Budget Preparation

There is no doubt about it, traveling to New York to get an investment banking job is expensive. However, you ultimately want to maximize the present value of your future earnings. The couple of thousand that you invest in yourself today will be worth a lot more than most investments.

NYC TRIP BUDGET

The following is a breakdown for one person travelling on two 5 business day trips (10 days plus 4 travel days). If you are able to go with someone else then it will obviously decrease the cost of the hotel. 

One thing to remember is that nearly all of the prices quoted in this web site are 1999 prices (hotel rates seem to be the most prone to price fluctuations).

Birmingham - New York - Birmingham Transportation

(either a major airline, like Delta, all the way or Southwest Airlines to a nearby city and Amtrak to New York combination, whichever is cheaper):

2 NYC trips * 2 ways * $100 one-way air fare to a nearby city +

2 NYC trips * 2 ways * $70 one-way train fare to New York = $680

OR

2 NYC trips * 2 ways * $170 one-way air fare to New York = $680

Inside New York Transportation

(primarily bus and subway):

2 NYC trips * $140 (20 fares * $1.50/fare + $20/city taxi + $90/airport taxi) = $280

Hotel

2 NYC trips * 6 nights * $150/night = $1800

(Hotel rate was figured as $120/night rate + 13.25% and $2 tax + $10 phone/day or roughly 12-15 calls per day)

Food

2 NYC trips * 7 days * $30/day = $420

Other

(gifts, sight-seeing, entertainment):

2 NYC trips * $75/NYC trip = $150

GRAND TOTAL FOR TWO 5 BUSINESS DAY TRIPS TO NYC = $3330

This budget is a very accurate reflection of the costs involved in a job search in New York. However, it is a necessary cost, one that you will be glad you took. I may have overestimated the costs involved when you personally travel but it would be a pleasant surprise to find yourself not using all the money you have lined up for the trips.

HOW TO PAY FOR IT

The best way is to get your parents to pay :-)

The next best way is to start saving the money you need early in your college career or at least as early as possible. Even if you can't afford to accumulate the entire amount, you can at least save a chunk of the money and combine it with financing from the other methods.

OK, so you can't squeeze any more money from your parents and you don't have any money saved. You may wince at this suggestion, but put all those pre-approved credit card applications to use. This was the method of financing that I used.

Get a credit card with a high limit, say $3000 or $5000 and a low six-month introductory APR of 5% or something. Charge everything related to your trips on that card and only use it for NYC trips. Put it aside after you have accepted your new job and revert to your normal spending habits. Set yourself up a payment schedule and pay off the credit card balance over time. If it takes you longer than six months to pay off the balance then just transfer the balance to a new, pre-approved credit card with a low introductory APR and close the first credit card.

In the long run scheme of things, your new job will mean a whole lot more than a couple of thousand dollars. So you should think of spending $3330 as a bargain deal - because it is for what you can get out of it.