| Your math doesn't work. 40% of a $130K salary is $52,000. $48K a year in rent brings the total up to $100,000. You still haven't paid for food yet, or any other cost. Assuming you're a silicon-lifeform that can subsist off of minerals leached from the ground, you'd still need a 22% or lower tax rate to make this work. Which is to say, your math doesn't work, at all. Even assuming $3K a month in rent, your overall tax rate (remember, you're a silicon lifeform that doesn't eat) still needs to be ~31% to make it work out. This is definitely not the case in California. Assuming you're human (and therefore need to pay for food, clothing, bills, such), you are nowhere near being able to take a $3K (much less $4K) rent on a $130K salary. The level of spending you're talking about is more appropriate for someone with a $130K income post-tax, which by California tax rates puts you in the $200-220K range, pre-tax. |
Still, I'm not understanding how you think a $3k/mo rent isn't possible on $130k/yr. I personally know people who do that.
Let's be conservative and say 40% tax rate. That's $78k left. $3k/mo on rent is $36k/yr, which drops you down to $42k. If you can't eat, drink, and be merry on $42k/yr, and still save some money, I would seriously suggest you take a hard look at your priorities.
I wouldn't say that at that level you'd necessarily want to sock away 40% (again, post-tax), but that's even doable if you're living on your own and don't have dependents: 40% of your post-tax pay on $130k is $46,800. Subtract $3k/mo for rent, and you have just shy of $11k free. I'm not saying you're going to have tons of fun spending only $11k/yr on food and entertainment, but it's certainly possible. But instead dial it down to 30% or 25% or whatever. I bet at that level you'd still be saving more than the average American.