Millennial Money 23 yr old makes over six figures in New York City!
I’ve been watching a new show called Millennial Money.
And it’s interesting to see how fellow Millennials are spending their money.
The show focuses on Millennials from various cities, how much they make and how they spend their money.
And in the episode I’m going to discuss, the Millennial is a 23 yr old making 172k in New York City.
Working in management consulting.
Consulting was never one of the careers I considered growing up because my parents told me to focus on medicine, accounting or law.
Because these are the careers Asian parents believe make six figures. But times are changing!
Drake, the featured individual in this episode works in consulting and is able to make quite a bit of money for himself.
Here’s his breakdown of spending:
Analysis of Spending
Now I’m no financial expert (just a gal who loves personal finance).
So it may not be worth much coming from me but I like the distribution.
Of expenses and savings.
Drake’s savings are greater than most of his expenses (if you exclude housing). So this millennial money 23 yr old is doing very well.
Housing costs are usually the highest and ones you can’t do much about but 1,500/month in New York City is not bad at all.
However, I am wondering if his monthly budget is missing some funds.
Because 172,000/year salary after taxes comes out to about 8600 – 10k per month (30% tax, or 40% tax).
So where’s the remaining 2k or 4k being spent on?
And then seeing his breakdown of savings, I’m wondering if he has an emergency fund in case something happens.
Because I don’t see it in the breakdown.
It’s great to work on ROTH IRA and 401k (up to company’s match) but you need to have an emergency fund as well.
My Advice for Drake?
Work on building up the emergency fund, at least 3-6 months of necessary expenses.
Based on my calculations of your monthly expenses, that’s about 8-13k of emergency funds.
Then get a great travel rewards credit card and put most of your spending on those cards.
So you can leverage the points for traveling.
But otherwise you’re doing very well Drake, keep it up! And be an inspiration for other millennials!
What do you think of this millennial’s expenses and savings habits? Leave a comment below!