Author Topic: Joining 6-figure income club  (Read 1563 times)

Virtus3

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Joining 6-figure income club
« on: December 08, 2020, 07:25:42 PM »
Some amazing combination of hard work and mostly luck has allowed me to increase my income from $62k to $100k over the last 3 months. Just received news about a big promotion today and needed to share somewhere.

It feels slightly wrong being excited given the financial strain this year is putting on millions of people.

okparallax

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Re: Joining 6-figure income club
« Reply #1 on: December 08, 2020, 07:40:52 PM »
Congratulations! That's a nice milestone, now make sure you don't get suckered into lifestyle creep. Use the new $ for your future self or for others.

maizefolk

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Re: Joining 6-figure income club
« Reply #2 on: December 08, 2020, 07:56:13 PM »
Way to go, Virtus3! Upping your income by 2/3rds in only three months is a big, BIG deal.
 
One of the great things about this forum is you can come here to celebrate the things like this which might not be as comfortable with people you know in person.

cool7hand

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Re: Joining 6-figure income club
« Reply #3 on: December 09, 2020, 04:04:23 AM »
Congratulations! (Please consider why you are having difficulty enjoying this accomplishment without guilt. Other people are responsible for themselves.)

bbqbonelesswing

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Re: Joining 6-figure income club
« Reply #4 on: December 09, 2020, 06:37:50 AM »
Totally badass! How did you land such a big increase in that short amount of time?

I agree, it does feel somewhat strange to be doing well when so many are sick or out of work right now. Maybe allocate some of your raise to charity, if you can.

achvfi

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Re: Joining 6-figure income club
« Reply #5 on: December 09, 2020, 07:33:55 AM »
@Virtus3 That's Awesome! congratulations.

Years ago I had very similar jump in income. Additional cashflow will do you wonders if you focus most of it savings and investments. Automate it before even before you see it in your checking account.

Some amazing combination of hard work and mostly luck has allowed me to increase my income from $62k to $100k over the last 3 months. Just received news about a big promotion today and needed to share somewhere.

It feels slightly wrong being excited given the financial strain this year is putting on millions of people.
There is nothing wrong in being successful. Best thing you can do for society is make sure yourself financially strong and family taken care of. You can give back to society from position of strength.

Dicey

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Re: Joining 6-figure income club
« Reply #6 on: December 09, 2020, 07:36:16 AM »
Congratulations!  What's your new savings plan?

Virtus3

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Re: Joining 6-figure income club
« Reply #7 on: December 09, 2020, 07:54:21 AM »
Congratulations! That's a nice milestone, now make sure you don't get suckered into lifestyle creep. Use the new $ for your future self or for others.

Thanks! Definitely want to be mindful of lifestyle creep; I don't think it will be a problem on a day-to-day spending basis but could see the urge popping up when we plan to move in the next year or two.

Way to go, Virtus3! Upping your income by 2/3rds in only three months is a big, BIG deal.
 
One of the great things about this forum is you can come here to celebrate the things like this which might not be as comfortable with people you know in person.

Appreciate it!

Congratulations! (Please consider why you are having difficulty enjoying this accomplishment without guilt. Other people are responsible for themselves.)

Thanks. I don't feel guilty about receiving raises; more about feeling the need to share...

Totally badass! How did you land such a big increase in that short amount of time?

I agree, it does feel somewhat strange to be doing well when so many are sick or out of work right now. Maybe allocate some of your raise to charity, if you can.

Well as I said it was mostly luck. I received a performance bump in October taking me from $62k to ~$71k; we had two members of the project team I am on resign from the company the same week and the client floated me as a replacement. I have exposure to the position and many of the tasks but it's a big bump in role/responsibility hence the increase to $100k.

@Virtus3 That's Awesome! congratulations.

Years ago I had very similar jump in income. Additional cashflow will do you wonders if you focus most of it savings and investments. Automate it before even before you see it in your checking account.


There is nothing wrong in being successful. Best thing you can do for society is make sure yourself financially strong and family taken care of. You can give back to society from position of strength.

Thanks. I plan to max my 401k and am already maxing HSA. With that my take home will be approximately $500 more per paycheck (bi-weekly) than it is currently.

I want to boost my EF first and then will max my Roth. I'm curious what the tax implications are going to be as it will push my wife and I into the 22% bracket.


Congratulations!  What's your new savings plan?

Max 401k, already maxing HSA, increase EF, then max Roth. I'm curious to see how taxes and tax flow will work out.

achvfi

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Re: Joining 6-figure income club
« Reply #8 on: December 09, 2020, 08:26:53 AM »
Thanks. I plan to max my 401k and am already maxing HSA. With that my take home will be approximately $500 more per paycheck (bi-weekly) than it is currently.

I want to boost my EF first and then will max my Roth. I'm curious what the tax implications are going to be as it will push my wife and I into the 22% bracket.

Check out investment order thread. Its a good tax strategy if you are not following yet.
https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153
« Last Edit: December 09, 2020, 08:28:58 AM by achvfi »

Dicey

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Re: Joining 6-figure income club
« Reply #9 on: December 09, 2020, 03:17:15 PM »
Congratulations!  What's your new savings plan?
Max 401k, already maxing HSA, increase EF, then max Roth. I'm curious to see how taxes and tax flow will work out.
I probably could have phrased this question better than I did. Since you're pretty used to living on $62k, if you can manage to stay at or under that number for a few years, you could really shorten your time to FI. With $38,000 extra clams per year, you can probably fill all those buckets and still have money to invest in taxable accounts. Taxable accounts are important because that's what you live on until you get past the age restrictions of tax deferred accounts. (Yes, there are ways to break the 401k piggybank early, but it's not always the best option.)

lollylegs

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Re: Joining 6-figure income club
« Reply #10 on: December 09, 2020, 03:28:15 PM »
Congratulations! its a nice milestone to hit & will really speed up your progress if you are able to save most of it.

nirodha

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Re: Joining 6-figure income club
« Reply #11 on: December 09, 2020, 05:13:13 PM »
Don't forget the downstream impact, since everything is % based on current salary. 3% raise at review time? Now you get $3k instead of $2k.

I've also found the more you earn, the more generous companies become. They open purse strings and become flexible on rules to keep their high performers.

cincystache

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Re: Joining 6-figure income club
« Reply #12 on: December 09, 2020, 06:30:51 PM »
Some amazing combination of hard work and mostly luck has allowed me to increase my income from $62k to $100k over the last 3 months. Just received news about a big promotion today and needed to share somewhere.

It feels slightly wrong being excited given the financial strain this year is putting on millions of people.

Congratulations! It's not wrong to be excited, enjoy it. Use your higher income to help people and reach FI faster so you can help people even more. There is nothing wrong with making 100k. Good job and enjoy the big increase.

Virtus3

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Re: Joining 6-figure income club
« Reply #13 on: December 11, 2020, 08:17:15 AM »
Thank you all for your responses.

Check out investment order thread. Its a good tax strategy if you are not following yet.
https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Yes, I pretty much already follow this plan although I flip #4 and 5.

I probably could have phrased this question better than I did. Since you're pretty used to living on $62k, if you can manage to stay at or under that number for a few years, you could really shorten your time to FI. With $38,000 extra clams per year, you can probably fill all those buckets and still have money to invest in taxable accounts. Taxable accounts are important because that's what you live on until you get past the age restrictions of tax deferred accounts. (Yes, there are ways to break the 401k piggybank early, but it's not always the best option.)

No worries; I knew what you meant. This will certainly speed up our progess and while it will give us a little more breathing room I've at least got a plan to up savings before we increase consumption.