Comment by Arainach | Hacker News Reader

Comment by Arainach | Hacker News Reader

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> If you graduate college at 22 making $200k/year and never get a raise; $1m by 30 should be no sweat.

Citation needed. Just back of the envelope, you're looking at $52K in federal taxes. To get that kind of starting salary you're almost certainly in CA, NY, or another high COL area with state income tax, so let's take another $15K. If you live in a car in the parking lot and eat work-provided meals every day and save every penny, you're at $133K * 8 or just barely over a million.

But rent's not free, nor is it even cheap. Even if you split with roommates the whole time, you're probably looking at $12K a year in rent or more. If you live a life of abject poverty you could perhaps meet those thresholds, but what's the point? Throwing away the best years of your life where you are almost certainly at the peak of your health, attractiveness, and ability to meet other people for the hope of.....subsisting in the future?

For one, you don't just toss that $133k into a savings account at the end of every year to just let it rot. You invest it and have it grow with compounding interest. You'll be amazed at the difference that makes to your calculations.

I claim you can save $100k/year on a $200k/year compensation. SmartAsset pegs you as right on the money as $133k take home. Let’s say you live in a $1400/mo place like I did for years (no roommates, but how often are you in your place in your 20s anyway?), that’s $17k a year. Now you’ve got $1300 a month for food and luxuries, and $100k/year going into investments. That is not roughing it. If you hit a financial rough patch you sell a little stock. If the market does 7% inflation adjusted per year (its average for the last 50 years), you end up over a million in the first eight years without a problem. And again, this is assuming you never get a raise or a bonus.... anything extra is gravy.

To add to this, what if the person wants to date, or have children, or even have a reliable car? What if they have student loans to pay off? Etc.

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