I thought this was a great scene and like Peter and Seth I too was wondering how Will disposed of $2.5 million salary p.a. The $76k+ on booze, meals and hookers, much of which he would claim back on expenses, made me laugh with shock as much as anything. I was agog that a man would spend $50k on clothes!
my vessel is magnificent and large and huge-ishshare
I'd probably spend more on clothes, honestly. Lol.
What I really enjoyed about this film was that it was probably true-to-life. There are probably guys out there who do blow money quickly. The conversation on the rooftop was really genuine and sincere to me personally, as well as hilarious.
Maybe some members on these boards who work in the industry can regale us with stories about how they spend their money? Haha.
The conversation on the rooftop was really genuine and sincere to me personally, as well as hilarious.I agree and it had a ring of truth to it as well.
my vessel is magnificent and large and huge-ishshare
I mean, considering the brutal hours in the office, I'm guessing an associate/MD/etc. will need a top-of-the-line suit/s in various colors from amazing brands.
Also, from my experience in the fashion industry, it's not uncommon to see some people drop tons on nice suits, ties, pocket squares, accessories, and so on.
In response to your question, once you buy a very nice suit and have $ to spend, you'll want more. For me, personally, these are the main suits you need (1 of each):
- Navy
- Light Navy
- Black
- Charcoal
- Light Gray
- Navy/Charcoal pinstripe
Oh, and also, I forgot to mention shoes, which will constitute a major portion of your wardrobe once you're stacking money.
As crazy as it may sound, Will's personal finance is not that bad. He saved 32% of his net income, which is great by American standard, and he gave another 12% to his folks.
The only thing that strikes me as extravagant is his mortgage: 300K/year. That is a 3 million+ house for a single guy. Suits you can keep, but with the housing crash, the money you lost on mortgage will not come back.
I worked in investment banking and when I saw this film, I was struck by how accurate the personalities were in this film. I could reflect back and compare the film characters to the people I actually ran into as an i-banker, how similar they were.
In terms of spending the money, I was actually more shocked by how much Will was actually saving. In many ways, it was Sam's situation that was more accurate....he needs the money, no matter how long he has been with the firm and how many millions or tens of millions he's made over the years, he still needs the money.
In Sam's case, it's clear that he's not on his first marriage...probably has alimony, probably has a huge mortgage, many cars, kids with expensive tastes and then the reputation he has to maintain, largely through title and spending ability.
Frankly, these people are driven by things different than most people. Sure, we all want a lot of money, but these people are consumed with their incomes. They truly NEED the money to validate themselves. But the job is so stressful, so miserable, that they also need to SPEND it in order to feel that the risk/reward bargain is enough. Their lives go in this endless spiral of earning ungodly sums, spending ungodly sums, requiring them to earn even more ungodly sums, but that's just it....that's what they need...the money is the be all and the end all.
Will's character is small potatoes in that respect. He quite accurately and nonchalantly describes himself as a type of "middle of the road" earner and spender on Wall Street. $2.5 million is nothing....and spending that sum is nothing too.
BTW, do you know how easy it is to spend money? A $10,000 per month mortgage is nothing, and purchase a car or two at $100K each, wife, kids at expensive private schools, food, clothes, the other goodies (think the latest cell phones, jewelry, vacations, hotels, radios, stereos)...man, that money flies out the door.
I liked that scene as well. it reminded me of the great passage in "Bonfire of the Vanities" where Wolfe has his Master of the Universe explain how he barely gets by in Manhattan on $1 million a year (it was 25 years ago, OK?). After wading through a page and a half detailing the crushing burden of financing his extravagant lifestyle, you almost end up feeling sorry for the guy!
Almost :)
share"Frankly, these people are driven by things different than most people. Sure, we all want a lot of money, but these people are consumed with their incomes. They truly NEED the money to validate themselves. But the job is so stressful, so miserable, that they also need to SPEND it in order to feel that the risk/reward bargain is enough. Their lives go in this endless spiral of earning ungodly sums, spending ungodly sums, requiring them to earn even more ungodly sums, but that's just it....that's what they need...the money is the be all and the end all. "
Searchagentmail, thanks for the comment. I've always struggled to understand the Wall Street mentality. Your insight sheds some light for me.
It sounds like you got out of the biz. Good for you - you've saved yourself from misery.
>Suits you can keep, but with the housing crash, the money you lost on mortgage will not come back.
Suits deteriorate in price...always. Other than this massive housing crisis that occurred after the events of the movie, housing prices almost always go up.
I have a couple of 1K suits and I don't need them so very often and I am not making anywhere near 2,5 million...I would definitively spend more than 50K in clothes if i was at that level
shareIf someone from a 3rd world country who lives in a mud hut and is thankful for a cup of rice to get them through the day, heard that I actually had nearly $15k to spend lavishly on such things as $10 to see a movie along with another $10 for pop & popcorn, and cell phone minutes, and Starbucks and all the other truly needless way I and many Americans splurge - they'd probably see it them same way as I did when hearing how he blew through $2.5 million/yr
shareThat's a good point. It's all comparative.
Edit: I might add that I'd like to have 50k at my disposal for clothes every year. So there's some envy in my response to Will's account of how much money he makes and spends.
I'm a fountain of bloodshare
In the shape of a girl
great point. I once saw a receipt online where some billionaire spent 50k on one meal. It was some expensive vines or smt. But if you calculate his income,it's same as me spending $5 on a meal.
shareI can't believe no one has so far mentioned this - to me a BIG lie in an otherwise fairly impartial movie. He starts out by saying something like "well, the IRS takes 50% off the top". REALLY? Then he's the stupidest millionaire out there. The average tax rate on millionaires in the US is about 24%. The top marginal rate is 35%. Many pay 0. So I'm not buying it, and I think it was snuck in there as a sop to rich people, so we feel bad for them. Though, even with that, it was useful in showing how they waste their money, money that society could use to solve any number of problems.
shareThat's where you're wrong. Here in the U.S. we have the equal of opportunity, not equal of rewards. If you don't have what it takes to earn a certain amount of money, don't be jealous on people who do.
shareIf he said IRS, then yes, you're right. But--and I may be wrong--he said that it was just tax, which would include state. If he lives in NYC--which he probably does--there's also an NYC tax. Yes, NYCers have to pay city, state, and federal.
I don't remember how much the max NYC tax is, but it might be something like 3%. I think the max NYS tax is something like 7%. Federal max is 35%. So, that's about 45% minus the lower brackets, but those apply to very small amounts relative to 2.5 million. Also, I believe he's single, which means he pays more.
Also, he probably he has to pay property tax if he owns a home or pays a portion of the co-op or condo tax.
So, while it's probably not 50%, it's probably more than 24%. Maybe 35% or 40%.
Maybe he just used 50% for hyperbole or easier math.
I am obviously not as rich as these guys, but I created a program that automatically tracks every penny of my spending habits and I am really surprised to see certain things I spend thousands of dollars on per year. I even go back to make sure that the numbers are correct and they are. I can understand how that money can go away fast.
shareI thought that was a great scene too. I live in NYC and work in finance and have seen many people who were making millions go bankrupt when the financial crisis hit. Many people expected those seven figure bonuses to continue forever and did not save. It is always the same thing too, expensive homes, rentals, jets, cars, etc. basically keeping up an appearance.
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