Many Blinders talk about their total comp and net-worth. And while they are both crucial indicators to financial stability, I find that it is also useful to consider cashflow. I’ll start: TC: 160k (MCOL) Monthly take home: ~10k Context: married no kids no deductions
TC 400k my take home is about 20k. Married empty nester.
Is it mostly all cash?
Yes cash after taxes and 401k contribution. Includes bonus, RSU and ESPP though.
HHTC ~760k HHTHM ~25k x 12 = HHTHY ~300k after tax HHTHM ignores bonus and RSU
Lol do you have a glossary of terms?
House hold total comp House hold take home monthly House hold take home yearly
Take home is meaningless without knowing cost of living.
I live in MCOL city. Feel free to post whatever you feel is relevant
Do you have super low taxes and 401k contributions? At $270k base My first 6 months is like 11-12k take home lol
I have no state tax but no other deductions to offset w2 taxes. Currently minimum 401k contribution.
This is why take home is a dumb metric. Thinking you’re doing better/worse because you aren’t contributing to a 401K or ESPP
Do some 1099 work and use it as a lost (lot of expenses especially if it is remote you add half of your rent as an office) during filing taxes.
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Issue with TC is many people don’t even stay long enough to vest, so they are essentially living off their base.
RSUs starts vesting within 6 months for most companies, I had one where it was 3 months. And it’s a lump sum including those starter months.
This isn’t true. Many non of the top 5 tech companies have 1-2 year vestings times. I know for a fact Oracle, illunina, some healthcare companies, etc