DEV Community

loading...

How to make a nice high dev salary into not as much, frugally

Jay R. Wren
jamming with the cowboys in cyberspace since 1995 coding basic on Atari 800XL since 1985
・1 min read

Let's say you are senior and have a lot of experience and make well above the average salary and you aren't located coastal where everything is in a bubble. Let's take a nice round number, $150,000 salary.

  1. Max out your 401k. -> 150 - 19 = 131
  2. Max out your IRA AND your spouse's IRA. -> 131 - 12 = 119
  3. Max out family HSA. -> 119 - 7 = 112
  4. Max out ESPP @ 10% of your salary. -> 112 - 15 = 97
  5. Save $3600/yr for child's college. -> 97,000 - 3600 = 93,400

Wow, 37% ($56,600) of income is going to saving for the future and 68% ($38,000) of that is before taxes.

I was reading this post by Troy Hunt https://www.troyhunt.com/10-personal-finance-lessons-for-technology-professionals/ and I realized I wanted to know my own numbers and so I ran these myself (These are not exactly my numbers).

Discussion (0)

Forem Open with the Forem app