Incoming AN1, starting to look at apartments. I’m a pretty private guy so my first choice would be to have my own place, but obviously that’s not really within budget for the island. Would you be sooner to sacrifice privacy + freedom over your space, or convenience and location?
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Wtf. The only borough you can live in is Manhattan. Get a studio next to the office. It will be like 3k a month on your 110kish starting salary .
3k is above the 2750 per month that the 40x rent rule permits
Welcome to real life
great contribution to the conversation fam I’m sure you’re a massive asset to your team
The 40x and 80x rule is influenced by the fact that NYC makes it difficult for a landlord to evict someone, and there is an entire process, different Court, and set of laws, that are unique to NYC, and so the landlords could end up in s situation of someone not paying, but also unable to evict, so they impose standards like the 40x rule.
In other cities, without those NYC policies, a similar apartment would require proving income of 3x or 5x rent, nothing more.
It really feels like we’re splitting hairs here. Have a parent co-sign the lease or have them consider your bonus
anyways the point is spend an uncomfortable amount on rent
you want to be well rested and happy. Banking salaries grow exponentially each year so it’s just an1 that it’s a stretch .
do what you can to optimize for lingerivity in the industry. Banking is brutal enough without a shitty commute or annoying roommates
Guarantors need to make 80x the rent, and landlords won't consider a bonus that's not in writing if you don't have prior tax forms should you receive a large bonus
$3k is going to be VERY tough to save any money with, that's more than a single paycheck - NYC is expensive. If you want a studio it should be $2-2.5k which is very hard to do in Manhattan
Wtf is that the norm now in Manhattan? 80x? Leased an apartment in a MCOL city for B school and I was only asked 30x in a high end apartment.
Banking salaries do not grow exponentially each year.
I'm some cases, a parent is not financially able/willing to guarantee it. I know of cases where they wanted in depth information of finances that many parents wouldn't be willing to provide, or required wealth/income that exceeded their reality. I also know of cases where even a trust fund wasn't accepted without some huge multiple, or some other scenario to secure.
A lot of what you stated is not actually that simple in NYC, but admittedly might indeed be possible elsewhere.
I think many people in this discussion thread (non-NYC), fail to understand the unique circumstances of the NYC rental market, and the actual expenses, etc.
The whole premise of living with others when you're a working professional earning that much money is stupid. Make some sacrifices, live a bit farther out (you get a taxi home anyway), and spend less of your salary so you can save more. I see so many people say that they barely have any money left after core expenses on a 110k salary??? That's a cashflow/spending problem, do not listen to them re having to live in the most central most expensive location.
Are you in NYC?
Interesting. 110K base puts you at post tax income of $6k. How would you break that down into different categories (rent, groceries, utilities, fun, etc)? Asking since I haven’t lived in NYC and am not familiar with the nuance of its COL
Average 1BR rent in Manhattan (as of July/August 2023) is/was $5,588/mo.
I think it's possible to get something in the $4,000/mo range, but less than that will be a lot more of a struggle.
Consider that if rent is $5,000k
/mo, it would require proving 40x income (unless that has changed), -- plus first/last/security/fee (which might mean ~$20k or more up front), plus being able to pay all your other bills, expenses, your food, and everything else.
If you clear $6k/mo, then spending $5k/month for rent is not realistic.
I think the big threshold for standard of living is around $250k income, it starts to get a bit easier in NYC...
There was analysis a while ago that found that $150k in NYC was equivalent to $30k in FL; and $250k in NYC was equivalent to $70k-90k in FL, if that helps understand the situation.
Remember, NYC is place where to buy a 1BR apartment (condo), it's around $1M and to buy a townhouse (UES/5th/Madison/Park blocks, will be $10M to $80M, with average around $20M-30M in those block, and bit less on blocks further out. With that considered, it shows the extreme nature of pricing in the city.
https://www.cbsnews.com/amp/newyork/news/manhattans-average-rent-soared…
Using real numbers, please educate me on how a pre-tax $110k salary allows what you suggest -- to afford living alone without difficulty in Manhattan, meeting rental requirements (e.g. 40x), and being able to afford things at actual prices... and how it is actually possible to cut further to afford that, when certain numbers are set in stone, and can't be avoided.
Also, not every firm pays for a can/Uber home, and that can cost $50+ each ride in some cases.
I believe you might be a high school student, living in another city, and not in the industry, because what you stated is NOT reality by far.
It's easy to say that if you are assuming other locations, but I would be glad to debate real numbers of what is actually possible, and how much things actually cost.
I have lived in NYC (UES) since birth.
I would be glad to back up the analysts here who are stressing about the cost of living... I have seen how much my analysts are paid, and how much things actually cost here. Have you?
I might criticize a lot, but the struggle they endure is pretty accurate/real.
I give them credit for making it work somehow, because I doubt many would be willing to endure that nowadays.
Please explain how $110k gross (pre-tax) allows them to easily live in Manhattan, and afford bills and expenses. I am very interested to see real numbers, of how you can assert that.
If you are a student with no real understanding of paying your own taxes, expenses, or anything else, I think you should probably STFU, and sit quietly, and not try to insult what these entry-level analysts must endure.
My situation and circumstances allowed me a unique situation to avoid it; but I would never discredit the struggle that I've seen others endure.
I await your wisdom to teach everyone here how your claims are financially feasible, at all... it's frustrating when people who need to STFU seem to think they are entitled to be critical. Teach everyone here, I'm sure they would love to learn.
Please educate me, oh financial wizard.
I would get 1 roommate - especially if you can find someone else in IB. You're barely going to be home, if your roommate is in IB you'll rarely even see each other... save money but still have a convenient/nice apartment. Can upgrade to a studio/1 bed when you're out of IB
If living alone is important to you, you can still live on Manhattan but will have to sacrifice one or a combination of these things: location, amenities, size, price.
Have personally lived solo in Manhattan since moving here. Have paid right around your budget the entire time too. You have to find the more affordable parts like Hells Kitchen and Yorkville. If you’re set on a really desirable neighborhood you will have basically no amenities. It’s all a trade off.
Manhattan with roommates. Lived on 6th and B in a true 4 bedroom with rooftop terrace access - was paradise. Massive living room. Amazing for parties. Walkable to all the bars and restaurants in the EV.
As an A1 it's roommates in Manhattan by far. Not even close. You won't be home much anyhow, your commute will be shorter, and you only get one chance to live that Manhattan-in-your-20s chapter.
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