{ "media_type": "text", "post_content": "How do you guys keep from living paycheck to paycheck? I feel so broke.", "post_id": "6103775141849b0021cef641", "reply_count": 23, "vote_count": 5, "bowl_id": "553769a790f5eebe1d2a0f92", "bowl_name": "Finance" }

How do you guys keep from living paycheck to paycheck? I feel so broke.

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How do you have the time to spend so much? 😂

likefunny

Live paycheck to paycheck and save the bonus

likefunny

Personal finances are just that, personal. We would need a little more insight on how you are spending your income to give the best advice. As well as your geographical area and debt situation. Personally, I shared a flat with many of my coworkers in midtown for a long time before moving on. I used my meal stipends wisely and barely had to pay for groceries those years. Set a limited budget for drinks and eating out as well as vacation. Invested as much as I could. Didn’t spend money on useless designer items, nobody cares if you just wear a pair of Cole Hanns in good condition. Not saying that you fall into the young IB stereotype but the idea of bottles and models is really only feasible on a VP/MD salary.

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Yeah I think I'm spending too much money keeping up with my fellow analysts who may be subsidized by wealthy parents. I have this weird imposter syndrome where my parents think I'm rich but I feel poor compared to other analysts

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Keep track of your monthly income and spending. Truebill is a great app that will automatically do this for you by connecting to your banks and cards. It also breaks down spending and shows the % that goes toward food, entertainment, etc.

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Set a monthly budget for clothes and food (- (which you can do on the app) and stick to it.

likesmart

My first job out of college was $28.5k, even with a student loan, I wasn’t living paycheck to paycheck. I spent within my means, didn’t buy much designer stuff or go out to eat all the time. As an IB analyst, you should be making at least a $100k, there should be no reason why you can’t save and have to live paycheck to paycheck.

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Lol…I am old, but not that old, late 90s.

As a fellow analyst who also spent a lot on eating out and shopping, I think I did it to get it out of my system. From a developing country to Wall St., it was a huge difference and I wanted to enjoy the fruits of my grind (not a lot, but a lot compared to what I had growing up). The true driver of the change in my mindset, which helped me stop overspending, is learning about and adopting the FI/RE (financial independence/retiring early) movement. I used to think I’ll have a fruitful high power career in finance until 50-60s. Now I want to stop working for other people as soon as possible (ideally by 40-45), and start making something for myself. I think we finance people have the means to do that, but only if we invest early and properly. My desire for financial freedom far exceeds my desire for new clothes now. The important thing is to have that ambitious goal to work towards.

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Couldn’t agree more

What COO 1 said. When I first moved to the NY area, I rented a brownstone in Jersey City with 4 to 6 housemates, that I met through an ad I answered. Paid almost nothing in rent and stayed five years. During that time I paid down student loans and maxed my 401K, still had money leftover for beach and ski houses. I did all this on an income of about $90K. I still wear Cole Haan, Uniqlo, etc.

likesmart

Learn to cook. Track your expenses. Open a separate savings account and set up your paychecks to deposit a small amount each month into that savings. It will force you to start saving.

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I’ve never lived paycheck to paycheck. Just don’t spend all of your salary on rent on takeout. Might lose a few pounds and make some friends in the process.

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The biggest thing is using automatic transfers to transfer money from your direct deposit or bank account to an investments account. That way you don't have to manually do it and your life starts to naturally adjusts to your new "income" and you still live paycheck to paycheck while money accumulates in an investment account

likesmart

Start investing or monthly deductions from every paycheque that goes directly in your investments. Even though its a small sum, it will eventually grow. I was at the same spot as you, but a little financial planning helped me a lot.

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Make an other checking account and split the paycheck. Have like 20 percent go to other account and never touch it. Adjust your living standards to the 80 percent. Save 85 percent of bonus. Rinse and repeat.

I worked at a LMM IB shop and analysts didn’t break 6 figures back then. I was able to live by myself in Manhattan and repay my student loans in 2 years without any family support. Yes, I went out and treated myself on occasion, but it wasn’t an every day or even every week kind of thing. I maintained friends outside of banking that kept me grounded. I didn’t wear fancy clothes because the only people that impresses are your peers, not your bosses. Those who subscribe to the models and bottles lifestyle are going to run out of something very quickly, and that’s either money or mental capacity and stamina. Half or more of your analyst class are probably my going to leave finance in the next few years anyways, so no point in keeping up with them.

I personally go through “waves” there’s some stretches of 6 months or so where I tighten down the budget and some where I spend freely (maybe irresponsibly?). Usually the tighter months are from September to the holidays then spend in December then tighten back up until the summer. The summer months tend to be more social months and therefore tend to be more expensive months.

Listen to Dave Ramsey's podcast or read his book. Don't listen to anyone else's advice and you will be debt free

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