NYC biglaw with 150k+ debt: how to balance

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

Postby imchuckbass58 » Fri Aug 31, 2012 7:02 pm

Big Shrimpin wrote: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


This actually sounds like a good plan (not kidding).

Also, unless you have particularly expensive tastes, $1.5k is plenty of spending money. You won't spend anything during the week (save $5-$10 on lunch). Even if you blow $200 every weekend you can still live within that.

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

Postby mr_toad » Fri Aug 31, 2012 7:05 pm

Checking in for future reference.

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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 7:06 pm

imchuckbass58 wrote:
Big Shrimpin wrote: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


This actually sounds like a good plan (not kidding).

Also, unless you have particularly expensive tastes, $1.5k is plenty of spending money. You won't spend anything during the week (save $5-$10 on lunch). Even if you blow $200 every weekend you can still live within that.



TY, friend. I NEED my playtime, so if/when I get it, I'm going to do it right.

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

Postby goodolgil » Fri Aug 31, 2012 8:00 pm

imchuckbass58 wrote:
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.


Yeah, I know. I'm from Brooklyn, I know where I could get an $800 room in an area I'd be OK with. Though bumping that up to $1,000 or so would probably be better for commute purposes.

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

Postby Anonymous User » Fri Aug 31, 2012 8:29 pm

Anon with the budget above.

If you want to budget $1500 a month for spending and put the rest for loans, do invest in a good points credit card so you can get vacations on the cheap. Whatll destroy my coworkers budgets more than anything isn't models and bottles. It's vacations.

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

Postby Anonymous User » Fri Aug 31, 2012 8:46 pm

Is a 10-year repayment plan a bad idea, even if I plan/hope to stick it out with the biglaw thing?

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

Postby Anonymous User » Fri Aug 31, 2012 9:04 pm

Can you live (rent) in Westchester and avoid NYC city income taxes?

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

Postby clintonius » Fri Aug 31, 2012 9:08 pm

You only pay NYC tax if you live inside the bounds of NYC, so yes. It would be much more convenient to live in Jersey City or Hoboken. The PATH is cheaper and shorter than Metro North ride.

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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 9:10 pm

Anonymous User wrote:Is a 10-year repayment plan a bad idea, even if I plan/hope to stick it out with the biglaw thing?


Yes. I don't have energy to explain, but it's not a good idea. Back in the day at like 2-3%, it was a closer argument.

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

Postby clintonius » Fri Aug 31, 2012 9:15 pm

Big Shrimpin wrote:
Anonymous User wrote:Is a 10-year repayment plan a bad idea, even if I plan/hope to stick it out with the biglaw thing?


Yes. I don't have energy to explain, but it's not a good idea. Back in the day at like 2-3%, it was a closer argument.

Some people were explaining that it's better to take longer to pay off your loans IF the amount that would go to repayment is instead diverted to your 401K. But yeah, it's terrible to go for the 10-year just because you'd rather buy shiny things for yourself.

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

Postby fatduck » Fri Aug 31, 2012 9:17 pm

not going to NYC, but tagging this thread in the hopes that one day i can look at my debt total without vomiting and actually prepare a budget

shock259
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Re: NYC biglaw with 150k+ debt: how to balance

Postby shock259 » Fri Aug 31, 2012 10:09 pm

Just used one of those fancy take-home calculators. It came up with a take-home pay of $107k after taxes if live in NYC. Does that sound right? It seems low.

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

Postby clintonius » Fri Aug 31, 2012 10:09 pm

shock259 wrote:Just used one of those fancy take-home calculators. It came up with a take-home pay of $107k after taxes if live in NYC. Does that sound right? It seems low.

It's high, by about $14k. Your take home should be right around $93k after taxes on $160k.

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

Postby sunynp » Fri Aug 31, 2012 10:42 pm

clintonius wrote:
shock259 wrote:Just used one of those fancy take-home calculators. It came up with a take-home pay of $107k after taxes if live in NYC. Does that sound right? It seems low.

It's high, by about $14k. Your take home should be right around $93k after taxes on $160k.


TLS should really just refer to NYC market as $93,000 net. Or even $95,000. That is a much different number to consider than thinking of $160,000. People don't realize how much they will pay in tax.

I've seen a couple of posts where people think their take home will be about $110,000.

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

Postby thelawyler » Fri Aug 31, 2012 10:59 pm

sunynp wrote:
clintonius wrote:
shock259 wrote:Just used one of those fancy take-home calculators. It came up with a take-home pay of $107k after taxes if live in NYC. Does that sound right? It seems low.

It's high, by about $14k. Your take home should be right around $93k after taxes on $160k.


TLS should really just refer to NYC market as $93,000 net. Or even $95,000. That is a much different number to consider than thinking of $160,000. People don't realize how much they will pay in tax.

I've seen a couple of posts where people think their take home will be about $110,000.


Well if you include bonus, it could be about 100k.

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smokyroom26
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Re: NYC biglaw with 150k+ debt: how to balance

Postby smokyroom26 » Fri Aug 31, 2012 11:14 pm

Checking in for future reference.

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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 11:23 pm

^^yeh, if you're at K&E (MARKET SHATTERING SWAGGER), WLRK, Susman, etc.

Plus, after taxes on the vast majority of our tiny link bonuses, we're doing like a few K AT BEST.

GOD WHY CAN'T IT BE THE EARLY-MID 2000s AGAIN??????

*is a first year in 2005*

*gets a 35K bonus*

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

Postby thelawyler » Sat Sep 01, 2012 12:45 am

Big Shrimpin wrote:^^yeh, if you're at K&E (MARKET SHATTERING SWAGGER), WLRK, Susman, etc.

Plus, after taxes on the vast majority of our tiny link bonuses, we're doing like a few K AT BEST.

GOD WHY CAN'T IT BE THE EARLY-MID 2000s AGAIN??????

*is a first year in 2005*

*gets a 35K bonus*


How have the bonuses for 2011 looked? I thought they were decent for most of V25?

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

Postby IAFG » Sat Sep 01, 2012 2:13 am

thelawyler wrote:
Big Shrimpin wrote:^^yeh, if you're at K&E (MARKET SHATTERING SWAGGER), WLRK, Susman, etc.

Plus, after taxes on the vast majority of our tiny link bonuses, we're doing like a few K AT BEST.

GOD WHY CAN'T IT BE THE EARLY-MID 2000s AGAIN??????

*is a first year in 2005*

*gets a 35K bonus*


How have the bonuses for 2011 looked? I thought they were decent for most of V25?

IDK what you mean by "most of the V25" but anyone who just matched Cravath paid SPS.

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bk1
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Re: NYC biglaw with 150k+ debt: how to balance

Postby bk1 » Sat Sep 01, 2012 3:11 am

thelawyler wrote:
Big Shrimpin wrote:^^yeh, if you're at K&E (MARKET SHATTERING SWAGGER), WLRK, Susman, etc.

Plus, after taxes on the vast majority of our tiny link bonuses, we're doing like a few K AT BEST.

GOD WHY CAN'T IT BE THE EARLY-MID 2000s AGAIN??????

*is a first year in 2005*

*gets a 35K bonus*


How have the bonuses for 2011 looked? I thought they were decent for most of V25?


http://abovethelaw.com/bonuses/

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

Postby Big Shrimpin » Sat Sep 01, 2012 9:32 am

IAFG wrote:
thelawyler wrote:
Big Shrimpin wrote:^^yeh, if you're at K&E (MARKET SHATTERING SWAGGER), WLRK, Susman, etc.

Plus, after taxes on the vast majority of our tiny link bonuses, we're doing like a few K AT BEST.

GOD WHY CAN'T IT BE THE EARLY-MID 2000s AGAIN??????

*is a first year in 2005*

*gets a 35K bonus*


How have the bonuses for 2011 looked? I thought they were decent for most of V25?

IDK what you mean by "most of the V25" but anyone who just matched Cravath paid SPS.

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

Postby Anonymous User » Sat Sep 01, 2012 10:24 am

I'm going to be making around 84k post-tax in a mid-major market starting in a few weeks, but I think on either salary 3,500 a month is doable. That's 42k a year, so loans should be paid in 4 years even if you pocket your bonuses and raises.

If you didn't contribute to your 401(k), took the cheapest healthcare option, used firm-expensed dinners for groceries, etc you could probably get up to 4,500 a month. 5,000 probably if you lived in Jersey. A good site to help track your loans is Ready for Zero, but note tht it doesn't link well to some loan servicers.

One thing to keep in mind is making your minimum payments as low as possible, so you can direct funds to the loans with the highest interest rate. Look into switching your loans from the standard 10 year to the graduated or 25 year repayment plan. Remember there isn't a pre-payment penalty, so it makes a lot of sense if you're going to repay your load aggressively.

In my case, I plan on first building an emergency/engagement ring fund (emergency fund for 2013, use it for the ring in 2014 probably) with my stub year paychecks. After that, I want to use all remainings funds after expenses on my loans. I want to be the No More Harvard Debt guy and get rid of the burden ASAP.

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

Postby Anonymous User » Sat Sep 01, 2012 10:37 am

How much is "enough" for an emergency fund? 6 months of expenses? If we are allotting 2k$ for rent and $2k for living expenses, that's $24k. That would eat up like half of my loan payments for the first year.

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

Postby Anonymous User » Sat Sep 01, 2012 4:34 pm

Post from two above here.

I have heard 6 months living expenses also, but I really think that would be necessary only if you lost your job. I think more likely scenarios for an emergency fund are car repairs, injuries/surprise medical expenses, lost or stolen goods, etc. I haven't encountered a true emergency in a while, so someone else please chime in here. I think the idea is that it is just a liquid account you can hit at anytime. You can tap into your 401(k), but that requires some bells and whistles. The emergency fund is truly liquid.

I plan on starting around 6 or 7k then growing it 500 a month. Since I'm young without kids, that should be enough outside of being fired.

09042014
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Re: NYC biglaw with 150k+ debt: how to balance

Postby 09042014 » Sat Sep 01, 2012 4:36 pm

Anonymous User wrote:Post from two above here.

I have heard 6 months living expenses also, but I really think that would be necessary only if you lost your job. I think more likely scenarios for an emergency fund are car repairs, injuries/surprise medical expenses, lost or stolen goods, etc. I haven't encountered a true emergency in a while, so someone else please chime in here. I think the idea is that it is just a liquid account you can hit at anytime. You can tap into your 401(k), but that requires some bells and whistles. The emergency fund is truly liquid.

I plan on starting around 6 or 7k then growing it 500 a month. Since I'm young without kids, that should be enough outside of being fired.


Getting fired is what your fund is for.




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