Benchmarking Salaries, Savings Rate and Networth

[taylorjr94]

I know it's popular for people on this subreddit to ask how much money you should have. I decided it was probably worthwhile to do what's a simple net worth over time.

15% saving rate, 4% NW returns, career progression to SM tier over 10 years.

https://imgur.com/a/vsvCLZg

edit : I get that it seems quite ideal for some. other computations I did since then :

RM2k, 2% annual increment, 10% savings rate.

https://preview.redd.it/u2dqwiah0my...ed&s=99e8541df7410f609b68c7f4c5b37b878ece3c08

3% and 5% increment (from 2k base), at 15-30-45% saving rates

https://imgur.com/a/vYZfkZe

 

[ant101]

@taylorjr94 Hmmm, the career progression seems too ideal. Probably only 10% of people will reach Senior Manager in 10 years?

 

[taylorjr94]

@ant101 Anyway, since some ppl think it's kinda ideal, I decided to do one where

RM2k, 2% annual increment, 10% savings rate.

https://preview.redd.it/u2dqwiah0my...bp&s=1fe7aac7c59841d2840a8591e136de30f49b33bd

 

[mirbaki]

@taylorjr94 This updated one is definitely more skewed, no way ur earning less than 3k by 30s - at least on average. I think it would be more accurate if you use the median data for each milestone. For example 22 fresh grad median is 2.2-2.5k then check the median salary accordingly for age 25, 30, and so on

 

[taylorjr94]

@mirbaki Lol u have the data? Happy to update accordingly

 

[seanmcc]

@taylorjr94 For BEM data, engineer with 2 years experience should be at 4000 salary. I am not sure how reliable that data is as my circles of engineer were barely at 3k after 2 years. But then, that is the only data that we have about salary average from a reliable reference.

Jobstreet probably have the data closer to my circles but I don’t know how its reflect with others.

 

[aian]

@seanmcc Fresh grad, about 2.4k.

If get 300 a year also consider good increment

 

[taylorjr94]

@ant101

https://imgur.com/a/vYZfkZe

use this instead. i just inputed a 3% or 5% increment rate.

 

[heyanne]

@ant101 Even 10% sounds overly optimistic....

 

[pmmg]

@taylorjr94 Nice work bro. But if I follow this benchmark I am poor af lol.

 

[taylorjr94]

@pmmg maybe u just not counting your NW properly

nw includes cars and property

 

[marycris]

@taylorjr94 nw include debt too.

 

[pmmg]

@taylorjr94 Haihhhhhh

 

[paisleyann]

@taylorjr94 Looks good, but consider most people doesn’t graduate at 22.
And you sure company still willing to pay you so much after 50years old ?
Increment probably merosot d after you cap at 13k the most.

 

[taylorjr94]

@paisleyann By the time u reach 50, 13k isn't worth all that much

 

[paisleyann]

@taylorjr94 Ok fair deal about inflation.
But at least in local, I don’t think people value those old folks after certain ages.
Unless lack of resource in market, otherwise most company won’t even put you in important task and excuse to lower your paid/increment after you reach certain age.
Depends on sector, probably 40 for mine.

 

[taylorjr94]

@paisleyann By the time ur 40 u don't expect to be mgmt rank?

 

[paisleyann]

@taylorjr94 That’s the problem with local market here, everyone final goal is mgmt regardless of profession.

If we don’t choose to go for mgmt roll we will cap at increment and company not likely welcoming high ages executive.

Specialist or experience like not a thing at all here.

Unlike oversea where some people have choice to continue their roll regardless of ages

Ended up we got so many incompetent manager all just taking salary and do nothing related to their roll.

Topic aside, ya I understand what you saying, just in my opinion kinda meaningless because the graph too ideal.

Achievable, but I personally don’t take it as a benchmark of success.

P/s: for myself, I’m still higher than this graph benchmark, just I don’t feel so right about this way of benchmarking because it’s provided that we go to mgmt, but how the pyramid maintain if everybody also mgmt.

 

[taylorjr94]

@paisleyann

If we don’t choose to go for mgmt roll we will cap at increment and company not likely welcoming high ages executive.

Specialist or experience like not a thing at all here.

Unlike oversea where some people have choice to continue their roll regardless of ages

Most technical specialists go become freelancers/consultants. so it's whether by the time you are in your mid 30s, you are able to have market knowhow and contacts to be come a freelancer. Bill the end client for your time, and that's how you make good money since you cut out the middleman.

I know and work with a few engineering consultants who earn 300-500k per year, as technical advisors/specialists in O&G, electrical and manufacturers. Even their part time workers charge per hour and they get paid a lot.

 

[paisleyann]

@taylorjr94 Well, i work as engineering too, but at least that’s not how my field works.

We don’t have career path such as consultant.
The best we can do is ya get our own business, start from part time maybe, a lot that I know doing that and I know the profit is good too.

But however, tbh if by doing part time only or in another word of saying, without a huge fund background(usually a medium company scale at least) the best project you could get is actually kecik manik and it maybe can bring profit to you at short time but you can’t really learn something or grow from there.

Ended up the best is either you only able to eat up those leftover or, you better start up a company by yourself and try to make it big.

Either way of that is actually going for entrepreneurs route already which quite against with what I want as a technical path.

In short, just the way I’m looking for so far have no future grow (kena cap) in Malaysia at least.