NYC biglaw with 150k+ debt: how to balance

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goodolgil
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NYC biglaw with 150k+ debt: how to balance

Postby goodolgil » Fri Aug 31, 2012 4:45 pm

So how are all those in high debt who are starting biglaw this year or next year planning on balancing debt/rent/savings/401k, etc...?

Personally, I would like to pay off as much debt as I can as quickly as I can. My very tenuous plan right now is to quickly build up a savings in the event of an emergency/stealthing (currently have little savings, would like to maybe get up to 15 or 20k), and then start attacking the debt with ~$3,500/month payments.

Obviously, this doesn't leave very much left over for rent. When I first got an SA, dreams of luxury apartments danced around in my head. Now, a year later, I'm thinking getting a room for $800 bucks somewhere in Brooklyn might be the wisest option.

What are all y'alls strategies? Am I missing something

NYC2014
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Re: NYC biglaw with 150k+ debt: how to balance

Postby NYC2014 » Fri Aug 31, 2012 5:10 pm

Wait until you get a full-time offer to splurge.

[e] NVM LOL. You're an associate. Best advice anyone can give you is to live large and watch out for the herp.

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sunynp
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Re: NYC biglaw with 150k+ debt: how to balance

Postby sunynp » Fri Aug 31, 2012 5:24 pm

There are a bunch of threads discussing this - complete with budgets laid out. Most people live as cheaply as possible and pay as much on debt as they can. Just search for budget and you should find stuff. I'm on my phone and can't look for you right now.


There was a recent thread where someone planned $2000 for rent and $1000 for expenses. But I think the expenses estimate is very low, at least of you need to buy clothes for work. Also you are going to want to go out and socialize with co-workers, network, etc.

I think take home is around $93,000- maybe a little higher depending on your deductions.

After reading some of these threads on living in new York and debt repayment, I think people need to look at big law the first year as say $95,000- not $160,000. People are surprised at how high the taxes and other withholdings are in NYC.

ruski
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Re: NYC biglaw with 150k+ debt: how to balance

Postby ruski » Fri Aug 31, 2012 5:56 pm

to minimize chances of being stealthed at nyc biglaw you should immediately desist from using the term ya'll.

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IAFG
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Re: NYC biglaw with 150k+ debt: how to balance

Postby IAFG » Fri Aug 31, 2012 5:58 pm

sunynp wrote:There are a bunch of threads discussing this - complete with budgets laid out. Most people say they will live as cheaply as possible and pay as much on debt as they can.

FTFY

most of those threads are crazy unrealistic.

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:03 pm

FYI I budget $2500 for rent and $2000 for expenses, with the ideal being $1500. Ive been prett succesful at this.

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sunynp
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Re: NYC biglaw with 150k+ debt: how to balance

Postby sunynp » Fri Aug 31, 2012 6:05 pm

IAFG wrote:
sunynp wrote:There are a bunch of threads discussing this - complete with budgets laid out. Most people say they will live as cheaply as possible and pay as much on debt as they can.

FTFY

most of those threads are crazy unrealistic.

Agree. Tyft.

Though the one thread with the $2000 rent and $1000 expenses owed $250,000 in loans - so that poster may have to eat soup if they want to make a dent in that debt.

goodolgil
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Re: NYC biglaw with 150k+ debt: how to balance

Postby goodolgil » Fri Aug 31, 2012 6:08 pm

ruski wrote:to minimize chances of being stealthed at nyc biglaw you should immediately desist from using the term ya'll.


Born-and-raised NYC here.

I'm thinking I'd rather go cheaper on rent to have a little more in expenses.
Last edited by goodolgil on Fri Aug 31, 2012 6:09 pm, edited 1 time in total.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:09 pm

sunynp wrote:
IAFG wrote:
sunynp wrote:There are a bunch of threads discussing this - complete with budgets laid out. Most people say they will live as cheaply as possible and pay as much on debt as they can.

FTFY

most of those threads are crazy unrealistic.

Agree. Tyft.


Anon above with budget stated.

I have a monthly expense that is at around $400, for unique personal reasons. I can see someone being able to do $1,000 a month with money to socialize, and sub-$2000 a month if willing to room.

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sunynp
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Re: NYC biglaw with 150k+ debt: how to balance

Postby sunynp » Fri Aug 31, 2012 6:27 pm

Anonymous User wrote:
sunynp wrote:
IAFG wrote:
sunynp wrote:There are a bunch of threads discussing this - complete with budgets laid out. Most people say they will live as cheaply as possible and pay as much on debt as they can.

FTFY

most of those threads are crazy unrealistic.

Agree. Tyft.


Anon above with budget stated.

I have a monthly expense that is at around $400, for unique personal reasons. I can see someone being able to do $1,000 a month with money to socialize, and sub-$2000 a month if willing to room.


Are you from NYC? What is the breakdown of expenses in that $1000? I agree that a roommate makes things cheaper.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:31 pm

Maybe look into Jersey City or Hoboken. New York City tax is based on where you live, as opposed to where you work. Simply by living a 15 minute PATH ride away from Manhattan, I save approximately $6,000 a year (on a $160K biglaw salary), and only need to spend a combined total of of 770 for a year's worth of unlimited PATH rides (keep in mind that the PATH runs 24 hours a day, every 5 min during rush hour, is super clean, and is delayed far less often than the NYC subway). Plus, rents in Jersey City are better than in NY, and you get more space. A room in Brooklyn is good, but if you are going to commute to Manhattan, why not go in the other direction, get a room for the same price, and save almost 6K?
Last edited by Anonymous User on Fri Aug 31, 2012 6:33 pm, edited 2 times in total.

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:32 pm

sunynp wrote:Are you from NYC? What is the breakdown of expenses in that $1000? I agree that a roommate makes things cheaper.


Not from NYC, but live there.

Most dinners paid for by firm. Lunch is around $5 per day if buying at restaurant, $5 of cooking at home and bringing in. I don't really get drunk but spend around $100-200 a month on drinks. $100 on metro card. Spend around max $50 a weekend on food. Utilities are around $50 a month. Cable+net around 100$ and cellphone around $60.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:35 pm

Anonymous User wrote:
sunynp wrote:Are you from NYC? What is the breakdown of expenses in that $1000? I agree that a roommate makes things cheaper.


Not from NYC, but live there.

Most dinners paid for by firm. Lunch is around $5 per day if buying at restaurant, $5 of cooking at home and bringing in. I don't really get drunk but spend around $100-200 a month on drinks. $100 on metro card. Spend around max $50 a weekend on food. Utilities are around $50 a month. Cable+net around 100$ and cellphone around $60.


Also, when girlfriend moves in, rent split in half!!

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:36 pm

Anonymous User wrote:Maybe look into Jersey City or Hoboken. New York City tax is based on where you live, as opposed to where you work. Simply by living a 15 minute PATH ride away from Manhattan, I save approximately $6,000 a year (on a $160K biglaw salary), and only need to spend a combined total of of 770 for a year's worth of unlimited PATH rides (keep in mind that the PATH runs 24 hours a day, every 5 min during rush hour, is super clean, and is delayed far less often than the NYC subway). Plus, rents in Jersey City are better than in NY, and you get more space. A room in Brooklyn is good, but if you are going to commute to Manhattan, why not go in the other direction, get a room for the same price, and save almost 6K?


Anon above with budget. This is 100% correct. Only thing stopping you from living in jerz is either ego or being single. Admittedly harder to bring women home in jerz from mfh.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:38 pm

Anonymous User wrote:
sunynp wrote:
IAFG wrote:
sunynp wrote:There are a bunch of threads discussing this - complete with budgets laid out. Most people say they will live as cheaply as possible and pay as much on debt as they can.

FTFY

most of those threads are crazy unrealistic.

Agree. Tyft.


Anon above with budget stated.

I have a monthly expense that is at around $400, for unique personal reasons. I can see someone being able to do $1,000 a month with money to socialize, and sub-$2000 a month if willing to room.


I got a room in a shared apartment for $650 a month and will try to limit my total expenses to $1200 a month.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:41 pm

As for Jersey City, I think its a solid idea for the beginning, since you can put that $6K savings straight toward loan payments, and then move right into the city when you salary rises, and the loan burden is lower. And as for the "bringing a girl back to Jerz" argument, if she drunk, the PATH and the subway don't look too different :)

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:41 pm

Anonymous User wrote:
Anonymous User wrote:Maybe look into Jersey City or Hoboken. New York City tax is based on where you live, as opposed to where you work. Simply by living a 15 minute PATH ride away from Manhattan, I save approximately $6,000 a year (on a $160K biglaw salary), and only need to spend a combined total of of 770 for a year's worth of unlimited PATH rides (keep in mind that the PATH runs 24 hours a day, every 5 min during rush hour, is super clean, and is delayed far less often than the NYC subway). Plus, rents in Jersey City are better than in NY, and you get more space. A room in Brooklyn is good, but if you are going to commute to Manhattan, why not go in the other direction, get a room for the same price, and save almost 6K?


Anon above with budget. This is 100% correct. Only thing stopping you from living in jerz is either ego or being single. Admittedly harder to bring women home in jerz from mfh.


Is it impossible to achieve rents as low as in NJ living in Astoria or Brooklyn?

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:42 pm

Anonymous User wrote:As for Jersey City, I think its a solid idea for the beginning, since you can put that $6K savings straight toward loan payments, and then move right into the city when you salary rises, and the loan burden is lower. And as for the "bringing a girl back to Jerz" argument, if she drunk, the PATH and the subway don't look too different :)

That early in the morning, path comes to station roughly once every hour. Girl will be passed out.

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:42 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:Maybe look into Jersey City or Hoboken. New York City tax is based on where you live, as opposed to where you work. Simply by living a 15 minute PATH ride away from Manhattan, I save approximately $6,000 a year (on a $160K biglaw salary), and only need to spend a combined total of of 770 for a year's worth of unlimited PATH rides (keep in mind that the PATH runs 24 hours a day, every 5 min during rush hour, is super clean, and is delayed far less often than the NYC subway). Plus, rents in Jersey City are better than in NY, and you get more space. A room in Brooklyn is good, but if you are going to commute to Manhattan, why not go in the other direction, get a room for the same price, and save almost 6K?


Anon above with budget. This is 100% correct. Only thing stopping you from living in jerz is either ego or being single. Admittedly harder to bring women home in jerz from mfh.


Is it impossible to achieve rents as low as in NJ living in Astoria or Brooklyn?

Not when factoring in city tax savings.

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:43 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:Maybe look into Jersey City or Hoboken. New York City tax is based on where you live, as opposed to where you work. Simply by living a 15 minute PATH ride away from Manhattan, I save approximately $6,000 a year (on a $160K biglaw salary), and only need to spend a combined total of of 770 for a year's worth of unlimited PATH rides (keep in mind that the PATH runs 24 hours a day, every 5 min during rush hour, is super clean, and is delayed far less often than the NYC subway). Plus, rents in Jersey City are better than in NY, and you get more space. A room in Brooklyn is good, but if you are going to commute to Manhattan, why not go in the other direction, get a room for the same price, and save almost 6K?


Anon above with budget. This is 100% correct. Only thing stopping you from living in jerz is either ego or being single. Admittedly harder to bring women home in jerz from mfh.


Is it impossible to achieve rents as low as in NJ living in Astoria or Brooklyn?

Not when factoring in city tax savings.


How much is tax savings of the $160K?

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:44 pm

As stated above, roughly $6,000+ a year.

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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:46 pm

Anonymous User wrote:As stated above, roughly $6,000+ a year.


whoops... misunderstood that as rental savings, but that was a big reading fail. thanks

Anonymous User
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Anonymous User » Fri Aug 31, 2012 6:49 pm

Anonymous User wrote:
Anonymous User wrote:As stated above, roughly $6,000+ a year.


whoops... misunderstood that as rental savings, but that was a big reading fail. thanks


Thats what I was saying, its a savings of $6,000 in city tax that you don't have to pay AND the rents are more reasonable. The total financial savings compared to NY is excellent, so if you work anywhere that is remotely accessible via the PATH (which most places are, since the PATH connects at so many points to the NYC subway), then its real smart for beginning associates to look into.

imchuckbass58
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Re: NYC biglaw with 150k+ debt: how to balance

Postby imchuckbass58 » Fri Aug 31, 2012 6:49 pm

goodolgil wrote:Obviously, this doesn't leave very much left over for rent. When I first got an SA, dreams of luxury apartments danced around in my head. Now, a year later, I'm thinking getting a room for $800 bucks somewhere in Brooklyn might be the wisest option.


Just FYI, many areas of Brooklyn are almost as expensive as Manhattan (i.e., the ones near the subway / where you'd want to live - BK heights, park slope, williamsburg). If you want an $800 room you're really going to have to get out there / live in a semi-inconvenient place (Bushwick, Greenpoint, etc).

It doesn't have to be all or nothing. If you're willing to pay $1200-$1500 or so, you can live in a decent (not luxury) apartment in a pretty convenient (not prime) neighborhood, and that still allows you to sock away a lot.

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Big Shrimpin
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Re: NYC biglaw with 150k+ debt: how to balance

Postby Big Shrimpin » Fri Aug 31, 2012 6:50 pm

Here's my plan:

- split rent/living expenses 50/50, at around 2.5K/mo
- spend like 3.5K/mo in loans
- have like 1.5K/mo to spend on enjoying self
- save very little, if any, first year
- each year, apply most of pay increase to loans and put bonuses into savings
- be un-BIGDEBTPWNED in like 3-4 years
- if shitcanned in first few years, killself




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