Landed a 100k job!

[Bikesy]

Just wanted to share that I'll be starting my first big boy job next month at age 27.  I quit my old job making 67k and moved companies.  My first year compensation will be 99k and second year will be 105k.  Pretty sweet considering the wife and I will be moving to a lower COL area as well!  It's tough to share money info with friends and family sometimes, so I share with you all.  That's why I love this board!

[Workinghard]

Congratulations! Even your other job was sweet, but this is a huge pay increase! Have you set savings goals?

My son may be looking at a pay increase in the near future. Here's my advice to him (which I haven't sent yet) and not necessarily in this order.

1. Do NOT inflate your lifestyle.
2.  Have your entire guard check going to your TSP.
3. Max out your 401K at $17,500 when  you're eligible
4. If you have to wait on the 401(k), put the money into Vanguard.
5. Contribute to Roth IRAs--$5,500 a year

 I got a 17,500 increase this year.  Okay, not really, but I did become eligible the 401k and I'm picking up enough OT so we can continue the same after tax contributions.

[HairyUpperLip]

Congratulations! Even your other job was sweet, but this is a huge pay increase! Have you set savings goals?

My son may be looking at a pay increase in the near future. Here's my advice to him (which I haven't sent yet) and not necessarily in this order.

1. Do NOT inflate your lifestyle.
2.  Have your entire guard check going to your TSP.
3. Max out your 401K at $17,500 when  you're eligible
4. If you have to wait on the 401(k), put the money into Vanguard.
5. Contribute to Roth IRAs--$5,500 a year

 I got a 17,500 increase this year.  Okay, not really, but I did become eligible the 401k and I'm picking up enough OT so we can continue the same after tax contributions.

1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
This one is very very important.

Friend of mine recently went from $45-50k to $75k and he's already talking about BMW's with $800 payments. WTF.

[greenmimama]

Good for you, like you I feel their is very few people in my life that I can tell about our salary, sad really that you have to worry about jealousy and how it will change things, when it shouldn't matter a lick.

[payitoff]

Yes, continue living on the same income and save surplus! congratulations!

[Bikesy]

So it seems general consensus is to get new cars for my wife and I :).  You all will be proud, I've already calculated what my bi weekly pay will be after maxing the 401k and hsa...then it's just two TIRAs to be tax deferred retirement ninjas!

[Mortgage Free Mike]

Congrats! In a few years maybe you can join the mortgage-free club with me if you put some of that extra money (after saving for retirement) towards mortgage pre-payment.

[Bearded Man]

Welcome to the six figure club!

[Bateaux]

That is a powerful income level.  YOU will be able to live life on your own terms very soon just be smart.

[Cwadda]

Congratulations. What is your occupation?

[Bikesy]

Congratulations. What is your occupation?

I'm in operations management. 

[Blindsquirrel]

   Way to go, that is a heck of a raise. If anything, reduce your lifestyle a hair just to flex your badassity.

[MeghanD82]

I'm 5 months in to a $106k job but the rent for a 1 bedroom is super high, so unless I want to live far out from work and commute on trains, I need to move somewhere else so I can save for FI! $100k is substantially different in DC than Denver, which is where I hope to move late this summer. I can cut my housing costs by more than half, get free transportation from work, and cut food expenses. My annual salary would decrease by about $2,000 but the state tax rate is lower there. I've promised myself that I will increase my pre-tax retirement savings to the max right away if I can get home. Please wish me luck as I applied for two positions tonight.

[Erica/NWEdible]

Fistbump. Solid work, especially at <30 years old. Now go be a badass rebel and don't underwrite bullshitery with your work and fortune. :D

[Workinghard]

Here's a link to a recent article about increasing your pay by changing companies. There's no data but it's interesting and seems to hold true in multiple careers.

http://www.forbes.com/sites/cameronkeng/2014/06/22/employees-that-stay-in-companies-longer-than-2-years-get-paid-50-less/

MeghanD82, hope it works out for you!

[nawhite]

Here's a link to a recent article about increasing your pay by changing companies. There's no data but it's interesting and seems to hold true in multiple careers.

http://www.forbes.com/sites/cameronkeng/2014/06/22/employees-that-stay-in-companies-longer-than-2-years-get-paid-50-less/

MeghanD82, hope it works out for you!

I saw that forbes article posted on facebook and while I've definitely taken its advice to heart (3 jobs in 5 years going from 85k -> 115k -> 110k but working remotely) it did miss one very important point. I've found that there really is a maximum that anyone in a position is worth. So while you could probably go for 2-3 job changes to bring yourself up to full market value, eventually you'll hit a ceiling for your field. Expecting a 10% raise every switch for 5 switches eventually becomes more than anyone in your field is paid. The good thing though is that when you get to that max value, all new switches can work towards maximizing other things that are important (like vacation time or working remotely etc).

[sobezen]

Congrats you've done really well at your age!  Keep on saving and building your frugality muscles.  Is your wife also on board with your Mustachian journey?  If so you have tremendous power and momentum at such a young age.  BRAVO!

[Deano]

I too just hit that mark. There is no temptation to buy a BMW or move to a nicer house, but I occasionally buy something small I otherwise wouldn't. Lifestyle inflation? I don't think so, but it's possible. My savings have gone through the roof though.

[Lifestyle Deflation]

1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
1. Do NOT inflate your lifestyle.
This one is very very important.

Friend of mine recently went from $45-50k to $75k and he's already talking about BMW's with $800 payments. WTF.

I wish I'd found these forums a few years ago. I got a monster salary bump and literally the first thing I did (the Sunday one day before starting my first day at my new job even!) was buy a brand new BMW. Bad idea, and the BMW is now gone.

I don't know what it is about BMWs. The first taste of money and suddenly the BMW is in the driveway. Fight the temptation!

[Bikesy]

I already drive a really nice car ('98 Toyota Camry) so the temptation to get a BMW isn't as big of an issue with me :)

[soccerluvof4]

Congrats! if you haven't read the Millionaire next door yet it be a good easy read for you and eye opener. Like other said don't increase your lifestyle spending and treat yourself here and there to a few small rewards. The big reward will come later on from the ability to save a lot more.

[SDREMNGR]

Save now, play later.  To a certain degree.  But life's not 100% about tomorrow either. 

[Workinghard]

My son recently got a huge jump in salary. He was initially told 73k but found out there's yearly bonuses and he can sell his health insurance  due to coverage elsewhere. That bumps him up to 91k.

It was only a few months ago that he was thrilled with 32-35k. He's  eligible for the retirement plan from date of employment, will do the max of 17,500, and max his Roth IRA. He's also going to start putting money away for a home but it's not planning on buying one for 3 to 5 years. Yep, he's launched!

Glad he's not going on a spending spree although a wedding is in his future (next summer).

[sobezen]

Oh if you are going to do some reading then definitely read Your Money or Your Life.  That book which MMM reviews really contains some great ideas too.  Cheers!