For me, that lifestyle is intentional. I could afford more furniture if I wanted it, or expand my lifestyle to be more spendy.<\/p>\n
I work as a software engineer at Meta<\/a>, earning $306,500 a year, and I live in the San Francisco Bay Area, where I moved about 8 months ago after spending 2 years in Dallas.<\/p>\n I think a big part of personal finance is choosing where to spend money and where not to.<\/p>\n Raymond Zeng in the main living room area of his apartment.\u00a0<\/p>\n Business Insider<\/p>\n Right now, I’d rather prioritize investing, travel, and hobbies<\/a> over filling my apartment with things I don’t use very much or experiences that don’t lead me to a fulfilling life.<\/p>\n On average, I earn between $7,000 and $8,000 a month, excluding bonuses and stock options, which make up roughly 60% of my total compensation. My take-home pay is generally around $4,000 a month after taxes and retirement contributions. Depending on the month, I’ll save anywhere from $5,000 to $20,000.<\/p>\n My goal is to retire around age 30<\/a>, though there are a lot of moving parts when it comes to retirement planning.<\/p>\n How I live minimally to cut costs<\/p>\n Courtesy of Raymond Zeng<\/p>\n My one-bedroom apartment costs $2,600 a month in rent, which I consider a good deal for the area. Similar apartments closer to my office can run between $3,500 and $3,700 a month. I also chose the location because it’s a five-minute walk from a Bay Area Rapid Transit station, with cafes, grocery stores, and boba shops.<\/p>\n I live pretty minimally<\/a> by design. My living room doubles as both my workspace and hobby area, and instead of owning a TV, I just use my computer since I rarely watch television. I also don’t host people often, so I’ve never felt much pressure to furnish the apartment beyond the basics.<\/p>\n My bedroom setup is similarly simple: a bed, a blanket, a pillow, and a filing cabinet that doubles as a nightstand. One thing I did splurge on, though, was a $400 bidet, which felt worth it as a quality-of-life upgrade.<\/p>\n Zeng’s bedroom is also minimally furnished.\u00a0<\/p>\n Business Insider<\/p>\n I also live without a car, which keeps my transportation costs extremely low. Most months, I spend little to nothing getting around, though occasionally I’ll spend about $30 on rideshares or public transit. Otherwise, I’ll walk or use my company’s shuttle service.<\/p>\n I try to keep my food spending modest<\/a>, too. I spend around $300 a month on groceries and budget another $75 for eating out, though my company subsidizes breakfast and lunch, so I usually don’t even hit that limit.<\/p>\n Most weekends, I spend time in VR with friends who live too far away to see regularly in person. We’ll meet up in person once every few months. In a way, it’s become an accidental cost saver because I’m not going out to bars, restaurants, or other social outings nearly as often.<\/p>\n The things I actually spend money on<\/p>\n Zeng at Singapore airport.\u00a0<\/p>\n Courtesy of Raymond Zeng<\/p>\n I spend about $400 to $500 a month on travel and hobbies, including the roughly $1,000 a year I pay in credit-card annual fees<\/a>. I use points and travel perks to help offset flight costs, and because my everyday expenses are relatively low outside of rent, I focus more on maximizing signup bonuses than earning points through daily spending.<\/p>\n That strategy has paid off. Last year, I used points to book business-class flights from Los Angeles to Singapore for my dad and me, avoiding what would have been over $5,000 in airfare.<\/p>\n A lot of my discretionary spending also goes toward the furry community, where I design characters, commission artwork, and attend conventions with the same friends I spend time with in VR. The community centers around anthropomorphized personas that people identify with and use as creative avatars. For me, it’s an outlet for self-expression that’s hard to find in my day job in tech.<\/p>\n Zeng’s “fursona” is a robot-dog-like creature.\u00a0<\/p>\n Courtesy of Raymond Zeng<\/p>\n I’m also saving up for a custom fursuit, which can cost as much as $7,000 depending on the maker.<\/p>\n Another luxury I prioritize is living alone. I know I could save more money with roommates, but having my own space is worth the tradeoff for me.<\/p>\n How I track my money and invest<\/p>\n Depending on stock vesting, bonuses, and retirement contributions<\/a>, I can save anywhere from $5,000 to $20,000 in a month.<\/p>\n I max out my 401(k), Roth IRA, and health savings account every year, and I put additional money into a brokerage account. Right now, I’m invested about 80% in the US stock market and 20% internationally.<\/p>\n I also track everything very closely. Every month, I create a new version of a budgeting spreadsheet that I designed myself. I don’t use a template because I prefer a DIY system where I can add or remove categories depending on what I need to track.<\/p>\n One of Zeng’s detailed spreadsheets to track his finances.\u00a0<\/p>\n Business Insider<\/p>\n I also keep a larger spreadsheet dedicated to taxes, paycheck projections, and investment growth. Some of the sheets estimate where I could be financially in future years, depending on investment returns and contribution rates.<\/p>\n Right now, I estimate that I could have more than $2 million invested by age 30 if things go according to plan. By age 40, I project that number could grow to more than $7 million, though there are still a lot of moving parts when it comes to retirement planning and market performance.<\/p>\n I also try to stay up to date and open with my plans for feedback, actively participating in a few Reddit and Discord communities, and sharing my numbers and plans on my YouTube channel<\/a>.<\/p>\n<\/p>\n
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