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One of the reasons I don't usually answer financial questions like this online is because, in a sense, it really all comes down to this answer. If you make a lo

by agf 5y ago

One of the reasons I don't usually answer financial questions like this online is because, in a sense, it really all comes down to this answer. If you make a lot of money, and you're careful, and don't get unlucky, the rest just falls into place. But hopefully my other response is helpful for people still learning how to think about saving.

rubicon33 5y ago
I think my confusion centered around the mismatch between what I thought you were making, and what you likely are making. I figured that the average senior engineer in California makes somewhere between $130,000 and $170,000, depending on region. I had simply no idea that an average senior engineer could be making north of $300,000. That is jaw dropping and of course I understand now how you're able to take time off. I save over 50% of my income but I don't make anything close to $300,000 so yea, taking a whole year off would be a big chunk of my savings. I guess I need to try and find a job where I'm making $300,000 lol. Do you have some niche specialty or is that literally just a standard rate?
- agf 5y ago
  > I save over 50% of my income but I don't make anything close to $300,000 so yea, taking a whole year off would be a big chunk of my savings. There is something wrong with this piece of information. If you really save 50%, then taking a whole year off will only wipe out one year of savings, no matter what you make. So if it's a large part of your savings and you're really saving 50%, then the problem is you've only been saving for a couple of years. Having a higher income just makes it easier to have a higher savings rate, it doesn't change the math on how many years you have to save to afford the time off, given equal savings rates. You might want to re-read my other comment: https://news.ycombinator.com/item?id=27126783 https://news.ycombinator.com/item?id=27126783 > I guess I need to try and find a job where I'm making $300,000 lol. Do you have some niche specialty or is that literally just a standard rate? It's a standard rate for someone who was a senior engineer then got promoted two more times, I guess. I don't have a niche specialty. And I expect to (and have planned for) making less at my next job, and potentially for the rest of my career.
  - rubicon33 5y ago
    Well, my guess is that isn't only "standard" at the big FANG type companies (PayPal and other goliaths in the bay area included). I could be wrong but, I don't think that's standard pay for the vast majority of software jobs in the bay area, whether it be at smaller startups or more old school traditional software companies.

by agf 5y ago

rubicon33 5y ago

I think my confusion centered around the mismatch between what I thought you were making, and what you likely are making. I figured that the average senior engineer in California makes somewhere between $130,000 and $170,000, depending on region. I had simply no idea that an average senior engineer could be making north of $300,000. That is jaw dropping and of course I understand now how you're able to take time off. I save over 50% of my income but I don't make anything close to $300,000 so yea, taking a whole year off would be a big chunk of my savings. I guess I need to try and find a job where I'm making $300,000 lol. Do you have some niche specialty or is that literally just a standard rate?

agf 5y ago
> I save over 50% of my income but I don't make anything close to $300,000 so yea, taking a whole year off would be a big chunk of my savings. There is something wrong with this piece of information. If you really save 50%, then taking a whole year off will only wipe out one year of savings, no matter what you make. So if it's a large part of your savings and you're really saving 50%, then the problem is you've only been saving for a couple of years. Having a higher income just makes it easier to have a higher savings rate, it doesn't change the math on how many years you have to save to afford the time off, given equal savings rates. You might want to re-read my other comment: https://news.ycombinator.com/item?id=27126783 https://news.ycombinator.com/item?id=27126783 > I guess I need to try and find a job where I'm making $300,000 lol. Do you have some niche specialty or is that literally just a standard rate? It's a standard rate for someone who was a senior engineer then got promoted two more times, I guess. I don't have a niche specialty. And I expect to (and have planned for) making less at my next job, and potentially for the rest of my career.
- rubicon33 5y ago
  Well, my guess is that isn't only "standard" at the big FANG type companies (PayPal and other goliaths in the bay area included). I could be wrong but, I don't think that's standard pay for the vast majority of software jobs in the bay area, whether it be at smaller startups or more old school traditional software companies.