Quote:
Originally Posted by Myfirstbmwinsertcodehere
Hello again guys, I'm here just clear up a few things:
http://www.payscale.com/college-sala...ls-by-type/mba
http://www.usnews.com/education/best...hool-graduates
http://poetsandquants.com/2015/07/07...-went-to-work/
Starting salaries among all sources: 110-135k
As for my previous comment on "huge salary" I meant that 115k is pretty much -huge- (for me) in PR, where living expenses and pretty much everything else is cheaper than in the US, except for cars.
In PR, you can get a luxurious apartment with ocean view/beach access for less than 2.5k a month.
If you separate, let's say 1.5k a month for a car, including insurance, food and other immediate expenses, let's say it totals to 5-6k monthly.
6k a month, in one year is 72k, so if my job left me 115k, that's a surplus annually of 43,000 for everything else. Which is pretty nice, if simply starting out. |
I don't think anyone is doubting that you will get that salary, but rather we are pointing out the fact that 115k is not as much money as you think. Like the above poster said, you forgot about the taxes, which will definitely be more than 30k. When I was single and making 120k a year, I was paying roughly 38% in taxes, so that's around 45k. You would want to contribute the maximum amount to 401k for retirement, which would be $17,500. Let's say you rent a 1-bedroom apartment and the rent is 1k/month, so 12k yearly. Also, you might want to save some month for down payment on a house, so let's say 15k a year. After these big ticket items all you have left is
120k - 45k - 12k - 17.5k - 15k = 30.5k
Out of that, you have to pay for gas ($350/mon), food ($350/mon), vacation travel (let's say ONLY 1.5k/yr, which is very conservative; basically no international travel), personal leisure + unexpected circumstances (let's say you are very frugal - $200/mon). On top of that you have student loans; I don't know how much that is so I will assume it's only $300/mon. Adding all these up.
$350 * 12 + $350 * 12 + $1,500 + $200 * 12 + $300 * 12 = $15,300
So what you have left is $30,500 - $15,300 = $15,200 or $1,266/mon
So $1,266/month is what you have left for your car. Can you buy and maintain a M3 with that money, sure. But you won't have ANY money left afterwards, and for a 25-year-old young person, you may likely soon regret buying this car like this because you will be forced to give up many other social activities that someone at your age should be enjoying with. My suggestion: look for a car that will not cost you more than $500/mon including insurance and maintenance, and leave the rest of the $750 for other fun stuff (go to Thailand with friends and party/drink, etc.). Those fun events will gradually go away as you age and start thinking about having a family, and by that time, your salary will go up and you can come back and have more enjoyment in a M3 and not feeling reluctant to give up other things in life.