How to Think About Money as a Developer in Europe
Money taboos, the frugality trap, and data from 600+ European tech workers sharing salaries and saving rates. A practical philosophy for developers earning six figures but living like they're broke.
What is money even for?
Money is taboo in Europe. We're too "noble" to talk about it openly—unlike our American cousins who seem to have much fewer issues discussing it publicly.
It's not all bad: not giving it too much space in our communications also helps give perspective and prioritize other things that as a society we probably value more.
But it's also not that good.
Most of us live in free economies, and the world around us is to a somewhat large extent moved by offer and demand, desires and products—through the medium of money.
So, not learning, thinking or talking about it creates blind spots in an area that is undeniably important in our life.
Explore salary data across Europe →
"Money Is Something I Have, Not Something I Am"
The other day, I was talking to a friend of mine about how it seems to me that people in fancy SUVs in Zurich often look pissed.
His reply? "Happiness ≠ Economic Success"
Then we had a little chat about it.
My friend is a dev who started out with no uni degree, born in one of the worst hoods in Italy, and went on to be worth over $500k in his 20s.
I had a similar journey although at a smaller scale.
So we both know that not having money sucks—which is why at some point in our life we prioritized financial success.
Over the years though, we both realized that money only serves a few purposes.
The Diminishing Returns of Wealth
It's not necessarily easy to understand this, and a lot of people end up chasing money on autopilot for many more years than necessary.
IMO, the less money you have, the more you should chase it, and vice versa.
Basically: what you are willing to sacrifice for money should be inversely proportional to how much money you have.
| Net Worth / Annual Savings | % of Life to Sacrifice for More Money | Why |
|---|---|---|
| <€20k saved | 80-90% | Getting out of financial precarity is critical |
| €20k-€100k saved | 60-70% | Building foundation for security |
| €100k-€300k saved | 40-50% | Approaching financial flexibility |
| €300k-€500k saved | 20-30% | Diminishing returns kick in hard |
| €500k+ saved | 5-10% | Enough; optimize for life quality |
Also, beware of not equating your self-worth or persona to your financial achievements.
Money is something you have, not something you are.
Check our guide on balancing ambition and sustainability for more on maintaining this perspective.
How to Use Money: The "Frugality Trap"
We've discussed how money is not THAT important, how ridiculous it is to identify ourselves with our net worth or income, and how dangerous it is to lead a life in a perpetual chase of a higher digit.
But we also agreed that being broke sucks.
And that money can help make several things in life substantially better.
I have a somewhat diverse background, and while I have spent a lot of time with engineers and people in STEM, I also have family members and friends in other fields.
In my opinion, software engineers are overly frugal.
Why Do So Many Engineers Live Like They're Broke When They're Earning Six Figures?
Stereotypes can be harmful, but some of them are true.
The one about engineers being frugal? It definitely holds in my experience.
In my career, I've met hundreds of engineers. I'd say at least 70-80% fit this stereotype.
Think:
- Living in a poorly furnished flat
- Eating crappy food
- Not going out to save a few bucks
- Spending 90% of waking hours at the office to save on meals and gym memberships
- Neglecting looks: teeth, skin, hair, wardrobe
- Avoiding anything tasteful because it's "overpriced" or "unnecessary"
- Compromising dating life by insisting on splitting bills (to be fair, many things on this list don't help dating either)
- Shying away from cleaning services or food delivery to "save money"
- Traveling is an exception, but some even cut that out too
All while earning six figures.
Why?
To feel a sense of financial safety?
To reach FIRE faster?
To prove they "don't need much to be happy"?
If my engineer friends seemed happier, I'd just think, "whatever works for you."
But I see how this attitude directly and negatively affects their quality of life.
You work hard, get a good job, make good money—It's okay to spend some of it to live well.
It's okay to accept a lower-paying job for a better quality of life.
Coast-FIRE Over FIRE
FIRE is overrated to me.
Personally, I prefer an approach where as you get more money, you allow yourself for more, while maintaining healthy finances.
With this approach, the goal would be to reach your 40s while you're already doing your dream job that you would have otherwise only started looking for after FIRE, while still having healthy finances.
For me that's a better way than FIRE. It's more sophisticated and maybe more difficult to implement, but better.
Because it only employs delayed gratification to the minimum required, and gives life enjoyment as early as possible as much as possible.
The Alternative Paths
| Approach | Pros | Cons | Best For |
|---|---|---|---|
| Traditional FIRE | Clear goal, total freedom at 40-45 | Extreme frugality for 15-20 years, delayed life | Minimalists who hate work |
| Coast-FIRE | Balanced lifestyle now, flexibility later | Less "total freedom" | Most people who like their field |
| Barista-FIRE | Part-time work, reduced stress | Lower savings rate | Creative types |
| Fat-FIRE | Luxurious lifestyle in retirement | Very high earnings requirement (€200k+ needed) | High earners |
I'm personally a fan of Coast-FIRE combined with actually enjoying the journey. See our comprehensive FIRE guide for detailed strategies.
FIRE Can Be Disappointing
Not everyone ends up like that, but TechLead (the YouTuber)—a divorced, sociopathic millionaire living with his parents playing video games all day—doesn't seem to have a very appealing life if you ask me.
Materialism vs Culture
The point that I'm trying to make here is not that we should all be overly consumeristic: it's not just possessions or objects (which at times can also give joy), but also about experiences and expanding your life in many dimensions.
If one only engages in things that are free, it means that they're closing doors to a lot of things that can make life better.
The line between materialism and culture can be subtle sometimes.
Examples of Investment in Life Quality
| Category | Materialistic View | Cultural View | Impact on Life |
|---|---|---|---|
| Wine | Expensive drinking | Appreciation, social connection, taste development | High positive |
| Travel | Wasteful spending | Cultural exposure, memories, growth | Very high positive |
| Home | Status symbol | Comfortable base, hosting friends, mental health | High positive |
| Clothes | Showing off | Confidence, professionalism, self-respect | Medium positive |
| Food | Unnecessary expense | Health, enjoyment, social bonding | High positive |
| Books/Courses | Could pirate for free | Knowledge investment | Very high positive |
It's also not about impressing others.
If one thinks that "nice things" are just for that, maybe they could use some learning on how to appreciate them.
It's also a skill. Or taste. Which needs work and development.
The Social Dimension
Part of it is also related to being social.
For example, being presentable, having a hospitable home, being happy to invite someone over dinner or over a drink—these are all things that can enrich our social life and which can ultimately improve our life experience.
Engineers often underinvest in:
- Having a nice home where they can host
- Looking presentable and well-groomed
- Having quality food and drink to share
- Being generous with friends
- Creating comfortable social environments
These aren't materialistic—they're investments in relationships and life quality.
Just My Perspective
And I wouldn't want to impose my world view on anyone.
If you're happy being frugal and you have some good reasons to do that, by all means do that.
I just wanted to share a perspective that in my opinion is a little bit "unrepresented" in tech circles.
Maybe it can be interesting for someone.
Money Transparency: Data from 600+ European Tech Workers
Remember how I mentioned that money is taboo in Europe?
Now, that's not good.
If one wants or needs money, it would very much help them to understand where money is and/or how to get it.
If we keep it a taboo topic, it's gonna be hard for people to learn about it.
In the US they're much more open about it, and IMO products like levels.fyi really make a difference.
Some months ago, I also started a salary and saving rates shared document for tech workers in Europe.
Since it's reached almost 600 data points, I thought I'd share some results here today.
💰 Top Markets by Total Compensation
| Country | Average Total Comp | Median | Remote-Friendly |
|---|---|---|---|
| 🇨🇭 Switzerland | €165k | €155k | Medium (some roles) |
| 🇬🇧 UK | €142k | €130k | High |
| 🇩🇪 Germany | €89k | €82k | Medium |
| 🇳🇱 Netherlands | €87k | €80k | High |
| 🇫🇷 France | €78k | €72k | Medium |
📈 Average Pay by Experience Level
| Experience Level | Average Compensation | Years of Experience | Growth Rate |
|---|---|---|---|
| Junior | €52k | 0-2 years | Baseline |
| Mid-Level | €75k | 2-5 years | +44% from junior |
| Senior | €98k | 5-8 years | +31% from mid |
| Staff/Manager | €125k | 8+ years | +28% from senior |
💶 Highest Yearly Savings Rates
This is where it gets interesting—total comp is one thing, but what you actually save is what matters for financial independence.
| Country | Average Annual Savings | Lifestyle Quality | Cost of Living |
|---|---|---|---|
| 🇨🇭 Switzerland | €50-70k | High | Very High |
| 🇵🇱 Poland | €30-45k | Medium-High | Low |
| 🇷🇴 Romania | €25-40k | Medium | Very Low |
| 🇱🇹 Lithuania | €20-35k | Medium | Low |
| 🇵🇹 Portugal | €15-25k | High | Medium |
Surprise finding: Poland and Romania often beat Western European countries in savings rates despite lower salaries, thanks to much lower costs of living. This is the geo-arbitrage advantage.
🔍 Key Trends from the Data
1. Remote work enabling significant geo-arbitrage
Engineers living in Poland or Portugal earning UK/Swiss salaries are saving 2-3x more than those living in expensive Western cities.
2. Eastern European markets showing the fastest growth
Warsaw, Bucharest, Vilnius seeing 15-25% annual salary increases vs 3-8% in mature Western markets.
3. FAANG/Big Tech still paying 2-3x the market rate
Google, Meta, Amazon engineers earning €150k-€250k while local market averages are €60k-€90k in the same cities.
4. Strong savings potential in lower-cost tech hubs
Even at lower absolute salaries, favorable cost of living means engineers in Eastern Europe often save more in absolute euros than their Western counterparts.
Insights: Where Should You Work?
High Salaries + Good Public Services
Best for: Those who value security, infrastructure, public services
Locations: Switzerland, Germany, Netherlands, Nordic countries
Profile: Family-oriented, long-term residents, value stability
High-paying Western European locations are still attractive for those wanting high salaries and good public services.
Remote Work from Eastern/Central Europe
Best for: Maximizing savings rate and purchasing power
Locations: Poland, Romania, Lithuania, Bulgaria (with remote job)
Profile: Single or couple, no kids yet, focused on wealth accumulation
Remote work from Eastern/Central Europe is great for saving rates and purchasing power—you can often save €30k-€50k/year while living very comfortably.
See our guide on fully remote companies paying €100k-€500k.
Switzerland: The Wealth Accelerator
Switzerland leads in almost every tangible metric, including salaries and savings rates—but might lag behind remote workers in Eastern Europe when it comes to local purchasing power.
Switzerland is still the best choice if:
- You want career prestige
- You value infrastructure and nature
- You can handle high costs
- You're optimizing absolute savings
Read our comprehensive Switzerland guide →
Switzerland: The Fast Track to Financial Freedom
If you're a developer in Europe aiming for financial freedom, Switzerland should be on your radar.
Why?
It's the best location to grow your capital as an early-career developer in Europe.
Especially if big tech isn't in the cards for you.
Switzerland's central location also offers great opportunities for geo-arbitrage—whether it's for life, investments, or setting up an international European lifestyle.
The Numbers: Build Wealth Fast
| Career Stage | Years in Switzerland | Annual Savings | Total Saved | Next Move |
|---|---|---|---|---|
| Junior | 2 years | €50k/year | €100k | Leverage for flexibility |
| Mid-Level | 3 years | €65k/year | €195k | Approaching Coast-FIRE |
| Senior | 4 years | €85k/year | €340k | Financial independence in sight |
If you're adaptable, you can use these regional differences to your advantage, optimizing both lifestyle and financial growth at different stages of your career.
The Strategy: Start in Switzerland
Start in Switzerland, and you could save €100k+ in just a few years.
With that base—especially if invested wisely—you can choose more flexible jobs down the line.
Example trajectory:
- Age 25-28: Work in Zurich, save €150k-€200k
- Age 28-32: Move to Barcelona or Lisbon with remote job, save €30k-€40k/year while enjoying life
- Age 32+: Have €300k-€400k invested, generating €15k-€20k/year passive income
- Result: Financial flexibility to take risks, start companies, work part-time, or continue high earnings with no financial pressure
Benefits of Starting Your Career in Switzerland
✅ Excellent quality of life: infrastructure, stability, services
✅ Great networking opportunities with top tech talent
✅ Central connectivity, making it easy to explore Europe
✅ Career options ranging from smaller firms to big tech—allowing savings from €50k to €1M+, depending on your path
✅ Salary credential: "I worked in Switzerland" signals high caliber to future employers
✅ Forced high savings: Expensive country forces discipline
Switzerland Isn't the Only Route
But it's one of the best and most straightforward—especially early in your journey.
What are your thoughts on Switzerland? 🏔️
Explore top opportunities in Switzerland to see what's available now.
Practical Money Philosophy for Developers
Here's my recommended framework:
Phase 1: Escape Velocity (€0-€50k saved)
Priority: Build financial buffer ASAP
Approach:
- Live frugally (but not miserably)
- Maximize income (take highest-paying job)
- Save 40-60% of income
- Don't worry about "life optimization" yet
- Focus on career moves that maximize comp
Why: Financial precarity is stressful and limits options. Get out fast.
Phase 2: Foundation Building (€50k-€150k saved)
Priority: Sustainable wealth accumulation
Approach:
- Maintain good savings rate (30-50%)
- Start investing in quality of life
- Balance earning with living
- Consider strategic location moves
- Build skills that compound
Why: You have breathing room; now optimize for sustainability.
Phase 3: Optimization (€150k-€400k saved)
Priority: Life quality while maintaining trajectory
Approach:
- Reduce savings rate to 20-30% if desired
- Invest in experiences, health, relationships
- Consider Coast-FIRE approach
- Take calculated risks (startups, sabbaticals)
- Optimize for joy, not just money
Why: Diminishing returns on savings; high returns on life quality investments.
Phase 4: Freedom (€400k+ saved)
Priority: Design ideal life
Approach:
- Work because you want to, not because you have to
- Savings rate flexible (0-30% fine)
- Make choices based on fulfillment
- Give back (mentor, create, contribute)
- Money is tool, not goal
Why: You've won the money game; now win the life game.
Taking Action
Calculate Your Position
- Net worth: Assets minus debts
- Savings rate: (Income - Expenses) / Income
- Time to financial flexibility: Years to €300k-€400k at current rate
- Life quality score: 1-10, honestly
Use our financial data tool to see how you compare.
Optimize Based on Your Phase
If you're in Phase 1 (€0-€50k saved):
- Get aggressive about income
- Consider moving to Switzerland
- Cut unnecessary expenses (but don't be miserable)
- Timeline: 1-3 years to exit this phase
If you're in Phase 2 (€50k-€150k saved):
- Check if you're underpaid (compare to market data)
- Start investing in life quality (health, home, relationships)
- Maintain momentum but avoid burnout
- Timeline: 2-5 years to reach flexibility
If you're in Phase 3 (€150k-€400k saved):
- Reassess: Do you need to save more or live more?
- Consider remote work + geo-arbitrage
- Take some risks (they're less risky with a buffer)
- Timeline: You're approaching freedom
If you're in Phase 4 (€400k+ saved):
- Congratulations! Now design your ideal life.
- Consider what you want to optimize for besides money
- Think about legacy and impact
Conclusion
Money for developers in Europe should be:
✅ Discussed openly (break the taboo)
✅ Pursued strategically (especially early career)
✅ Not over-indexed on (avoid the frugality trap)
✅ Used to enhance life (materialism vs culture)
✅ Leveraged for freedom (Coast-FIRE > FIRE)
✅ Tracked transparently (know your numbers)
The sweet spot: Earn well, save intelligently, spend wisely, live fully.
You work hard as a developer. You earn good money. It's okay—encouraged, even—to use some of that money to live a great life while still building financial security.
Money is something you have, not something you are.
Explore opportunities across Europe and check comparative salary data to make informed decisions about your career and finances.
Frequently Asked Questions
How much should I be saving as a developer in Europe?
It depends on your phase and goals. General guidelines: Early career (€0-€50k saved): aim for 40-60% savings rate to build foundation quickly. Mid-career (€50k-€200k saved): 30-40% is healthy and sustainable. Late career (€200k+ saved): 20-30% allows for good life quality while still building wealth. Coast-FIRE mode: 10-20% or even less if you've hit your number. The data from 600+ European tech workers shows average savings rates of €20k-€70k/year depending on location and seniority. Compare your situation using our financial data tool.
Is the frugality trap really a problem or just lifestyle choice?
It's a problem when it negatively impacts life quality despite having the means. I've met countless engineers earning €100k-€150k living like they make €30k—sharing apartments at age 35, eating instant noodles, avoiding all social activities that cost money, neglecting health and appearance. They're not happier for it; they're just delaying life. The frugality trap is characterized by: (1) Having substantial income but living in deprivation, (2) Sacrificing present life quality for marginal future gains, (3) Using "optimization" as an excuse to avoid living. Frugality as conscious choice with a specific goal (saving for house down payment, FIRE by 40) is fine. Frugality as default autopilot while earning six figures is the trap.
Should I move to Switzerland just for money?
Switzerland makes sense for 2-5 year wealth accumulation sprints, not necessarily forever. The strategy: Move to Switzerland young (20s-early 30s), live relatively frugally but not miserably, save €100k-€300k in 2-5 years, then relocate somewhere with better life quality while maintaining high remote income or living off investments. Switzerland is exceptional for: (1) Rapid wealth accumulation, (2) Career credential building, (3) Networking with top talent. It's less great for: (1) Social life (expensive, reserved culture), (2) Long-term happiness (studies show diminishing returns after €150k income), (3) Family life (childcare costs astronomical). See our Switzerland comprehensive guide for full analysis.
What's the biggest money mistake European developers make?
Staying in underpaid positions out of comfort/ignorance. The data shows engineers in the same city, same experience, doing similar work earning 40-80% different compensation. The biggest wealth killer isn't spending too much—it's earning too little. Example: Engineer A stays at comfortable company for 5 years, €70k salary, saves €20k/year = €100k saved. Engineer B makes two strategic moves over same period, goes €70k → €95k → €130k, saves €25k + €35k + €50k = €110k saved PLUS now has €60k higher salary forever. The trajectory difference compounds to €300k-€500k over a career. Check our salary data and make sure you're not leaving massive amounts on the table.
How do I balance saving for FIRE with actually enjoying life now?
Coast-FIRE is the answer for most people. Calculate your Coast-FIRE number: the amount that, if invested now and left to grow, will become your FIRE number by age 60-65 without additional contributions. For most Europeans, this is €150k-€300k depending on desired retirement lifestyle. Once you hit this number, you can: (1) Reduce savings rate dramatically, (2) Take lower-paying but more enjoyable work, (3) Work part-time, (4) Take career risks. You're still building wealth (current income) but not sacrificing present for future. The math: €200k invested at age 30, growing at 7% real returns, becomes €1.5M by age 60—enough for €60k/year indefinitely at 4% withdrawal rate. See our FIRE guide for calculators.
Is geo-arbitrage sustainable long-term or just a short-term hack?
Increasingly sustainable, but with some caveats. The data shows hundreds of engineers successfully running €80k-€150k remote salaries from Poland, Portugal, Romania, Spain for 3-5+ years. Sustainability factors: (1) Company policy—fully remote companies care less about location, (2) Tax residence—stay compliant with local tax laws, (3) Time zones—works better within Europe than Europe-US, (4) Career growth—ensure you're not sacrificing growth for arbitrage. The risk: Some companies are adjusting salaries to location (Google, Facebook do this). The opportunity: Many don't (most smaller tech companies, US startups). Best strategy: Build skills at high-paying location first, then leverage for remote role with location flexibility. See remote work opportunities and low-tax countries guide.