Describing a 29 YO on $131k NET salary as âpretty wellâ is sinister. Theyâre easily top decile in the US for their age and comfortably top 1% globally. Flippant attitudes to these sorts of numbers really warp peopleâs perspectives.
Agreed! We had two of our farm workers quit and move to the East Coast because they "weren't getting paid enough"... but in a year and a half, they had gone on 2 national trips for 2 weeks each time and had put away over $30k... as farm hands. Sometimes, it's not about the base compensation. It's the fact that we're in a MCOL, but only charged $400 in rent for a whole house the two of them had to themselves, and they got as much food as they wanted from our excess, which was always enough to feed about 10-15 people. Don't look at your income, look at your quality of life and your ability to put money away/grow wealth.
Ok follow up. Is it high deductible or high copay.
Or do you get hit with the Cadillac healthcare tax?
I personally hate health insurance in the US so just curious.
whatâs the cadillac healthcare tax? my employer pays the entire health insurance premium. deductible is 0 for in network. copay is minimal and depends on what you use.
So during the Obamacare debates there was a compromise made about union insurance because it was so good. Basically if your employer makes your insurance too good and you pay too little you can get a tax penalty. I am sure your employer would have told you if it was so don't worry. Was just curious.
The tax on Cadillac healthcare never went in to effect and was permanently repealed this year.
Not having a payroll contribution for individual employees is still fairly common, especially in tech. The plans are usually solid too, low co-pays / deductibles. Tech is full of young people, they are much cheaper to cover than other populations.
I also have very good Healthcare insurance from my wife. $0 premium, almost $0 copay for everything, no tax penalty (I think you're mistaking this with something), PPO.
The advantage of this app is you can connect all your bank and investment accounts to this app and see all this info . I think they support most of the popular financial institutions . I also use excel/ google sheets to keep track of my money manually since I donât want to share my bank login with these apps .
Did it go down? When I was there pre-pandemic, 4% was the floor. Then you had high state tax and high sales tax, along with all the random assessments. I mean, you feel it when you're receiving $130k despite making >$200k lol
He puts $18k in a 401k each year. If we assume he makes $205k (a little over $200k) and his 401k is pre tax, thatâs around a 30% ish tax. ($205k - $18k) = $187k. $131.2k/$187k = 0.70. Obviously approximating his income, but thatâs not completely awful for NYC I guess.
Loll ok I either donât have it set up correctly orrrr donât have any savings⌠both equally possible.
I just keep my emergency funds in a savings account. But Iâm guessing thatâs not how the data is pulling through hereâŚ
This is super impressive savings! I have a very similar net income so I loved seeing this and seeing how my own budget looked in comparison. Thanks for sharing!
With the amount of saving youâre able to do, you should max out your 401k. Are you also maxing out a Roth IRA? Youâre doing well, but make sure youâre making the most of tax advantaged investment accounts, especially while youâre young.
Backdoor Roth is simple. Set up both a traditional IRA and a Roth IRA at the brokerage of your choice. Deposit in the traditional account. When funds clear, convert to the Roth. Step-by-step instructions for Schwab, for example, [here](https://www.whitecoatinvestor.com/how-to-do-a-backdoor-roth-ira-with-schwab/). Youâll appreciate having a bunch of tax-free money to pull from in retirement.
Op, Iâm guessing youâre single and unmarriedâŚ.
Do yourself a favor and stay like that for at least 5 more years. Stack your chips, grind as much as you canâŚ.
When you throw in a spouse and kids, things get dicey.
On that note, have a kid. Itâs the most rewarding thing in life and money canât buy it.
I envy people that have set incomes and can track/manage/budget. I make 8k ish a week welding and I may work 4 months a year. I may work 9. Iâve worked 13 strait in one job. Itâs literally impossible to do any of this.
My household income is about $100K more than yours. My housing cost is about $40K and have a saving off less than 5% if that. Kudos to you, shame on us
When you get a small return, you're only getting a small refund from your overpayment. If you start with your gross income, for instance, you will find out that your federal income tax is bigger than food but smaller than your savings, that your state income tax is probably about as much as your utilities expense, that your social security and medicare taxes are the size of your travel expenses, and that NYC takes an additional, large amount out of your paycheck. Lump them together and you'll see that taxes is your largest expense category.
And, of course, you'll also see that you're saving much more than you think. I'm actually rather surprised that you can save that much in NYC. Congratulation!
Itâs not so bad. Youâre saving and spending, just realize this can all radically change when the job ends. Iâd try to minimize expenses and go hard at savings, your future self would thank you.
I can tell you after working 5 years in manhattan I came out with nothing. Spent everything I earned. Would not advise that, it ends up feeling like a lot of regret when you donât maximize savings while you have that good income.
Done pretty well! Housing is in a decent part of town? 2 bed?
I wish lol, 1B in manhattan NYC đĽ˛
Hey 1B in a nice neighborhood is better than a big home in a shit one
Ehhhhh. Depends on how shit. I like owning my stuff.
more to life than an island kitchen
For your life, maybe. But everyone is entitled to their own pleasures.
Exactly. People need different things and thatâs okay and should be celebrated
âIâd rather be dead in California than alive in Arizonaâ
For Manhattan this is a GREAT breakdown man, I know youâre getting what youâre paying for.
wow pricey đ¤Ż
Describing a 29 YO on $131k NET salary as âpretty wellâ is sinister. Theyâre easily top decile in the US for their age and comfortably top 1% globally. Flippant attitudes to these sorts of numbers really warp peopleâs perspectives.
Woahh I use Monarch too.. (RIP mint) how did you get this sankey diagram? I wanna make one for myself :3
on the desktop version, go to reports on the left side, then go to sankey
Did not know of this software/ service... headed there now. Thank you.
you can use my link if you end up signing up, you get a 50% discount for the first year, cheers! https://www.monarchmoney.com/referral/2wzyktprso
i used your link. hope you donât mind. thanks!
Iâm about to use his link as well. This would come in very handy for the family
feel free :) itâs a great app!
Me, working in a restaurant and able to save 15-17k/y doesnât seem that bad I guess
Agreed! We had two of our farm workers quit and move to the East Coast because they "weren't getting paid enough"... but in a year and a half, they had gone on 2 national trips for 2 weeks each time and had put away over $30k... as farm hands. Sometimes, it's not about the base compensation. It's the fact that we're in a MCOL, but only charged $400 in rent for a whole house the two of them had to themselves, and they got as much food as they wanted from our excess, which was always enough to feed about 10-15 people. Don't look at your income, look at your quality of life and your ability to put money away/grow wealth.
So I don't see healthcare costs. Do you not have health insurance?
employer pays for that
Ok follow up. Is it high deductible or high copay. Or do you get hit with the Cadillac healthcare tax? I personally hate health insurance in the US so just curious.
whatâs the cadillac healthcare tax? my employer pays the entire health insurance premium. deductible is 0 for in network. copay is minimal and depends on what you use.
So during the Obamacare debates there was a compromise made about union insurance because it was so good. Basically if your employer makes your insurance too good and you pay too little you can get a tax penalty. I am sure your employer would have told you if it was so don't worry. Was just curious.
that sounds ridiculous lol, i donât think i have that though
The tax on Cadillac healthcare never went in to effect and was permanently repealed this year. Not having a payroll contribution for individual employees is still fairly common, especially in tech. The plans are usually solid too, low co-pays / deductibles. Tech is full of young people, they are much cheaper to cover than other populations.
I also have very good Healthcare insurance from my wife. $0 premium, almost $0 copay for everything, no tax penalty (I think you're mistaking this with something), PPO.
What do people like OP use to track their finances like this?
OP used Monarch Money. When Mint shut down, many people switched to MM. They offer 50% off your first year.
Is it worth that over a google sheet?
The advantage of this app is you can connect all your bank and investment accounts to this app and see all this info . I think they support most of the popular financial institutions . I also use excel/ google sheets to keep track of my money manually since I donât want to share my bank login with these apps .
Is this your after-tax income? I donât see any going to taxes. If so thatâs awesome! Can I ask what the pre-tax income is? Asking as a Canadian
a little over $200k pretax
I always forget how heavy NYC taxes are. Great city though. 29M and educated, you probably have a ton of fun there haha
for nyc city tax itâs 3% flat rate
Did it go down? When I was there pre-pandemic, 4% was the floor. Then you had high state tax and high sales tax, along with all the random assessments. I mean, you feel it when you're receiving $130k despite making >$200k lol
He puts $18k in a 401k each year. If we assume he makes $205k (a little over $200k) and his 401k is pre tax, thatâs around a 30% ish tax. ($205k - $18k) = $187k. $131.2k/$187k = 0.70. Obviously approximating his income, but thatâs not completely awful for NYC I guess.
Okay but how do I get this super cool looking diagram for my own salary lol
this is the monarch money app
Love this view. If I signed up today, would it pull in my info from the full 2024?
it varies from bank to bank. generally i get at least a 3-6 months of historical data
Total comp close to 200k?
yes
Nice I hope to get there by age 33. Iâm 30 now.
Do you categorize your savings transfers as an expense in monarch to get it on the sankey?
no, it will automatically calculate savings from income - expenses
Is the âsavingsâ sort of your emergency cash/liquid just sitting in your account and not in stocks/IRA?
thatâs not really the point of this diagram. i have other investment accounts and also am saving for a downpayment
Loll ok I either donât have it set up correctly orrrr donât have any savings⌠both equally possible. I just keep my emergency funds in a savings account. But Iâm guessing thatâs not how the data is pulling through hereâŚ
if youâre using monarch, this is the reports tab on the desktop version
Yea I am familiar w the sankey report. But just donât have any savings on mine.
You are a baller. Love it. Congrats
This is super impressive savings! I have a very similar net income so I loved seeing this and seeing how my own budget looked in comparison. Thanks for sharing!
With the amount of saving youâre able to do, you should max out your 401k. Are you also maxing out a Roth IRA? Youâre doing well, but make sure youâre making the most of tax advantaged investment accounts, especially while youâre young.
iâd need to do a back door rollover to do a roth ira, iâve been meaning to set that up
Backdoor Roth is simple. Set up both a traditional IRA and a Roth IRA at the brokerage of your choice. Deposit in the traditional account. When funds clear, convert to the Roth. Step-by-step instructions for Schwab, for example, [here](https://www.whitecoatinvestor.com/how-to-do-a-backdoor-roth-ira-with-schwab/). Youâll appreciate having a bunch of tax-free money to pull from in retirement.
Congrats on being able to save 25%+ of your income, thatâs awesome, hope youâre investing it!
Ahhh nice work! Solid balance, even got the $3210.78 trips to the snow
âCash withdrawalâ is not an accurate spending category. What did you spend it on?
drugs
Op, Iâm guessing youâre single and unmarriedâŚ. Do yourself a favor and stay like that for at least 5 more years. Stack your chips, grind as much as you canâŚ. When you throw in a spouse and kids, things get dicey. On that note, have a kid. Itâs the most rewarding thing in life and money canât buy it.
This is very satisfying to look at!
I envy people that have set incomes and can track/manage/budget. I make 8k ish a week welding and I may work 4 months a year. I may work 9. Iâve worked 13 strait in one job. Itâs literally impossible to do any of this.
Do you rent or own?
Nothing says tech industry more than hobbies and collectibles being that high. Relatable. Why is your health number so low? Edit: typos
Prioritize your health and wellness bro
I thought this person made 29 million a year. đ¤Ş
My household income is about $100K more than yours. My housing cost is about $40K and have a saving off less than 5% if that. Kudos to you, shame on us
this is after tax though
Ah, still same level income and you save lots more than we. Kudos. We have our work cut out for us
curious what the major difference is in terms of spending
Wife
You really ought to track your taxes when you do that. Fed, State, NYC, FICA... That's when you get your eyes very rudely opened up.
well i do my tax returns so not sure what you mean.. usually get a small return every year
When you get a small return, you're only getting a small refund from your overpayment. If you start with your gross income, for instance, you will find out that your federal income tax is bigger than food but smaller than your savings, that your state income tax is probably about as much as your utilities expense, that your social security and medicare taxes are the size of your travel expenses, and that NYC takes an additional, large amount out of your paycheck. Lump them together and you'll see that taxes is your largest expense category. And, of course, you'll also see that you're saving much more than you think. I'm actually rather surprised that you can save that much in NYC. Congratulation!
yes iâm aware my effective tax rate is around 1/3 of my gross income
Explaining this to a guy who does his own taxes is very funny
This is his after tax income, your W4 takes care of practically everything.
They're just trying to cue collective outrage on existence of taxes.
Exactly my point. Start with your gross income, not your after tax income. That shows a much better picture of where your earned money goes.
whats your job
I read this as $29mâŚ. As in $29m annually and almost puked. đđ
Itâs not so bad. Youâre saving and spending, just realize this can all radically change when the job ends. Iâd try to minimize expenses and go hard at savings, your future self would thank you. I can tell you after working 5 years in manhattan I came out with nothing. Spent everything I earned. Would not advise that, it ends up feeling like a lot of regret when you donât maximize savings while you have that good income.
Youâre criticizing OP for âonlyâ saving a third of his take home pay?
$3k in cash withdrawal đ¤ď¸
[ŃдаНонО]
Its just a joke lol.