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This is a depressing website, and I'm on an alright contract (well, now in my 40s). Anyone want to work out what % of people this applies to ? I can think of

by stuaxo 3y ago

This is a depressing website, and I'm on an alright contract (well, now in my 40s). Anyone want to work out what % of people this applies to ? I can think of very few people who had 100k savings by the age of 30, this seems insane Vs normality.

throwaway22032 3y ago
Early retirement is not normal.
geraldwhen 3y ago
I’m in the US, but most have way more than that by 30, in software.
- CalRobert 3y ago
  People in the UK in software generally make a fraction (under half) of what those in the US do, and will have much, much, much lower savings, on average.
- dukeyukey 3y ago
  That is not normal in the UK, even for software developers.
- jermaustin1 3y ago
  By "in software" you are meaning startup/FAANG, not software development in general where the average salary is still sub $100k, and depending on where you live as little as $50k for a starting salary. As a 22 or 23 year old getting your first job at $50k, your living expenses will take most of your salary. After a few years you might be able to jump to a better paying mid-level developer. So at 28, you could be making $75k throughout most of the central US. Your life style will likely have changed, and you now have a wife, potentially a kid, so living expenses still take up 70-80% of your take home. Hopefully you are able to put away $10k/yr into your personal retirement, and you've been getting your full company match that maxes at 2% (this is standard at most corporate developer jobs). So your 401k might have around $40k in it now, which is great. Your ROTH has another $15-20k probably. At 30, you finally hit your big 3-0. Your 401k has been growing nicely, and you now have $75k in it, and your ROTH is sitting pretty at $25k, only 15 years left until retirement! You have hit $100k by 30! Wait, you were talking about £... Well, you still have a ways to go, you only have £80k.
  - geraldwhen 3y ago
    I have never worked in startups or FAANG. I’ve only worked at shitcos, and pay is up! I’m up to nearly 300k comp at shitco, without the terrible life commitment and uncertainty of startups.
    - dom96 3y ago
      What are these shitcos you speak of?
globular-toast 3y ago
Remember, in the UK you don't get rich by working, you get rich by starting off rich. Everything is stacked against you if you start off with no funds. Especially if you get into the rent trap and the car trap. I was still in the negative at 30. If you were able to buy a property in your early 20s (ie. someone gave you the money) then you could easily be over 100k by 30. You don't mention whether you own your house or not. If you do then a £40k/year lifestyle living in your own home seems ridiculously lavish. Or you could consider your house an investment and I guess put it under ISA as you won't get taxed on liquidating your home. If you were actually aware of FIRE at 20, made it a goal, didn't buy a car, bought a modest flat or something in a city, then I think this is quite doable. Only the rich can have their cake and eat it too, though.
- dom96 3y ago
  There are still some small amounts of opportunities that can allow you to come from a poor background and become well off. I'm mainly thinking of tech jobs that pay well, but yes even with those there is a lot of luck involved. I'm in my late 20s now and doing pretty well because of a combination of luck and because I am passionate about programming (and have been from an early age). So there are paths, though I agree they are tough. And I agree, having rich parents is definitely playing life on easy mode.
  - globular-toast 3y ago
    You can certainly become well off from a poor background. Whether you can be well off and retire early is a completely different matter. It also depends massively on your definition of well off. It tends to mean "at least as good as my parents". People don't really even acknowledge lifestyles at a level significantly below that of their parents. The right combination is probably poor/frugal parents/upbringing and a gift for something like programming: a "new" field that pays well but doesn't require the "gift of the gab" and connections that are found in long-standing well-off families and valued in "traditional" fields. The worst combination would be ending up in a "traditional" field with parents who are well off from a "new" field but have neither the bullshit nor the connections, and who live their lives to the absolute fullest, leaving nothing behind when they go. It's not fair. Perhaps the people campaigning for equality will one day realise it's not really about race or sex or much else, it's about inheritance. But it's not all gloom. You only really need to see positive change in your life to be happy. Absolute standing in society doesn't mean much above a certain level (see the hedonic treadmill).

by stuaxo 3y ago

throwaway22032 3y ago

Early retirement is not normal.

geraldwhen 3y ago

I’m in the US, but most have way more than that by 30, in software.

CalRobert 3y ago
People in the UK in software generally make a fraction (under half) of what those in the US do, and will have much, much, much lower savings, on average.
dukeyukey 3y ago
That is not normal in the UK, even for software developers.
jermaustin1 3y ago
By "in software" you are meaning startup/FAANG, not software development in general where the average salary is still sub $100k, and depending on where you live as little as $50k for a starting salary. As a 22 or 23 year old getting your first job at $50k, your living expenses will take most of your salary. After a few years you might be able to jump to a better paying mid-level developer. So at 28, you could be making $75k throughout most of the central US. Your life style will likely have changed, and you now have a wife, potentially a kid, so living expenses still take up 70-80% of your take home. Hopefully you are able to put away $10k/yr into your personal retirement, and you've been getting your full company match that maxes at 2% (this is standard at most corporate developer jobs). So your 401k might have around $40k in it now, which is great. Your ROTH has another $15-20k probably. At 30, you finally hit your big 3-0. Your 401k has been growing nicely, and you now have $75k in it, and your ROTH is sitting pretty at $25k, only 15 years left until retirement! You have hit $100k by 30! Wait, you were talking about £... Well, you still have a ways to go, you only have £80k.
- geraldwhen 3y ago
  I have never worked in startups or FAANG. I’ve only worked at shitcos, and pay is up! I’m up to nearly 300k comp at shitco, without the terrible life commitment and uncertainty of startups.
  - dom96 3y ago
    What are these shitcos you speak of?

globular-toast 3y ago

Remember, in the UK you don't get rich by working, you get rich by starting off rich. Everything is stacked against you if you start off with no funds. Especially if you get into the rent trap and the car trap. I was still in the negative at 30. If you were able to buy a property in your early 20s (ie. someone gave you the money) then you could easily be over 100k by 30. You don't mention whether you own your house or not. If you do then a £40k/year lifestyle living in your own home seems ridiculously lavish. Or you could consider your house an investment and I guess put it under ISA as you won't get taxed on liquidating your home. If you were actually aware of FIRE at 20, made it a goal, didn't buy a car, bought a modest flat or something in a city, then I think this is quite doable. Only the rich can have their cake and eat it too, though.

dom96 3y ago
There are still some small amounts of opportunities that can allow you to come from a poor background and become well off. I'm mainly thinking of tech jobs that pay well, but yes even with those there is a lot of luck involved. I'm in my late 20s now and doing pretty well because of a combination of luck and because I am passionate about programming (and have been from an early age). So there are paths, though I agree they are tough. And I agree, having rich parents is definitely playing life on easy mode.
- globular-toast 3y ago
  You can certainly become well off from a poor background. Whether you can be well off and retire early is a completely different matter. It also depends massively on your definition of well off. It tends to mean "at least as good as my parents". People don't really even acknowledge lifestyles at a level significantly below that of their parents. The right combination is probably poor/frugal parents/upbringing and a gift for something like programming: a "new" field that pays well but doesn't require the "gift of the gab" and connections that are found in long-standing well-off families and valued in "traditional" fields. The worst combination would be ending up in a "traditional" field with parents who are well off from a "new" field but have neither the bullshit nor the connections, and who live their lives to the absolute fullest, leaving nothing behind when they go. It's not fair. Perhaps the people campaigning for equality will one day realise it's not really about race or sex or much else, it's about inheritance. But it's not all gloom. You only really need to see positive change in your life to be happy. Absolute standing in society doesn't mean much above a certain level (see the hedonic treadmill).