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This is assuming you never lose a job or can get a new one to replace current one easily. When market downturns, those equity based salaries will go heavily discounted, and you might not be able to afford mortgage anymore.

People overestimate their max credit payments... And financial system incentivizes that (why wouldn't you borrow from 401k? It's just your retirement savings)


Which are great reasons to be responsible and run a large emergency fund, or be responsible and make 450k combined before buying the house. But not reasons to make 900k.


400k- taxes = 270k for joined filing

Monthly expenses = 3k mortgage+ 500 property taxes + 2k daycare for one child(or 529) + 1.5k for food and other = 84k

Without compounding interest you need 10 years to get 2m, and these salaries are for 5+ or more years of experience. (And you need down payment, etc.).

Living in those areas is expensive.

If you are making 500k, that's a different story :-)


people never factor in healthcare into this calculus.


Yup, I forgot about it. 7-8k max out of pocket (in-network) for family. In some companies there is also some payment for the health plan out of pocket. But the diff here is that on HSA plans the out of pocket comes before taxes.


Having worked as software engineer for big it companies, the job offer looks like a contract - are you referring to something else than a written job offer contract?


Yes. Ask a senior executive in your company if you can see their employment contract. Doctors and lawyers usually have written contracts tailored to their specific requirements and responsibilities. Professional athletes would never work without a contract.


Might be a dumb question, but I am not a native speaker: What is the difference between a written contract and a job offer?


A job offer is an agreement for $x compensation for x hours worked.

A contract specifies what that work is and is not. If it's not in the contract and I don't do it, well that sucks, for my employer. Without a contract I could be fired for cause.


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