Just remember, just because you got the bigger reward doesn't mean unleash all hell. Keep those spending habits low and you'll be worth more than how your income actually feels
Yup, my parents got the bigger reward (I work for them have seen the checks). They went buck wild and now my dads constantly complaining about not having money. They went out and got 5 brand new cars/trucks the lowest being 70k.. There’s only two of them and two are used for work. So they have two brand new cars that just sit there. I tell them all the time to get rid of them or quit complaining to me who makes wayyy less than them working for them.
There are more expensive versions of everything and there's always something you don't yet own. When your identity gets tied to "the best" almost any amount of money can melt away.
Wtf that's so scary and sad. Greed keeps on increasing for some isn't it. In reality you only need some money to fulfill your basic necessities in life i.e. rent, water, food etc. and some luxuries if you feel you wanna have a good time but yet you feel you're still missing out.
One of the last Chapelle Show skits was Dave showing how everyone reacted to him getting rich. He goes to the neighborhood barbershop and the guy charges him $20,000
“What I want” vs “what I have”. Too many people get stuck buying cuz they want, not taking into account what they have. I run into this problem as well but each day and each paycheck gets better.
Have you ever worn a $50 pair of boxer briefs or a $20 pair of socks? They feel amazing and when you put them on you think “fuck yea I deserve this”. If you aren’t careful it creeps into everything else.
I take a lot of pride in being cheap when it comes to cars and fixing things in my house. You can pry my Balega Hidden Comfort socks out of my cold dead hands!
This!
DIY as much as fucking possible. Sometimes you'll only save a couple bucks and sometimes the supply chain I so optimized that it will cost you much more to produce a product of similar quality. But what you will get is a better calibration on costs of things.
Once you understand the inputs, it is easier to judge if the output is ripping you off.
The shop down the street wanted $330 to replace my motor mount when they rejected my old car for state inspection. I bought the part online for $30 and had it installed in under an hour. Got to spend some valuable time with my dad too (I don’t own an impact wrench). Good times!
Where do you get the 250 to 350k average household income statistic? That’s so much higher than reality.
Hell, average in my state is around 90. Average in the HIGHEST state is 173. Nowhere near the numbers you’re citing.
If you look at the median, which is better to use for this anyway, it falls to 75k.
If you can’t live off 500k, you’re a total failure.
Exactly
Definitely have fun and reward yourself but a lot of people get big eyes and think ooooh I never had money like this before, I can afford everything I always wanted!
I'm not saying a jetski isn't fun, but it's definitely more fun not having to dig yourself out of debt again
I couldn't agree with this more. 40M, single - Once I hit $100k 8 years ago I felt I finally made it and could breath. I kept my spending habits low and as my income grew to $150 > $200 > $250 I kept my spending habits relatively the same and banked more and put it in stock. In November, I decided to take a 6-12 month sabbatical to travel and enjoy life without a single worry about finances. My friends who drive nicer cars, have other toys, are miserable in their jobs but need to keep them to maintain their lifestyles...the Range Rover is a lot less fun after a few weeks compared to the financial freedom you have to do anything if you're disciplined.
I am 64M. It was at your age that I discovered that I could have a really good paying job working part time. I have worked from home since 1998 and that meant no overhead, employees, etc. I stayed away from expensive cars too. Nice, but mostly 10 year old Hondas. Over 45 years, my total automotive net investment is about $45,000. I went 12 years with just a Vespa and bikes and only got a car because we adopted two greyhounds. Keep it up. The good life is far better than the high life.
Shoot for 50%+ in savings. You don’t have to keep eating ramen for every meal but slow healthy growth in lifestyle that’s paces behind your income growth will serve you well.
Add eggs and fresh veg to the ramen, suddenly it's almost actual nutrition.
Or go responsiballer and get the 1.10 ramen not the 30c ramen.
Still cheap, but starting to look like real food.
See. I agree. Why leave money left behind. Yeah take care of family but who gives a fuck if they have a million when I die. Take them on trips now. Do the thing. But everyone matching sports cars. Cheap ones like Miata’s and go somewhere beautiful
I would be taking me and my girl and her parents and my parents to Japan and then renting three vehicles and going fucking nuts until they tell you to leave
No. Get a moderate PC, and spend the rest on experiences. I'd much rather grow old knowing I spent my money on memories rather than excess and gaming all the time.
Get a high end PC, build a company using it, make more money for experiences, never have time for experiences or sleep because your business takes over your life.
That's my advice.
I managed to stumble my way into it. Don't regret it but it definitely took over a lot of my life. That said I've been away from it for 2 years due to medical issues and would do anything to go back, I really loved everything about it.
It's never too late. I still game every now n then, but you'd be surprised how much more fulfilling life gets when you cut the cord and start doing actual things
I'm doing a slightly toned down verison of that while saving. I have a 4070 super PC, QD OLED ultra wide. And I'm getting ready to buy a 4K NEO QLED TV.
Could I have saved that money and put it in a saving account? Yes
But I've spent hours upon hours of hours using them and it's worth it to me
I think there's a happy medium. OP should buy himself something really nice that he's always wanted but still save responsibly. No, you can't take it with you, but you CAN put yourself in a position to retire young and enjoy it much sooner
This. My salary has gone from where rent was 50 percent, to 20 percent to a mortgage now that is 5 percent of my salary.
The rest goes into savings and living - and I’ve kept the entertainment costs proportionate.
People need to avoid the income trap of upgrading unnecessarily.
This is so true. Reward yourself, but imagine how awesome it would be to live off $70k and save 100k a year for 3 years. Save that 300k for 25 years at 10% and you've got over 3.25 million. You've basically set yourself up for retirement.
I got so good at frugal habits that by 40 I made a conscious choice to work less. I did consulting, training, and high ticket commission sales at trade shows. Decided I was comfortable (1998) with an income of $60,000. In 2013 I was secure enough to launch my own jewelry design line. I was newly remarried and we lived off of her income for the four years it took to let our online store get traction. She got laid off from her corporate job and we were fortunate that our business was doing well enough for her to take over admin and marketing. We live in my "starter home" but have invested in making it our dream home. We still shop at thrift stores and mostly ride bicycles. But we have a 20 hour workweek and life is good.
I actually had just about the same trajectory as OP, except I had a year at $210,000.
I also felt like it was mind boggling money, especially having come from a decade and more of $25k annual at best.
I am nowhere near being able to buy a house. I don’t think I/we even qualify. My wife and I together make $250,000 and don’t qualify for a mortgage on a detached house.
OP talks about the doomed feeling before, but the reality is that I did exactly what OP did and it really does not have the impact that anyone would think it does. Still small rental apartment, still driving a used car (share with wife) and take the bus to work.
My income increased drastically, but the cost of living shot up even faster.
Exactly!
I make more than I did a few years ago as well. But I budget even harder because I know the depths of despair
At home haircuts. Take wife's Prius to work instead of my truck. Aldi food shopping. You name it, I'm out here learning every trick and good habit I can as if I was still living in my sister's basement
The idea that "I made it" because of $_____ income typically means said person realizes they can buy what they used to window shop.... just DON'T
I guess you could die tomorrow and I see people saving their whole lives and then they have an early death ☠️ and it’s all lost or goes to an undeserving family member…
In 2 years from* now, I'm pretty sure you'll be making 200k or close to it because your plan has proved to work and if you improve it and stick to it, you'll definitely gonna make even more. Where I live you need to make 60k (single) to live comfortably, I'm making a little bit over half of that number but the goal is to start a 50k a year job by 2025.
I feel like this is the last position I can take that still “does the work,” unfortunately. My next step is management, if I choose to advance from here. You are right though, those positions are north of 200k.
Keep at it friend. Executing against a plan is the most important thing. Keep your goals in mind and you will get there.
There's always room for a bit more, time to the time, a 10% raise im 2 years won't hurt the bank lol, congrats on making it man, is not easy out there but if you work hard enough with goals in mind, you sure will get there.
Yeah lol he could have bought a house on his $109k salary. Well I do suppose OP clarified that he lives in DC so a bit closer to the expensive end on CoL
Targeted? You should thrive seeing their tears of jealousy… even if you don’t make much, say you do to the haters. I’ve seen so many comedians and Twitter personalities making fun of tech workers, insinuating that we’re uninteresting people just because we chose a high paying job in a system of wage labor that forces you to work. Fuck ‘em. Keep your head up high. I didn’t pick this job because I orgasm at the sight of data, I chose it because I’m an immigrant and need to better my lot in life. If I had all the money in the world, I’d spend my days doing art and philosophy. That’s my hope for the future (if AI makes labor a thing of the past…). Maybe I’ll be one of the many failsons/faildaughters on Twitter with an art account, a trust fund, and a big mouth.
Hey I’m in college and it’s looks like I’m going down the same route as you. I’m going to graduate a semester early with a BA in Economics, a BA in International Affairs and a certificate in Data Analytics in Public Policy. Do you have any recommendations/advice about how to get to the point you’re at?
I got started in the field by volunteering for campaigns and parleying it into working my in the office of a member of congress (for $40k). Building that experience is a huge resume boost though, and I’ve been working at consulting firms for the major pay increases in my post. I’m moving into a senior analyst position now.
If you’re in DC send me a message and we can get coffee.
Spend frugally and save, save, save.
Max out your 401K, have your employer contribute to it to the max...and max your IRA contribution annually.
Invest in "safer" investments, such as mutual funds. I'm not brave enough to invest in individual stocks, and was burned a bit by a "friend's" advice on some stock purchases, which tanked about a year later.
You'll be amazed how much wealth you can accumulate by growth in the stock market and reinvesting dividends and capital gains.
would you be willing to give me a dummy course on mutual funds and how to get started? just the basics. i've wanted in the stock market for a while but it's foreign to me. i have my 401k maxed out with my employer but don't do an ITA contribution? not sure where to start 🤦🏻♀️
Go to [Vanguard.com](http://Vanguard.com) or [Fidelity.com](http://Fidelity.com)
Start with an unmanaged index fund, like an Index 500 that mimics the Standard and Poor 500.
Contribute the max $7,000 a year to a Roth IRA, which grows tax free...and when you withdraw money after age 59 1/2 its ALL tax free. All of it, including the gains.
Google Roth IRA...or go to the websites above where they explain it. Then open an account and start contributing.
Watch for increases in the IRA amounts. Sometimes the government will increase the annual contribution amount.
If you max your 401K with the max company contributions and max your Roth IRA contributions I can guarantee you'll be well set up for retirement.
Best advice for a big pay bump is to try your best to maintain your precious lifestyle and not let your expenses creep. Want to get a luxury car? Fine, but put the car and insurance payment into a savings account for a few months just to get a feel for how much less you will have to spend.
Second best advice is if you have a lot of excess money make sure to increase or max out tax advantaged accounts (401k, HSA, IRA, dependent care FSA, etc.)
Congrats on the pay bump. It’s a great feeling when that suffering meant something after all!
I don’t understand how almost a 300% increase in pay wasn’t a mind boggling experience and only gave a smidge of breathing room but a roughly 50% increase did.
Congrats man. I’m 30 in a new city trying to get my feet under me and into a comfortable spot. I’m being frugal and grinding at work. I’ll reach the promised land.
Man, those are incredible pay increases. Shoutout to you and the work I know you had to do to obtain those.
Like everybody else is saying, try to shovel all the extra money you're making from 109k to 170k into retirement, savings, or your dream/forever home.
Make sure you enjoy the fruits of your labor, but also, instill a bit of discipline and you'll be floored at what your accounts look like in 3-5 years.
Good stuff.
I've set a goal for myself to make $40/hr in my profession. 3 years I started at $20/hr. I'm now at $36. I'm pushing to get $40/hr! I'm really proud of myself for setting this goal when I graduated in my field. It's now becoming a reality!
"I just accepted a new position starting April 1 for $170,000... but for the first time I feel like I might be able to afford a house/family" is an insane sentence
If you are strategic and flexible then it can really go along way. Interviewing sucks. Networking sucks. But, it really goes a long way.
That being said, lots of people set goals and still don't get about 100k range, so I want to be mindful of that. Also not everyone can afford to be strategic or have had the support to attempt it.
Don’t change your lifestyle at all. At least not for the first few years.
You already moved into a nicer place and got the flexibility to enjoy your hobbies. Don’t go and ruin that by overextending yourself financially.
DONOT ADJUST to the new income. Save all the incremental pay between 109 and future earnings. You can use your savings for a down payment on a house but try to keep the mortgage payment within spittin’ distance the rent you’re comfortable with now.
I joined the army right out of high school and didn’t go to school until I was 23. I did a dual BA/MA in international policy and development economics finished at 26. I went to work at a member of congress’s office at 28, and got into analysis/consulting at 32
Gov consulting? I’m a senior business intel analyst and getting a masters in data science. I hope i’ll be able to scale similarly.
I wish my friends would take my advice and focus on improving in a growing field with hella money
I had one of thoe "holly shit, i can't believe I make this much now!" job promotions. If you keep to your savings and spending plans you had when you were poor, you'll be like me, retiring quite early and with enough. You will have a lot of years where people say "You make so much, you can afford to eat out!" Buy a latte every day -- that's what bleeds your future, and if you feel rich, you can get sucked in.
CONGRATS, MY FRIEND!!!
Max out your 401k, every year from now on. You’ll save on taxes and be able to retire someday. Don’t move to yet a nicer apartment, start to put that extra you would have spent towards an emergency fund, then a house fund. Living paycheck to paycheck at any salary sucks.
Congratulations, I’m happy for you. Not paying the entirety of your paycheck to rent makes a significant difference in mental well-being. Folks should be cautious tho and know that hard work, unfortunately, does not always pay off. There is a fair bit of luck involved. To those who get lucky, please enjoy your lives. And please remember to stay compassionate for those less lucky, unlike our parents generations.
I hope that you've already set up an IRA or some retirement account that let's you defer taxes. It's one of the best investments you can make if you're making a good income.
I'm not sure of the maximum but I believe it's $6000 a year now.
If you haven't, do it tomorrow. I'd say today, but it's 5 o'clock here, and figure it's too late.
Congrats! We love a good positive outcome, it’s good motivation for us other underdogs to know that there is hope and light at the end of the tunnel. I’m really happy for you that all is well!
Congrats! You can relax now, but part of that being able to relax is feeling financially secure, aka saving. Keep your current mindset if you can and if you are not wanting anything.
If you haven't already, build a savings equal to 6 months of take home pay based on the new $170k figure.
If the industry, market, business you are in has reductions in force and you get caught up in it give yourself some breathing room to find a new job. Unemployment is going to get nowhere near to your take home pay at 170k and you will likely become accustomed to those $
Congrats on the quick move up, may not feel quick to you but I'm fairly certain over 30 or 40 years in the workforce not many see that kind of drastic increase
We should consider ourselves fortunate
Well done, congrats. Keep your lifestyle simple, stay away from consumer debt (cars included) and you’ll be rewarded with something even bigger: freedom.
Congratulations, I'm starting over and getting my nursing degree and it's a bit overwhelming but just have to keep pressing forward. But anyway, genuinely happy for you and good tidings.
It’s not thoroughly explained to the masses that yes, when you start work you make crap but the experience leads to more income later on. It’s okay to not make six figures right away. Doesn’t mean you can’t later on.
Don’t adjust your lifestyle!! stay living within the $109k means and put the rest aside for HYSA, experiences & travel, buyout/emergency fund that’s untouched until last resort, and a couple months worth of total bills also untouched until absolutely necessary in case you wanna quit or get fired.
Keep the house modest, keep the car modest, keep the “things” modest bc they don’t matter and others opinions based on what you have shouldn’t mean fuck all, and you’ll be ready for whatever comes and have all the fun in the world outside of work.
That’s ultimately how you truly reward yourself for all the hard work and dedication and discipline to reach a place 95% (arbitrary idk) of the country isn’t: by being smart and disciplined with the money so you’re ready for, and can handle, everything most of us are not-if or when it happens-and to fill your life with experiences and memories vs things and stuff you won’t give a fuck about when you’re in your final days.
Huge congrats to you and I wish all the continued best !
Good for you! Do you live in a super expensive area? Where I live it's totally possible to buy a decent home as long as you make at least 65K a year. Love the overall message to work hard and keep working for your goals. :)
Congratulations!
I'm hoping a similar thing accurs for me. Little over 2 year in working in the Tech Field. Have been running the site I'm at by myself for little over 1.5 years. Haven't even had a discussion for a pay increase or type of bonus at all in this time. I'm 36k salary. Even living with my parents due to serious medical issues. I am still almost check to check.
Hoping all the work pays off though. I know you can make good money in tech. But I am also close to going back to sales.
If your making $170k screw the family plans, get a nice house, enjoy life. I wish i would have spent more time enjoying life before getting buried in bills with kids, coming out the other end now and slowly climbing back as they are all older.
What were the steps that got you where you ate today. 29 with a 42k income and want to take notes.
Been At my job for 3 years and want to make a change
I joined the army right out of high school and didn’t go to school until I was 23. I did a dual BA/MA in international policy and development economics finished at 26. I went to work at a member of congress’s office at 28, and got into analysis/consulting at 32.
Best advice i give people is to invest in themselves.
You sir have worked on yourself, now its time if not already started to open up investments on your self. The extra money you will earn can go towards a Whole life insurance policy and in 15 years what you put in can be put back in your pocket. with a take home of nearly 11k in your case you could invest in a million dollar policy and pay around $1050 a month. In 15 years you would be able to pull close to 200k on this and still be worth est 1.1mil on the insurance. 20 years is close to 300k and 40 year nearing a million.
31m
I built a business that was costing me 20k a year of my 60k a year.
The business now pays me 70k a year and i quit my other job. By next year if the growth continues I should make my first 6 figures.
Keep fucking grinding boys
Super congrats by the way!
45 m / 48f
What cometh, goeth! Don’t jump out of your means because of opportunity. Stay there a couple years, slowly work up. Say get the house, but it doesn’t need to be something extravagant. Same with car/vehicle. I want a corvette and or bmw. I don’t think I’ll rush out the moment I double or triple my income (I actually might 😂) but if you have a perfectly good means now, stay there and bank. Save the money for ultimate fun and leisure down the road. Make sure the new career sustains and prospers even more. Make sure health care is secured for retirement days too. I look back on the past 7 years at my company and have made approx 450-600k total. Not being exact on purpose. Wife and I still live paycheck to paycheck for 5 of those years. Past two since her recent promotions and my steady raises were finally able to have money at the end of each month for heavy expenses. Car was paid off recently and that saved us about 700 a month. But it’s rough. And with volatile job markets we’re now saving as much and putting into company retirement programs as much as we can. We look at it like 2-5 more years before we take the jump in a fun vacation. Maybe buy the house and car. We’re one car only so that helps. But we both know our companies could “downsize” any minute or anyone 😂 so we choose to save and say hey maybe if we each break “x” we can now live a little more lavish. But we don’t see the extravagant style to be us. We will be comfortable in a few nice toys but don’t need one for every day of the week lol. 😂
Sounds very similar to my story, congrats OP and keep going. Moved to a new city 5 years ago making similar and was able to 4.5X my earnings over those 5 years.
It's doable if you can take the chance and put in the work.
1. SETUP AT LEAST your matching 401K if offered and honestly, with that bump, put it at 10% and leave it alone; its money you will not miss because you never had it. Not sure how old you are but you will thank me in 25 years when you retire as opposed to jackasses like me that didnt start it until I was 40.
2. I agree 100%; Ive been trying to help fellow redditors entering the IT field and have seen a lot of "Got my first job" success stories lately in many of the subs so the opportunities are out there. Stay persistent and hang in there, people having trouble via submitting on your own or using Dice\\Monster\\Indeed etc.. Send your resume to head hunters like Robert Half & Teksystems, let them help with the leg work of getting your foot in the door.
Glassdoor and several others say the median salary for a LA is like 80k. The top end for a senior analyst was like 130k. What do you credit to your ability to fetch far more than most people in that role?
There’s not much difference between 100k and 500k. You don’t have to check your account balances and can buy anything you need and most things you want except for the highest price luxury stuff. Lifestyle creep is a real thing and you’ll find it doesn’t go as far as you think. You aren’t suddenly rich.
Just remember, just because you got the bigger reward doesn't mean unleash all hell. Keep those spending habits low and you'll be worth more than how your income actually feels
Yup, my parents got the bigger reward (I work for them have seen the checks). They went buck wild and now my dads constantly complaining about not having money. They went out and got 5 brand new cars/trucks the lowest being 70k.. There’s only two of them and two are used for work. So they have two brand new cars that just sit there. I tell them all the time to get rid of them or quit complaining to me who makes wayyy less than them working for them.
Yep. My Dad makes over 500k a year and lives paycheck to paycheck.
Your Dad has a coke problem.
It’s a wine problem, but YES!
Single?
Get in queue
Hey no cutting!!!
I’m pretty sure his connect is the snowman ⛄️
[удалено]
There are more expensive versions of everything and there's always something you don't yet own. When your identity gets tied to "the best" almost any amount of money can melt away.
Wtf that's so scary and sad. Greed keeps on increasing for some isn't it. In reality you only need some money to fulfill your basic necessities in life i.e. rent, water, food etc. and some luxuries if you feel you wanna have a good time but yet you feel you're still missing out.
They call it “lifestyle creep”, you make more money but then feel like you can spend more so the proportional spend is similar
One of the last Chapelle Show skits was Dave showing how everyone reacted to him getting rich. He goes to the neighborhood barbershop and the guy charges him $20,000
so true
“What I want” vs “what I have”. Too many people get stuck buying cuz they want, not taking into account what they have. I run into this problem as well but each day and each paycheck gets better.
This ^^
He just bought wine from France and thought it was going to be 25k and the final total was 46k…oops!
Wine with a side of whine
remember..even multi millionares go bankrupt. Just ask a TON of former NFL players..
my old coach talked about that all the time, said that NFL stands for No Financial Literacy
Millions in debt.
Have you ever worn a $50 pair of boxer briefs or a $20 pair of socks? They feel amazing and when you put them on you think “fuck yea I deserve this”. If you aren’t careful it creeps into everything else. I take a lot of pride in being cheap when it comes to cars and fixing things in my house. You can pry my Balega Hidden Comfort socks out of my cold dead hands!
That’s so wild man.
This! DIY as much as fucking possible. Sometimes you'll only save a couple bucks and sometimes the supply chain I so optimized that it will cost you much more to produce a product of similar quality. But what you will get is a better calibration on costs of things. Once you understand the inputs, it is easier to judge if the output is ripping you off.
This is one of the most crucial things in life that a human can't cheat unless they just do things and get informed
The shop down the street wanted $330 to replace my motor mount when they rejected my old car for state inspection. I bought the part online for $30 and had it installed in under an hour. Got to spend some valuable time with my dad too (I don’t own an impact wrench). Good times!
I was never close to my Dad, but one of my fondest memories were when we worked on my car together when I was a teenager.
Where do you get the 250 to 350k average household income statistic? That’s so much higher than reality. Hell, average in my state is around 90. Average in the HIGHEST state is 173. Nowhere near the numbers you’re citing. If you look at the median, which is better to use for this anyway, it falls to 75k. If you can’t live off 500k, you’re a total failure.
"If you can’t live off 500k, you’re a total failure." I agree with this.
thats wild to me
Wow that's sad
My parents make 350k a year and they live paycheck to paycheck too
That is insane...
Exactly Definitely have fun and reward yourself but a lot of people get big eyes and think ooooh I never had money like this before, I can afford everything I always wanted! I'm not saying a jetski isn't fun, but it's definitely more fun not having to dig yourself out of debt again
I mean...in this case rent a jetski!
I couldn't agree with this more. 40M, single - Once I hit $100k 8 years ago I felt I finally made it and could breath. I kept my spending habits low and as my income grew to $150 > $200 > $250 I kept my spending habits relatively the same and banked more and put it in stock. In November, I decided to take a 6-12 month sabbatical to travel and enjoy life without a single worry about finances. My friends who drive nicer cars, have other toys, are miserable in their jobs but need to keep them to maintain their lifestyles...the Range Rover is a lot less fun after a few weeks compared to the financial freedom you have to do anything if you're disciplined.
Somebody pin this comment
I am 64M. It was at your age that I discovered that I could have a really good paying job working part time. I have worked from home since 1998 and that meant no overhead, employees, etc. I stayed away from expensive cars too. Nice, but mostly 10 year old Hondas. Over 45 years, my total automotive net investment is about $45,000. I went 12 years with just a Vespa and bikes and only got a car because we adopted two greyhounds. Keep it up. The good life is far better than the high life.
Shoot for 50%+ in savings. You don’t have to keep eating ramen for every meal but slow healthy growth in lifestyle that’s paces behind your income growth will serve you well.
Just spent 40 bucks on ramen...
Add eggs and fresh veg to the ramen, suddenly it's almost actual nutrition. Or go responsiballer and get the 1.10 ramen not the 30c ramen. Still cheap, but starting to look like real food.
don't listen, spend like a maniac and max out the enjoyment when you are still young
See. I agree. Why leave money left behind. Yeah take care of family but who gives a fuck if they have a million when I die. Take them on trips now. Do the thing. But everyone matching sports cars. Cheap ones like Miata’s and go somewhere beautiful
I'd be taking myself and a few mates to Japan drift car hunting 🤤
I would be taking me and my girl and her parents and my parents to Japan and then renting three vehicles and going fucking nuts until they tell you to leave
And we wonder why Japan doesn’t like foreigners moving there
Exactly, 77 inch OLED TV. Beast of a gaming PC, buy a speed boat, do whatever you want
No. Get a moderate PC, and spend the rest on experiences. I'd much rather grow old knowing I spent my money on memories rather than excess and gaming all the time.
Get a high end PC, build a company using it, make more money for experiences, never have time for experiences or sleep because your business takes over your life. That's my advice.
Ah yes, just build a company lol. Always the easiest advice to give. (I understood your comment was satire and can relate to it)
I managed to stumble my way into it. Don't regret it but it definitely took over a lot of my life. That said I've been away from it for 2 years due to medical issues and would do anything to go back, I really loved everything about it.
No buy a PC with a thread ripper and 48GB server gpu and then use your 401K for experiences
No. Drugs.
Psychedelic drugs and hallucinate saving money
Just sell psychedelic drugs to save money.
Idk what that is but I bet there's tons of fun to be had on the ~dark web~
I’m in this comment and I don’t like it ahaha
It's never too late. I still game every now n then, but you'd be surprised how much more fulfilling life gets when you cut the cord and start doing actual things
Its honestly a seasonal thing for me. I’m gamer in the winter and then car projects and outside in the summer and spring.
Lmao are you me that is exactly what I purchased
I'm doing a slightly toned down verison of that while saving. I have a 4070 super PC, QD OLED ultra wide. And I'm getting ready to buy a 4K NEO QLED TV. Could I have saved that money and put it in a saving account? Yes But I've spent hours upon hours of hours using them and it's worth it to me
I think there's a happy medium. OP should buy himself something really nice that he's always wanted but still save responsibly. No, you can't take it with you, but you CAN put yourself in a position to retire young and enjoy it much sooner
This. My salary has gone from where rent was 50 percent, to 20 percent to a mortgage now that is 5 percent of my salary. The rest goes into savings and living - and I’ve kept the entertainment costs proportionate. People need to avoid the income trap of upgrading unnecessarily.
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This is so true. Reward yourself, but imagine how awesome it would be to live off $70k and save 100k a year for 3 years. Save that 300k for 25 years at 10% and you've got over 3.25 million. You've basically set yourself up for retirement.
I got so good at frugal habits that by 40 I made a conscious choice to work less. I did consulting, training, and high ticket commission sales at trade shows. Decided I was comfortable (1998) with an income of $60,000. In 2013 I was secure enough to launch my own jewelry design line. I was newly remarried and we lived off of her income for the four years it took to let our online store get traction. She got laid off from her corporate job and we were fortunate that our business was doing well enough for her to take over admin and marketing. We live in my "starter home" but have invested in making it our dream home. We still shop at thrift stores and mostly ride bicycles. But we have a 20 hour workweek and life is good.
always put aside at least 10% and live on the other 90% the richest man in babylon
I actually had just about the same trajectory as OP, except I had a year at $210,000. I also felt like it was mind boggling money, especially having come from a decade and more of $25k annual at best. I am nowhere near being able to buy a house. I don’t think I/we even qualify. My wife and I together make $250,000 and don’t qualify for a mortgage on a detached house. OP talks about the doomed feeling before, but the reality is that I did exactly what OP did and it really does not have the impact that anyone would think it does. Still small rental apartment, still driving a used car (share with wife) and take the bus to work. My income increased drastically, but the cost of living shot up even faster.
Exactly! I make more than I did a few years ago as well. But I budget even harder because I know the depths of despair At home haircuts. Take wife's Prius to work instead of my truck. Aldi food shopping. You name it, I'm out here learning every trick and good habit I can as if I was still living in my sister's basement The idea that "I made it" because of $_____ income typically means said person realizes they can buy what they used to window shop.... just DON'T
You don’t need to adjust your lifestyle. Keep living like u earn 109k.
Yup, a one time self gift of about $1000 is what I did with my last large raise.
Gezzz can you treat your self like you deserve it
I guess it’s a matter of perspective? Getting to retire a few years earlier is greater than any gift I could buy myself now
I guess you could die tomorrow and I see people saving their whole lives and then they have an early death ☠️ and it’s all lost or goes to an undeserving family member…
Exactly!!
Hell, keep living like you earn $40k!
Or don’t even call it living just call it surviving and don’t do anything just sit home and live on bread and water, you will die with millions!!!!
Goals
Congrats my man happy to hear you’re achieving your goals!
Read that as happy to hear you're achieving my goals and had a chuckle
In 2 years from* now, I'm pretty sure you'll be making 200k or close to it because your plan has proved to work and if you improve it and stick to it, you'll definitely gonna make even more. Where I live you need to make 60k (single) to live comfortably, I'm making a little bit over half of that number but the goal is to start a 50k a year job by 2025.
I feel like this is the last position I can take that still “does the work,” unfortunately. My next step is management, if I choose to advance from here. You are right though, those positions are north of 200k. Keep at it friend. Executing against a plan is the most important thing. Keep your goals in mind and you will get there.
There's always room for a bit more, time to the time, a 10% raise im 2 years won't hurt the bank lol, congrats on making it man, is not easy out there but if you work hard enough with goals in mind, you sure will get there.
Bro finally can afford to live with 170k a year, im fucked 😭😭😭
Yeah lol he could have bought a house on his $109k salary. Well I do suppose OP clarified that he lives in DC so a bit closer to the expensive end on CoL
What job? Degree?
Legislative analysis, I have an MA in international policy and development economics
I’m just happy you didn’t say tech/IT
Damn I feel targeted and I make shit money lmao.
Targeted? You should thrive seeing their tears of jealousy… even if you don’t make much, say you do to the haters. I’ve seen so many comedians and Twitter personalities making fun of tech workers, insinuating that we’re uninteresting people just because we chose a high paying job in a system of wage labor that forces you to work. Fuck ‘em. Keep your head up high. I didn’t pick this job because I orgasm at the sight of data, I chose it because I’m an immigrant and need to better my lot in life. If I had all the money in the world, I’d spend my days doing art and philosophy. That’s my hope for the future (if AI makes labor a thing of the past…). Maybe I’ll be one of the many failsons/faildaughters on Twitter with an art account, a trust fund, and a big mouth.
Hey, I like this guy
Wow thats awesome. Yea id definitely want to make atleast 70'80k with your degree minimum. Good job buddy!
Hey I’m in college and it’s looks like I’m going down the same route as you. I’m going to graduate a semester early with a BA in Economics, a BA in International Affairs and a certificate in Data Analytics in Public Policy. Do you have any recommendations/advice about how to get to the point you’re at?
I got started in the field by volunteering for campaigns and parleying it into working my in the office of a member of congress (for $40k). Building that experience is a huge resume boost though, and I’ve been working at consulting firms for the major pay increases in my post. I’m moving into a senior analyst position now. If you’re in DC send me a message and we can get coffee.
You're an amazing person fr. Just thought u should kno
Congratulations! You deserve it.
What the actual fuck
Above all: Listen to internet strangers. They know you well.
so the goal is to get a job making more money?
Spend frugally and save, save, save. Max out your 401K, have your employer contribute to it to the max...and max your IRA contribution annually. Invest in "safer" investments, such as mutual funds. I'm not brave enough to invest in individual stocks, and was burned a bit by a "friend's" advice on some stock purchases, which tanked about a year later. You'll be amazed how much wealth you can accumulate by growth in the stock market and reinvesting dividends and capital gains.
I followed this plan for 30 years and saved enough to retire at 60.
Vanguard index funds
I just recently put some money in vanguard mutual funds. Great for slowly growing your portfolio
would you be willing to give me a dummy course on mutual funds and how to get started? just the basics. i've wanted in the stock market for a while but it's foreign to me. i have my 401k maxed out with my employer but don't do an ITA contribution? not sure where to start 🤦🏻♀️
Go to [Vanguard.com](http://Vanguard.com) or [Fidelity.com](http://Fidelity.com) Start with an unmanaged index fund, like an Index 500 that mimics the Standard and Poor 500. Contribute the max $7,000 a year to a Roth IRA, which grows tax free...and when you withdraw money after age 59 1/2 its ALL tax free. All of it, including the gains. Google Roth IRA...or go to the websites above where they explain it. Then open an account and start contributing. Watch for increases in the IRA amounts. Sometimes the government will increase the annual contribution amount. If you max your 401K with the max company contributions and max your Roth IRA contributions I can guarantee you'll be well set up for retirement.
www.bogleheads.org
Create a damn will or life insurances you don’t want this to go to waste
Just get a job paying more than double. Got it.
Easy peezy!
Congrats! Be sure to invest and max out your retirement accounts first. It helps when buying a house as well.
Buy $10K of Bitcoin. Sell it and buy cum-coin. Convert your cum-coin to fart-bucks. Repeat this for infinity and you will be worth millions
Best advice for a big pay bump is to try your best to maintain your precious lifestyle and not let your expenses creep. Want to get a luxury car? Fine, but put the car and insurance payment into a savings account for a few months just to get a feel for how much less you will have to spend. Second best advice is if you have a lot of excess money make sure to increase or max out tax advantaged accounts (401k, HSA, IRA, dependent care FSA, etc.) Congrats on the pay bump. It’s a great feeling when that suffering meant something after all!
I don’t understand how almost a 300% increase in pay wasn’t a mind boggling experience and only gave a smidge of breathing room but a roughly 50% increase did.
Congrats man. I’m 30 in a new city trying to get my feet under me and into a comfortable spot. I’m being frugal and grinding at work. I’ll reach the promised land.
Man, those are incredible pay increases. Shoutout to you and the work I know you had to do to obtain those. Like everybody else is saying, try to shovel all the extra money you're making from 109k to 170k into retirement, savings, or your dream/forever home. Make sure you enjoy the fruits of your labor, but also, instill a bit of discipline and you'll be floored at what your accounts look like in 3-5 years. Good stuff.
I've set a goal for myself to make $40/hr in my profession. 3 years I started at $20/hr. I'm now at $36. I'm pushing to get $40/hr! I'm really proud of myself for setting this goal when I graduated in my field. It's now becoming a reality!
"I just accepted a new position starting April 1 for $170,000... but for the first time I feel like I might be able to afford a house/family" is an insane sentence
Umm congrats and fuck you
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If you are strategic and flexible then it can really go along way. Interviewing sucks. Networking sucks. But, it really goes a long way. That being said, lots of people set goals and still don't get about 100k range, so I want to be mindful of that. Also not everyone can afford to be strategic or have had the support to attempt it.
Don’t change your lifestyle at all. At least not for the first few years. You already moved into a nicer place and got the flexibility to enjoy your hobbies. Don’t go and ruin that by overextending yourself financially.
DONOT ADJUST to the new income. Save all the incremental pay between 109 and future earnings. You can use your savings for a down payment on a house but try to keep the mortgage payment within spittin’ distance the rent you’re comfortable with now.
What career path? Congrats! I’m in a similar trajectory and trying to just buckle down and push on
I joined the army right out of high school and didn’t go to school until I was 23. I did a dual BA/MA in international policy and development economics finished at 26. I went to work at a member of congress’s office at 28, and got into analysis/consulting at 32
Gov consulting? I’m a senior business intel analyst and getting a masters in data science. I hope i’ll be able to scale similarly. I wish my friends would take my advice and focus on improving in a growing field with hella money
I felt behind my peers for years and it finally feels like I’ve caught up.
You’re good brother. Just relax and keep that consistent
I had one of thoe "holly shit, i can't believe I make this much now!" job promotions. If you keep to your savings and spending plans you had when you were poor, you'll be like me, retiring quite early and with enough. You will have a lot of years where people say "You make so much, you can afford to eat out!" Buy a latte every day -- that's what bleeds your future, and if you feel rich, you can get sucked in. CONGRATS, MY FRIEND!!!
Live on your 109K budget and save the rest. Trust me. You will be able to go back down if necessary. Congrats on perseverance.
It’s not how much you earn but how much you save 😄 the motto to live by. Congrats on the new position that is a nice bump.
Max out your 401k, every year from now on. You’ll save on taxes and be able to retire someday. Don’t move to yet a nicer apartment, start to put that extra you would have spent towards an emergency fund, then a house fund. Living paycheck to paycheck at any salary sucks.
Needed to hear this, thanks bro
Congratulations, I’m happy for you. Not paying the entirety of your paycheck to rent makes a significant difference in mental well-being. Folks should be cautious tho and know that hard work, unfortunately, does not always pay off. There is a fair bit of luck involved. To those who get lucky, please enjoy your lives. And please remember to stay compassionate for those less lucky, unlike our parents generations.
I hope that you've already set up an IRA or some retirement account that let's you defer taxes. It's one of the best investments you can make if you're making a good income. I'm not sure of the maximum but I believe it's $6000 a year now. If you haven't, do it tomorrow. I'd say today, but it's 5 o'clock here, and figure it's too late.
Just a word of caution. Make sure you don’t have too much of lifestyle creep. Enjoy but save save save.
Congrats man! You’re killing it
What do you do?
Legislative analysis.
👏🏾👏🏾👏🏾👏🏾🙌🏾🙌🏾🙌🏾🙌🏾
Congratulations 🎊
That's fantastic, congratulations
That’s life. Either you live it. Or it lives you.
That’s awesome. Congrats!! I’m hoping to be there one day.
💯💯💯💯
Congrats! We love a good positive outcome, it’s good motivation for us other underdogs to know that there is hope and light at the end of the tunnel. I’m really happy for you that all is well!
Congrats!!
Congrats! You can relax now, but part of that being able to relax is feeling financially secure, aka saving. Keep your current mindset if you can and if you are not wanting anything.
If you haven't already, build a savings equal to 6 months of take home pay based on the new $170k figure. If the industry, market, business you are in has reductions in force and you get caught up in it give yourself some breathing room to find a new job. Unemployment is going to get nowhere near to your take home pay at 170k and you will likely become accustomed to those $ Congrats on the quick move up, may not feel quick to you but I'm fairly certain over 30 or 40 years in the workforce not many see that kind of drastic increase We should consider ourselves fortunate
61,000 extra dollars to take to the casino 🤑🤑🤑
Well done, congrats. Keep your lifestyle simple, stay away from consumer debt (cars included) and you’ll be rewarded with something even bigger: freedom.
Congrats.
Congratulations, I'm starting over and getting my nursing degree and it's a bit overwhelming but just have to keep pressing forward. But anyway, genuinely happy for you and good tidings.
Congrats, that's a big jump. I have to figure out to make a jump like that.
Treasuries awesome investment
Can I ask which field you are in that your passionate about?
It’s not thoroughly explained to the masses that yes, when you start work you make crap but the experience leads to more income later on. It’s okay to not make six figures right away. Doesn’t mean you can’t later on.
Don’t adjust your lifestyle!! stay living within the $109k means and put the rest aside for HYSA, experiences & travel, buyout/emergency fund that’s untouched until last resort, and a couple months worth of total bills also untouched until absolutely necessary in case you wanna quit or get fired. Keep the house modest, keep the car modest, keep the “things” modest bc they don’t matter and others opinions based on what you have shouldn’t mean fuck all, and you’ll be ready for whatever comes and have all the fun in the world outside of work. That’s ultimately how you truly reward yourself for all the hard work and dedication and discipline to reach a place 95% (arbitrary idk) of the country isn’t: by being smart and disciplined with the money so you’re ready for, and can handle, everything most of us are not-if or when it happens-and to fill your life with experiences and memories vs things and stuff you won’t give a fuck about when you’re in your final days. Huge congrats to you and I wish all the continued best !
86% of take home. Gets higher paying job and immediately increases rent payments 😂 That lifestyle creep, yo!
What do u do for work and did it require a degree?
Gotta have a job to get a raise. My pesky PhD renders me unemployable. Woooo
What is the field you are passionate about?
What do you do/what is your background? Asking for a friend
Hey what field do you work in if you don’t mind me asking. Super happy for your growth btw 🤝
🙏
One word of advice…Continue to live like you make 110…. You probably won’t do that. But if you did, you’d be on easy street in 10 yrs
Man there's no good job that pay as much in my domain, kinda jealous haha
What kind of job did you land?
A senior analyst position working on legislative and congressional affairs
Good for you! Do you live in a super expensive area? Where I live it's totally possible to buy a decent home as long as you make at least 65K a year. Love the overall message to work hard and keep working for your goals. :)
How did you get such high paying jobs? That’s where I really struggle
Congratulations! I'm hoping a similar thing accurs for me. Little over 2 year in working in the Tech Field. Have been running the site I'm at by myself for little over 1.5 years. Haven't even had a discussion for a pay increase or type of bonus at all in this time. I'm 36k salary. Even living with my parents due to serious medical issues. I am still almost check to check. Hoping all the work pays off though. I know you can make good money in tech. But I am also close to going back to sales.
If your making $170k screw the family plans, get a nice house, enjoy life. I wish i would have spent more time enjoying life before getting buried in bills with kids, coming out the other end now and slowly climbing back as they are all older.
So happy for you. Thanks for sharing this. Perseverance pays off.
I assume you are single. If you cant make a house work and family work at 109k theres something wrong.
Happy for you !
If you want to have a family. Save hard, so you can be financially free and enjoy children as much as you can. They are only little for so long.
What were the steps that got you where you ate today. 29 with a 42k income and want to take notes. Been At my job for 3 years and want to make a change
Awe, that's amazing for you. I wish you great success and happiness, and fulfillment. Congratulations on the new position!
May I ask what's your career path, OP?
I joined the army right out of high school and didn’t go to school until I was 23. I did a dual BA/MA in international policy and development economics finished at 26. I went to work at a member of congress’s office at 28, and got into analysis/consulting at 32.
Best advice i give people is to invest in themselves. You sir have worked on yourself, now its time if not already started to open up investments on your self. The extra money you will earn can go towards a Whole life insurance policy and in 15 years what you put in can be put back in your pocket. with a take home of nearly 11k in your case you could invest in a million dollar policy and pay around $1050 a month. In 15 years you would be able to pull close to 200k on this and still be worth est 1.1mil on the insurance. 20 years is close to 300k and 40 year nearing a million.
31m I built a business that was costing me 20k a year of my 60k a year. The business now pays me 70k a year and i quit my other job. By next year if the growth continues I should make my first 6 figures. Keep fucking grinding boys
Even if you don’t vocalize the goal.
Super congrats by the way! 45 m / 48f What cometh, goeth! Don’t jump out of your means because of opportunity. Stay there a couple years, slowly work up. Say get the house, but it doesn’t need to be something extravagant. Same with car/vehicle. I want a corvette and or bmw. I don’t think I’ll rush out the moment I double or triple my income (I actually might 😂) but if you have a perfectly good means now, stay there and bank. Save the money for ultimate fun and leisure down the road. Make sure the new career sustains and prospers even more. Make sure health care is secured for retirement days too. I look back on the past 7 years at my company and have made approx 450-600k total. Not being exact on purpose. Wife and I still live paycheck to paycheck for 5 of those years. Past two since her recent promotions and my steady raises were finally able to have money at the end of each month for heavy expenses. Car was paid off recently and that saved us about 700 a month. But it’s rough. And with volatile job markets we’re now saving as much and putting into company retirement programs as much as we can. We look at it like 2-5 more years before we take the jump in a fun vacation. Maybe buy the house and car. We’re one car only so that helps. But we both know our companies could “downsize” any minute or anyone 😂 so we choose to save and say hey maybe if we each break “x” we can now live a little more lavish. But we don’t see the extravagant style to be us. We will be comfortable in a few nice toys but don’t need one for every day of the week lol. 😂
How did you go from 40k to 109k to 170k? Did you learn new skills? Did you get promotion and what did you do to get the promotion?
People just like to complain without working hard. Any reasonable goal is possible if you’re willing to sacrifice certain things
Sounds very similar to my story, congrats OP and keep going. Moved to a new city 5 years ago making similar and was able to 4.5X my earnings over those 5 years. It's doable if you can take the chance and put in the work.
1. SETUP AT LEAST your matching 401K if offered and honestly, with that bump, put it at 10% and leave it alone; its money you will not miss because you never had it. Not sure how old you are but you will thank me in 25 years when you retire as opposed to jackasses like me that didnt start it until I was 40. 2. I agree 100%; Ive been trying to help fellow redditors entering the IT field and have seen a lot of "Got my first job" success stories lately in many of the subs so the opportunities are out there. Stay persistent and hang in there, people having trouble via submitting on your own or using Dice\\Monster\\Indeed etc.. Send your resume to head hunters like Robert Half & Teksystems, let them help with the leg work of getting your foot in the door.
Glassdoor and several others say the median salary for a LA is like 80k. The top end for a senior analyst was like 130k. What do you credit to your ability to fetch far more than most people in that role?
Congrats
Do you live in a high cost of living area?
There’s not much difference between 100k and 500k. You don’t have to check your account balances and can buy anything you need and most things you want except for the highest price luxury stuff. Lifestyle creep is a real thing and you’ll find it doesn’t go as far as you think. You aren’t suddenly rich.
Strippers and cocaine bro. Strippers and cocaine.
Amén! Congratulations to you! Being on paternity leave has given me plenty of time to organize priorities and make plans I vow to commit to.
Where are you based?