What does an IB entry-level salary get you (100k total) in New York City/Chicago?
I’m not from NYC and have never been there, but I’m looking at NYC and Chicago for a place to start out in my career. Just curious what people have to say about their financial freedom with a 6 figure salary in NYC. Would I be able to afford paying off loans? Housing, transportation, etc.
- How much can you realistically save?
If your hours allowed you, could you travel?
Just trying to find a good mix between my career and a future lifestyle (I’m aware IB doesn’t allow for much of the latter)
One response
Salary Breakdown:
An entry-level salary at an investment bank in New York City or Chicago, typically around $100,000, can provide financial stability but may also come with high living costs in cities like NYC. Let’s break down how far this salary may get you in terms of living expenses:
Loans: With a $100,000 salary, you should have a comfortable income to pay off loans, especially if you budget and prioritize your debt repayment. Making regular payments should be manageable, but the amount left for savings and discretionary spending may vary.
Housing: In NYC, housing costs are notoriously high, and a decent apartment in a desirable area can be expensive. On a $100,000 salary, you may need to budget carefully and consider living in a more affordable neighborhood or getting roommates to split costs. In Chicago, housing costs are generally lower, but still significant, especially if you want to live in the city center.
Transportation: Commuting costs in NYC can vary, but public transportation is generally reliable and cost-effective. In Chicago, public transit is also a good option, or you may consider owning a car depending on your preferences and location.
Financial Freedom:
Saving on a $100,000 salary will depend on your lifestyle and spending habits. It’s realistic to save a portion of your income, especially if you prioritize saving and budget wisely. Aim to save at least 20% of your income, or more if you can, for future goals like retirement, emergencies, or large purchases.
Travel Opportunities:
If your job allows for time off and your budget permits, you should be able to travel on a $100,000 salary. Be mindful of your spending and prioritize saving for travel if it’s important to you. Look for deals, plan your trips in advance, and consider budget-friendly destinations to make the most of your travel opportunities.
Balancing Work and Lifestyle:
Investment banking is known for its demanding hours and high-pressure environment, which may limit your time for leisure activities and travel. Consider your career goals and work-life balance priorities before committing to a career in IB. It’s essential to find a balance between your career ambitions and personal life to ensure long-term satisfaction and well-being.
In conclusion, a $100,000 entry-level salary in NYC or Chicago can provide financial stability, but it’s essential to budget wisely, prioritize saving, and consider your lifestyle goals when making financial decisions.