The Hidden Costs Of Working On Wall Street

Image

Yes, you make a lot of money when you work on Wall Street, but you’re going to have to spend a lot of money to stay there.

To go to work every day you’ll need to look the part — the suit, the shoes etc. To live every day with a banker’s schedule, you’ll need people to take care of you — maid service, dry cleaners etc.

And then there are the social obligations — trips, schmoozing, memberships …

Wall Street is full of Joneses, and as the saying goes, they’re hard to keep up with.

Here’s how much money it takes to try.

Prepare to drop $3,000+ on an apartment in the Financial District

Men need at least $200 to invest in a solid pair of dress shoes. That figure doubles for women, who will need at least two pairs.

And it costs at least $20 per month to keep your soles from caving in.

A quality suit will cost anywhere from $1,500 to $3,000.

Workers with insane hours will need at least $600/month to keep caffeinated and adequately fed.

It can cost from $80 to $125 per month to maintain your wardrobe.

Power breakfast/lunch cost $30 – $50 per meal.

Start saving now for your $85,000 country club membership.

Maybe you’re a city person, which means a membership at Soho House for $900-$2400.

Budget at least $100/month for maid service.

The Hamptons share.

Schmoozing with clients — $200 to $500.

And you’ll need to take weekend trips to blow off steam. Bankers love a quick Vegas trip, but it’ll cost around $3,250.

Miami’s popular too. If you want to do that right it’ll cost you around $2,100.

If you don’t have a lot of time, maybe you can settle for an Atlantic City trip for around $1,300.

You need to work out at the right place.

The occasional ‘I’m sorry’ present – $150 to $300.

So you’re going to have to make a pretty penny to pay for all that and save money.

The costs we’ve identified add up to over $100,000 (without the country club membership) and that’s not even getting into having kids and paying for their education. And then there are taxes …

That’s rough, but at least they’ll likely have the salary to back it up. The average take-home pay on Wall Street is around $363,000/year, even with residual scars left by the recession.

And not everyone has to live this way. Maybe you don’t want to live in the city, maybe you don’t care about the Hamptons, and maybe Vegas makes you sick.

You’d be richer for it.

Advertisements

About williamk82

William Kohlmann is a student at Grand Canyon University’s Ken Blanchard College of Business where he is earning his Masters in Business Administration with an Emphasis in Finance while working full-time for a leading financial institution. He is an Eagle Scout from Troop 105 of Stroudsburg, Pennsylvania, aspires to be an entrepreneur, and currently lives in Phoenix, Arizona with his beautiful wife, Krystal.
This entry was posted in Budgeting, Investing and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s