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Next up? A "kneeling tax." Amiright?
1) When Does a software engineer start financial planning for retirement since the our Career span is only 15-20 years on average. 2) How much and which schemes to invest to mitigate the risk? 3) How much do we need for retirement?
HCL Technologies Tata Consultancy Mindtree Infosys Wipro Cognizant Capgemini
Enthusiast
Student loan pause or nah?
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Need some advice. Started a few months ago a new job through internal transfer as a lead role in a bank for $350TC. Amazon Web Services keeps messaging me daily for a Principal role and I’m not really in the job market but I think I’ll go through the interview process. I was thinking of demanding the following but I’m not sure how realistic for a remote principle role this is
Base: $240k
Cash Bonus: $110k
Signing Bonus: $150k
RSU: 9,100 shares ($1m PV) in (50/20/15/15)
Does this seem possible?
Visual Storyteller
How is the heart score calculated?
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Enthusiast
I don't think I'll ever decide it's enough. Yes, my expenses are low, but I'm trying to retire as soon as possible. Fastest way there is to make more money.
I think personally I’ll always want more than what I’m making haha
Rising Star
Everything in life is a trade-off. when I'm being critical and honest with myself, i can say that given my circumstances (work experience, location, stress tolerance, etc) i will not maximize my happiness by making more money. Would i love to drive a maserati? Absolutely. Do i want to have to keep a $200k job that would support that for the rest of my working years (32 until normal retirement), no.
I've found that my trade-off number is about $80k. If i could generate $80k yearly until I die, I would be happy. I pretty much live the same lifestyle as when I made $65k, although I make $200k now.
Ah. I'm excited to tune into these answers. I've controlled my expenses since I joined the consulting workforce in 2019 ($65K + $10K signing) to now ($150K TC). When I think of the ways I want to start spending more, I'm stuck on this fictional "300K HHI" target.
Enthusiast
Can help to separate out two different things going on here:
1. Fighting lifestyle creep: It can help to calculate your true hourly rate (e.g., https://www.calculators.org/budget/real-wage.php), which might shock you. Then think about how many hours of your life you have to work to afford x. That in itself can be sobering. To up the ante, you can also look at the opportunity cost of spending rather than saving (investing) that money and missing out on the magic of compounding. That helps you focus on longer-term costs of spending, like being locked into a higher-paying job, not being free to retire/travel/whatever while you're still young-ish, etc.
2. Being satisfied with "enough" income: focus on the true costs of earning more, like stress, no time for family/hobbies/travel/whatever, not pursuing your passion, etc. Go into the tradeoffs with eyes open.
The urge to make more money doesn't go away. What changes is the things you're willing to do for it. Ideally you'll find yourself saying no to some things once you're at a happy financial place.