So now that it's after Christmas, I hope you all had a very merry Christmas.

Now that you spent a lot of your hard earned money on gifts for your friends and family, I'm sure you're searching Google.

You know what is the most paid city for software engineers?

Where can I make the most money?

And you're probably going to be stumbling upon San Francisco, New York City?

You know some of those very popular major cities that have software engineers but wouldn't catch you by surprise if I told you that the people who live in San Francisco and New York City don't really make the most money like they may have the highest salary, but they don't make the most money.

It's an interesting thing Googling stuff and kind of taken everything at face value.

That's kind of what I was trying to go over and a video that I made earlier this year.

Salary ranges, a computer science major where I said she told you that the average salary for a software engineer, e data scientists or a systems analyst isn't what you're gonna be getting paid right out of college, just like salary wise in terms of how much money you actually make the average salary, Even if it is the average salary you make, it may not mean you're gonna be living this lavish lifestyle that you would think getting paid 135 $150,000 a year and every industry you could be doing the same exact job.

But if one person lives in New York City and the other person lives in the media middle of Wyoming, you're going to be getting paid different salaries simply because the cost of living in New York City is much higher than that of a place like Wyoming.

This is no different in the software development industry.

You're gonna be getting paid a higher salary living in San Francisco.

Then you would living where I live and Hampton Roads.

In order to prove this theory, we're gonna take a deeper dive into what software engineers actually make in San Francisco.

We're going to take the formula that we created to mold what they actually make, and we're going to apply that to other cities like Seattle and other popular cities for software engineers.

But for really get into any of the details, I kind of have to to do my spiel If you're new around here, subscribe.

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But first we have to define what I mean by how much software engineers actually make.

And this is decision to formula have come up with true earnings, which is what they actually make.

Equal income minus taxes minus cost of living.

The average annual salary for a software engineer in San Francisco is $136,000.

That includes everyone from entry level sulfur engineers all the way up to senior cell for engineers.

However, when we apply our equation, when it comes to taxes and cost of living, it paints a little bit of a different picture for taxes.

We need to take federal tax, state tax and fight attacks into consideration.

Vikas.

Social Security Medicare.

Your federal tax on $136,000 salary is 24,000 and $50.

Your state taxes $9492 in your fight attacks is $9993.

So after taxes, you're left with $92,526 of take home pay.

And if you ask me, that's still a pretty good chunk of change.

However, when it comes to cost of living there a few things to take into consideration, I may not be listing all of them, but a few of the big ones rent, transportation, food, utilities and health care.

And in all honesty, I was actually gonna record this video, including all of those inside of cost of living.

But since everything is so variable, we're just going to go over some of the percentages for, say, Francisco, really just going to consider rent into the equation.

I understand this can There are things out of whacking off balance, but that's kind of where we sit.

It really depends on your lifestyle on how much you spend on food.

However, what we do know is that you're gonna be spending 23% Maur on groceries and say Francisco than the national average.

So if you spend $300 a month on food in San Francisco, you're gonna be spending $369 a month on food.

One thing we know about transportation in San Francisco is they have a very good public transit system.

You can pay anywhere from what, 68 to $80 I believe, per month to the access public transit and essentially get anywhere you need to within the city.

However, if you're gonna be a driver, you're gonna own your own car when you have to worry about a car payment, which that's gonna essentially the same everywhere.

And unless you drive Testa, you're gonna be spending 38% mawr in fuel and gas than you would living anywhere else in the country is 38% more than the national average in San Francisco for gas.

And not to mention how much you will pay downtown parking I here's $20 a day or you.

It's been 200 to $400 a month to park downtown.

I don't know.

I live in the in the county, out in the country, so I don't really know a whole lot about, like City Park.

Sorry, my ignorance And there's something else we know is that doctor visits are roughly 20% more than the national average.

So all of this is more than the national average in San Francisco, the only thing that is different that is less than the national average in San Francisco is utilities.

In all honesty, that is generally one of your cheapest expenses, where the average person in San Francisco is going to be spending roughly $150 in utilities per month.

However, we're gonna take all of that, and we're gonna push to the side because that is heavily variable.

Like I said, depending on your lifestyle, what we are going to focus on under cost of living is rit.

Now, if you want to rent a two bedroom apartment in San Francisco, you're gonna be spending roughly $4650.

However, if you want to just have a one bedroom apartment, you're gonna be spending $3650.

Mind you, the average household has three bedrooms in it, and you're gonna be sitting at a one bedroom apartment spending Maur than most of those people that are going to be having three bedrooms.

But that's that's neither here nor there.

We're gonna keep it consistent, comparing it to all of their cities.

We're gonna keep it with one bedroom apartment, $3650 cost of living or if you want to look at it annually, since that's what we're focused on, that is $43,800.

So if you want to start off with your salary at $136,000 say, Francisco, we want to take out the taxes, that would be $43,474 then we want to take out that rent, which is what we're going to consider our cost of living $43,800 that leaves you with $48,726 of true earnings according to our formula.

But as we know, that's not including all of those other cost of living's, and that isn't what you're gonna be able to keep.

This is essentially your fund money or your save money.

If you wanna add more money into your 401 K or your IRA, or if you want to go golfing or grab a few beers on the weekend or even go out to E, then you're gonna have to dip into that pool and spend more money.

That's not what you get to save every single year unless you live with your parents or something out.

Now let's take Seattle and plug that into the same formula where we're going to be taken out taxes and costs a living and see how that fares up against San Francisco.

So first, taxes.

One important thing when it comes to taxes.

Like I said, we're gonna take Federal State and fight it taxes into consideration.

The thing about Washington state where Seattle resides, there's no state tax, so there's only federal and fight attacks, which lets you save a lot more money.

In other words, you're only spending $31,577 in taxes at an average annual salary of $126,913 in Seattle and the average cost of living, which, like I said, this case we're only taking written to consideration a one bedroom apartment in Seattle cost somewhere between 1619 $100.

I guess it just depends on where you're located.

How nice department is.

So we're gonna sit that right in the middle.

$1750 which annually that comes out to be $21,000.

And now, if we do the math there, what, you're left over and true earnings is $77,336.

As you can see, that is roughly $30,000 Maur than what you would be pocketing as true earnings in San Francisco.

I also did all of the math been coming into Food and transportation and health and all that stuff, and it was also roughly $30,000 only differences in San Francisco taking all this into account, you're sitting at around $32,500 then in Seattle, you were sitting at true earnings at about $61,000 so there's other cost of living's do take a big toll.

It's about $16,000 worth a year worth of other costs of living.

But like I said, for the sake of my sanity in terms of math, and I just don't really want to argue with anyone saying Well, you know, I spend $1 month eating food, we're just going to go with the whole rent and taxes and income thing.

Now that we have an equation that we all agree on, let's plug in a few other cities as you can see, if Seattle was actually one of the best cities to be in, if you want to see how much money you can pocket for saving or for having fun with, and then you can see that San Francisco, the top paying area in terms of salary isn't all it's cracked up to be.

And I know I'm picking on San Francisco a little bit, but I mean, everyone just loves California.

San Francisco the the idea of, you know, being your saw fringe near over there, but it's not.

It's not exactly what it appears to be.

If you're looking at your Google searches and all this information at face value, you have to look a little bit deeper into it and understand what sulfur engineers actually make and not what they get paid.

I hope that shine a little bit of light on the situation for all of you who are looking into being a software engineer may be considering moving across the country to pursue a higher salary.

And maybe it'll get you to think and do a little bit more research into what you will actually be making as a sulfur engineer.

That's similar to why I made my Sally arranges a computer science major.

So many people were looking at the national average of sulfur engineers and thinking That's what they're going to make right out of college, which that's not really the case.

You're gonna be looking at entry level jobs as the Selfridge near is the data science, their systems analysts when it comes to graduating from computer science.

So that's similar to this.

Just because you see something online, you see 100 36,000 average salary.

That's a lot of money, but you don't get toe have a lot of money for what you want to do.

You're gonna be paying a lot and writ for nuts such a nice apartment and you're going to be paying a lot of taxes and you're not gonna be able to save as much as you originally thought.

So again, Merry Christmas to you all.

I hope you have a good New Year's a safe New Year's.

I'll see you guys next year because I think this is my final video of 2018.

Maybe.

Let's just say I have a lot planned for 2019 that I think you're really gonna like.

So if you haven't already be sure to subscribe in like the video tell Nice.

Some guys have a go in peace.

I appreciate you all watching.