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Ask HN: How much do you save in the SF Bay Area with $120k salary?

59 pointsby symboleproover 7 years ago

14 comments

jcimsover 7 years ago
I'm going crazy trying to sort through this. Got a job offer with one of the big bay area companies. $140K base + bonus/stock to get to $210K. Doesn't seem like enough to move my family there from the midwest, so I'm about to say no because I can't make it work (while saving for retirement/paying for college/etc) on $200K per year? WTF?
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patapscoBMover 7 years ago
Apologies for the throwaway, and numbers are rough<p>$140k:<p><pre><code> - 1500&#x2F;mo in 401k - 6200 after-tax, after 401k income - 2800 savings from after-tax income - Total discounted savings&#x2F;mo, roughly: 2800 + .85 * 1500 = 4075 </code></pre> Is the bay area cost of living expensive? Absolutely. But I&#x27;d argue if you&#x27;re a generally frugal person you&#x27;ll save more (in absolute terms) here than anyplace else. I doubt I could get much above $100k anywhere else but NYC.
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tedsandersover 7 years ago
I spend $1150 on rent. $100 on utilities. $300 on food. $150 on transportation. Plus a few hundred for annual expenses of flying home and buying new clothes. Adds up to a little over 20k per year.<p>Plenty of families in the Bay Area earn less than $120k and get by. I feel very fortunate to earn more.
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nicolashahnover 7 years ago
I live in San Francisco and have made 120k for the last year (just recently got a raise to 130k). I don&#x27;t have a family to support, and live with friends renting a bedroom for 1600&#x2F;mo in a 4br in Bernal Heights (I prefer to live with people, so not having a 1br apartment downtown helps a lot).<p>My take home is around 77k annually and I got about 1300 back from taxes last year. I eat out&#x2F;go to bars a couple times a week, but mainly try to cook for myself. I have a few hobbies that eat money and I end up spending a couple hundred at least every month on them. I travel every 3-4 months, have gone to Seattle, NY, Vancouver, LA in the last year.<p>With all this I&#x27;ve still saved somewhere between 30-35k. I also bought a motorcycle with all the crap that comes with that (gear, insurance, parts, etc) in that period, so if I hadn&#x27;t then I&#x27;d probably have another 8k or so.<p>I honestly make more than enough money to live comfortably and when I moved to the city I was only making 80k and my rent was the same. I still felt I had enough to live comfortably but I wasn&#x27;t able to save nearly as much.<p>120k will be fine as a single person in SF. If you have a family maybe not.
orange_countyover 7 years ago
Make 110k, take home around 4800 month after taxes and maxed out 401k.<p>Rent $1600 in SF (lucky here). But I still have over $2k month after all expenses. As a single person, I consider myself fortunate.<p>People will complain about living expenses but they need to calculate the income - expenses plus what the area you want to live in. City living isn&#x27;t always a viable option for people. Whereas some people love it.<p>I don&#x27;t think I can find any urban city that I can live in and find myself in a situation where I can bank more than $2k a month after expenses and maxed out 401k.<p>SoCal was an option for me. However I hate the suburbs, hate having a car and the salaries for new grads were 50-80k where most rents were still at least $1300.
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trjordanover 7 years ago
Unfortunately, you&#x27;re not going to get an exact answer here, because everybody&#x27;s lifestyle is slightly different. However, you can guess what&#x27;s going to be the big changes in your budget. I think there will be 4:<p>1) Your take-home pay will change. Use a calculator for you exact number, but according to [1], a single person will take home about $6,400 &#x2F; month.<p>2) Unless you live in Manhattan, your rent will dramatically increase. Like everywhere, there&#x27;s a huge range. Want to live in Oakland with a roommate and bike to BART? You could probably find $1,500 &#x2F; month. Want a new construction 2 bedroom downtown or close to Caltrain on the peninsula? $5,000 &#x2F; month. Houses can easily run $8,000 &#x2F; month with mortgage + taxes if you can scrape together the $300k down payment. Look around on Zillow and ballpark it.<p>3) Eating &quot;nice&quot; food out isn&#x27;t cheap. There&#x27;s plenty of good, cheap eats, but if you&#x27;re thinking date night, it&#x27;s easy to drop $120 for 2 people then go off and order half a dozen $8 beers. The high end is really bad -- there&#x27;s a bunch of amazing restaurants that are $75 - $100 for 6-8 courses. If you&#x27;re moving from a small city, these simply don&#x27;t exist. This might be a shock if you&#x27;re used to eating at &quot;the best place in town&quot; for a special occasion.<p>4) Depending on where you are in life, there&#x27;s a bunch of family-ish things that can really eat up a budget. Dog walkers are $20 &#x2F; day. Infant day care is $2,000 &#x2F; month. Getting around is kind of a pain if you don&#x27;t exclusively live, work, and play in the city, which can be fixed by giving Uber $25 &#x2F; ride. And unlike other cities, there isn&#x27;t anything that&#x27;s remarkably cheap (e.g. when I lived in VA, groceries were like half the price I expected. It was great.)<p>Ultimately, though, a lot of people make it work. The networking and career attitudes in tech are unmatched (I moved from Boston at age 30), the weather is great, and it turns out that a bunch of my friends who I thought had disappeared had just moved out here and they all hang out.<p>If you&#x27;re just in it for the money, it&#x27;s a close call. Your best bet is to work out here between age 22 and when you have kids, then move somewhere affordable with the $5mil you made during that time. But that&#x27;s not exactly why I moved here -- I&#x27;ve learned more in the last 2 years than I thought possible, and I&#x27;ve fundamentally altered the arc of my career. I may leave at some point, but I&#x27;m glad I moved out here.<p>[1] <a href="https:&#x2F;&#x2F;smartasset.com&#x2F;taxes&#x2F;california-paycheck-calculator" rel="nofollow">https:&#x2F;&#x2F;smartasset.com&#x2F;taxes&#x2F;california-paycheck-calculator</a>
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sjsweover 7 years ago
At $115K, I take home about $5.5K&#x2F;month, of which I save about $2.5K.
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matchagauchoover 7 years ago
It&#x27;s really a housing and commute question. Living one hour away from work can reduce cost of living by 25%.<p>But quality of life with that much commuting (?) :-&#x2F;
sladover 7 years ago
Interesting comments but curious to know from the perspective of racism and related issues. As an Immigrant from India, and Living in California (for over 10 years) at this time seems to be best bet from that perspective.<p>With expanding family, I have been contemplating a lot to move outside of CA for cost saving but thoughts about racial issues plaguing the country just makes me nervous.
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simplydtover 7 years ago
I don&#x27;t live there but saw this and thought it might help (shows salaries around the world adjusted for cost of life, I found it accurate for London and Berlin).<p><a href="https:&#x2F;&#x2F;www.codementor.io&#x2F;blog&#x2F;best-cities-software-engineer-earnings-271vpf599k" rel="nofollow">https:&#x2F;&#x2F;www.codementor.io&#x2F;blog&#x2F;best-cities-software-engineer...</a>
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twobyfourover 7 years ago
I&#x27;m shocked by some of these answers. Is SF that ridiculously expensive these days?<p>For reference, I was saving 50% of take-home on a $90k salary three years ago, living without roommates in a nice neighborhood in NYC - which isn&#x27;t exactly known for being inexpensive.<p>What do you spend that much money on?
et-alover 7 years ago
linkregister had a conservative breakdown of a fresh graduate saving $1k&#x2F;month:<p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=13010868" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=13010868</a><p>Numbers are from a year ago, but rents haven&#x27;t increased too much since then, and we had assumed the grad&#x27;s salary was $100k.
maxwinover 7 years ago
would be curious to know take home pay (120k minus tax) as well
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Maroover 7 years ago
Hey, I was in a similar situation 2 years ago when I had a similar offer from one of Facebook, although in the high-cost European city of London. Pros:<p>- you will learn a lot at these companies<p>- you will work with very smart people, which is a great experience<p>- your expectations (toward yourself, your peers, the product you&#x27;re working on) will be torn apart and recalibrated at a much higher level, which is a good thing<p>- working on products that are used by 100s millions &#x2F; billions of people is a positive human experience because you&#x27;re helping give people services that improve their lives (buying books so they can learn to program, building products so they can keep in touch with their loved ones, helping them find information on the web, etc.)<p>But, keep in mind:<p>- these are big companies, so the peopleware is slow: getting promoted takes time and depends on a myriad of factors outside your control; don&#x27;t _count_ on it [in the first 2 years]<p>- the signing&#x2F;relocation bonus won&#x27;t be around in year#2, so dependending on how much of a refresher you get, you could make less in year#2<p>- stock prices fluctuate! it could go down 30% (as well as up 70%) in the next 9 months; as a rule of thumb, make sure your base salary covers living expenses<p>- as a rule of thumb, assume your refresher grant will be 1&#x2F;2 of the initial stock grant, and has the same vesting schedule; use Quora to get more details on your specific company, or ask a friend who works there<p>- be sure to use the correct tax rates (also for stocks) when net&#x27;ing the offer numbers (look out for federal and state taxes, income vs cap.gains)<p>- if you&#x27;re a software engineer, the offer numbers seems a bit low vs your 20 years of experience for SV, esp. the stock part<p>--- either this company pays less than others or they&#x27;re under-leveling you<p>--- if you care, ask your recruiter what level they put you at<p>--- there&#x27;s rational reasons for these big tech companies to under-level people with lots of experience, which is that they have their own internal stack and ways of doing things, plus they&#x27;re very good at spinning people up in their bootcamp programs, so they don&#x27;t care _that_ much about prior experience<p>- if you take the offer, you will probably soon meet people at the company (or in SV) who are doing roughly the same job as you are, are a _lot_ younger, but have _significantly_ better packages because they had better signaling (went to top uni, had competing offers); depending on who you are, this may end up bothering you<p>Another thing to consider: many of these companies also have offices in the US, but outside of SV, eg. Seattle, Washington, Texas, NYC, where I believe they offer roughly the same packages, but cost of living &#x2F; commutes are much more reasonable.<p>Good luck!