Everybody welcome to the next video.
We're going to be going over salary requirements.
Now it's important to make sure that you don't skip this step especially if you're coming from East
Coast going to West when you're coming into Silicon Valley or any where in that area the cost of living
and salaries are really inflated out here and it might look really good at first because you're like
on the maybe you're on the East Coast making twenty forty thousand dollars and all of a sudden somebody
offers you 80 90 100.
Hundred and thirty hundred forty thousand over here.
But it's important to keep those the distinction of cost of living into effect.
I'm going to show you kind of realistically what you can expect.
So the first thing you want to do is take a second and break down your your current bills.
Right.
So let's say your current bills equate to let's say roughly with not including rent just everything
that would move with you such as insurance car payments loans you know whatever the case is let's just
say that's three grand.
So three thousand dollars your current bills and your rent is irrelevant at this point but you have
your bills of three thousand will even say you guys and making say current salary current salary is
let's say fifty thousand a year.
Right.
We use Florida as an example.
So state Florida right just so you can get a better idea from east to west coast current bills with
this and let's say you're your rent at the end of the day is fifteen hundred right so taking a look
at this year you're forty five hundred or so.
Total forty five hundred and let's take a look at what your salary is at the end of the day.
So if we do a paycheck salary paycheck Citi has a good salary calculator that we could use.
So good news that one so we'll do Florida.
Let's say you're making fifty thousand annually and you're getting paid biweekly so go and calculate
that comes out to fifteen hundred sixteen hundred now fifteen hundred fifteen hundred every two weeks.
So total comp is three K which actually will have to change the cost of ownership near now.
We'll make this a little bit more realistic for the East Coast for fifty thousand.
You're probably budgeting we'll say two thousand.
No play a thousand right.
So twenty five hundred total twenty five hundred.
So it leaves you left over five hundred.
Right member just giving some base numbers here.
So what is our percentage of.
Hey at the end of the day.
So if we do five hundred divided by three thousand of total comp so we have left over 16 percent.
Right.
So left over is 16 percent.
Last percent.
So 16 percent and the reason this calculation right here is important is because when you start looking
at the Silicon Valley prices you're going to have to keep this stuff in mind as percentage when the
salary grows.
This will grow or this will stay as long as you keep your cost of living the same such as rent is X
amount of your salary.
So let's say you've got your thousand dollars a month going out for random stuff.
So let's say we've got an offer in hand for California for let's say realistically let's say the market
cap actually will do this.
So if we do the market let's take a look at Google security engineer salary X we can use Glassdoor to
identify a common salary range so we can see here average base pay.
You can see that their stock bonuses cash bonuses which will go over in a minute but we'll say 120 is
our is our base right.
One hundred twenty thousand annually in California.
We'll assume you're single comes up to three thousand.
So now we're at six.
So NCA your current salary is now 120.
Right.
So current bills is still the same.
And rent you're going to if you're looking for a one bedroom anywhere near the area you're probably
looking at twenty five hundred easy maybe even thirty five hundred.
So it depends.
So taking that into consideration you're probably you're looking at thirty five hundred thirty five
hundred total and then total comp was offered up to six thousand right here.
It definitely has a little bit better of a look.
However keep in mind that a lot of people don't keep the same lifestyle they get a nicer car they get
more debt.
Whatever the case might be and the leftover at this point which is significantly more will be twenty
five hundred and I don't know percentage that is it will do twenty five hundred six thousand and comes
up to forty one percent left over forty one percent.
But as you can see this this looks great.
If your bills are that's when you start adding this year maybe your bills are fifteen hundred or two
thousand dollars.
Then this starts dropping really really quickly but as you can see if we do a quick calculation of six
thousand times 16 percent so you can see that the amount of percentage left over from your original
position would have been five hundred but now over in California it's nine hundred and sixty instead.
If you keep the same your rent was x of your total comp after after taxes and your bills were X over
comp after taxes to be scaled.
Everything exactly.
You would end up having this leftover instead which is not much.
So we want to take you want to make sure that the salary that you're aiming for makes sense.
So with that out of the way we got some of the maths out of the way.
Like you said if we look here there's we've gotten our average salary for the area that we're looking
for right.
And there's all these related salaries as well based on the base in the areas you're looking for so
we'll look at all security engineer salaries and we'll say San Jose California.
We'll do that.
We have a better idea of the salary ranges so you can see here we're looking at 116 to 150 120 to 130
depending on the company.
But you could see that we're looking between one hundred and probably one thirty is is where you're
realistically going to end there's a few that are creeping up to the higher end and I've seen know ones
go from 170 all the way up to to 20 when you start getting into different levels.
So understand the salary in the area that you're looking for and this is not just for as an example
of California in the valley but you can look for this anywhere New York doesn't matter.
Make sure you look at the average rent out there for what you're looking for.
I can speak for Silicon Valley that it's a little bit more difficult to find a house out here because
if you're looking for a house you're easily you three thousand five hundred four thousand four thousand
five hundred a month and I'm talking for like a one bedroom and maybe two tops.
If you don't purchase and some of the purchase price is out here for you know on the East Coast you
might spend one hundred and fifty thousand dollars for a house maybe a hundred and twenty thousand for
something that's six or seven hundred thousand over here.
So keep in mind that there's there's a big difference but the salaries are much higher.
While you can come out of school making this keep in mind that the cost of living does take its toll
when you start looking at stuff like that.
But what I want to talk to you about really quickly is when we look at a base pay or a salary you're
going to there's going to be they're going to reference something called base now.
Base is what you're going to actually be taking home at the end of the year before taxes.
That's the important bit because they might say total compensation might be let's say this is to assess
let's round this up to 20.
So that says it's you know 140.
So at next 30 170 so they might say your total compensation is 170 like.
Great.
I'm making a hundred seventy thousand year kind of.
Your base is one twenty three.
You're getting over the year you add you'll probably average about twenty thousand dollars in bonuses
maybe and then you might have 30 grand in stock options.
Now make sure that they break this down for you because you might go one hundred seventy and then you
might go over here in the paycheck calculator and just go.
OK.
Yeah.
Make a move to 70 annually biweekly California boom.
That makes me much happier.
That's not how this works.
If they say 170 base then this makes sense.
But make sure you understand that what they're what your base is because most recruiters are right off
the top are going to tell you they're a good recruiter they'll tell you this is your base.
This is your average bonuses and this is your stock options.
And then this is your total comp a lot.
There's there are recruiters out there.
I'll say this is your total cop.
Do you want to accept it.
And they'll say I want 70 but if you're just looking at it and thinking that your base you're going
to end up biting yourself really hard on that one.
So always make sure you separate the base any bonuses and then stock options or however else they do
their benefits package.
You understand what you're actually getting and not what it looks like you're getting.
So make sure you do that additional research because they're going to ask you what you're looking for.
Which will have a whole video on whether or not you should specifically talk to them about this.
But just keep that in mind you're gonna want a number in your head that you are that you are willing
to accept especially just because you make fifty thousand or forty thousand thirty thousand somewhere
else and you get it and you're starting to look in the valley.
It's very easy to come up to one hundred hundred and twenty without going into too much experience.
So make sure you understand what you're asking for.
Don't overshoot it don't undershoot it just find the market medium but something you're willing to accept
will go over this a little bit more in detail in future videos.
But just know what the average is roughly for the area that you're looking for and the position you're
looking for.
Also make sure you change years of experience a level one to three senior staff senior staff probably
director and above.
So you're looking at like a level three or so you want to make sure you do that extra a little bit of
research to find out what the additional 60 now your base pay is roughly which is probably wrong four
to six years experience at a heart and 20 doesn't seem right.
You're probably looking at one forty one fifty ish base pay.
And then these might be your cash incentives so you're probably looking at just over two hundred total
cop and you take that down a step further as an example.
You can see eventually gets to a point where there's no reports because people aren't reporting them
nearly as high as the base 1 to 0 0 to 1 2 to 3 as an example makes you understand your salary what
you're willing to accept what's realistic for the market and your experience and you should be good
to go.