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What are some common mistakes software engineers make that prevent them from getting their sooner?
* Don’t rent in a high cost of living location; purchase in such a location only under the assumption that your property might lose value
* Don’t waste money on depreciating assets (never buy a new car, no iPhone upgrade cycle)
* Do live below your means, keep your expenses in check, credit card debt must be avoided like the plague; no cable TV, cheap phone service, no Starbucks
* Do save at least 15-20% of your pretax income in retirement accounts, the more the better (contribute enough to your 401k to get company match, then max IRA, then contribute again to 401k up to annual limit, then taxable accounts, generally); I suggest a low expense ratio target date fund for retirement accounts, with anything above %0.20 being exorbitant
* Don’t value your ISOs at anything above $0; cash is king
* Don’t get attached to your job; you are a mercenary, attempting to extract as many dollars per hour as you can (either FTE or freelance); friendly coworkers and beer in the office fridge doesn’t cover retirement expenses
* Do be interviewing and job seeking passively to stay practiced and ready
* Do fund ways to invest in productive, income generating assets (rental properties are my thing, YMMV)
Good luck!
I am hard-pressed to think of mistakes that software engineers would make that people in other professions don't make - there are the usual things like buying too much house, too much car or letting someone else spend your money. Perhaps the only unique-ish mistake would be to assume the large salaries will last forever and not save for contingencies. My impression of people in finance is that they know they're worked like dogs, so they are trying to get out as soon as possible. Tech is so cushy that people can get lulled into forgetting that there's more to life than foosball and free lunch.
Political issues have caused me to wander around the world looking for a country willing to simply give me a visa. I'm now 28, and finally got 3 years of work experience in Taiwan, which will be enough to start applying for a Skilled Migrant Category (NZ) or Express Entry (Canada) visa.
I have no debt. No car. No house. My salary here is low, but my living costs are also low. Flights are expensive though, so I have to spend 3 months savings to visit relatives once a year.
I have a maximum wage, because my work visa doesn't allow me to have a second source of income.
If I am lucky to get a visa to a Western country, then I might earn more. Then I can spend it on the extortionate rents, saving for getting married, and when that's paid off, a good education for future kids.
I'm not sure if I'll ever be able to afford to have kids at all, and if I do, I'm pretty sure I won't be able to retire. I'm certain that I'll never be rich enough to buy a house. Maybe I'll get a driving license after I need to drive kids around; until then I'll keep riding a bike. AI will learn to drive before I do.
I don't think I'll reach financial security in my lifetime. Political issues have caused me to wander around the world looking for a country willing to simply give me a visa. I'm now 28, and finally got 3 years of work experience in Taiwan, which will be enough to start applying for a Skilled Migrant Category (NZ) or Express Entry (Canada) visa. I have no debt. No car. No house. My salary here is low, but my living c…
Assuming this is you: https://peterburk.github.io/
"Political issues have caused me to wander around the world looking for a country willing to simply give me a visa."
What are these nebulous "political issues"? Why do you think wandering around the world is likely to result in a visa?
You say in your bio: "Where am I from? To the English, England. To the Swiss, Switzerland. To the French, France." You also claim to have lived in France most of your life, which would entitle you to French citizenship should you wish it.
You should be able to live and work in the UK, Switzerland or pretty much anywhere in the EU. What exactly is preventing you from doing so?
> If I am lucky to get a visa to a Western country, then I might earn more.
Again, do you not have English, Swiss or French citizenship? Can't you work in most of Europe?
It sounds like you should be work in most western countries and derive a western income without any problems.
I’m currently 35, I will be able to retire at 38. Married, one kid, one on the way. * Don’t rent in a high cost of living location; purchase in such a location only under the assumption that your property might lose value * Don’t waste money on depreciating assets (never buy a new car, no iPhone upgrade cycle) * Do live below your means, keep your expenses in check, credit card debt must be avoided like the plague; n…
Edit: Thank you! I really appreciated your detailed reply.
Realistically though, more like 40 (another 17 years). I generally save about half my income, which over the next 17 years should build to >$1M, which is enough to buy a house outright in a nice area with a few hundred thousand left over to spend on living expenses.
> What are some common mistakes software engineers make that prevent them from getting their sooner?
Living and working in the bay area, spending their money. If you work at MicroGoogleBookZon, you can usually transfer to a region with a lower cost of living without much of a salary hit and save that money. Even if you stay in the bay area, you can drastically reduce the cost of living by increasing your commute or living with others. It's less pleasant but you don't have to do it as long.
Also, you don't have to retire to the same place you save your money in. You can work and save in Seattle, then retire to say rural Minnesota. If you're happy with that, you can retire much earlier.
I’m currently 35, I will be able to retire at 38. Married, one kid, one on the way. * Don’t rent in a high cost of living location; purchase in such a location only under the assumption that your property might lose value * Don’t waste money on depreciating assets (never buy a new car, no iPhone upgrade cycle) * Do live below your means, keep your expenses in check, credit card debt must be avoided like the plague; n…
That's a great achievement! What career did you pursue? Do you have any other advice for people in their '20s? I hope I'm not being too forward. I'm 2Xyo and, long story short, I didn't accomplish much in the past 5 years. Hopefully I can turn the tide for the best. Edit: Thank you! I really appreciated your detailed reply.
I didn’t start saving heavily until my late 20s, so I hustled hard to save faster (day gig, consulting as much as possible for 3 years) while supporting my disabled mother. The best piece of advice I can give is save early and save more. The longer you put off saving, the harder it is to catch up.
I succeeded from nothing except innate curiosity, grit, and a huge helping of luck. You can too.
Edit: You’re welcome! I wish you much success.
Not too far off it myself, but I save 75%+ of my post-tax income. Note that I do not deprive myself of luxuries, I am merely skilled at delayed gratification and grew up very financially unstable. I have a lovely 2017 car with My timeline is 5-10 years to be safe (age ~40). However, I get satisfaction out of creating and delivering software, beyond collecting a paycheck and don't have any intention to stop working -…
how? are you working remote in a low cost of living area, while getting a high wage?