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

[mr_toad]

Yes. General rule of thumb is to have at least 3 months liquid if no dependents, 6-12 months if dependents.

[shock259]

I don't want to hijack this, but does anyone have reliable take-home pay for DC? I used the calculator at paycheckcity and it listed NYC at $98k and DC at $103k. The numbers may be off, but is the trend right? Is take-home really higher in DC than in NYC?

Trying to decide between these markets and it may be a consideration if DC has a bigger take-home pay (in addition to its lower rent and lower cost of living).

[IAFG]

I don't want to hijack this, but does anyone have reliable take-home pay for DC? I used the calculator at paycheckcity and it listed NYC at $98k and DC at $103k. The numbers may be off, but is the trend right? Is take-home really higher in DC than in NYC?

Trying to decide between these markets and it may be a consideration if DC has a bigger take-home pay (in addition to its lower rent and lower cost of living).

Is $416/mo really a big factor in this decision?

[Big Shrimpin]

I don't want to hijack this, but does anyone have reliable take-home pay for DC? I used the calculator at paycheckcity and it listed NYC at $98k and DC at $103k. The numbers may be off, but is the trend right? Is take-home really higher in DC than in NYC?

Trying to decide between these markets and it may be a consideration if DC has a bigger take-home pay (in addition to its lower rent and lower cost of living).

Is $416/mo really a big factor in this decision?

CHUMP CHANGE

[IAFG]

CHUMP CHANGE

DC and NYC are such different places, with such different practices in the short and long term, the relatively small difference in pay doesn't seem like the thing to focus on.

Frankly, though, the COL differences are over-stated. Rent and COL in DC are expensive as fuck.

[shock259]

I've been playing with a spreadsheet.

I've got the data for a 5 year period for each city. I used the take-home pay, then reduced it for rent and living expenses each year. For NYC, I did $2k for rent and $2k for living expenses. For DC, I did $1500 for rent and $1500 for living expenses (I've lived in DC before and I lived comfortably on these #'s). I then calculated out the "left over" money, or anything that isn't used by rent and living expenses. I used the standard associate salary scaling (160, 170, 185, 210, 230).

For NYC after 5 years it was a total of $336k "left over." For DC after 5 years it was a total of $421.6k "left over."

There's a lot of assumptions in the spreadsheet and it is incredibly simplistic, but the different tax rates, rent expenses, and living expenses can make a pretty big difference over the years.

Edit: this isn't a primary consideration. Just a thought.

[Big Shrimpin]

CHUMP CHANGE

DC and NYC are such different places, with such different practices in the short and long term, the relatively small difference in pay doesn't seem like the thing to focus on.

Frankly, though, the COL differences are over-stated. Rent and COL in DC are expensive as fuck.

Yeah, I'm on your side, I'm just trying to be a sarcastic braj. As a 3yr DC resident and current NYC resident, I know exactly how expensive each can be. For me, choosing NYC over other low COL markets was a mix of DAT prestige-pursuit and a thirst to live in a bustling city, however lame that sounds.

[09042014]

I don't want to hijack this, but does anyone have reliable take-home pay for DC? I used the calculator at paycheckcity and it listed NYC at $98k and DC at $103k. The numbers may be off, but is the trend right? Is take-home really higher in DC than in NYC?

Trying to decide between these markets and it may be a consideration if DC has a bigger take-home pay (in addition to its lower rent and lower cost of living).

Even cheaper if you cop dat Arlington apartment.

[Anonymous User]

Bumping this thread for some specific advice.

Will be to new to NYC and want to know if my budget is possible. Will have minimum 10.5k/month after taxes. Would like to spend some some combination of 7k/month on loans, rent, utilities (including cable and net). Is it possible to live on 3.5k/month for all other expenses?

Thanks!

Note, that I posted anon only because I gave specific finanical details that I would like to keep private.

[Anonymous User]

Anyone?

[A. Nony Mouse]

Are you really asking whether it's possible to live on $875 a week for food and whatever clothes/entertainment/travel you need?

[Anonymous User]

Yes. Really asking that...have never lived in NYC and have only heard how high expenses are. Would like to know how much I should be able to save or no will have to spend on other expenses with my current debt-repayment strategy.

[imchuckbass58]

Yes. Really asking that...have never lived in NYC and have only heard how high expenses are. Would like to know how much I should be able to save or no will have to spend on other expenses with my current debt-repayment strategy.

Ok, I will bite. New York is expensive, not another planet. You will easily be able to spend less than $3.5k after housing per month. In fact, if you want, you can live pretty comfortably on under $2k. $3.5k per month is very high - that's almost $100 a day. Even if you buy lunch ($15) and dinner ($35) every day, you still have $50 a day left over for clothes, drinking, whatever. And keep in mind your firm will be paying for dinner fairly often.

If you're living comfortably, but not extravagantly, you should spend no more than (and some would argue, you can spend less than) $3k on rent and all other housing expenses, and $2k discretionary. That leaves you $5.5k for loan payments and savings.

[jawsthegreat]

So from reading this thread can I assume that if I'm keeping my rent under 2k per month I'm doing well? I come from a place where 2k would rent a 5br house, so it seems like I'm pening way too much.

[imchuckbass58]

So from reading this thread can I assume that if I'm keeping my rent under 2k per month I'm doing well? I come from a place where 2k would rent a 5br house, so it seems like I'm pening way too much.

$2k is a very good rent for more or less any studio or 1BR if you're living in Manhattan below 96th street. In Harlem or the outer boroughs (depending on the exact neighborhood and apartment quality), $2k is probably more middle-of-the-road - not a bad deal, but not great.

[chem]

I didn't see this yet, but make sure to at least put the amount of money your employer matches into your 401k/QRP

[Anonymous User]

Thanks for the respones. No match for 401(k), so I plan to put more into loans. Just wanted to gauge the actual cost of living in the city--what would be left over for savings after non-housing and loan expenses. Thanks all.

[Big Shrimpin]

Are you really asking whether it's possible to live on $875 a week for food and whatever clothes/entertainment/travel you need?

I keep a 460/mo budget and do JUST FINE: go out few nights a week, take cabs, never pack lunches, etc.

Typical day breakdown: 5 coffee/fruit breakfast, 8 chopped salad lunch, 10-15 on dinner. M-F like 125ish on food. Throw dinner with LS two nights/wk that's another hundo. Leaves like 200ish a week to snack, drink, cab, etc.

I'm 1st year biglaw, btw, and have been doing this since September.

Also as 1st yr biglaw you have to work like a year before 401(k), right?

Edit: I also pay like 2k/mo (split living expenses with SO) and around 3.5k/mo to loans.

[Big Shrimpin]

Bumping this thread for some specific advice.

Will be to new to NYC and want to know if my budget is possible. Will have minimum 10.5k/month after taxes. Would like to spend some some combination of 7k/month on loans, rent, utilities (including cable and net). Is it possible to live on 3.5k/month for all other expenses?

Thanks!

Note, that I posted anon only because I gave specific finanical details that I would like to keep private.

How the fuck did you get 10.5k/mo after taxes? Midlevel?

[Anonymous User]

"How the fuck did you get 10.5k/mo after taxes? Midlevel?"

I have an SO.

[bk1]

I didn't see this yet, but make sure to at least put the amount of money your employer matches into your 401k/QRP

You're probably not getting matching as a biglaw associate.

[chem]

I didn't see this yet, but make sure to at least put the amount of money your employer matches into your 401k/QRP

You're probably not getting matching as a biglaw associate.

My firm in a secondary market does, was not sure if it was widespread