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How much $$$ do you really make?

dud

dud

Diamond Member
Just curious ... we see multiple threads where people discuss their salaries. Some brag of six-figure incomes. This is all great but how much do you really make ... as in your NET pay? We have deductions for taxes, insurance, Medicare, our 401k, etc. that tend to make our gross salaries seem irrelevant. While gross pay is most talked about ... we hardly ever talk net.

So here is the question: For every dollar you make (gross salary), how much do you actually get to spend (net salary). This number (NET pay/GROSS pay) will vary by state (taxes) and other factors.

Mine is $0.64. Bummer ...
 
When I ran the numbers it hovered around 0.63$ CAD after taxes, pension, union, etc. If you make more money it goes even less on the dollar.
 
Currently, I get 73 1/2 cents for every dollar I earn.

That seems shockingly high by Connecticut standards. I wonder if my tax deductions are configured right.
 
So I have access to a 403b and 457 and contribute heavily to all my tax deferred options. I'd argue that I get to spend that money since I'm buying things with it. But still taking those into account we're at $0.61
 
Not really pertinent if people have different philosophies on choosing deductions. We don't max our 401k, although after realizing we now owe $7k for federal, we now have to.
 
After taxes, health insurance, HSA, 401K, and so forth, my take home pay is 42% of gross. Some of the HSA comes back to cover expenses so maybe 47% of gross is more accurate.
 
I'm trying to save as much as I can as early as I can for retirement, so my net to gross comes out to be around $0.45-0.50. That number does not include housing expenses or any sort of bills. Depressing really, for all this talk about how much higher European taxes are compared to US, once I run my numbers, once I add all the property and sales taxes, healthcare expenses, retirement contributions (since no pension is available to me), it really doesn't seem like I'm paying that much less in taxes.
 
fleshconsumed said:
I'm trying to save as much as I can as early as I can for retirement, so my net to gross comes out to be around $0.45-0.50. That number does not include housing expenses or any sort of bills. Depressing really, for all this talk about how much higher European taxes are compared to US, once I run my numbers, once I add all the property and sales taxes, healthcare expenses, retirement contributions (since no pension is available to me), it really doesn't seem like I'm paying that much less in taxes.
Click to expand...

But are retirement contributions really an expense? I know the taxes paid before putting the money in a ROTH are, but if you follow the rules, you won't be taxed on the gains or withdrawals. To me, this is savings and not an expense.
 
If you're not looking at gross pay then you're doing it wrong. Pre-tax retirement accounts matter. If you make good money and can afford it, then maxing out a 401k each year would be the way to go. Some people like to defer taxes until filing where deductions can eat away on the money owed. An HSA can be a good way to offset taxes. There are many ways to do it.
 
Cepak said:
But are retirement contributions really an expense? I know the taxes paid before putting the money in a ROTH are, but if you follow the rules, you won't be taxed on the gains or withdrawals. To me, this is savings and not an expense.
Click to expand...
Not sure what you're trying to say. Ultimately In my mind retirement contributions are the same as SS taxes. It's money that I give up now in exchange for retirement income later. Point being, I don't see this money in my wallet now. And yes, you don't pay taxes on 401K contributions now, but you'll pay them when you start withdrawing from 401K, you're still going to pay those taxes, you're just deferring them until retirement.
 
I get paid every 2 weeks
Gross $5288.33
Net Pay $3084.63

So 58 cents take home per every dollar.
I max my 401k to its limit, so I contribute 13%~.
 
66 cents but that's after health insurance, monthly transit pass, and 401k contributions. Also does not include Roth IRA contributions.
 
dud said:
Just curious ... we see multiple threads where people discuss their salaries. Some brag of six-figure incomes. This is all great but how much do you really make ... as in your NET pay? We have deductions for taxes, insurance, Medicare, our 401k, etc. that tend to make our gross salaries seem irrelevant. While gross pay is most talked about ... we hardly ever talk net.

So here is the question: For every dollar you make (gross salary), how much do you actually get to spend (net salary). This number (NET pay/GROSS pay) will vary by state (taxes) and other factors.

Mine is $0.64. Bummer ...
Click to expand...

I max 401k, roth IRA, usually HSA as well. Then taxes and HI are taken. I bet my actual take home is close to .50 for every dollar made.
 
Cepak said:
But are retirement contributions really an expense? I know the taxes paid before putting the money in a ROTH are, but if you follow the rules, you won't be taxed on the gains or withdrawals. To me, this is savings and not an expense.
Click to expand...


Contributions are NOT an expense in this scenario. I was just wondering how much we actually have left over after all deductions and contributions.
 
Net pay after taxes and ss/medicare = 78 cents on the dollar.
Take home after contributions to 401k and HSA = 65 cents on the dollar.
 
My take home, as in what is deposited into my bank account, is just under $8k/month. I think I put in like 12% into my 401k too and my company puts in another 8%. I also contribute to my HSA. My company covers insurance for me and my family 100% although we're on a high deductible plan. Adding in my wife's take home we're up over $10k/month.
 
My take home is around $0.54, $0.75 with 401k contributions added back in. These figures include SS, dental, and health insurance as expenses or "taxes".

What's more important than what you take home is what you save vs. spend. You can live ATOT-baller style on any salary.
 
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