Pirates, I made a mistake on the tax calculation. The US has a progressive tax system meaning you pay income tax in steps working up to your total income and NOT everything at the highest bracket. This website calculates the correct tax amount for $360,000 income which is $83,886 or $7,000/month and NOT $9,600/month.👉smartasset.com/taxes/income-taxes#UOL6ptlKd2. Sorry again for the confusion, and my sincere apology for the misinformation. The purpose of 7:08 was to inform that taxes are one of the biggest expenses in anyone's budget (which still holds in my case). Regardless, I should’ve been more careful with the numbers. My deepest apology again; I promise to do my due diligence and create more reliable, accurate content. Lastly, thank you all for correcting me and giving me the opportunity to learn and be more responsible. - PIRATE KING p.s. How the US tax system works: www.businessinsider.com/personal-finance/how-progressive-taxes-work-united-states-income-tax
Yah thats what i was thinking! Its bracketed, not 32% on everything Still better than Canada where after a point you get taxed 51% LOL I'm fine with it tho
@Waldel Martell Yah but health care and a major reason ( I think ) it's high is because the majority of Canada's population is in Ontario, on top of that were a small population in the second largest country in the world!
If it worked where everything pools into one income bracket, people would negotiate for lower pay if they crossed that threshold even by a substantial sum, lol.
Thank you for being honest about the fact that you don't just come out of a 6 month coding bootcamp and walk into a $400k entry level position. So many influencers are selling beginners the dream without mentioning clearly how long it took them, the setbacks they faced on the way and the unfair advantages they had like fat checks from family while they are struggling to get into the industry while some other people would have to work odd jobs to survive. You have to work your way up there.
Those influencers are getting richer by just selling the dream and that's unfortunately one of the negative aspects of social media. Sure you'll have some people who end up making it and landing a high-paying job (even after a bootcamp) but majority of the people will waste money trying and not make it (either not finishing bootcamp, not understanding things, not able to land a job, etc). Personally I don't think learning how to code is too difficult but becoming good at it and learning those intermediate/advanced concepts will definitely take some time/effort. Social media is advertising that in 6 months you can go from a $0 income to $100k-$400k income (it's technically possible but very unlikely).
This guy has the skills to get paid in a lucrative yet arguably highly competitive field AND still put effort to generate top tier TH-cam contents. Wew
5k is fine with 30k income. Good expense to income ratio, even after taxes and other deductions if we cut that to 15k. You should be under 40% net on expenses and you're doing well.
Their's like 3 tech bros I watch about Software engineer you, Frying Pan and Joma Tech and ya'll literally motivate me during my training. I just want to live a nice quite life as a expat can't wait for the end result.
@@max1232 Absolutely not his fault. He's not going to wake up black tomorrow. From 20+ years interviewing at a fortune 1 tech employer, the problem is the applicant pool is already very homogenous. I don't know what it is about colleges and MS programs, but if you want to see more black, hispanic, whatever coders, you'll need to get them into appropriate majors and in appropriate masters programs.
Pirate King - I think you have a reasonable budget given your income. Nice. I would suggest to everyone the first investment step is participate in your company's 401k. Most companies match and you can put up to $20,500 into that pre-tax every year.
At first before clicking on this I was thinking this is another cocky guy rambling on about an exaggerated video but listening in and hearing the honesty helped me out a lot as I’ve always wanted insight into the reality of a software engineers salary and spending habits
Thanks for the video! It's really nice for comparison. Rent is crazy expensive for you guys. In my part of Northern Europe, 2-bedroom apartment rent costs approx 800-1000€ per month, although annual incomes are much lower than in the U.S.. During the past months electricity prices have gone up really bad. I used to pay 10€ / month, last month's bill was 60€. We spend about 500-600€ on groceries monthly (me and the wife). Own 2 cars (paid off), but monthly total costs for gas are also 500 - 700€, depending on how much we drive.
We’re actually doing well regardless of 5 people and 3 cats in our home. We order groceries online for pickup so we don’t overspend and eating out for us is anything a coupon can buy. I recently found out I’m celiac so o can’t really eat out anymore so it keeps me eating at home more often.
Indeed, that's impressive. They could raise the food budget a little bit. $11 per day per person is really low. It would not be enough to eat at McDonald's, when actually they must be in the top 1% of earners on this planet.
Since you get standard deduction of $25900 and assuming no other income or credits... Acording to 2022 tax table for married filing jointly, you will actually pay (360000-25900)×0.24-12329 = $67,855 Income tax and $9114 on ss tax, 360000×1.45%=$5220 of medicare tax for a total of $82,189
Ngl, Mint mobile looking pretty nice. Currently paying $70/month when in actuality, I do not use my phone enough to warrant spending this much. Looking to switch of T-Mobile to Mint to save money :)
Remember, wealth isn't defined by how much you make but by how much you SAVE. 💰 Check out the apps I use! 👉 piratekingdom.com/deals 📜 Full video script 👉 www.piratekingdom.com/blog/how-i-spend-my-360k-income
One of my friends worked in Renton as a property manager. He showed us a 1 bedroom, 1 bath apartment and it was $1,500/month, this was almost 6 years ago.
ok so the most important information from your video is that the salary offer was "gross" income and not "net". In Poland software engineers can somehow mitigate the tax by using the "increased cost to gain income", in that, your employer claims copyright on the code you write. Idk if it exist in other countries. I do not work in "Business-to-Business" model however
Thank you for this video! I'm getting by with what I earn (it's really not much) but I've been working on my spending habits lately so I can crawl my way out of my situation. It's tough, but seeing people talk about their best practices helps me stay on the path. I'm subbing. Good stuff!
So you're paying $2,180 in rent because you got in 4 years ago, but the actual market cost of that unit now is around $3,500? Seems that the market crash is going to be insane
@7:15 That isn't how it works. Your effective tax rate, assuming you only take the standard deduction, is actually 23.11% (federal + FICA), but you are likely lower if you are contributing to a retirement plan plus expensing/deducting youtube business expenses. 23.11% would be worst cast, and includes FICA. Federal taxes alone has you at an effective rate of 18.85% if you only take the standard deduction and nothing else with your marginal rate coming in a 24%. Deductions, bracketed tax system, etc. is why you are not even close to 32%.
Wow I am really impressed with how little you spend. I spend anywhere bwtween 4.5k to 7k a month with 250k TC and I am not married. What types of meals do you cook? 300 for groceries a month for 2 people is really good!
- Put the 20K(2022 allowance) in a 401K, Get the company match if any, that's a win-win! You've just reduced taxable income by 20K. New taxable income 340K... - Put another 5-10k(you+wife) on a IRA... lower income. new taxable is 330K... I think that's the allowance per year for your age... you don't look like you are pass 50...I could be wrong 😛 - If your company offers an ESPP... do...doo...do it! Get whatever extra discount they offer. No tax saving but usually you get to buy at a 15% discount, I see it as tax reduction! Or at least, I am passing some of my tax expenses to my employer. You just lowered your taxes on that portion of the money by 15pct. So if you invested say 10K, you would get 15% more stock than 10K would have been able to purchase. You can see that 15% extra stock as your company's contribution or repayment for your tax expenditures. You will pay income tax on the 15% discount as it will be considered income. But it will still be again... of say 8-12% on purchase-day. You came out ahead... And no don't sell within a year... capital gains are sexier after holding it for 1-year if the stock appreciated. Of course, if it depreciated... use that loss to once again decrease your taxable income... by claiming the loss on your income tax. Win-Win! - This rule applies to the RSUs too. So by now, if they appreciated, you probably paid the associated tax when it was released. That's how it should work... but I have heard some weird stories... You do owe money on any appreciation, but you can reduce your taxable income if there are any depreciation by selling some of the RSUs and use the loss to reduce your taxes... This is not overly complex but sure complex enough that I don't want to write about it here... for the next 2 hours. - Get yourself a good accountant and a good Financial Advisor and retain a lawyer(those f'ers are useful once you've crossed 250K.. I have heard) - 10K per year(worth it). You can usually expense certain professional services, or medical. And a good accountant can help you get your taxable income even lower than I have mentioned so far. - Don't forget those interest payment on the student loans.... or deduct the space you used to work from home... even 0.5% of 360K is still a whole lot of though. - I can't wait for my turn in the 400K club...
we can't be mad at individuals, we should be mad with how our regulatory boards allow corporations to lobby keeping the majority of us' wages low AF. Pirate King worked hard for his salary, he even shares his financial life for all to learn from.
I need to move as soon as I can, most devs including myself in my country earn between 500 and 1000 dollars a month, its soul crushing to know I earn less than "low wage jobs" do in US and EU but atleast I love the work more than anything else, and its not that they cant pay higher its just become a standard here to pay little for high value work. Just main goal right now is to move to the UK and actually be valued, My current work environment is great other than the pay, nice people and meaningful work.
You are making a big mistake. You need to use your 401k to invest instead of investing after taxes paid. Also max out your 401k to reduce taxable income or invest in Real Estate to take advantage of depreciation.
Thanks for sharing ❤️. I’d love to know how your RSU part works in a different video - I don’t have experience of this and how you get paid every 3 months. Thank you ☺️
I’m not getting 30k monthly. But, it is 5 figures a month. I’m considering filing exempt on my federal taxes, donating a good portion to charity, dumping some into IRA, and purchasing artwork/NFTs (tax deductible) and writing those off 🤷🏾♂️
Heyyy Pirate King. I’m still watching the video, but I get you about noise and hate comments. It’s unfortunate many people cannot be happy with other people doing well and they just wanna bring you or other devs down. Looking forward to this vid. It’s super helpful for me.
360 is TC. Part of TC includes a two year sign-on bonus. The equity should vest in the third year and maintain TC levels of year 1 and 2. Emphasis on should.
YNAB is a great software for budgeting. Excel is amazing as well. But YNAB does the charting for you and it’s easy to enter transactions etc. You can even upload multiple accounts. And no you don’t HAVE to link a bank for the app to still be great to use. You probably know about it already and prefer entering things in from scratch yourself, but just letting you know.
Yeah but your taxes are thru the roof. I work for Intuit (Turbo tax) and I did someone like you taxes he is a level 5 engineer for eBay 2mil a yr income taxes owed star California 45k federal 55k
Amazon Fresh is really good. It's actually cheaper than many grocery store prices, but then again I got them over-bloated New York prices, so...YERRRRR, yay me, lol.
It is a lot but you do live a comfortable life. So living comfortable life is not cheap. The rent being 2k is crazy. That's like 10x more than my rent.
I always wonder if using equity when referring to income isn't a little misleading. It definitely factors into your TC when you sign a contract, but do you get that same amount of equity every year? Or is it just giving you that amount in equity for your initial sign on? It seems like you would want to base your lifestyle more around your base salary (and possibly bonuses) than your TC since the equity isn't always immediately available for use (I think you covered this a bit in your software engineering salaries video).
You get equity every three months for four years; you can think of it as getting paid every quarter instead of every month, so I think it makes sense to factor it in. Signing bonus might not make sense to factor in, however, since it's only a one-time bonus.
@@PIRATEKINGDOM If you get RSUs distributed throughout 4 years, what happens to your comp afterwards? Do companies give Refreshers? If so, how do those work? Might be a good idea for a future video if you wanted to break that down for the public.
@@liam1902 it really depends on the company. There are companies with with and without refreshers that you can’t generalize it as much as you can with the initial signing RSUs.
The IRS thinks it is income when it vests. What you actually get every year is an award of stock. It has a cash value that day, and you are taxed on that. But, since it is stock, its value changes day by day. Let's say that at a particular engineering level they award $200k of stock every year. Great, they awarded it! The take the $200k, divide by the stock price that day, round it to the nearest 10,000 shares or so, and that is your award. Alas you don't get any of it right away. It is locked into a 4 year vesting schedule (varies by company) which may not give you anything for the first year. By then, the stock may have gone up or gone down, and whatever it is, that is what you report as income. Typically the RSU account will sell some fraction of your shares immediately to pay off the IRS so you don't get a big tax bill in April, so you'll only end up owning a fraction (70%?) of the shares the day they vest. Alas we aren't done yet, because you'll likely want to hold it more than a year so you can get lower long term capital gains rates and then in time diversify it off into something else like an index fund so you don't end up with your net worth held in your employer's stock. (Risky!) That may involve more taxes, and certainly more uncertainty about stock pricing. A pretty good hallmark of wealthy people is they don't actually know how much money they have, because it keeps going up and down with asset prices. The day that his net worth varies day to day due to stock market fluctuations by more than his annual salary, he and his wife can go for a nice dinner. He'll have "earned" it. This will eventually happen given a fruitful career and typical stock market gains and volatility. They might want to consider a bit of wine, because big changes are usually market down days.
It is healthy to circulate money by giving and spending it too. It is like water that is flowing, if you keep and hoard water still it goes bad. Nothing wrong with giving and spending to the economy. But I'm sure you do that with all the taxes you pay.
I am starting my apprenticeship as software developer this summer and i am excited and very nervous. I don't know how to deal with a new field of people especially, when they are above me. Do you guys have any tips, how to build a connection with co-workers and how to overcome social anxiety?
Is life predestined? I am in my late 30s and work in a call-center full-time earning $1,600 a fortnight and have no money left for savings after deducting rent, food, ultities, car maintainance, insurance etc. Makes me wonder what I am doing wrong in this life of mine.
@@PIRATEKINGDOM Thank you for your tip! Really grateful for that. When I was in my early 20s, I attempted Computer Science but gave up on it after one year because the course was too broad, and I couldn't figure out how I can apply what I have learnt in real life situation/applications. I might definitely give coding a try once more because by the looks of it, I will end up being poor if I don't take action today.
@@brinckau Having a car is a life-saver. I got kicked out from my older sister house, few years ago because I answered back at her. I dont regret I stood up for myself since I've been putting up with her meanness and shouting since I was a kid. If it wasnt the car, I wouldn't have a place to stay. At the moment, I am staying at my older brother's place and found a job in the call-centre.. But the salary is definitely not enough for me to save. The car is like a shelter, it's a place where I like to spend some solitude times, drive around and watch beautiful scenary. I'm scared of being poor. I mean, I am already poor, with student loans that I still need to pay off. :( It's kind of scary to know that as you become older, you tend to see things differently, and that people you once know were nice people arent so nice after all.
My mother in law who I knew for about 6 years before she passed would write down every cent she spent. Understand where you spend the money. Take time to do that and you can live alright
Man if I had 360k a year I would waste it all on gotcha games, tesla s plaid, headphones, and less than a dollar stock that had no hope of going above a dollar.
How the hell do you guys just spend $700 on restaurants and grocery total in Seattle. I am in NJ which is similar cost of living, and my wife and I spend at least $1000 in grocery ($250 per weekly grocery shopping), we don’t even buy expensive stuff just regular chicken, salmon, salad, etc. then restaurants and take out is $80 per dinner after tips and taxes. We eat out 2-3 days a week so another $1000. So that’s about $2000 a month for grocery and restaurants, we thought we are being very frugal, most of our friends and coworkers spend way more than that. How are you only spend $700 a month total, literally 2 slices of pizza a day 30 days a week?
A Q plz, if u get partial of your 360k income as rsu and stocks, do u have to pay tax for full 360k or just for the value u get in cash? I'm sorry if my Q is dumb, i live outside US and i'm planning to take software engineering program, not bc of the salary but bc i'm interested in it. However, i wonder how taxes work.
@@PIRATEKINGDOM Understandable. It's between you and the Lord, just as what you might give to friends, family members and so on. I just like to have a giving section in my budget and it all goes there.
Great video!!, but forgot to say companies will sell part of the stocks for tax every time you receive your vesting and rest that amount from the 360000 total
I plan to start online coding phone screen in 2 - 3 weeks and I am trying to find the video you made about how you prep for interview in 2 weeks. But I can't find it. I have been prepping 80% of my time on system design and behavioural interviews and 20% of my time on coding the past couple of months. Now I am switching back to 80% coding for next 2 weeks since I need to pass the coding interview to go on-site.
I have a video on leetcode prep (3-month plan). The 2-week prep video is the one I disclosed about offer I got from Google. I don't really talk much about how I prepared for it tho :/
Church meetings! I know what that is. I grew up going to the Church in Cleveland on Warren Road in Cleveland, Ohio. For decades, Saints have been fellowshipping with Saints in Taiwan. Let me know if you two are ever in Cleveland.
Pirates, I made a mistake on the tax calculation. The US has a progressive tax system meaning you pay income tax in steps working up to your total income and NOT everything at the highest bracket. This website calculates the correct tax amount for $360,000 income which is $83,886 or $7,000/month and NOT $9,600/month.👉smartasset.com/taxes/income-taxes#UOL6ptlKd2. Sorry again for the confusion, and my sincere apology for the misinformation. The purpose of 7:08 was to inform that taxes are one of the biggest expenses in anyone's budget (which still holds in my case). Regardless, I should’ve been more careful with the numbers. My deepest apology again; I promise to do my due diligence and create more reliable, accurate content. Lastly, thank you all for correcting me and giving me the opportunity to learn and be more responsible.
- PIRATE KING
p.s. How the US tax system works: www.businessinsider.com/personal-finance/how-progressive-taxes-work-united-states-income-tax
If you factor in FICA + Medicare, you're actually closer to your original figure (assuming single filer)
Yah thats what i was thinking! Its bracketed, not 32% on everything
Still better than Canada where after a point you get taxed 51% LOL I'm fine with it tho
@Waldel Martell Yah but health care and a major reason ( I think ) it's high is because the majority of Canada's population is in Ontario, on top of that were a small population in the second largest country in the world!
If it worked where everything pools into one income bracket, people would negotiate for lower pay if they crossed that threshold even by a substantial sum, lol.
hey bro i'm an INFP Introverted Intuitive feeling and perceiving if i had your money i would spend it the exact same way
Thank you for being honest about the fact that you don't just come out of a 6 month coding bootcamp and walk into a $400k entry level position. So many influencers are selling beginners the dream without mentioning clearly how long it took them, the setbacks they faced on the way and the unfair advantages they had like fat checks from family while they are struggling to get into the industry while some other people would have to work odd jobs to survive. You have to work your way up there.
Those influencers are getting richer by just selling the dream and that's unfortunately one of the negative aspects of social media. Sure you'll have some people who end up making it and landing a high-paying job (even after a bootcamp) but majority of the people will waste money trying and not make it (either not finishing bootcamp, not understanding things, not able to land a job, etc).
Personally I don't think learning how to code is too difficult but becoming good at it and learning those intermediate/advanced concepts will definitely take some time/effort. Social media is advertising that in 6 months you can go from a $0 income to $100k-$400k income (it's technically possible but very unlikely).
Too many gurus out there, it's hilarious
@@humansoftech5905 It looks like a flourishing business so the number will keep growing. 😂
It can get brutal, for those who say its simple and easy are just thinking about themselves. Being realistic is the best way you can teach someone.
how much time or experience does it take to earn this much?
This guy has the skills to get paid in a lucrative yet arguably highly competitive field AND still put effort to generate top tier TH-cam contents. Wew
5k is fine with 30k income. Good expense to income ratio, even after taxes and other deductions if we cut that to 15k. You should be under 40% net on expenses and you're doing well.
or as tate said modern slave.
@@onrjs smh
@@onrjs bro😭😭
@@onrjs L
@@onrjs still probably makes more than you ever will.
This man inspired me to wake up and continue my coding. I appreciate you man.
same
Their's like 3 tech bros I watch about Software engineer you, Frying Pan and Joma Tech and ya'll literally motivate me during my training. I just want to live a nice quite life as a expat can't wait for the end result.
so asian..we need more diversity bro
@@max1232 Absolutely not his fault. He's not going to wake up black tomorrow. From 20+ years interviewing at a fortune 1 tech employer, the problem is the applicant pool is already very homogenous. I don't know what it is about colleges and MS programs, but if you want to see more black, hispanic, whatever coders, you'll need to get them into appropriate majors and in appropriate masters programs.
@@ianollmann9393 yeah I feel you,you got a point
@Lashe Shode They don't apply bro. I'm in college going for my bachelor's and I'm literally the only black dude in my class.
Pirate King - I think you have a reasonable budget given your income. Nice. I would suggest to everyone the first investment step is participate in your company's 401k. Most companies match and you can put up to $20,500 into that pre-tax every year.
This video was very thorough and well rounded in terms of information and spending/area costs. Thanks for the work and content!
Thanks for breaking this all down in a very concise, easy to understand manner!! Hope ur youtube continues to do well
My income deductions came to 35% in my last job earning 43,000. I can't imagine how many institutional people want their piece of a 360k pie.
C'mon, we need more extravagant spending, so we can see an angry Graham reaction. This is too good :D
At first before clicking on this I was thinking this is another cocky guy rambling on about an exaggerated video but listening in and hearing the honesty helped me out a lot as I’ve always wanted insight into the reality of a software engineers salary and spending habits
Thanks for the video! It's really nice for comparison. Rent is crazy expensive for you guys. In my part of Northern Europe, 2-bedroom apartment rent costs approx 800-1000€ per month, although annual incomes are much lower than in the U.S.. During the past months electricity prices have gone up really bad. I used to pay 10€ / month, last month's bill was 60€. We spend about 500-600€ on groceries monthly (me and the wife). Own 2 cars (paid off), but monthly total costs for gas are also 500 - 700€, depending on how much we drive.
Rentiers are out of control in the US.
your salary is 50k bro
We’re actually doing well regardless of 5 people and 3 cats in our home. We order groceries online for pickup so we don’t overspend and eating out for us is anything a coupon can buy. I recently found out I’m celiac so o can’t really eat out anymore so it keeps me eating at home more often.
Try Amazon Fresh!
@@PIRATEKINGDOM an I wish! I would if it wasn’t for being in Canada. $40 a month lowest as well for phone bills due to monopolization
@@strovich ah dang got it :/
Wow you're so cool man, being able to only spend that low with that high income. Much respect
Indeed, that's impressive. They could raise the food budget a little bit. $11 per day per person is really low. It would not be enough to eat at McDonald's, when actually they must be in the top 1% of earners on this planet.
Since you get standard deduction of $25900 and assuming no other income or credits... Acording to 2022 tax table for married filing jointly, you will actually pay (360000-25900)×0.24-12329 = $67,855
Income tax and $9114 on ss tax, 360000×1.45%=$5220 of medicare tax for a total of $82,189
Ngl, Mint mobile looking pretty nice. Currently paying $70/month when in actuality, I do not use my phone enough to warrant spending this much. Looking to switch of T-Mobile to Mint to save money :)
earning so much but still saving alot and not splurging. much respect
Good on you. Live below your means. It's crazy, I have a 2500k house and my mortgage is 551 a month. Location sure changes that.
you are lucky, here in the Netherlands we pay something close to 51% of taxes, if you raise 10k/month , 5k gets retained to the government
Remember, wealth isn't defined by how much you make but by how much you SAVE.
💰 Check out the apps I use! 👉 piratekingdom.com/deals
📜 Full video script 👉 www.piratekingdom.com/blog/how-i-spend-my-360k-income
1:48 Loved the "Guess what? I'm married" 😂
One of my friends worked in Renton as a property manager. He showed us a 1 bedroom, 1 bath apartment and it was $1,500/month, this was almost 6 years ago.
ok so the most important information from your video is that the salary offer was "gross" income and not "net". In Poland software engineers can somehow mitigate the tax by using the "increased cost to gain income", in that, your employer claims copyright on the code you write. Idk if it exist in other countries. I do not work in "Business-to-Business" model however
Thank you for this video! I'm getting by with what I earn (it's really not much) but I've been working on my spending habits lately so I can crawl my way out of my situation. It's tough, but seeing people talk about their best practices helps me stay on the path. I'm subbing. Good stuff!
So you're paying $2,180 in rent because you got in 4 years ago, but the actual market cost of that unit now is around $3,500? Seems that the market crash is going to be insane
The RE value may drop but they definitely may keep rent the same
@7:15
That isn't how it works.
Your effective tax rate, assuming you only take the standard deduction, is actually 23.11% (federal + FICA), but you are likely lower if you are contributing to a retirement plan plus expensing/deducting youtube business expenses. 23.11% would be worst cast, and includes FICA. Federal taxes alone has you at an effective rate of 18.85% if you only take the standard deduction and nothing else with your marginal rate coming in a 24%.
Deductions, bracketed tax system, etc. is why you are not even close to 32%.
Clearly a wise man, very healthy budget for your salary. Ps: Find a local pizzeria and get your slice! Costco is D tier
Wow I am really impressed with how little you spend. I spend anywhere bwtween 4.5k to 7k a month with 250k TC and I am not married.
What types of meals do you cook? 300 for groceries a month for 2 people is really good!
pasta and donburi!
$360k/year is what you need to afford an apartment and gasoline in the SFbay area
how can this honest content creator not appear in my youtube algorithm sooner?
- Put the 20K(2022 allowance) in a 401K, Get the company match if any, that's a win-win! You've just reduced taxable income by 20K. New taxable income 340K...
- Put another 5-10k(you+wife) on a IRA... lower income. new taxable is 330K... I think that's the allowance per year for your age... you don't look like you are pass 50...I could be wrong 😛
- If your company offers an ESPP... do...doo...do it! Get whatever extra discount they offer. No tax saving but usually you get to buy at a 15% discount, I see it as tax reduction! Or at least, I am passing some of my tax expenses to my employer. You just lowered your taxes on that portion of the money by 15pct. So if you invested say 10K, you would get 15% more stock than 10K would have been able to purchase. You can see that 15% extra stock as your company's contribution or repayment for your tax expenditures. You will pay income tax on the 15% discount as it will be considered income. But it will still be again... of say 8-12% on purchase-day. You came out ahead... And no don't sell within a year... capital gains are sexier after holding it for 1-year if the stock appreciated. Of course, if it depreciated... use that loss to once again decrease your taxable income... by claiming the loss on your income tax. Win-Win!
- This rule applies to the RSUs too. So by now, if they appreciated, you probably paid the associated tax when it was released. That's how it should work... but I have heard some weird stories... You do owe money on any appreciation, but you can reduce your taxable income if there are any depreciation by selling some of the RSUs and use the loss to reduce your taxes... This is not overly complex but sure complex enough that I don't want to write about it here... for the next 2 hours.
- Get yourself a good accountant and a good Financial Advisor and retain a lawyer(those f'ers are useful once you've crossed 250K.. I have heard) - 10K per year(worth it). You can usually expense certain professional services, or medical. And a good accountant can help you get your taxable income even lower than I have mentioned so far.
- Don't forget those interest payment on the student loans.... or deduct the space you used to work from home... even 0.5% of 360K is still a whole lot of though.
- I can't wait for my turn in the 400K club...
I like how you are still budget conscious too. No overreaching or anything and still enjoying life.
It seems like you are very responsible with money. Keep up the good work!
we can't be mad at individuals, we should be mad with how our regulatory boards allow corporations to lobby keeping the majority of us' wages low AF. Pirate King worked hard for his salary, he even shares his financial life for all to learn from.
The colour grading in this video is nice and soothing 👏
I need to move as soon as I can, most devs including myself in my country earn between 500 and 1000 dollars a month, its soul crushing to know I earn less than "low wage jobs" do in US and EU but atleast I love the work more than anything else, and its not that they cant pay higher its just become a standard here to pay little for high value work. Just main goal right now is to move to the UK and actually be valued, My current work environment is great other than the pay, nice people and meaningful work.
good luck , uk is expensive tho.
Bro has a 360k salary and is still fitting multiple sponsorships into a single video.
They're what I actually use though. Also, they're not exactly sponsors but affiliate links.
You are making a big mistake. You need to use your 401k to invest instead of investing after taxes paid. Also max out your 401k to reduce taxable income or invest in Real Estate to take advantage of depreciation.
Hey mate, thanks for the video! Come to Czechia, we have around 50% income tax effectively .... then you'll realize that yours 34% are jst fine.
That phone bill monthly. It’s nearly impossible to get that kinda cheap plan in Canada lol. Dude here the phone plans are easily 40+
Thanks for sharing ❤️. I’d love to know how your RSU part works in a different video - I don’t have experience of this and how you get paid every 3 months. Thank you ☺️
How much WE spend MY money lol
I am amazed of how smart u seem without even watching your skills in engineering.
I pay 2eur/month at vodafone for 120gb 5g and unlimited calls...😅...In my country taxes are 43% for most and 37% in IT.
I’m not getting 30k monthly. But, it is 5 figures a month. I’m considering filing exempt on my federal taxes, donating a good portion to charity, dumping some into IRA, and purchasing artwork/NFTs (tax deductible) and writing those off 🤷🏾♂️
This seems ... unwise.
Love it. Thanks for the breakdown. My wife and I have 3 kids. We’re jealous of your expenses. Haha..
Thank you for sharing, it helps some of us in the community stay focused towards a goal.
Heyyy Pirate King. I’m still watching the video, but I get you about noise and hate comments. It’s unfortunate many people cannot be happy with other people doing well and they just wanna bring you or other devs down. Looking forward to this vid. It’s super helpful for me.
I'm Sure this guy has a lot of free time
360 is TC. Part of TC includes a two year sign-on bonus. The equity should vest in the third year and maintain TC levels of year 1 and 2. Emphasis on should.
Always love your videos fam, literally lol’d at the costco pizza part cuz i always eat there since it’s close to my college 😂keep killing it!
Dude the tax they applied to you even hurt me and I don't even make as much lol
As far as the average American salary is concerned, you're still balling. $60k/year wouldn't allow u to spend $5K/mo due to taxes
Would purchasing a home be better than renting?
Bro promoting 5+ Brands in one video. RESPECT
4 short ones
So we are pirates, and you are The Pirate King, ok I got ya
Church meetings. I like this guy already :)
YNAB is a great software for budgeting. Excel is amazing as well. But YNAB does the charting for you and it’s easy to enter transactions etc. You can even upload multiple accounts. And no you don’t HAVE to link a bank for the app to still be great to use. You probably know about it already and prefer entering things in from scratch yourself, but just letting you know.
Yeah but your taxes are thru the roof. I work for Intuit (Turbo tax) and I did someone like you taxes he is a level 5 engineer for eBay 2mil a yr income taxes owed star California 45k federal 55k
Amazon Fresh is really good. It's actually cheaper than many grocery store prices, but then again I got them over-bloated New York prices, so...YERRRRR, yay me, lol.
Be grateful
It is a lot but you do live a comfortable life. So living comfortable life is not cheap. The rent being 2k is crazy. That's like 10x more than my rent.
shiet. i’ve been hanging too much with rich asians. monthly expenditures: 10-17k. salary: < 360k :/
I always wonder if using equity when referring to income isn't a little misleading. It definitely factors into your TC when you sign a contract, but do you get that same amount of equity every year? Or is it just giving you that amount in equity for your initial sign on? It seems like you would want to base your lifestyle more around your base salary (and possibly bonuses) than your TC since the equity isn't always immediately available for use (I think you covered this a bit in your software engineering salaries video).
You get equity every three months for four years; you can think of it as getting paid every quarter instead of every month, so I think it makes sense to factor it in. Signing bonus might not make sense to factor in, however, since it's only a one-time bonus.
@@PIRATEKINGDOM Thanks!
@@PIRATEKINGDOM If you get RSUs distributed throughout 4 years, what happens to your comp afterwards? Do companies give Refreshers? If so, how do those work?
Might be a good idea for a future video if you wanted to break that down for the public.
@@liam1902 it really depends on the company. There are companies with with and without refreshers that you can’t generalize it as much as you can with the initial signing RSUs.
The IRS thinks it is income when it vests. What you actually get every year is an award of stock. It has a cash value that day, and you are taxed on that. But, since it is stock, its value changes day by day. Let's say that at a particular engineering level they award $200k of stock every year. Great, they awarded it! The take the $200k, divide by the stock price that day, round it to the nearest 10,000 shares or so, and that is your award. Alas you don't get any of it right away. It is locked into a 4 year vesting schedule (varies by company) which may not give you anything for the first year. By then, the stock may have gone up or gone down, and whatever it is, that is what you report as income. Typically the RSU account will sell some fraction of your shares immediately to pay off the IRS so you don't get a big tax bill in April, so you'll only end up owning a fraction (70%?) of the shares the day they vest. Alas we aren't done yet, because you'll likely want to hold it more than a year so you can get lower long term capital gains rates and then in time diversify it off into something else like an index fund so you don't end up with your net worth held in your employer's stock. (Risky!) That may involve more taxes, and certainly more uncertainty about stock pricing.
A pretty good hallmark of wealthy people is they don't actually know how much money they have, because it keeps going up and down with asset prices. The day that his net worth varies day to day due to stock market fluctuations by more than his annual salary, he and his wife can go for a nice dinner. He'll have "earned" it. This will eventually happen given a fruitful career and typical stock market gains and volatility. They might want to consider a bit of wine, because big changes are usually market down days.
It is healthy to circulate money by giving and spending it too. It is like water that is flowing, if you keep and hoard water still it goes bad. Nothing wrong with giving and spending to the economy. But I'm sure you do that with all the taxes you pay.
If the money’s in a bank account, banks will circulate it for you. In my case, I invest most of my excess money.
2:30 my wi-fi and i
haha
Not people thinking you're single when you literally wear your wedding ring in all your vids 💀😭😂😂😂 Thanks for sharing the breakdown!
Thanks for the honesty, and keeping it post
I am starting my apprenticeship as software developer this summer and i am excited and very nervous. I don't know how to deal with a new field of people especially, when they are above me. Do you guys have any tips, how to build a connection with co-workers and how to overcome social anxiety?
Is life predestined? I am in my late 30s and work in a call-center full-time earning $1,600 a fortnight and have no money left for savings after deducting rent, food, ultities, car maintainance, insurance etc. Makes me wonder what I am doing wrong in this life of mine.
Try coding?
@@PIRATEKINGDOM Thank you for your tip! Really grateful for that. When I was in my early 20s, I attempted Computer Science but gave up on it after one year because the course was too broad, and I couldn't figure out how I can apply what I have learnt in real life situation/applications. I might definitely give coding a try once more because by the looks of it, I will end up being poor if I don't take action today.
Can you get rid of your car? I'm sure it would allow you to save a couple hundred dollars every month.
@@brinckau Having a car is a life-saver. I got kicked out from my older sister house, few years ago because I answered back at her. I dont regret I stood up for myself since I've been putting up with her meanness and shouting since I was a kid. If it wasnt the car, I wouldn't have a place to stay. At the moment, I am staying at my older brother's place and found a job in the call-centre.. But the salary is definitely not enough for me to save. The car is like a shelter, it's a place where I like to spend some solitude times, drive around and watch beautiful scenary. I'm scared of being poor. I mean, I am already poor, with student loans that I still need to pay off. :( It's kind of scary to know that as you become older, you tend to see things differently, and that people you once know were nice people arent so nice after all.
@@tangleslong499 The car is also 20 or 30% of your expenses, I guess. But only you know if you really need it or not.
Data is hella costly in USA. Here in India, we have 10$ plans with 2GB per day for 3 months. That's like 40$ yearly with 2GB daily.
I thoroughly enjoyed this video. Pirate King seems like a modest guy.
Your salary is prob over 400k but i completely understand why you can’t disclose that
So, USA employeers don't do your taxes and all the job offers doesn't consider the tax amount? 🤯
Tax is withheld, but job offer are always pre-tax.
My mother in law who I knew for about 6 years before she passed would write down every cent she spent. Understand where you spend the money. Take time to do that and you can live alright
Your content is very informative for someone like me who is a freshman starting out with zero experience in the CS world. Thanks.
Man if I had 360k a year I would waste it all on gotcha games, tesla s plaid, headphones, and less than a dollar stock that had no hope of going above a dollar.
How the hell do you guys just spend $700 on restaurants and grocery total in Seattle. I am in NJ which is similar cost of living, and my wife and I spend at least $1000 in grocery ($250 per weekly grocery shopping), we don’t even buy expensive stuff just regular chicken, salmon, salad, etc. then restaurants and take out is $80 per dinner after tips and taxes. We eat out 2-3 days a week so another $1000. So that’s about $2000 a month for grocery and restaurants, we thought we are being very frugal, most of our friends and coworkers spend way more than that. How are you only spend $700 a month total, literally 2 slices of pizza a day 30 days a week?
We rarely eat out. Even if we do, it’s usually just costco pizza (< $10 for the two of us). We don’t eat much either.
Eat out less?
A Q plz, if u get partial of your 360k income as rsu and stocks, do u have to pay tax for full 360k or just for the value u get in cash? I'm sorry if my Q is dumb, i live outside US and i'm planning to take software engineering program, not bc of the salary but bc i'm interested in it. However, i wonder how taxes work.
You pay the full value of the stock you get at the time of vesting (if stock goes up, you pay more, if it goes down, you pay less)
@@PIRATEKINGDOM thank you
Software engineering is so saturated and I don’t think these videos help
Do you tithe and/or give offerings at your church ? Is that included in your budget?
I do, but I didn't want to disclose the amount, so it's excluded in the budget. Hope you understand :)
@@PIRATEKINGDOM Understandable. It's between you and the Lord, just as what you might give to friends, family members and so on. I just like to have a giving section in my budget and it all goes there.
Ok, you have a taxation of 35%, but if you invest your income, you don;t pay taxes. right?
My guy was on a challenge how to pull ads: Mint, Grammarly, Amazon
Mint, amazon?
woah the next video got released so quick, just finished your previous video!
Great video!!, but forgot to say companies will sell part of the stocks for tax every time you receive your vesting and rest that amount from the 360000 total
When you are programing are there any custom hot keys or macros that you use to help your productivity?
for me, no... except for cmd + c and cmd + v ;)
@@PIRATEKINGDOM xD
Let's not forget that he must be making a decent amount through TH-cam, so it gives him a bit more freedom in expenditure
I plan to start online coding phone screen in 2 - 3 weeks and I am trying to find the video you made about how you prep for interview in 2 weeks. But I can't find it. I have been prepping 80% of my time on system design and behavioural interviews and 20% of my time on coding the past couple of months. Now I am switching back to 80% coding for next 2 weeks since I need to pass the coding interview to go on-site.
I have a video on leetcode prep (3-month plan). The 2-week prep video is the one I disclosed about offer I got from Google. I don't really talk much about how I prepared for it tho :/
@@PIRATEKINGDOM Thanks. I thought it was a separate video.
I think you should consider easing up on the ads, or being more subtle about it. Great video though!
I Will Never Understand Why The USA Taxes Are So High.
This is so cool with a lot of fun parts. Way to go, PK~!! (say hi...btw)
Hi hyung :)
The spent will increase, when baby will be there 🖤
Some of friends in software gets 60 dollar haircut every week. They got money to blow
Glad to see other comments on the tax calculation. Straight multiplying by 32% aint it King. Great vid otherwise 👍
i wish he would be more transparent about his income. wouldve respected him more if he did.
Thanks for sharing. Crazy how little you spend on food imo
Church meetings! I know what that is. I grew up going to the Church in Cleveland on Warren Road in Cleveland, Ohio. For decades, Saints have been fellowshipping with Saints in Taiwan. Let me know if you two are ever in Cleveland.
Why don’t u buy a house?
2100 in Redmond for a 2bd?! I don’t believe it!!!
Man’s definitely working at Meta 😂
half of ur monthly pay goes to utilities. sounds normal. you can cut it out but life is short.