I’m on my second job since college. I worked in the automotive industry right out of school, and since I graduated in 2007, I entered the industry just before it basically imploded. That was an interesting experience. My pay varied depending on hours/cutbacks from 50-70K, and I worked lots of overtime, sometimes unpaid. In the 4 years I was there I went from the most junior person in my workgroup of 7 people to the 2nd most senior. Great experience, but a lot of work for the pay offered. I bought a house (foreclosure) and rented to 3 other engineers at work and we had a great time, and I managed to come out slightly ahead when I sold it after leaving the job and the area. My 2nd job (no longer automotive industry) basically split the difference between my high and low years at the previous job, but with a guaranteed 40 hour workweek (more free time), better job security, and slightly less stress. I’ve been here just over a year.
I am EXCEEDINGLY grateful to be as fortunate in my finances as I have been so far, but occasionally I wonder about pay. That is, I read multiple stories of people changing jobs and earning significantly more. I am relatively safe and secure in my current job, and reasonably happy, but looking at the national averages for engineers with 5 years experience, it seems like $60K might be a little low. In fact, many starting salaries are above this for 1st time grads.
Congrats on a solid start!
Are you looking at just any-old engineer starting salary, or people in your specific industry? Petroleum engineers can start at $70k+....but you're background isn't petroleum.
A great site where actual people post their actual salaries (listed by company!) is glassdoor.com. Search around there for some of your competitors or your own company to see what actual equal jobs are paying. And speaking as a B.S. in Mech E, not all Mech Es are the same, so don't just search for "Mech E". (I'm in the Architecture/Engineering industry, which can be very different from automotive, manufacturing, etc. industries).
-Stick it out and try to rise through the ranks at the current gig?
-Go back to school for an MBA or other degree and go for the big $$$ job, with an assumed increase in hours and stress, but shorter timeframe to FI?
-Skip school and try and make the jump to another field on the strength of my current experience? (my resume is pretty strong)
-Something else I haven’t even considered? For instance, I have a decent wad of cash saved, and a very reliable motorcycle that is comfortable to ride all day and gets 50+mpg…I have seriously considered quitting the job, jumping on the bike, and riding across the country for awhile, visiting friends and family and touring through the National Park System. Not quite early retirement, but certainly a sabbatical with a fun adventure. My dad recently retired, and he would possibly join me for part or all of such a trip on his bike. I feel these sorts of life adventures are the sort of thing that we live for, and work is just a means to support them.
As others have suggested, look for companies that offer salary reimbursement for MBAs. Also, think long and hard about what opportunities that door could open - perhaps many, or perhaps it's not worth it.
Personally, I worked for my father's construction company as an estimator/project manager for 8 years after school, made a good chunk of change, but needed to save my life from the stress that was literally killing me. I took the GMAT, obtained letters of recommendation, and was going to start filling out some MBA applications...when it hit home that the starting salaries I would get would probably be just about the same as I would have if I stayed in the construction industry, not to mention that the types of jobs may not truly be as appealing as my general notion of finance jobs (even though I love numbers and investments), and getting an MBA would require a big financial and time commitment.
So, I decided to try the design side (using my vast construction experience as a huge benefit and insight, since most designers only know the design side, and are clueless as to what really happens on a jobsite). I figured if it didn't work out, I could always fall back and enter the MBA program. It turned out to be the greatest possible move, because not only do I truly enjoy my job, but I would have graduated w/ my new MBA in 2009/early 2010, and basically would have been screwed finding a job.
To sum it up - try looking at your knowledge and experience, and think of ways to leverage that to give yourself an advantage or insight that others in your 'ideal' career path may not relate to, or bring to the table, whether apart from an MBA, or in conjunction with one. It makes you more valuable as an employee. Also, look at other benefits too - salary is one thing, but so are matching 401k contributions, employers that pay you part of the savings if you buy your own health insurance plan, and some that still offer a defined benefit plan (many universities and non-profit healthcare institutions still offer them, and they do have some openings for engineers/managers).
I have a couple of other adventure ideas, such as buying a large-ish boat ~50’ and starting a charter business, or trying to start a repair shop (cars, motorcycles, electronics), for the opportunity to be my own boss and work for myself, rather than someone else’s business.
Self employment can be a great thing....but ask yourself what your goals are. Is it mainly to achieve FI as soon as possible so you can do what you want w/ your time? Given your current and future salary, unless you come up with a kickass idea(s), I doubt you'd have an overall better average going out on your own now versus just saving away for the next 12-15 years and then being able to do anything.
Look again at some of those ideas you have. Some of them are very creative and thinking outside of the box (a great quality for prospective employers, by the way), but be wary when your self-employment plan depends on hiring good quality employees. They are out there to be found, but it can be damn hard to find them. In which case you're left dealing with various levels of tardiness/don't-give-a-shit-so-i'll-do-it-half-assed/don't-give-a-shit-about-your-profitability-so-i'll-take-my-time/no-shows/minor theft/attitudes that rub customers the wrong way/etc..
Starting a charter business is great....until your captain no-shows 3 days in a row because they went out partying the night before and are too hung over to show up for work. And you have a sizable loan note on that boat that is costing you money whether you have customers or not. (think that's excessively pessimistic? talk to my father and brother, the contractor, and ask them how many times they've had calls from union construction workers making $65k/year plus gold-plated benefits not show up for work because of alcohol/drugs/jail time - IF they are nice enough to call and say they aren't coming to work).
More importantly, many captains are also the owners of smaller charters, so they have the advantage of not having to pay someone else for their return-on-investment, so your ROI will be substantially smaller.
Perhaps your boat charter idea was for you to be a captain - in which case it could work out, although I would only recommend something like that when you're already FI, and you become "self-employed" in an activity you truly enjoy that would be a hobby (like boat fishing because you'd want to go out on a boat anyway, etc.), due to the comment earlier about your current salary/savings plan and how much more likely that is to get you to FI much sooner given some of the riskier suggestions you had.
I currently do some design work on the side at night. See if you can offer your skills and offer your services at night/weekends to other companies. Depending on your arrangement, you could be considered an independent contractor (certain litmus tests apply, so tread carefully). If you can qualify as an IC, that allows you to declare self-employment income - which the IRS allows you to expense some of the following:
your 'home office' (an area or room in your apartment dedicated to your self employment work)
Travel from your home office (apartment) to the employer's location
contribute to a SEP IRA (stash away up to 20% of your self-employment income, tax-deferred)
among others write-offs
You might even talk to some head hunters if they know of any part-time openings that their clients might be willing and able to use, instead of a full-time person.
