our job.
This all comes down to budget. What any partner makes is “enough,” but when you add a spouse not working, multiple kids in private school, a big fancy house, expensive vacations, etc… it all adds up. All of those things that might make a large income not feel like enough are choices, so pick wisely.
Flawed question. Partners/MDs making only 6-figures are likely the under performers unless newbie.
I don’t think partners get paid as much as you think…
999999 is 6 figures
partners make 7 figures not 6