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Hi fish what your thoughts on ascend program which is happening in globallogic for 2.9 year experience, for me they are offering package of 7.3 lpa this is going to be the my first switch as per my current package they have given almost 70% hike also I also asked for same. When I see people of my experience getting 12-15 LPA It seems I have to consider other options also I am serving notice period. Please suggest. GlobalLogic
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@BCG1 50% is pretty impossible in a high-cost city aka New York
I hate thinking about it as a percentage - percentages are for rules of thumb. build a realistic, minimalist budget in fixed dollars (budget in reserves for computer, phone, vacation, etc). Add $100/month to that for play money as a reward, and direct deposit that amount into an account connected to your credit card, atm, and checkbook. the balance should direct deposited into another account that is only connected to investment accounts. That way:
1) saving is automatic - you don't need to pinch pennies unless you're going to overdraw - no need to itemize your monthly Spending unless something goes wrong
2) your bonus and promotion will 100% go to savings unless you conciously decide to increase your quality of life
If I spend less than my budget, it builds up and I use it for vacation/laptop/phone or play money. If I spend more, I try to find a way to cut the money the next month before my credit card payment is due - I've never had to take money out of savings to pay my credit card over the 4 years I've done this.
If you do the math, I spend $30,000 per year and the percentage of my pay spent goes down with every raise. The balance is invested. Im used to my budget and comfortable with it, so I spend more time thinking about how I invest than how I spend.
Lastly, as a check, project your current savings rate with a reasonable investment return and see what age you'll retire. Wealthfront has a great calculator for this - modify as needed to hit your goals.
The system still Works if you spend more too. Just try to decrease your budget over time.
The 'you'll make more in coming years' idea is a really good way to get stuck in the rat race and never be financially free. Studies show that people aren't happier after a threshold of about 70,000 annual income (adjust for location). Enjoy your life - you don't need to penny pinch, but Be smart, have a system that lets you meet your financial goals and makes you happy in the present, and that way if you have some really bad cases you firm doesn't own you - you can leave and take a pay cut to do something you will enjoy again without worrying about how you'll make it work in your budget.
50% min after tax
It's really not hard
Does the 50% include Roth contribution?
Yes. Also consider after tax 401k to increase Roth eligibility- Google mega backdoor roth
Recent law school grad with $92k in student loans and $750/mo rent
I contribute 12% pretax to 401k; then another ~24% split between savings and IRA; ~26% to student loans
I could never get by spending 30k per year. Good on you, BCG2. I really need to move somewhere cheaper than Boston.
Also that number would definitely go up if I wasnt traveling 4 days per week ;-)
Live life as you wish without the unnecessary focus on savings (eg 50%). You’ll make more in coming years than you do today.