I used to think it doesn't matter how much you make. What matters is how much you save.
Well, it is true to certain extent. Now I know, it is SO MUCH easier to save when making more money.
When I started working for current employer, I was a temp making $14 per hour. Then, I was offered an Executive Assistant job, making $18.5.
I followed all the good finance advice. I packed my lunch and ate at my desk every day. I contributed 20% of my salary to 401K. I cut coupons and looked for deals. I mailed rebates to get free stuff, and get free samples. But our saving didn't grow that much.
I realized I need college degree to be promoted to manager position, I went back to school and got my degree in Business Administration while working full time. It took me 8 years to finish my school work but I received a couple of promotions during those years, one to become a financial analyst when I got my Associates degree, and a manager position when I got my Business degree.
Then, I was offered a director position in Bay Area. Now, my base salary is above 100K and I also receive 15% bonus (this depends on company performance). I still contribute maximum amount to 401K, clip coupons and look for deals.
But what a difference between making 40K a year and 100K plus a year. It is so much more easier to save money and have a nice cushion in cash account.
So, yes, how much you save matters. And, how much you make also matters A LOT - which I didn't know when I wasn't making anything. Now I know.
It doesn't matter how much you make. Really?
March 31st, 2012 at 07:48 pm
March 31st, 2012 at 08:09 pm 1333224564
My parents drilled this into me, because they *really* understood this. So they gave me great guidance when it came to income and job enjoyment, and work/life balance.
As with anything, there is lots of middle ground. Too often people just assume "high paying" means "high stress executive," or something of that nature. I think I have a great and amazingly low stress and highly flexible job, doing what I love, for a really nice wage.
OF course, my dad grew up poor, and was a highly paid Bay Area engineer for decades, so I think he felt the same as you, and why my parents really emphasized education. I think the income he made just blew his mind - he was one of the first in his family to go to college.
March 31st, 2012 at 08:31 pm 1333225881
March 31st, 2012 at 09:43 pm 1333230218
Jerry
March 31st, 2012 at 11:37 pm 1333237055
March 31st, 2012 at 11:48 pm 1333237710
Along the same vein, there's a difference between working hard and working smart.
April 1st, 2012 at 02:53 am 1333248791
May 25th, 2012 at 11:54 pm 1337990078
June 16th, 2018 at 06:58 pm 1529175526