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If you work in tech you should be able to save at least 30%. I save 60%, and I also live in the highest marginal tax rate country in the world. If you can't it

If you work in tech you should be able to save at least 30%. I save 60%, and I also live in the highest marginal tax rate country in the world. If you can't it probably means you live beyond your means.

deleted 11y ago
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purplelobster 11y ago
@johnward Well you don't have to do 60% (I'm trying to become financially independent). But stop buying stuff you don't need. Live in a smaller apartment, preferably close to work. Avoid debt and cars like the plague, cook your meals at home. You won't miss all that stuff and it'll make it possible to save a significant portion of your take home pay. @hoorayimhelping SF also have ridiculous salaries compared to the rest of the world. Everybody seems to be making at least $120k starting out, and many up to $300k. I make way less than that, but also live in a pretty expensive city. I just bypass that by not buying a lot of stuff. It's only possible because I reject the average consumerist middle-class lifestyle. I won't buy a house, I'll never buy a car again, I bike to work, I don't have expensive hobbies. You can't have the cake and eat it too. However most people should be able to save more than they do.
deleted 11y ago
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hoorayimhelping 11y ago
This is bit of a silly blanket statement given America's main tech center (and a significant portion of HN's population) is in San Francisco, where rents are the highest in the country. It's really hard not to live beyond your means just by living there.
gregd 11y ago
Your numbers mean literally nothing to me. What do your expenses cost per month? Children? Food? Housing? Student loans? Car payment? What is your income tax rate? Sales tax rate? Insurance? Phone? Internet?
- purplelobster 11y ago
  Number are rough because of different currencies, but: Expenses: $1500 Children: none yet, but subsidized child care, paternity leave and other subsidies makes it pretty cheap Food: $500 Housing: $400 (own apartment with my SO) Student loans: $150 Car payment: no car, bike most places Income tax rate: 32%, but employer pays another 30%, so effectively 62% Sales tax: 25% Insurace: $15 Phone: $15 (cheapest possible plan) Internet: included in housing Note: I also lived in the US before, with simliar savings rate, which was even easier.
  - gregd 11y ago
    My food budget is 3 times your food budget. My housing is 3 times your housing budget. My student loans are $200/month. My car payment is 300/month. Income tax rate 9%. Sales tax: 0 Medical insurance: $8000/year Auto (and other) insurance: 1200/year
    - adevine 11y ago
      Umm, I don't mean to sound crass, but if you have 5 kids, 3 who live with you and 2 who do not, and a spouse who isn't currently working, I am not surprised that you find it difficult to save money. At the same time, it's not hard to understand that people who chose to have fewer children would find it easier to save money and get by without needing a trust fund.
      - gregd 11y ago
        It doesn't sound crass at all. One of the children is a foster child who we get no extra money for. She needs a safe place to live and food in her stomach and we're in a position where we can do that. I don't begrudge my situation at all. What I do have an issue with is "if you can't save x amount per month, you're living beyond your means". It's not that black and white. My trust fund question was legitimate. I also think that if you have a support system behind you (i.e. parents you could ultimately live with if you couldn't find work), it makes taking a year off with very little income, much more likely....as does, having a trust fund backing you up.
GFischer 11y ago
I know people that live in the United Arab Emirates too (the country with the highest marginal tax rate), and besides housing, the rest of the stuff is ridiculously cheap, so it makes sense that if you have a high income you can save a lot. http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&country2=United+Arab+Emirates&city1=San+Francisco%2C+CA&city2=Dubai http://www.numbeo.com/cost-of-living/compare_cities.jsp?coun... According to Numbeo, even if you live in Dubai you're way ahead of someone living in San Francisco, and even Montevideo, Uruguay (where I'm from)

deleted 11y ago

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purplelobster 11y ago

@johnward Well you don't have to do 60% (I'm trying to become financially independent). But stop buying stuff you don't need. Live in a smaller apartment, preferably close to work. Avoid debt and cars like the plague, cook your meals at home. You won't miss all that stuff and it'll make it possible to save a significant portion of your take home pay. @hoorayimhelping SF also have ridiculous salaries compared to the rest of the world. Everybody seems to be making at least $120k starting out, and many up to $300k. I make way less than that, but also live in a pretty expensive city. I just bypass that by not buying a lot of stuff. It's only possible because I reject the average consumerist middle-class lifestyle. I won't buy a house, I'll never buy a car again, I bike to work, I don't have expensive hobbies. You can't have the cake and eat it too. However most people should be able to save more than they do.

deleted 11y ago

[deleted]

hoorayimhelping 11y ago

This is bit of a silly blanket statement given America's main tech center (and a significant portion of HN's population) is in San Francisco, where rents are the highest in the country. It's really hard not to live beyond your means just by living there.

gregd 11y ago

Your numbers mean literally nothing to me. What do your expenses cost per month? Children? Food? Housing? Student loans? Car payment? What is your income tax rate? Sales tax rate? Insurance? Phone? Internet?

purplelobster 11y ago
Number are rough because of different currencies, but: Expenses: $1500 Children: none yet, but subsidized child care, paternity leave and other subsidies makes it pretty cheap Food: $500 Housing: $400 (own apartment with my SO) Student loans: $150 Car payment: no car, bike most places Income tax rate: 32%, but employer pays another 30%, so effectively 62% Sales tax: 25% Insurace: $15 Phone: $15 (cheapest possible plan) Internet: included in housing Note: I also lived in the US before, with simliar savings rate, which was even easier.
- gregd 11y ago
  My food budget is 3 times your food budget. My housing is 3 times your housing budget. My student loans are $200/month. My car payment is 300/month. Income tax rate 9%. Sales tax: 0 Medical insurance: $8000/year Auto (and other) insurance: 1200/year
  - adevine 11y ago
    Umm, I don't mean to sound crass, but if you have 5 kids, 3 who live with you and 2 who do not, and a spouse who isn't currently working, I am not surprised that you find it difficult to save money. At the same time, it's not hard to understand that people who chose to have fewer children would find it easier to save money and get by without needing a trust fund.
    - gregd 11y ago
      It doesn't sound crass at all. One of the children is a foster child who we get no extra money for. She needs a safe place to live and food in her stomach and we're in a position where we can do that. I don't begrudge my situation at all. What I do have an issue with is "if you can't save x amount per month, you're living beyond your means". It's not that black and white. My trust fund question was legitimate. I also think that if you have a support system behind you (i.e. parents you could ultimately live with if you couldn't find work), it makes taking a year off with very little income, much more likely....as does, having a trust fund backing you up.

GFischer 11y ago

I know people that live in the United Arab Emirates too (the country with the highest marginal tax rate), and besides housing, the rest of the stuff is ridiculously cheap, so it makes sense that if you have a high income you can save a lot. http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&country2=United+Arab+Emirates&city1=San+Francisco%2C+CA&city2=Dubai http://www.numbeo.com/cost-of-living/compare_cities.jsp?coun... According to Numbeo, even if you live in Dubai you're way ahead of someone living in San Francisco, and even Montevideo, Uruguay (where I'm from)