It's a tough choice for mist because you could whine with either job.
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How much income is enough?
- Thread starter Swagdaddy
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It's a tough choice for mist because you could whine with either job.
Crone
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So I just accepted a new job, and it's a significant bump in pay from $52k to $80k. When I got the offer at $80k I kept thinking dang, per @Khane 's links, I'm now at the peak of hapiness! What I hear is that overtime will nudge me into 6 figures barely.
So for others that have had these huge bumps in pay. I think
Noodleface
did right outta school? Or others, how did your finances go? Have a pretty significant surplus at first, then the bigger house, new car, etc just started coming and now you are back to using it all up? Have discipline and retain a bunch extra for retirement or savings?
I expect possibly not a huge bump in take home, but we'll see. Health insurance, 401(k), and a higher tax bracket is all gonna throw it outta whack.
So for others that have had these huge bumps in pay. I think
Noodleface
did right outta school? Or others, how did your finances go? Have a pretty significant surplus at first, then the bigger house, new car, etc just started coming and now you are back to using it all up? Have discipline and retain a bunch extra for retirement or savings?I expect possibly not a huge bump in take home, but we'll see. Health insurance, 401(k), and a higher tax bracket is all gonna throw it outta whack.
Noodleface
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The biggest bump in pay for me was right out of school - 10k to 76k, basically felt like a millionaire.
I've now gone up to 93k and the money basically feels the same, life didn't really change except my wife doesn't work now.
I've now gone up to 93k and the money basically feels the same, life didn't really change except my wife doesn't work now.
Crone
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I pray I can have the discipline to keep my shit in check so I can have a hefty excess every month to put into savings and build back that cushion, and after that further investments into retirement accounts and kids college funds.
That's the worst part, or best part I suppose is that unless you are seriously a millionaire, there is never not something you can be saving for. Since I have kids, the obvious is the kids college tuition. It'll take a ton more money to get to the point where the excess could be used on myself. Guess that's what retirement is called?
Noodleface
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Vinen
God is dead
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Wife and I have agreed we will only cover in-state tuition unless our son gets into a top school. This is 18 years off...
Max your 401K with the new salary. Don't let your lifestyle creep. Don't make any other changes. My wife and I still live at the means we had when we first met (approx 150K combined at that time).
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If you're fine now I would say have your salary difference go into a savings or Roth account (you can touch it in 5 years iirc) and be set up to only be able to ACH out.
That way you can know you have it in an emergency (stress relief) and you can invest in something should an opportunity come up.
That way you can know you have it in an emergency (stress relief) and you can invest in something should an opportunity come up.
BrutulTM
Good, bad, I'm the guy with the gun.
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This. Go hard on the 401k from the first check. There will never be an easier time to do it. You can't miss what you never had.
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Are you guys talking about contributing federal max to 401k or maxing match contribution?
Federal max is like 18k so that's pretty heavy for a 70k earner
Federal max is like 18k so that's pretty heavy for a 70k earner
Noodleface
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If he can it's one of the best things he can do with his money now. Obviously if he can't then just max your match contribution.
btw congrats Crone, I remember when you first started looking and it sounded so depressing
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If you're a sole earner at 70k you probably won't be able to max your 401k, but you can try.
Depending on your earnings and what type of income you have you can also do things like SEP-IRA, backdoor roth, etc.. just try to maximize your tax-advantaged savings/retirement accounts before you worry about saving/investing otherwise.
And roll the shitty company-managed IRA's over into vanguard so you can invest in some super low fee funds.
Depending on your earnings and what type of income you have you can also do things like SEP-IRA, backdoor roth, etc.. just try to maximize your tax-advantaged savings/retirement accounts before you worry about saving/investing otherwise.
And roll the shitty company-managed IRA's over into vanguard so you can invest in some super low fee funds.
Not to get too existential but that's a pretty bold statement considering the dude is going to miss out on buying a stake in a great business of his dreams in 8 years and then going to have a stroke at 61.
Young money is more valuable in more ways than compounding.
Noodleface
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Soygen
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BrutulTM
Good, bad, I'm the guy with the gun.
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Come on now. That corvette he bought and then totalled at age 24 was way better than financial security in the golden years.
My cousin's husband works in the oil fields and he told me about a kid that worked 2 jobs there right out of highschool, close to 80 hours a week with no days off for a full year and managed to save up almost $100K which he blew all of on the fanciest pickup truck that money can buy. That was like 5 years ago so that truck is probably worth $20K now and if he had put $100k in an IRA at age 18 he could have practiacally retired on it without even making any more contributions for the rest of his life.
EDIT: Just plugged that into a retirement calculator and it said you should expect to retire with over 2 million dollars if you put away $100k at age 18. Hope that truck got him a lot of pussy.
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If you'll potentially be hitting six figures, and you're already comfortable on your current budget, you might was well max your 401(k) at $18k each year. If you get an HSA max that as well. It sounds callous, but you should prioritize your own retirement before you do college savings, etc.So I just accepted a new job, and it's a significant bump in pay from $52k to $80k. When I got the offer at $80k I kept thinking dang, per @Khane 's links, I'm now at the peak of hapiness! What I hear is that overtime will nudge me into 6 figures barely.
So for others that have had these huge bumps in pay. I think
I expect possibly not a huge bump in take home, but we'll see. Health insurance, 401(k), and a higher tax bracket is all gonna throw it outta whack.
Don't fall into the trap of needing to upgrade your lifestyle and such. You'll still get a large net increase of income even after maxing the two items mentioned above.
I wouldn't be too concerned with moving into a new tax bracket. You only get taxed at 28% on the amount that exceeds about $76,000.