Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

My Path to Financial Independence as a Software Engineer

software.rajivprab.com

Post reply on HN
Print view View original

31–40 of 583 posts

Re: My Path to Financial Independence as a Software Engineer

#31

Post by CalRobert »

ThePhysicist wrote: post #17

To have 1 MM USD/EUR at the end of your thirties given an average 4 % yearly return on investment, you need to save around 4.000 USD/EUR per month starting at age 25. In Europe, if you earn around 100k EUR per year your free income will be around 5.000-6.000 EUR per month. Saving 4.000 EUR / month is doable with that but you'll have to live very frugally, not traveling much and you better not start a family unless yo…

Not to mention some places (Ireland) kneecap your gains by taxing even unrealized gains via a rule called deemed disposal. Nevermind 52% income tax that kicks in extremely low.

Re: My Path to Financial Independence as a Software Engineer

#32

Post by k8sToGo »

xvector wrote: post #20
ThePhysicist wrote: post #17

To have 1 MM USD/EUR at the end of your thirties given an average 4 % yearly return on investment, you need to save around 4.000 USD/EUR per month starting at age 25. In Europe, if you earn around 100k EUR per year your free income will be around 5.000-6.000 EUR per month. Saving 4.000 EUR / month is doable with that but you'll have to live very frugally, not traveling much and you better not start a family unless yo…

I'd say the HN crowd is more likely to be in that top quintile than not

Some maybe but definitely not the majority

Re: My Path to Financial Independence as a Software Engineer

#33

Post by uyt »

kosmotaur wrote: post #22
kolinko wrote: post #14

Earlier quoted context omitted.

Stock options - it's mentioned in the article.

What proportion that must have been compared to the base! Even if it was 60% the base is still mind blowing.

https://www.levels.fyi/company/Amazon/salaries/Software-Engi...

Re: My Path to Financial Independence as a Software Engineer

#35

Post by paganel »

kosmotaur wrote: post #22
kolinko wrote: post #14

Earlier quoted context omitted.

Stock options - it's mentioned in the article.

What proportion that must have been compared to the base! Even if it was 60% the base is still mind blowing.

Never set foot in SV nor in the States, but from half a world away it does seem that that figure (i.e. ~600k) for total yearly comp at a FAANG company, given OP's experience, is in the general ballpark, so to speak.

Re: My Path to Financial Independence as a Software Engineer

#36

Post by dogma1138 »

apples_oranges wrote: post #30
ThePhysicist wrote: post #17

To have 1 MM USD/EUR at the end of your thirties given an average 4 % yearly return on investment, you need to save around 4.000 USD/EUR per month starting at age 25. In Europe, if you earn around 100k EUR per year your free income will be around 5.000-6.000 EUR per month. Saving 4.000 EUR / month is doable with that but you'll have to live very frugally, not traveling much and you better not start a family unless yo…

That's a big if, at least in Germany the pay seems to be capped below 100k for software engineers at least.

And you’ll still lose nearly half your income to taxes and other deductions.

Basically road to financial independence seems to be get paid half a million a year and live in a country with relatively low tax rate…

Re: My Path to Financial Independence as a Software Engineer

#37

Post by luxurytent »

comprev wrote: post #29

The fresh graduate salary for 100k is higher than the majority of US workers will peak during their entire career of 50 years (adjusted for inflation). Think about that for a second.

Yes. My friend and I are both self taught engineers (as are several others in our social circle — all coming from similar roots and places)

We are continuously flabbergasted how much we are paid, and it’s not even FAANG levels; still, it’s more than many other skilled and important roles in the workforce.

Part of me understands that there’s still a lot of money to be made and thus, salaries should continue to be high but other parts of me wonder (especially with increased ability to work anywhere) when/if we’ll see salaries normalize.

Re: My Path to Financial Independence as a Software Engineer

#38

Post by pftburger »

dogma1138 wrote: post #36
apples_oranges wrote: post #30

Earlier quoted context omitted.

That's a big if, at least in Germany the pay seems to be capped below 100k for software engineers at least.

And you’ll still lose nearly half your income to taxes and other deductions. Basically road to financial independence seems to be get paid half a million a year and live in a country with relatively low tax rate…

Seconded. Earning 600k a year should automatically disqualify you from talking about living frugally.

Re: My Path to Financial Independence as a Software Engineer

#39

Post by mgaunard »

keewee7 wrote: post #25
sakex wrote: post #12

Earlier quoted context omitted.

Not exceptional in Switzerland, Norway and UK

The UK has low software developer salaries. Especially when you take into consideration that it is a highly developed English-speaking country.

100k USD is 75k GBP.

Many junior developer roles in London will pay 50k. Some finance ones will pay 75k or more.

600k USD / 450k GBP is also definitely reachable for a senior developer at team leader level or comparable.

Re: My Path to Financial Independence as a Software Engineer

#40

Post by dogma1138 »

So rough calculation here..

$100K first job which is around £74K in the UK… you aren’t likely to get anywhere near that as a grad masters or not here but after taxes and student loan payments (which are deducted from your income in the UK) and all other deductions you’ll end up with £42,908.26 per year, that’s $56K.

And this is where this breaks down for people in tech outside of the US at least.

In the UK the path was at least until IR35 kicked in was to slave for about 10 years and become a contractor at which point you’ll charge per day nearly as much as you used to get per week if not per month…

Post reply on HN