[@YOE:5-10] How much % of monthly income do you save and where?

Google / Supply/Log MmSsBa
Oct 15 27 Comments

I just started saving and I feel like I am saving too little.
How much do you save every month and where does your money go?

YOE: 5 and 2 year MBA
TC: 260k
PgM

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TOP 27 Comments
  • General Motors
    tanky

    General Motors

    PRE
    Zebra Technologies
    tankymore
    Retirement Savings Goals
    What should you aim for, savings-wise? Fidelity has some pretty concrete ideas. By the time you’re 30, the company calculates you should have saved half of your annual salary. If you are earning $50,000 by age 30, you should have $25,000 banked for retirement. By age 40, you should have twice your annual salary. By age 50, four times your salary; by age 60, six times, and by age 67, eight times. If you reach 67 years old and are earning $75,000 per year, you should have $600,000 saved.

    How do you measure up?

    Source: https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp
    Oct 15 5
    • Google / Supply/Log MmSsBa
      OP
      Oh my. Saving half of income in the bay area seems like an impossible idea though... Thanks for sharing this!
      Oct 15
    • General Motors
      tanky

      General Motors

      PRE
      Zebra Technologies
      tankymore
      No no, not saving 50% of your income per year haha. They are talking about having had 50% saved up in total by 30
      Oct 15
    • General Motors
      tanky

      General Motors

      PRE
      Zebra Technologies
      tankymore
      With google’s matching (if you maxed that, otherwise you should!) I’m pretty sure you are overachieving
      Oct 15
    • Google / Supply/Log MmSsBa
      OP
      Yet I wont afford to buy any house here ahaha
      Oct 15
    • General Motors
      tanky

      General Motors

      PRE
      Zebra Technologies
      tankymore
      :p well... maybe it’s ok if you don’t also plan to retire in the Bay Area
      Oct 15
  • Amazon devio
    Start with you first. How much % do you save?
    Oct 15 4
    • Google / Supply/Log MmSsBa
      OP
      15% ish
      Oct 15
    • Taylor Farms azerty_
      15% net?
      How much is that?
      Oct 15
    • Google / Supply/Log MmSsBa
      OP
      15% ish of my base. So $1.5k to 2k every month goes to different accounts i have
      Oct 15
    • Taylor Farms azerty_
      If you are paying rent for full apartment, that dings the savings big time. I manage to shove under the mattress at least 3k/mo with 150 base.
      Oct 15
  • Google jQrr10
    65%-70% of TC. I live in Japan.
    Oct 15 7
    • Amazon meteo
      Do you get same pay as a high COL US city?
      Oct 15
    • Google jQrr10
      Google Japan is great.

      TC is way lower here but much higher than most of other employers.

      Tbh I have no clue how you guys spend your massive TC.
      Oct 15
    • Google / Supply/Log MmSsBa
      OP
      3k goes to rent. 2k goes to savings. Then the rest is other living cost.
      Oct 15
    • Google jQrr10
      Ah the figure I gave is after taxes
      Oct 15
    • Google jQrr10
      I bought a house. I consider the loan - interests payment as investments. The computation also includes the decrease of value of the house(quite important in Japan) and a strange important tax deduction if you have a loan.
      Oct 15
  • Amgen Fin4eng
    Max 401k and back door Roth IRA in index funds and then save ~2k/mo in taxable savings and live your life. As you get raises then increase the savings.
    Oct 15 2
    • Amazon whtamihere
      What is the advantage of backdoor Roth IRA?
      Oct 15
    • General Motors
      tanky

      General Motors

      PRE
      Zebra Technologies
      tankymore
      Most Bay Area SWE pay is beyond the limit to be eligible for any regular Roth IRA contribution...so have to backdoor. Then theoretically time compounding should easily make that tax back and a lot more in future years so that you have some tax free income to use in the future
      Oct 16
  • Amazon syrbskcb
    About 40% to 50%. I'm in a LCOL area with Seattle pay.
    Oct 15 2
    • Google / Supply/Log MmSsBa
      OP
      Where do you live and how did it happen? Goog said they'll pay market price of the area if I wanna relocate
      Oct 15
    • Amazon syrbskcb
      I'm in the greater Phoenix area. Save about $4k a month, including pre-tax accounts.

      I moved from Seattle to the Phoenix team with no change in comp. They even paid for relo.

      TC: 185k
      Oct 16
  • Cognizant let123
    Any recommendations on Where to park retirement account? Any specific banks? Gives more benefits?
    Oct 15 1
    • Google / Supply/Log MmSsBa
      OP
      I am shamefully ignorant about savings and investment so I just do auto-save certain amount every month to stocks, IRA, and regular savings account. I wish I can do better
      Oct 15

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