👑 Shout out to ViewSonic for sponsoring this video! VG2756-4K Monitor: bit.ly/3LSgu8X 🎖️ $1000 OFF ANY Online Tech Bootcamps. See if you qualify for the JOB GUARANTEE! 👉 piratekingdom.com/deals/springboard ⬆️ 100% FREE until you're hired! Get job support and career mentorship from professionals at FAANG 👉 piratekingdom.com/deals/pathrise 🏅 LEARN CODING and EARN UNLIMITED CERTIFICATES from renowned institutions like GOOGLE, META & STANFORD! 👉 piratekingdom.com/courses/coding 🏴☠️ This is just a silly skit. Check out my ACTUAL spending habits: "How I Spend my $360k Income" 👉 th-cam.com/video/B4h0A9mr6r4/w-d-xo.html Just adding some thoughts here. Some of it r obviously exaggerated somewhat; however, taxes are real. Rent is slightly exaggerated becuz u can choose to live in a cheaper place. U have a choice on how much u contribute to 401k too, but many people maximize it when their employers match. U obviously have control over the type of car u get as well. I guess my point is that a Software Engineer’s life with a six-figure salary isn’t as luxurious as many people think; it’s not bad, but it’s definitely not abundant either. And as many pointed out, wait til u get married + children in a place where shitty run-down homes cost more than several times your entire compensation combined PRE-tax shrug 🤷 P.S. Companies will adjust your compensation according to the cost of living in the area you live. In other words, working remotely in a different state/country will not get you the same salary nor guarantee more dollars in your pocket; it’s not as simple as that. - PK
I'm a software engineer in the midwest, where the cost of living is a lot lower. Before I paid off my house, my mortgage payment was about $1000/month. My utilities were around $400/month, and groceries/eating out was around $500/month. So a software engineering job paying $120K in the mid-west ends up looking something like: 10,000.00+ salary 2,500.00- taxes 1,000.00- mortgage 1,700.00- 401K 500.00- car loan 400.00- student loan 400.00- utilities 500.00- groceries, eating out, etc. Remaining balance: $3000 Though to be honest, $120K in the midwest is a mid to senior level salary, so if you're starting out you're probably looking at something more like: 7,000.00+ salary 1,100.00- taxes 1,000.00- mortgage 1,700.00- 401K 500.00- car loan 400.00- student loan 400.00- utilities 500.00- groceries, eating out, etc. Remaining Balance: $1400
In my area housing has gone up 37 times since 1980 (on a virtually unchanged house). Which means at 120k a year I'm making minimum wage in real estate terms. Talk about shadow stats
@@dalagamble3164 Sitting all day, eating unhealthy to get more work in since it's a mentally demanding job which is often helped by sugar and caffeine, and it's also high stress especially if you handle customer requirements directly. Heart attacks are significantly higher than average among software engineers.
This video needs to be played at *EVERY high school and Freshman College class* . Learning how money works & the horrors of living independenly is something we ALL wish we prepped better for
True, but I would add a lot of emphasis on the importance of saving for retirement (as having no savings will lead to a terrible death), purchasing an economical used car instead of leasing a new one, and saving to eventually purchase a house. Ownership of your house and car while saving for retirement greatly compounds your liquid assets for your future. Money spent paying back loans or rent is giving away money that you will never see again.
@@captaiawesome2260 it's tried and tested all over the western world. Pay off high interest rate loans quickly (or don't get them in the first place), buy property to live in, and save early for retirement. Your 20s and 30s is generally when you have the most disposable income, before kids and spouses soak it up.
@@captaiawesome2260 retirement date is a factor or savings rate. 64% savings piled into investments and you’ll be free in a very short time. And forget the 401k stack up condo or townhome rentals and don’t fear trading them up over the years and before any significant repairs or HOA assessments. Rentals immediately boost your income and are inflation proof. It also leads you to commercial real estate. Buying in very densely populated areas.
@@collegeinvestor7095 Almost no established company will pay you Seattle salary if you are working remotely. They will pay an alright or good Kentucky salary. If you don't want to work for such companies, then all you are left with are companies that were born very recently, and founders of some of those companies might be against inequity in pay, but can't spare much anyway because they are startups with very little financial backup.
He also counts it AFTER eating out (and, I assume, some other entertainment). The dude lives in a nice place, has ALL his expenses and debts covered, and is left with quite a sum to do whatever with each month.
As a former mechanical engineer at Microsoft being paid 70k for two years experience for solving complex problems in Chicago I definitely understand this 😭
@@chef_rg.2 nothing wrong with that man if I were you I’d go computer science first it’ll break it down better before jumping into the material coding will be awesome.
The RSU breakdown was a bit misleading, most firms will have a 1 year cliff so you get nothing until your 2nd year (the graphs on the screen actually showed that). So ironically this offer that had Y1 vesting is actually *really good*! Source: ex-FANG employee :)
As a programmer from a 3rd world country who is working at a local company, $300 is what you get as a salary and around 5 to 10 dollars is what you left with every month if you spent less. Seriously, the more I grew up, the more I wish to be born in a better country.
@@KaungPyaeSoneAung123 stay strong and do your best, Myanmar is developping and may become powerful soon. It's a bit similar in Algeria 🇩🇿 (500$, rarely more) but i success to go in France where salary are way higher (at least 2500$ for a software engineer)
@@rayyy1027 Did you learn french. I'm also planning to move to Thailand. Doing remote is not okay since they would offer you only half of what they usually pay
SE salary in Europe is like ~40-60k year. Cost of living in big cities is only slightly lower. Taxes are near 50% Lots of things, such as cars and electronics are actually more expensive.
If you can become smart enough to become a software engineer you should also have the smarts to look at literally any house around 30min away from any major city and you will get nice housing. I live 40 min from Chicago on 0.4 acres 3 bedroom 2 bath for 234,0000 at around 1500 monthly payment. Move a couple hours further away from here for the same price you can get a slightly bigger house on 5 acres with an absolutely huge metal garage you can run a business out of with 2 ponds in your yard.
@@seuduxi6807 yes but as a junior we are paid at best 1800€ net of taxes per month, so if you subtract the 500€ that you pay in taxes you have 1300€ left, and that is if you are fortunate enough to have found a good paying job outside a major city because otherwise your rent and expenses will skyrocket. You also have to account for the fact that our IT job market is absolute garbage compared to the US one BUT we have a lot more security (it's basically impossible to fire an employee and we don't have the necessity to pay for health insurance). Personally my goal is to work in Switzerland (Zurich) after my master degree in IT and finance
Wait but that’s still a good amount of money to have left over each month. I mean considering that you said this dude is living in a one bedroom in downtown Seattle, maxing out his 401k, and eating out regularly. Most people would kill to be left over with $1400 per month. Especially considering this is supposed to be an “entry level” swe salary at big tech.
@@ezekiel0606 Right, the vid is like why do i have no savings after putting money away for my savings and accounting for leisure activities, my car and my hella nice appartment (3-4K a month in Seattle is by no means slumming it)?
that isn't really an entry level salary.... the only reason it seems like it is a lot is because Seattle has an a higher cost of living. A normal STEM degree gets you about 50-60k in most of the country. In CA, WA, NY it is about 100k because rent there is 3x more. Don't move to these states unless you not planning to ever settle down because you won't be able to afford a down payment on a house in these places.
@@Nathan-en9dn Plenty of people settle down in Seattle, especially if youre a senior dev at Amazon, Microsoft, or a senior engineer at Boeing you should be good. Keep in mind there is a massive suburban area and most commutes are 30 min+
Seattle and Bay area are the only 2 known places for high income in the tech industry. The only difference is that there's no income tax in Washington and overall tax rates are lower compared to California. Houses are also cheaper compared to California
The median 1B apartment in Seattle is a little under $2k (which is still crazy, admittedly), so he's just a dumbass who's living beyond his means. $3k apartments are for couples or individuals making $180k+
I love the sincere discussion about earnings and money. If engineers had unions, we could get a much larger share of the vast amounts of money we generate. NFL/NBA/MLB players now get about half the money they generate. Owners still get to pick up a hefty check for basically doing nothing. Players only got that after they organized.
A NOTE ABOUT 401K: You can take out a loan from yourself at a pretty good interest rate whenever you need to tap into your 401k, thus bypassing the tax on taking money out of it. Of course this means you'd have to pay it back eventually.
You can do a 72(t) withdrawal plan or set up A Roth Conversation Ladder to get your money out sooner (both of these are intended to be for the long haul). A 401k loan is usually intended to be something you use while still employed at the company offering the 401k. My 401k from the last place I worked no longer allows me to take out a loan.
In 401k plans I've seen, this interest is actually paid to back to your plan (you are literally just paying interest towards your retirement, so you get it back in the end.) The only real fees are the loan fee (typically $25-100) and the lost stock gains - if any.
The downside is that the interest you pay is usually less than what you would have earned had you left your 401K money invested. Retirement money is also usually protected from creditors, so withdrawing it to pay a debt is usually a bad idea.
This is also just a starting total compensation (base salary + stock + bonus). This is more than most earn after decades of experience. Once you build some experience and get a couple promotions, things really snowball. You can be making $300-400k a year within 5-8 years (or faster) in big tech. All the expenses here don't grow that much, so that $1,000 left over quickly becomes $10,000 or more. If the stock market is strong, those $20k RSUs in year 4 can end up being way more and they compound as you get grants year on year. That stack of grants is lost if you leave, those are the true golden handcuffs.
@@ItimDave You can also go to other places in the world if your intention would be to make that crazy amount of money, but I'd say 300-400k is insane, people that have been working in top companies for as seniors might not even make that much.
@@allinall9456 i was about to pop in and be like yo, youre fuckin full of shit. But then i looked it up, cause I wasnt really sure. Ill be goddammned. National avg payment on a new car is $644. Used is $488. Lemme take my broke ass on back inside.
@@FlarkusChunswen Your not going to believe this, but did you know if you were responsible growing up, you can NOT get a car loan and pay it off in full BEFORE college or even after college of attending a smaller university. Don’t let these people lie to you. I got a simple delivery job, saved 12k and paid off a reliable used car same year….AFTER rent. Could have done the same with more expensive car. There is always a catch. Debt will kill your dreams. Don’t buy into the lie of credit and interest.
Company I use to work for gave us the “golden handcuffs” and everyone was so excited. I had to explain that the $50,000 isnt theirs yet. You gotta jump through these hoops first and the last 4 are on fire . They really had people thinking they could retire off of employee stock purchase plans and “free shares”.
I did the math based on his equation part way into the video. According to the way taxation works based on tax brackets by TD Ameritrade channel. The max he gets taxed Federally is 22% so that would be $17,634 total so he is left with $102,366. A month, he earns $8,530.50 the combined monthly expenses is $6,500. So at the end of the month he is left with $2,030.50
Financial advisor here - Believe it or not, his total taxes are likely higher than 25%. If his RSUs vest quarterly at $5,000, that’s total income of $140,000. Including the 7.65% FICA tax and ~5.5% avg state tax, he’s looking at close to 27.5% even when you factor in the 401k deduction.
hehe, wonderful, I did this math in advance and realized that it was very possible to end up with that little at the end of it but honestly $1500/month in disposable income was still so much to me that I didn't and still don't give a fuck. I love my job, I'm basically comfy, it's whatever.
@@0xdamian595 What? I legitimately don't understand what relation this has to indentured servitude unless you claim that all work is kinda like indentured servitude. ...Which is kinda true in our society, but that's fairly beside the point lol
@@somniad that's my point exactly. But honestly, I hope I didn't offend you, if you're happy and love your work then that's all that matters, truly. *fucks off*
after covid a lot of programmers are working remote. so 120k is not too bad if u live in a low tax state and low cost of living state as well. remote working has really changed the game especially in programming industries
You're either making like $200k or over paying on your taxes. You should look into it. If you get a return every year, you're likely over paying. Edit: Just thought about it. I live in a state without state income tax. You likely don't I was thinking federal only.
I make 100k and my tax percentage total is 28.5%. I think most people look at the bracket but not the real amount paid because per brackets my tax rate is 38.5%
As someone who worked the majority of his life to get a manager position in retail making awful pay. I lmao @ anyone who complains about the cost of living making six figures. Imagine making 66% less than you normally do. That's the majority of people.
I mean that's a fair point. But the cost of living for an area has to be factored in. It's why companies like EA keep closing games studios located in the Bay Area, because you have to pay them like 120k a year, if you don't they basically can't afford to work for you. It's insanity.
First, love your WoW stuff man, big fan. Second, I totally agree, however, those are entry-level jobs for a reason. I think the most efficient way forward is to pickup tangible skills (not talking about college necessarily), then take those skills and leverage them to get amazing jobs that pay better and potentially come with comprehensive benefits packages. That's what I did through intelligent capital allocation and investing anyway. Because fuck working McDonalds and Kroger lol for minimum wage.
The pay is good, rent is what chomps most of it. I’d just NOT live in a downtown apartment. Or get a software engineering girlfriend to share the rent cost 😂
Yo I've been feeling this hard. Although I spend less on rent and more on taxes. But damn, making 6 figures in expensive coastal cities really isn't all that glamorous of a lifestyle. I don't have a car, don't eat out often (and if I do it's pretty budget), don't do much shopping (my clothing is all really cheap), etc, but somehow I still end up saving way less than I feel like I should... Although, ofc as you mentioned, maxing your 401k as a 23 year old is actually pretty insane and that is where a lot of it is going. The typical 401k balance for a 35 year old is 32k, so putting 20k in at age 23 means you're like in the top 1% of all people for 401k contributions lol.
@@Dreamwriter4242 It will not matter if the Entire Western World fails. That 5 million will be have the buying power of 25,000 by the time he is 60 if the Government doesn’t fix its spending problem. Inflation sucks and FIATs fail. I would say buy gold but the government stole everyone’s gold through eminent domain last time. So, stocks? Maybe, a market crash can wipe everything out and destroy companies. So, good luck.
I'm from Mexico which is much cheaper than the US but with salaries that really sucks, working remotely for an American company is the dream of every Latin American software engineer.
The fact that you have any money leftover means you're doing well for yourself. As someone who has been administrating Linux systems since 2007(desktops, and servers in both the home and remote data centers) and even has a certification but no degree I've been unable to land work in the field. I've been stuck working in retail and am barely scraping by.
Get an AWS or Azure cert. Automation and cloud tech have destroyed your career prospects with that background. You are competing with a lot of people on way fewer spots.
$3k for a luxury bedroom in a nice part of town is definitely a choice. You can still live in a cool neighborhood in the city in a regular place for way less.
Something fun that one of my elderly coworkers in IT told me about is that if you just pay up to your companies 401k match and then withdraw, even with the penalties applied you’d still be making money
Your “extra” money is more than I bring home (biweekly) BEFORE I pay any bills 😅 The crazy thing is it takes a 6 figure salary to live a middle class life in this country. I’m trying to teach myself to code.. wish me luck!
Move to area with lower cost of living that is also an up and coming metro - buy house, save money, buy another and lease it out (and another if you can swing it), equity is your ROI. Get second WFH software engineer job if you can swing it. Pay off debt. Bank the rest. Laugh at west coast friends who stayed for peanuts.
Funny, I worked on a cruise ship and was paid $1900 in 2 weeks, but got $1600 back after all expenses. that's $3200+ a month for me. I'm from Florida. 😅😁
Yes the salary in this video showed that what was leftover was less than expected. But there a lot of EXTREMELY nice things that are just taken for granted in this video: * presumably no roommates in a relatively decent apartment. The engineer is certainly not living in a dump and doesn’t have to room with somebody else just to get by * with that car note, the engineer actually owns a car. And probably one that is relatively new and not breaking down * the engineer is contributing $1,700 a month to retirement. Many are contributing $0 * $1,500 in basically free cash flow for entertainment We can probably make some other assumptions that put the engineer a leg up: * likely already has or can start to form a rainy day fund for emergencies or unemployment * probably has decent healthcare coverage through their employment The point of this video is that “damn, being an engineer doesn’t get you as far as you’d think”. It does get you a lot further than most though. It’s just a matter of perspective and expectations. If this situation described in this video is bad for your standard… well 90% of America makes due with less than this. Just indicates income and wealth for the whole nation needs to increase significantly in that case.
@@doublej42 "We"? Speak for yourself buckwheat, if you want to give all your money to the government so it can piss it away go right ahead but keep your filthy hands off my property.
This is why I didn't go to a prestigious school or live in a fancy city. I'm a millennial with a software engineering degree, 6 figure salary, never worked for big 3 company, bought a house when I was 23, remodeled it, paid it off in 6 years, maxing out retirement accounts, and I still have 5000 left over every month. I work from home so I travel frequently and I got an apartment with my girlfriend across country where she's from in that fancy, big city, because we can afford it
Do you think it is good to start working with elementor company? Im 20 years old and just started applying for jobs? Do you think this is a good start? I always wanted to ask someone with more experience than me. Thank you in advance for your answer. :)
In my country having salary like $1000 is equivalents to be rich, usually people get about $400 or less per month and most of this money goes to pay taxes and just survive soo...you have no idea how funny it is to hear something like - after all the spending 1000$ is all that's left.
@@PIRATEKINGDOM yes, of course, each country has its own cost of living, and if this were the only factor, then this would not be a problem, but we should not forget about globalization, goods around the world cost about the same, and this is where the difference is felt. For example, living in America, you can afford to buy some kind of equipment for $ 300 without really thinking about it, In general salaries allow you to make such expenses. But can you also afford to buy the same product for $ 260, having the opportunity to save only $70 a month from your salary for other needs, I think not.
@@PIRATEKINGDOM if you take Quality of Life into consideration then Cost of Living in third world countries is actually higher. Min wage in my country is $275 but if you want to live in a city where you are not likely to be robbed then you must pay $1000 in rent. Technology is imported so we pay way more for phones, laptops, etc. Online services cost are not relative, we pay the same for netflix and other subscriptions. Food and stuff in walmart is actually cheaper than my local supermarket.
why the hell is TH-cam recommending me your videos when i have to just start for the computer engineering but man your videos are funny and scary at the same time
im a med student and would be in a similar situation but I decided to live with my ma and save up until I’m at least 22. free rent, free food, unlimited mom hugs😆
That's still pretty good, my advice would be to expand your portfolio and do side work like teaching and tutoring skills to candidates, while working on a plan to manage future endeavors by having a project that you could sell, like how most people just sort of like to mention that they'd love to build and sell an app. But, then again, I'm not qualified to actually give advice because I haven't been programming for 20+ years. I really enjoyed the video, though. You should make more of them.
So accurate. 6 figures isn’t really that much money in most places of the US. Most of the 6 figure salaries come from big cities like Seattle, NY, San Fran, and all these places have such a high cost of living.
Actually 6 figures is a lot of money in majority of places even in the U.S.. Remember the national average is like $56,000.. It's just the big cities where there's no housing competition where 6 figures is almost peanuts, and even then that depends on lifestyle.. If people didn't live above their means, they would be more than great.
I do a remote dev job for a NYC based company. I moved to Mexico and using the Foreign Earned Income Credit, I get $20,500 back from my federal taxes each year. The cost of living here is 1/2 of what it is in Austin. Most people don't know about the FEIE.
You can only take the credit if you pay taxes in a foreign country to avoid double taxation. It's not like you get off for free. The US has citizenship based taxation. You can't avoid US taxes by moving to a low income tax nation, but the cost of living is definitely a huge benefit. If you were a bona fide resident of a foreign country you can take the Foreign Earned Income Exclusion, but since your earned income is not foreign and has a US source you can't take that. The bottom line is the US is really a tax club, it doesn't matter where you live. If you want to be part of the club pay up or renounce your US citizenship (which by the way you can only renounce if you show you paid up in US taxes). Good luck !
If you can, you should probably adjust your exemptions so that your witholding is reduced by about $1500/month. Why give an interest free loan to the government. That would go a long way to solving any monthly cash flow issues and you wouldn't have to wait for a huge refund check after filing your taxes. You'd get a little bit every month by not having as much withheld.
@@daves.software the problem is that triggers IRS audits and I'm not sure how long I will be outside of usa I'm a minimalist and not concerned about cash flow, and dealing with IRS audits outside of USA is not a hassle I'm interested in dealing with
@@trix3121 that's the common misconception. The feie is for anyone that lives more than 330 days outside of the USA no matter source of income. Many expats use this exemption. I still pay us taxes. This was a standard process and nothing out of the ordinary. Where do you get your information?
I live in argentina, as a junior full stack full time software developer I make around 350 US dollars after tax and retirement stuff (that's before any sort of expenses or loan payoff). I'm looking into getting a remote job that pays me about the average US salary so I can one day afford to escape this shit country
Great video, really explains the dilemma lol. But...the RSU breakdown was a bit misleading, most firms will have a minimum 1 year cliff so you get nothing until your 2nd year (the graphs on the screen actually showed that). So ironically this offer that had Y1 vesting is actually *really good*! Source: ex-FAANG employee :)
For those that are saying you're doing pretty good, I understand you're saying relative to everyone else, but that just means the bar is super low for what you can have for what most would consider a high end salary. You grind hard for years to learn your craft, maybe even went into debt at university, created a portfolio, watched videos, read books and documentation, read books on skills needed to do tech interviews including soft skills, still failed many of those interviews, maybe even worked for free to get your foot in the door. Whatever it is that you did, you did with the hopes that eventually you'll be "making bank" just to end up living slightly better than before. Regardless of how good you think it is, it falls way short of what was expected by the one putting in all that work. When people hear my salary, I get told I'm rich and they look at me as a sort of go-to guy for money because I should have some to spare, which I don't really. I live the same kind of lifestyle, drive the same kind of car etc. as anyone else in my area that makes less
It's good for multiple of factors, and in this case the video kinda shows how wasteful and unaware of our own finances. Learn how banking, credit and money works. Getting a 120k STARTING salary which is a junior role, mind you - is outstanding. Him being left with only 10% is attributable to the failure of personal finance. Shows that even if you are "book smart" you can look like a dumb ass :)
@@AzumaRikimaru You failed to account for a lot of other outside factors such as cost of living in his general location. America is a country where you can make 100-120k and still be "poor"
Money isint always the biggest factor, sure you make only a little bit more, but it’s not a hard labor job, you get way more benefits, better hours and schedules, vacation times, etc. looking at just the money is too narrow
@@resresres1 I'm not an economics major or anything so I don't really understand everything there is to understand about economics. Could you clarify how that would make inflation skyrocket? I was under the impression people having more money to spend would lead to a healthier economic outcome as long as it's not money from excess printing with no backing from gold or anything like that. But again, I don't admit to knowing deep analytics of economics. Just light stuff.
I'm from india. for us 1500 is a lot T_T since i only make $300 a month. Yes food and house maintainance is cheaper. But electronics , cars, rent and buying a house is too much T_T also if i have to go to the hospital im dead
I just accepted a 6-figure salary, but I bit the bullet and decided to live in country ass Tennessee to save tens of thousands a year in living expenses. 😭 Good thing is I’m just a couple hrs away from Atlanta, so I can make a quick getaway if needed. Would y’all rather scrape by living in a big, fun city, or live like a king in excess off the same salary in the country? 😭
I plan to live with a roomate so rent is halved into 1,500. 401K seems like a percentage you can put and he forgot to mention a company matches it but lets drop it to 4% so 4% of 10,000 is 400. Keeping the loans the same and removing the very variable “etc” the total is more realistically 5300 a month left over.
It's so damn funny to watch, living in Belarus, where general salary's 300$ and programmers live like kings making 3500$ a month. It's like ALL the young people are dreaming to become software engineers and young ladies are hunting IT specialists to start a family. This is THE only leverage in our country and having 10k per month....its like a rare businessman here makes such money, even taking tax. BTW here we have 36% "social" tax (paid by the company, but say who cares, if it's still your money), 20% VAT for EVERY product, 18% income tax and in general renting a 1-bedroom apartment costs something like 200$+ (again remember the average salary). And my country is NOT America with it's level of socio-economic development. So yeah, for some, me included, a SE-profession is a godsent opportunity in life.
3k House rent is package for millions of freshers in my country !!! It took me 3 years to reach the montly budget of 10k in INR as annual package after prolonged interview sessions .
Having RSU vest equally over 4 year is actually considered better than some. Some companies make it so that it gets distributed in exponential scale so you get near literal nothing toward when you first start out and only really get your RSU at the end of 4 year gold cuff years.
wow, this just made me realize how great the divide my friends and I have and it's just gonna get wider the older we get. $1k/mo leftover even after rent and a car loan? That's fantastic
Haha this is a point me and my friends debate all the time. I actually made a tool that compares the salaries across different cities around the world, the tax expenses, living cost expenditures, and in the end you see some places abroad have higher take home pay. That being said, the job opportunities in the US, China, and Singapore (according to Data) are unparalleled (maybe Tel Aviv). If someone wants to use the tool lmk I'll post it online somewhere and link it here. Edit: very surprised people like it, I'll update it to reflect the most up to date data and then build a website for it then :) should be done by the end of the week
I’m in my second year of uni to be an engineer and would really appreciate your tool. I’m looking to travel for an internship next summer and have been comparing salaries around the US and world
Privacy in cities is expensive, period. And that's worldwide. It's totally doable to share a 3-bed apartment with housemates and save an extra $1-2K. Or just don't rent and buy a house that's further, but suffer a longer commute. WFH is better after the pandemic. There are always some tradeoffs.
People saying you can only get paid a 6 figure salary in places like Seattle don’t know what they are talking about. I’m a software engineer with full remote and make 130k living in the suburbs of Chicago and paying about 1k for rent. After tax and other expenses, I can be saving 3k or more per month pretty easily. The job isn’t easy, so I see why software engineers are paid so much but anyone thinking we have it hard are privileged idiots. WFH is the easiest thing on the planet and when there is downtime you can finish chores throughout the day or be lazy af playing video games
Fellow software dev here from Texas with a comparable salary. The cost of living difference is pretty stark. It’s not always what you make but how much you keep. Like Washington there is no state tax here but rent is much lower. We own our house but including taxes and insurance it’s only $1,860/mo. My wife is a stat at home mom and we still have quite a bit left over at the end of the month (we don’t have many expenses, cars are paid for etc). As a dev you can generally work anywhere, have you considered possibly moving to a lower cost state? That and steer clear of any high interest debt.
This is right for an entry level offer, but it undersells why CS is so lucrative -- this is just the starting point. In 5 years 120 base + 20k annual stocks will easily turn into at least 150 base + 80k annual stocks. $$$
@@cpK054L You're sounding like an amateur there. You can't honestly go around saying "nested loops bad" when you don't even provide the context in which you're using them.
@@PURENT Two sum, or N sum, using a search function to return two or more indexes to equal a sum. Better? Using nested for loops in this case makes it N^X complexity. No bueno
This is what you do…. Play the game long enough to learn the game and then think about starting your own business… either private sector or government contracting. That’s the only way to ever truly be financially free
Taxes for IT in Poland (the most common form of taxation - self-employed sole traders + lump sum): Income tax is flat 12%; retirement pension, social security, etc. are in total ~$500 every month. And that's it. On top of that I can buy work-related stuff without VAT (car, iPhone, MacBook, desk, etc.)
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🏴☠️ This is just a silly skit. Check out my ACTUAL spending habits: "How I Spend my $360k Income" 👉 th-cam.com/video/B4h0A9mr6r4/w-d-xo.html
Just adding some thoughts here. Some of it r obviously exaggerated somewhat; however, taxes are real. Rent is slightly exaggerated becuz u can choose to live in a cheaper place. U have a choice on how much u contribute to 401k too, but many people maximize it when their employers match. U obviously have control over the type of car u get as well. I guess my point is that a Software Engineer’s life with a six-figure salary isn’t as luxurious as many people think; it’s not bad, but it’s definitely not abundant either. And as many pointed out, wait til u get married + children in a place where shitty run-down homes cost more than several times your entire compensation combined PRE-tax shrug 🤷
P.S. Companies will adjust your compensation according to the cost of living in the area you live. In other words, working remotely in a different state/country will not get you the same salary nor guarantee more dollars in your pocket; it’s not as simple as that.
- PK
오 모니터 완전 선명해보이고 충전단자까지...
I'm a software engineer in the midwest, where the cost of living is a lot lower. Before I paid off my house, my mortgage payment was about $1000/month. My utilities were around $400/month, and groceries/eating out was around $500/month. So a software engineering job paying $120K in the mid-west ends up looking something like:
10,000.00+ salary
2,500.00- taxes
1,000.00- mortgage
1,700.00- 401K
500.00- car loan
400.00- student loan
400.00- utilities
500.00- groceries, eating out, etc.
Remaining balance: $3000
Though to be honest, $120K in the midwest is a mid to senior level salary, so if you're starting out you're probably looking at something more like:
7,000.00+ salary
1,100.00- taxes
1,000.00- mortgage
1,700.00- 401K
500.00- car loan
400.00- student loan
400.00- utilities
500.00- groceries, eating out, etc.
Remaining Balance: $1400
"it’s not bad, but it’s definitely not abundant either." not for you because you waste all your money.
@@MyBinaryLife that’s not me tho lol
@Eric Majerus ☝️
The fact that there is still 1000 left over after all expenses still means you are doing pretty well
Yeah, except for the fact you'll never own a house and are virtually uncovered in the event of any major emergency.
Literally fuck this
I'm 95% of the way to buying a home Depot shack and putting it on 40 acres of woodland with a bunch of fluffy chickens. Society can go fuck itself
In my area housing has gone up 37 times since 1980 (on a virtually unchanged house). Which means at 120k a year I'm making minimum wage in real estate terms. Talk about shadow stats
Legit mag dumping the next boomer to call me privileged
As a programmer, if you work hard enough you can’t live over 60.
My thoughts exactly. XD
I would probably died before use that money
Damn. Guess I'll just have to continue in slavery till 60 so my kids can get some pocket money.
Why is that?
@@dalagamble3164 Sitting all day, eating unhealthy to get more work in since it's a mentally demanding job which is often helped by sugar and caffeine, and it's also high stress especially if you handle customer requirements directly.
Heart attacks are significantly higher than average among software engineers.
This video needs to be played at *EVERY high school and Freshman College class* . Learning how money works & the horrors of living independenly is something we ALL wish we prepped better for
True, but I would add a lot of emphasis on the importance of saving for retirement (as having no savings will lead to a terrible death), purchasing an economical used car instead of leasing a new one, and saving to eventually purchase a house. Ownership of your house and car while saving for retirement greatly compounds your liquid assets for your future. Money spent paying back loans or rent is giving away money that you will never see again.
@@captaiawesome2260 it's tried and tested all over the western world. Pay off high interest rate loans quickly (or don't get them in the first place), buy property to live in, and save early for retirement.
Your 20s and 30s is generally when you have the most disposable income, before kids and spouses soak it up.
@@captaiawesome2260 retirement date is a factor or savings rate. 64% savings piled into investments and you’ll be free in a very short time.
And forget the 401k stack up condo or townhome rentals and don’t fear trading them up over the years and before any significant repairs or HOA assessments.
Rentals immediately boost your income and are inflation proof. It also leads you to commercial real estate. Buying in very densely populated areas.
Do I hear a call for Mr Money Mustache
LOL - they have no IDEA
This is why remote work is a blessing.
Example: Seattle salary, but Kentucky cost of living!
But then you have to live in kentucky
Many companies will pay remote workers the market rate for where you live. So if you live in Kentucky, you won't get that swanky Seattle salary :)
@@Dreamwriter4242 that’s not a company I wanna work for 😀
@@collegeinvestor7095 Almost no established company will pay you Seattle salary if you are working remotely. They will pay an alright or good Kentucky salary. If you don't want to work for such companies, then all you are left with are companies that were born very recently, and founders of some of those companies might be against inequity in pay, but can't spare much anyway because they are startups with very little financial backup.
@@aldrinmathew lol no, if you are a top developer you are the boss mate, you can work remote and get a top salary.
Dude. After all expenses and while living in Seattle with a maxed out 401k you have over 1k left a month. You're doing fucking great.
He also counts it AFTER eating out (and, I assume, some other entertainment). The dude lives in a nice place, has ALL his expenses and debts covered, and is left with quite a sum to do whatever with each month.
lol!
Until a major health issue comes up
@@kingwarrior5028 nonsense, software engineers get some of the best health insurance
@@theendurance True this
As a former mechanical engineer at Microsoft being paid 70k for two years experience for solving complex problems in Chicago I definitely understand this 😭
Did you quit software to become a trucker driver?>>> TruckerLee???
@@chef_rg.2 yes sir I’m a heavy hauler
@@sonofatlas1372 that's funny, because I'm thinking of doing the opposite, from truck driver to developer
@@chef_rg.2 nothing wrong with that man if I were you I’d go computer science first it’ll break it down better before jumping into the material coding will be awesome.
@@sonofatlas1372 Kool.... 👍🏾👍🏾 I'll look into that, thanks
Now imagine you had a job making way less than 120K/yr and no stock based compensation.
Literally, if software developers aren’t happy, think about people who actually do work that pays 1/3 what was talked about here.
@@billybob7177 Let us complain from our privilage
I get less than 120K and no stocks but in Maryland so much cheaper than Seattle so balances out lol
Imagine not living in Seattle or having a $500 car payment
He didn’t even include car insurance. It could be 600 a month in some places *cries in nyc*
Damn. Alexa explained RSU break down better than actual companies 😂. Love all the little details in the background of the video!
Actual companies won't explain RSU to you cause the truth is ugly. And no one want you to know the truth lol
News flash, Alexa works for amazon
Big reason why I like ISOs. You put money in to buy the shares --> not much else to it. RSUs --> gets more complicated with your income tax.
@@herropreaseherro7870 Which ironically has the worst RSU vesting schedule where you don't see any of your stock until the 3rd and 4th year.
The RSU breakdown was a bit misleading, most firms will have a 1 year cliff so you get nothing until your 2nd year (the graphs on the screen actually showed that). So ironically this offer that had Y1 vesting is actually *really good*!
Source: ex-FANG employee :)
As a programmer from a 3rd world country who is working at a local company, $300 is what you get as a salary and around 5 to 10 dollars is what you left with every month if you spent less. Seriously, the more I grew up, the more I wish to be born in a better country.
Where do you live?
@@rayyy1027 Myanmar. Very hard to make a living with Software Development
@@KaungPyaeSoneAung123 stay strong and do your best, Myanmar is developping and may become powerful soon. It's a bit similar in Algeria 🇩🇿 (500$, rarely more) but i success to go in France where salary are way higher (at least 2500$ for a software engineer)
@@rayyy1027 Did you learn french. I'm also planning to move to Thailand. Doing remote is not okay since they would offer you only half of what they usually pay
Hello fellow Burman. Good luck escaping.
This is not software engineer salary. This is American cost of living.
How can you not find a place less than 3 grand a month to live in lol
SE salary in Europe is like ~40-60k year.
Cost of living in big cities is only slightly lower.
Taxes are near 50%
Lots of things, such as cars and electronics are actually more expensive.
If you can become smart enough to become a software engineer you should also have the smarts to look at literally any house around 30min away from any major city and you will get nice housing. I live 40 min from Chicago on 0.4 acres 3 bedroom 2 bath for 234,0000 at around 1500 monthly payment. Move a couple hours further away from here for the same price you can get a slightly bigger house on 5 acres with an absolutely huge metal garage you can run a business out of with 2 ponds in your yard.
@@TheLuxorProductions 4 bedroom house and u only have to pay 500€ a month in italy its where i live bruh
@@seuduxi6807 yes but as a junior we are paid at best 1800€ net of taxes per month, so if you subtract the 500€ that you pay in taxes you have 1300€ left, and that is if you are fortunate enough to have found a good paying job outside a major city because otherwise your rent and expenses will skyrocket.
You also have to account for the fact that our IT job market is absolute garbage compared to the US one BUT we have a lot more security (it's basically impossible to fire an employee and we don't have the necessity to pay for health insurance).
Personally my goal is to work in Switzerland (Zurich) after my master degree in IT and finance
Wait but that’s still a good amount of money to have left over each month. I mean considering that you said this dude is living in a one bedroom in downtown Seattle, maxing out his 401k, and eating out regularly. Most people would kill to be left over with $1400 per month. Especially considering this is supposed to be an “entry level” swe salary at big tech.
exactly
@@ezekiel0606 Right, the vid is like why do i have no savings after putting money away for my savings and accounting for leisure activities, my car and my hella nice appartment (3-4K a month in Seattle is by no means slumming it)?
that isn't really an entry level salary.... the only reason it seems like it is a lot is because Seattle has an a higher cost of living. A normal STEM degree gets you about 50-60k in most of the country. In CA, WA, NY it is about 100k because rent there is 3x more. Don't move to these states unless you not planning to ever settle down because you won't be able to afford a down payment on a house in these places.
@@Nathan-en9dn Plenty of people settle down in Seattle, especially if youre a senior dev at Amazon, Microsoft, or a senior engineer at Boeing you should be good. Keep in mind there is a massive suburban area and most commutes are 30 min+
@@vkd8721 You just said senior position... If you get a senior position anywhere you can settle down. A entry position in those places isn't worth it.
The "Welcome to Seattle" really hit hard lol. Thanfully I am fully remote now and moving somewhere else!
Nice!
Seattle and Bay area are the only 2 known places for high income in the tech industry. The only difference is that there's no income tax in Washington and overall tax rates are lower compared to California. Houses are also cheaper compared to California
This aint even bad at all, you got $1400 after all your expenses + savings + groceries and eating out
Kekw, you can improve your life quality and lower your expenses if you go to Georgia... *the country*
Yeah but it didn’t mention rent nor a mortgage, so unless he’s living in mommy’s basement it’s not that great lol
@@garden0fstone736 yah that was deducting 3k for rent ha
@@garden0fstone736 yes it did
@@MalignSociety gahdamn
$3k dollars rent a month???? just for a single bedroom?
In my country that could be our annual salary, not gonna lie tho.
All supply and demand. Also high due to horrible laws around house construction in California that jack up the prices.
The median 1B apartment in Seattle is a little under $2k (which is still crazy, admittedly), so he's just a dumbass who's living beyond his means. $3k apartments are for couples or individuals making $180k+
I can afford to pay rent for 5 (3 bedroom) flats with that money
With that money one can rent a pretty big house in a luxury condo here in Brazil
It literally is my annual salary
I love the sincere discussion about earnings and money. If engineers had unions, we could get a much larger share of the vast amounts of money we generate. NFL/NBA/MLB players now get about half the money they generate. Owners still get to pick up a hefty check for basically doing nothing. Players only got that after they organized.
How come there are no unions for engineers yet ?
@@telgou because a lot of American engineers think"well I'm making this much-I don't need it. It seems like unnecessary responsibility"
I wonder how easy it is to start a union
Curious you never talk about the taxes they gotta pay and the taxes engineers pay too
@@PopelessCatholic Good point! We wouldn't have any of this technology to engineer without the decades of massive public subsidy.
A NOTE ABOUT 401K: You can take out a loan from yourself at a pretty good interest rate whenever you need to tap into your 401k, thus bypassing the tax on taking money out of it. Of course this means you'd have to pay it back eventually.
You can do a 72(t) withdrawal plan or set up A Roth Conversation Ladder to get your money out sooner (both of these are intended to be for the long haul).
A 401k loan is usually intended to be something you use while still employed at the company offering the 401k. My 401k from the last place I worked no longer allows me to take out a loan.
In 401k plans I've seen, this interest is actually paid to back to your plan (you are literally just paying interest towards your retirement, so you get it back in the end.) The only real fees are the loan fee (typically $25-100) and the lost stock gains - if any.
The downside is that the interest you pay is usually less than what you would have earned had you left your 401K money invested. Retirement money is also usually protected from creditors, so withdrawing it to pay a debt is usually a bad idea.
if you die earlier you dont have to pay it :)
Horrible idea
Alexa being raw for straight 5 mins 😅
This is also just a starting total compensation (base salary + stock + bonus). This is more than most earn after decades of experience.
Once you build some experience and get a couple promotions, things really snowball. You can be making $300-400k a year within 5-8 years (or faster) in big tech. All the expenses here don't grow that much, so that $1,000 left over quickly becomes $10,000 or more. If the stock market is strong, those $20k RSUs in year 4 can end up being way more and they compound as you get grants year on year. That stack of grants is lost if you leave, those are the true golden handcuffs.
Exactly, software engineers are out of touch when it comes to money, that 1k dollars is literally play money, he can do whatever he wants with that.
@@agastyaparashar2941 but if he's smart he invests or pays off loans with most of it
$300-400k in 5 years? That's pretty crazy. in the UK you're lucky to be on $120k at the end of your software career.
@@nickwilson3499 Yup, most of my income is locked up in investments.
@@ItimDave You can also go to other places in the world if your intention would be to make that crazy amount of money, but I'd say 300-400k is insane, people that have been working in top companies for as seniors might not even make that much.
My guy is maxing out his 401k and wonders where his spending money went.
hes paying for luxury car and wonders where all the money went.
500 dollar payment for a car is just average 🤣
@@allinall9456 i was about to pop in and be like yo, youre fuckin full of shit. But then i looked it up, cause I wasnt really sure.
Ill be goddammned. National avg payment on a new car is $644. Used is $488. Lemme take my broke ass on back inside.
Fax lol
@@FlarkusChunswen Your not going to believe this, but did you know if you were responsible growing up, you can NOT get a car loan and pay it off in full BEFORE college or even after college of attending a smaller university. Don’t let these people lie to you. I got a simple delivery job, saved 12k and paid off a reliable used car same year….AFTER rent. Could have done the same with more expensive car. There is always a catch. Debt will kill your dreams. Don’t buy into the lie of credit and interest.
Company I use to work for gave us the “golden handcuffs” and everyone was so excited. I had to explain that the $50,000 isnt theirs yet. You gotta jump through these hoops first and the last 4 are on fire . They really had people thinking they could retire off of employee stock purchase plans and “free shares”.
I did the math based on his equation part way into the video. According to the way taxation works based on tax brackets by TD Ameritrade channel. The max he gets taxed Federally is 22% so that would be $17,634 total so he is left with $102,366. A month, he earns $8,530.50 the combined monthly expenses is $6,500. So at the end of the month he is left with $2,030.50
yea i said (exaggerated to) 25% just to make calculations simpler
Financial advisor here - Believe it or not, his total taxes are likely higher than 25%. If his RSUs vest quarterly at $5,000, that’s total income of $140,000. Including the 7.65% FICA tax and ~5.5% avg state tax, he’s looking at close to 27.5% even when you factor in the 401k deduction.
What about State Taxes?
@@rmedal4594 Washington doesn't have state taxes
@@alextalksfinance4298 Washington does not have a state tax
hehe, wonderful, I did this math in advance and realized that it was very possible to end up with that little at the end of it but honestly $1500/month in disposable income was still so much to me that I didn't and still don't give a fuck. I love my job, I'm basically comfy, it's whatever.
comfy is the must 😊
Spoken like a true indentured servant.
@@0xdamian595 What? I legitimately don't understand what relation this has to indentured servitude unless you claim that all work is kinda like indentured servitude.
...Which is kinda true in our society, but that's fairly beside the point lol
@@somniad that's my point exactly.
But honestly, I hope I didn't offend you, if you're happy and love your work then that's all that matters, truly.
*fucks off*
@@0xdamian595 if you're living just fine, why would you care?
after covid a lot of programmers are working remote. so 120k is not too bad if u live in a low tax state and low cost of living state as well. remote working has really changed the game especially in programming industries
And the real problems come when you're allergic to peanuts.
U allergic to $$$?
😂😂😂
25% taxes? Damn, I wish I had to pay that little.
You're either making like $200k or over paying on your taxes. You should look into it. If you get a return every year, you're likely over paying.
Edit: Just thought about it. I live in a state without state income tax. You likely don't I was thinking federal only.
I make 100k and my tax percentage total is 28.5%. I think most people look at the bracket but not the real amount paid because per brackets my tax rate is 38.5%
@@darkdudironaji They might be european. Higher tax rates here
@@-souls-5989 Fair
In my place that's 47%
You: I spent $3000 renting an apartment
Also you: where did my money go?
This little skit of 3 minutes explains each & every truth of the dissection of a Software-engineer Salary.
As someone who worked the majority of his life to get a manager position in retail making awful pay. I lmao @ anyone who complains about the cost of living making six figures. Imagine making 66% less than you normally do. That's the majority of people.
I mean that's a fair point. But the cost of living for an area has to be factored in. It's why companies like EA keep closing games studios located in the Bay Area, because you have to pay them like 120k a year, if you don't they basically can't afford to work for you. It's insanity.
First, love your WoW stuff man, big fan. Second, I totally agree, however, those are entry-level jobs for a reason. I think the most efficient way forward is to pickup tangible skills (not talking about college necessarily), then take those skills and leverage them to get amazing jobs that pay better and potentially come with comprehensive benefits packages. That's what I did through intelligent capital allocation and investing anyway. Because fuck working McDonalds and Kroger lol for minimum wage.
@@DefiantFrost 120k in cali = 70k in PA, it's crazyyyy
@@eck0wns not all of those are entry-level jobs.
@@nobleradical2158 ?
The pay is good, rent is what chomps most of it. I’d just NOT live in a downtown apartment. Or get a software engineering girlfriend to share the rent cost 😂
SW engineering women still exist?
Yes, but nowadays in the cities surrounding Seattle Washington, Gas is $6/ a gallon my friend... so either way, its expensive.
@@kays3599 true
Plus having a minimal commute is where its at, I’d rather be where the action is, than having to drive an hour each way.
@@poke_champ yeah they do
Yo I've been feeling this hard. Although I spend less on rent and more on taxes. But damn, making 6 figures in expensive coastal cities really isn't all that glamorous of a lifestyle. I don't have a car, don't eat out often (and if I do it's pretty budget), don't do much shopping (my clothing is all really cheap), etc, but somehow I still end up saving way less than I feel like I should...
Although, ofc as you mentioned, maxing your 401k as a 23 year old is actually pretty insane and that is where a lot of it is going. The typical 401k balance for a 35 year old is 32k, so putting 20k in at age 23 means you're like in the top 1% of all people for 401k contributions lol.
Maxing out 401k as a 23-year-old is a great idea if you can do it. It means you'll retire with over $5 million if you keep it up.
@@Dreamwriter4242 It will not matter if the Entire Western World fails. That 5 million will be have the buying power of 25,000 by the time he is 60 if the Government doesn’t fix its spending problem. Inflation sucks and FIATs fail. I would say buy gold but the government stole everyone’s gold through eminent domain last time. So, stocks? Maybe, a market crash can wipe everything out and destroy companies. So, good luck.
@@Dreamwriter4242 and how much will 5mil be worth in 40 years?
@@vegetassj1629 more than 1 million, that’s for sure
He could save more but his budget is garbage
This video is really well made, you learn and laugh at the same time
And you also get to cry about your 6 figure vanishing into dust.😊
@@ManipulateHavoc I have never had a corporate job as a software developer.
I'm from Mexico which is much cheaper than the US but with salaries that really sucks, working remotely for an American company is the dream of every Latin American software engineer.
The fact that you have any money leftover means you're doing well for yourself. As someone who has been administrating Linux systems since 2007(desktops, and servers in both the home and remote data centers) and even has a certification but no degree I've been unable to land work in the field. I've been stuck working in retail and am barely scraping by.
There are many of us without degrees but with skills and we get hired in big tech, just focus on having a good resume and good experience 🤷🏻♂️
That's really sad dude, sorry to hear that :(
You know you have problems when you define "doing well" as "not sinking in a shithole"...
Get an AWS or Azure cert. Automation and cloud tech have destroyed your career prospects with that background. You are competing with a lot of people on way fewer spots.
@@mjs3188 I've been thinking about it. Getting the money to pay for the cert is the main issue for me.
I'd never want to live in a city. $3000 a month for housing is absolute insanity.
Yes XDD thats wayy too much rent , he could save up some extra cash by living with friends or find a more friendly budget apartment
that is how much i make in a year T_T
@@Lexillios 😦
$3k for a luxury bedroom in a nice part of town is definitely a choice. You can still live in a cool neighborhood in the city in a regular place for way less.
Financially, he'd be better off long-term buying a house than renting in a place like that.
Something fun that one of my elderly coworkers in IT told me about is that if you just pay up to your companies 401k match and then withdraw, even with the penalties applied you’d still be making money
Cut my rent, by living in a van
Cut my van, by living in a vent
camper van?
@@Nite_coder Cut my vent, by living in iran
cut my rent i’m living in a tent
This video is so accurate it hurts
Your “extra” money is more than I bring home (biweekly) BEFORE I pay any bills 😅 The crazy thing is it takes a 6 figure salary to live a middle class life in this country. I’m trying to teach myself to code.. wish me luck!
good luck
Best video ever for salary explanation!
Move to area with lower cost of living that is also an up and coming metro - buy house, save money, buy another and lease it out (and another if you can swing it), equity is your ROI. Get second WFH software engineer job if you can swing it. Pay off debt. Bank the rest. Laugh at west coast friends who stayed for peanuts.
It was honestly a better Alexa ad than the TV
Best US salaries system explanation video I have ever seen🙏
Communist USA when?
@@godfather7339 I didnt understand brother
Hahaha. One of the best videos explaining the high salaries and the corresponding taxes, rents and etc.
Funny, I worked on a cruise ship and was paid $1900 in 2 weeks, but got $1600 back after all expenses. that's $3200+ a month for me. I'm from Florida. 😅😁
This was so entertaining and funny, it's kinda crazy how the payment system works though!
god bless alexander hamilton 🙏🏽
Bro $3000 for a 1 bedroom can probably get you a loft here in Houston lol
Shoot that’s a mortgage payment (or two) if you play it right in Texas lol
3k is stupid high even in Seattle, he can easily get back 1k/yr without moving into a bad place.
@@MindDossier for a 5-7 bedroom lol
@@erikawwad7653 I meant 2k/mo, i.e. "get back" 1k/mo from the 3k/mo he's currently spending.
Yea he's wasting money when he could get a one bedroom or open bedroom in Seattle for like 1700-2000 easily
Yes the salary in this video showed that what was leftover was less than expected. But there a lot of EXTREMELY nice things that are just taken for granted in this video:
* presumably no roommates in a relatively decent apartment. The engineer is certainly not living in a dump and doesn’t have to room with somebody else just to get by
* with that car note, the engineer actually owns a car. And probably one that is relatively new and not breaking down
* the engineer is contributing $1,700 a month to retirement. Many are contributing $0
* $1,500 in basically free cash flow for entertainment
We can probably make some other assumptions that put the engineer a leg up:
* likely already has or can start to form a rainy day fund for emergencies or unemployment
* probably has decent healthcare coverage through their employment
The point of this video is that “damn, being an engineer doesn’t get you as far as you’d think”. It does get you a lot further than most though. It’s just a matter of perspective and expectations.
If this situation described in this video is bad for your standard… well 90% of America makes due with less than this. Just indicates income and wealth for the whole nation needs to increase significantly in that case.
This video was probably meant to be a joke but it was quite informative lol
Imagine paying taxes
no need to imagine. Everyone doing a job is already paying taxes. Well atleast lot of them are.
Hippity hoppity the IRS is on your property
Ya. We don’t pay enough. That’s why I do volunteer work for the government.
@@doublej42 Slave
@@doublej42 "We"? Speak for yourself buckwheat, if you want to give all your money to the government so it can piss it away go right ahead but keep your filthy hands off my property.
"P.E.A.NUTS" got me cryin' XD
This is why I didn't go to a prestigious school or live in a fancy city. I'm a millennial with a software engineering degree, 6 figure salary, never worked for big 3 company, bought a house when I was 23, remodeled it, paid it off in 6 years, maxing out retirement accounts, and I still have 5000 left over every month. I work from home so I travel frequently and I got an apartment with my girlfriend across country where she's from in that fancy, big city, because we can afford it
Do you think it is good to start working with elementor company? Im 20 years old and just started applying for jobs? Do you think this is a good start? I always wanted to ask someone with more experience than me. Thank you in advance for your answer. :)
@@jackdavidson093 do you mean working as an employee for the company or working using their products?
@@quitstalin Working with them as an employee, I've been studying for the past 2 years (HTML,CSS, javascript, wordpress and php)
@@quitstalin I would also be working remotely from a place where the rent is only 150€ a month 🤣
@@jackdavidson093 would you be working on the product directly or customizing the product for specific clients?
In my country having salary like $1000 is equivalents to be rich, usually people get about $400 or less per month and most of this money goes to pay taxes and just survive soo...you have no idea how funny it is to hear something like - after all the spending 1000$ is all that's left.
Cost of living is relative though
@@PIRATEKINGDOM yes, of course, each country has its own cost of living, and if this were the only factor, then this would not be a problem, but we should not forget about globalization, goods around the world cost about the same, and this is where the difference is felt. For example, living in America, you can afford to buy some kind of equipment for $ 300 without really thinking about it, In general salaries allow you to make such expenses. But can you also afford to buy the same product for $ 260, having the opportunity to save only $70 a month from your salary for other needs, I think not.
@@PIRATEKINGDOM if you take Quality of Life into consideration then Cost of Living in third world countries is actually higher. Min wage in my country is $275 but if you want to live in a city where you are not likely to be robbed then you must pay $1000 in rent. Technology is imported so we pay way more for phones, laptops, etc. Online services cost are not relative, we pay the same for netflix and other subscriptions. Food and stuff in walmart is actually cheaper than my local supermarket.
Are you living in Turkey too?
why the hell is TH-cam recommending me your videos when i have to just start for the computer engineering but man your videos are funny and scary at the same time
1.5k every month after all expenses seems fair
im a med student and would be in a similar situation but I decided to live with my ma and save up until I’m at least 22.
free rent, free food, unlimited mom hugs😆
Dude were practically neighbours, let's Meetup for coffee
That's still pretty good, my advice would be to expand your portfolio and do side work like teaching and tutoring skills to candidates, while working on a plan to manage future endeavors by having a project that you could sell, like how most people just sort of like to mention that they'd love to build and sell an app. But, then again, I'm not qualified to actually give advice because I haven't been programming for 20+ years. I really enjoyed the video, though. You should make more of them.
Well the lesson I learned from this video is don't be a software engineer in Seattle
So accurate. 6 figures isn’t really that much money in most places of the US. Most of the 6 figure salaries come from big cities like Seattle, NY, San Fran, and all these places have such a high cost of living.
Actually 6 figures is a lot of money in majority of places even in the U.S.. Remember the national average is like $56,000.. It's just the big cities where there's no housing competition where 6 figures is almost peanuts, and even then that depends on lifestyle.. If people didn't live above their means, they would be more than great.
Not accurate at all. Just misuse of funds.
@@Tannytkn Long past making 6 figures. Software engineer in Seattle.
@@AZ-gs6hj If that’s true I feel sorry for you. I recommend getting yourself a financial advisor.
@@Tannytkn Do you live in the ghetto? Come visit here and look at the price of everything. 100k is nothing. You can't own luxury anything with 100k.
I do a remote dev job for a NYC based company. I moved to Mexico and using the Foreign Earned Income Credit, I get $20,500 back from my federal taxes each year. The cost of living here is 1/2 of what it is in Austin. Most people don't know about the FEIE.
You can only take the credit if you pay taxes in a foreign country to avoid double taxation. It's not like you get off for free. The US has citizenship based taxation. You can't avoid US taxes by moving to a low income tax nation, but the cost of living is definitely a huge benefit.
If you were a bona fide resident of a foreign country you can take the Foreign Earned Income Exclusion, but since your earned income is not foreign and has a US source you can't take that.
The bottom line is the US is really a tax club, it doesn't matter where you live. If you want to be part of the club pay up or renounce your US citizenship (which by the way you can only renounce if you show you paid up in US taxes). Good luck !
If you can, you should probably adjust your exemptions so that your witholding is reduced by about $1500/month. Why give an interest free loan to the government. That would go a long way to solving any monthly cash flow issues and you wouldn't have to wait for a huge refund check after filing your taxes. You'd get a little bit every month by not having as much withheld.
@@daves.software the problem is that triggers IRS audits and I'm not sure how long I will be outside of usa
I'm a minimalist and not concerned about cash flow, and dealing with IRS audits outside of USA is not a hassle I'm interested in dealing with
@@trix3121 that's the common misconception. The feie is for anyone that lives more than 330 days outside of the USA no matter source of income. Many expats use this exemption. I still pay us taxes. This was a standard process and nothing out of the ordinary. Where do you get your information?
@@trix3121 you can get FEIE if you're in the country for 330 days or more.
I live in argentina, as a junior full stack full time software developer I make around 350 US dollars after tax and retirement stuff (that's before any sort of expenses or loan payoff). I'm looking into getting a remote job that pays me about the average US salary so I can one day afford to escape this shit country
Me : *Laughs in remote work.*
Great video, really explains the dilemma lol. But...the RSU breakdown was a bit misleading, most firms will have a minimum 1 year cliff so you get nothing until your 2nd year (the graphs on the screen actually showed that). So ironically this offer that had Y1 vesting is actually *really good*!
Source: ex-FAANG employee :)
For those that are saying you're doing pretty good, I understand you're saying relative to everyone else, but that just means the bar is super low for what you can have for what most would consider a high end salary. You grind hard for years to learn your craft, maybe even went into debt at university, created a portfolio, watched videos, read books and documentation, read books on skills needed to do tech interviews including soft skills, still failed many of those interviews, maybe even worked for free to get your foot in the door. Whatever it is that you did, you did with the hopes that eventually you'll be "making bank" just to end up living slightly better than before. Regardless of how good you think it is, it falls way short of what was expected by the one putting in all that work. When people hear my salary, I get told I'm rich and they look at me as a sort of go-to guy for money because I should have some to spare, which I don't really. I live the same kind of lifestyle, drive the same kind of car etc. as anyone else in my area that makes less
It's good for multiple of factors, and in this case the video kinda shows how wasteful and unaware of our own finances. Learn how banking, credit and money works.
Getting a 120k STARTING salary which is a junior role, mind you - is outstanding. Him being left with only 10% is attributable to the failure of personal finance. Shows that even if you are "book smart" you can look like a dumb ass :)
@@AzumaRikimaru What would you do different, "smart ass"?
@@AzumaRikimaru You failed to account for a lot of other outside factors such as cost of living in his general location. America is a country where you can make 100-120k and still be "poor"
Money isint always the biggest factor, sure you make only a little bit more, but it’s not a hard labor job, you get way more benefits, better hours and schedules, vacation times, etc. looking at just the money is too narrow
I love how alexa has to spell out "peanuts" for you🤣
The people who say 1500 dollars is not that bad is just a testament to how financially fucked the world is as a whole. Systems just ridiculous
If everyone had 1500 a month left over as play money, inflation would skyrocket, then 1500 would seem like nothing.
@@resresres1 dine on genetalia
@@resresres1 I'm not an economics major or anything so I don't really understand everything there is to understand about economics. Could you clarify how that would make inflation skyrocket? I was under the impression people having more money to spend would lead to a healthier economic outcome as long as it's not money from excess printing with no backing from gold or anything like that. But again, I don't admit to knowing deep analytics of economics. Just light stuff.
I'm from india. for us 1500 is a lot T_T since i only make $300 a month. Yes food and house maintainance is cheaper. But electronics , cars, rent and buying a house is too much T_T also if i have to go to the hospital im dead
@@Lexillios fuk bro
As a german i always wondered how Programmers in the USA earn this much.
And this is the best detailed Version yet
I just accepted a 6-figure salary, but I bit the bullet and decided to live in country ass Tennessee to save tens of thousands a year in living expenses. 😭 Good thing is I’m just a couple hrs away from Atlanta, so I can make a quick getaway if needed. Would y’all rather scrape by living in a big, fun city, or live like a king in excess off the same salary in the country? 😭
I’m in Altanta and prefer Nashville 100%. Atlanta is ghetto af and trash
Scrape while young if needed
I literally turned down a job in London with similar benefits because of how insane rent prices are there. Fuck this new world order.
I plan to live with a roomate so rent is halved into 1,500. 401K seems like a percentage you can put and he forgot to mention a company matches it but lets drop it to 4% so 4% of 10,000 is 400. Keeping the loans the same and removing the very variable “etc” the total is more realistically 5300 a month left over.
Damn man you set my Echo into this crazy tailspin about how much software engineers make bahahahah
If you live in CA, there is also 10% state tax 😆
It's so damn funny to watch, living in Belarus, where general salary's 300$ and programmers live like kings making 3500$ a month. It's like ALL the young people are dreaming to become software engineers and young ladies are hunting IT specialists to start a family. This is THE only leverage in our country and having 10k per month....its like a rare businessman here makes such money, even taking tax. BTW here we have 36% "social" tax (paid by the company, but say who cares, if it's still your money), 20% VAT for EVERY product, 18% income tax and in general renting a 1-bedroom apartment costs something like 200$+ (again remember the average salary).
And my country is NOT America with it's level of socio-economic development.
So yeah, for some, me included, a SE-profession is a godsent opportunity in life.
Its the only opportunity we have, that or being a doctor
3k House rent is package for millions of freshers in my country !!! It took me 3 years to reach the montly budget of 10k in INR as annual package after prolonged interview sessions .
Having RSU vest equally over 4 year is actually considered better than some. Some companies make it so that it gets distributed in exponential scale so you get near literal nothing toward when you first start out and only really get your RSU at the end of 4 year gold cuff years.
I know right, that's about as good as getting a normal salary
wow, this just made me realize how great the divide my friends and I have and it's just gonna get wider the older we get. $1k/mo leftover even after rent and a car loan? That's fantastic
Bruh that hysteric glamour hat clean as fuck
In Bulgaria a lot of people work for $1000 and it is considered a good compensation. That difference in standards makes me feel very sad.
The situation is even worse here in Greece. People can work for under 700 €...
Same with Romania. You get about 1000 euro if you a good junior and 2000 for being a senior. The prices rise considerably though.
Haha this is a point me and my friends debate all the time. I actually made a tool that compares the salaries across different cities around the world, the tax expenses, living cost expenditures, and in the end you see some places abroad have higher take home pay. That being said, the job opportunities in the US, China, and Singapore (according to Data) are unparalleled (maybe Tel Aviv). If someone wants to use the tool lmk I'll post it online somewhere and link it here.
Edit: very surprised people like it, I'll update it to reflect the most up to date data and then build a website for it then :) should be done by the end of the week
I’m in my second year of uni to be an engineer and would really appreciate your tool. I’m looking to travel for an internship next summer and have been comparing salaries around the US and world
This is how you know someone is a software engineer. "Instead of just googling and hoping I find something someone else made, I made the tool myself".
This is a great tool, a lot of that kind of data is not as easy to put into perspective like that. Would be grateful if you shared!
I would!
Damn that sounds like something fun to make! Could you show us please =D
Lol this is one of the main reasons why I changed my mind on moving to Oregon. I heard the cost of living and taxes are ridiculous!
Privacy in cities is expensive, period. And that's worldwide. It's totally doable to share a 3-bed apartment with housemates and save an extra $1-2K. Or just don't rent and buy a house that's further, but suffer a longer commute. WFH is better after the pandemic. There are always some tradeoffs.
What I do is try to work less, since the salary in a top tech company doesn't pay enough to work hard
The sponsorship should have been part of the skit thing.
It is
This was me when I got my first check. I was so SALTY
As a software engineer myself I found this to be absolutely hilarious 😂😂
This man's actually got more left over at the end of a month than I make in the same :) love this planet
This video was very informative. I appreciate the content. Real eye opener for me.
Very clear explanation and very nice new setup!
This is why remote work is the future. Make $120k and live in a huge house in the middle of butt fuck nowhere as long as the internet is good.
You are not only software engineer but also creator as well as good actor 😂😂
People saying you can only get paid a 6 figure salary in places like Seattle don’t know what they are talking about. I’m a software engineer with full remote and make 130k living in the suburbs of Chicago and paying about 1k for rent. After tax and other expenses, I can be saving 3k or more per month pretty easily. The job isn’t easy, so I see why software engineers are paid so much but anyone thinking we have it hard are privileged idiots. WFH is the easiest thing on the planet and when there is downtime you can finish chores throughout the day or be lazy af playing video games
What is WFH?
@@daseancedoesgeek2667 Working from home
@@Ultoman10 oh got it got it. Thank you
@@Ultoman10 Do you think it's better for an intern to first start working in office, and when he gathered some experience, he could hop on WHF ?
Did you go to college and have loans ??
Fellow software dev here from Texas with a comparable salary. The cost of living difference is pretty stark. It’s not always what you make but how much you keep. Like Washington there is no state tax here but rent is much lower. We own our house but including taxes and insurance it’s only $1,860/mo. My wife is a stat at home mom and we still have quite a bit left over at the end of the month (we don’t have many expenses, cars are paid for etc). As a dev you can generally work anywhere, have you considered possibly moving to a lower cost state? That and steer clear of any high interest debt.
That's a decent beginner salary. In 5 years he'll be able to make over 300k in Seattle.
This is right for an entry level offer, but it undersells why CS is so lucrative -- this is just the starting point. In 5 years 120 base + 20k annual stocks will easily turn into at least 150 base + 80k annual stocks. $$$
80% of CS graduates dont understand how to use Loops. Easy competition and I'm not even a CS graduate
@@cpK054L We talking sentinel values or nested decisions? I’m taking a Software Design class and nested loops are a little confusing.
@@davidallen234 if you have to use nested loops, Amazon doesnt want you. Because nesting loops makes the O notation exponentially longer. No bueno.
@@cpK054L You're sounding like an amateur there. You can't honestly go around saying "nested loops bad" when you don't even provide the context in which you're using them.
@@PURENT Two sum, or N sum, using a search function to return two or more indexes to equal a sum. Better?
Using nested for loops in this case makes it N^X complexity. No bueno
*cries about being broke* immediately plays an ad afterwards 🤣🤣
Just received my salary and expense bill at the same time .... peanuts everywhere :)
This is what you do…. Play the game long enough to learn the game and then think about starting your own business… either private sector or government contracting. That’s the only way to ever truly be financially free
Taxes for IT in Poland (the most common form of taxation - self-employed sole traders + lump sum):
Income tax is flat 12%; retirement pension, social security, etc. are in total ~$500 every month. And that's it.
On top of that I can buy work-related stuff without VAT (car, iPhone, MacBook, desk, etc.)
Honestly with smart investing and handling your expenses this is an amazing deal, first thing I'd be doing is saving up for a home though
Yup. That's what I did. Live in LCOL area is key