5 ms·

Now subtract 3 (or 6) percent to account for what money does under inflation (or market growth). If you don't geometric average a growth that outpaces at least

Now subtract 3 (or 6) percent to account for what money does under inflation (or market growth). If you don't geometric average a growth that outpaces at least 3%, you are working for less than you were when you started. If it's between 3% and 6%, you are being outpaced by institutional investors because your capacity for savings are extremely limited in comparison.

fucking_tragedy 8y ago
This is the only sane way to look at it. If you compare it with historical correlations between compensation and productivity[1], then things look pretty bleak. Over the last decade, engineer pay certainly hasn't kept up with increases in cost of living expenses, especially in places like SF or NYC. [1] https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fblogs-images.forbes.com%2Ftimworstall%2Ffiles%2F2016%2F10%2Fwagescompensation-1200x1093.jpg https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fblogs...