How much to save/invest

New
whyiwrite

New

whyiwrite
Jun 27, 2021 19 Comments

Starting my first job at a tech start-up in the Bay Area. Base Salary 160k and some stock options. No other benefits. How much should I target savings and how much on investing? Single 29 yrs old. Just finished my Ph.D. #savings #investing #salary

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TOP 19 Comments
  • Save 100 percent of your money, because when you die you can take it with you.
    Jun 27, 2021 3
  • Dell
    darpanet

    Go to company page Dell

    darpanet
    Depends on your goals. But the general rule of thumb is to live below your means - find a good balance between enjoying the life but not going overboard. First million takes a lot of sacrifices (cheaper vacations - less lavish dinners/parties).. then the compounding starts and you can take a little more liberty.. and then some more.. I’d tell my 29 year self to spend about $30-40K a year and save the rest but maybe $50ish in the Bay Area
    Jun 27, 2021 4
    • New
      55555.

      New

      55555.
      I like this and agree. I am decently knowledgeable financially, however in the same boat as OP with similar goals at 30 yrs old and with respect to first big tech job at base 130k and tc 160k.

      I’ll be in NYC once I have to relocate so what would you say is a decent per year spend?
      Jun 27, 2021
    • Dell
      darpanet

      Go to company page Dell

      darpanet
      NYC is a bit tough as there are no cheap options for housing without too much commute. I’d suggest you live in Hoboken/Jersey City to save on rent and on NYC city/state taxes (you’ll pay first and then get back) and you should be able to survive in $60-$70K assuming you rent a $3K apartment or studio
      Jun 27, 2021
  • Wayfair / Eng
    festv_taco

    Go to company page Wayfair Eng

    festv_taco
    I recommend focussing living reasonably comfortable, so you can focus on improving your skills and switch jobs faster, so you can start making 300k+ like other valley folks within 2 years.

    I know people who lived with 7 other people to save 10-20k per annum via rent. Because they couldn't focus on work well, they are still making around the same. Whereas other people who chose to live comfortably doubled their incomes within 2 years.

    Having said that, you do you. I know people who live very cheap, and are still able to focus on things they wanna get done. But that would require a lot of self motivation and determination
    Jun 27, 2021 0
  • Apple
    NYsq26

    Go to company page Apple

    NYsq26
    Single? I would save as much as possible for as long as possible. Once you introduce others into the equation you will thank yourself.
    Jun 27, 2021 5
    • New
      whyiwrite

      New

      whyiwrite
      OP
      Interesting perspective. I was in long-term relationships before, but we were poor grad students back then. So there was no question of saving.
      Jun 27, 2021
    • Dell
      darpanet

      Go to company page Dell

      darpanet
      Yes life changes - and you can’t point back to the early days of dating and say “oh but you didn’t want a baby” or “I thought we’d always live in a small house” - you’ll have to adapt
      Jun 27, 2021
  • You want to get up to 6 mo emergency fund. Roth IRA can double as investment and e-fund.

    If you can, do 401k up to company match, full 6k in Roth, and repeat
    Jun 27, 2021 0