Do You Make A Six Figure Salary? Share Your Story.
Even though the $100,000+ salary club gets less exclusive each year with inflation, it is still considered by many to be a sign of success. According to reports, only about 5% of workers nationwide make six figures. Although it is by no means necessary to make that much in order to lead a fulfilling life and even a comfortable retirement, I think many people (including me) are still curious as to who makes six-figures.
As I approach my 30th birthday, many of my friends are reaching or surpassing this mark as they graduate with advanced degrees or move up the corporate ladder. Here are some examples of people I know who are earning more than $100,000 per year. Keep in mind I live on the West Coast, so salaries are higher overall. (Cost of living calculator) Many of these are expected, but some may surprise you.
Investment Banker - Education needed: Bachelor’s in almost any field, preferably business or engineering/math related. If you love competition and working 100 hours a week, you can easily make much more than $100k per year.
Lawyer - Education needed: J.D. Work hard, schmooze a bit, get a good clerkship, land a job at a respected firm and you’ll be a 6F’er. As an associate you’ll also be putting in 80+ hour weeks. However, if you want to work at a non-profit, your salary will be significantly less, maybe in the $40k range.
Physician - Education needed: M.D. plus 3-10 years of residency. Salary varies wildly for doctors too. Many pediatricians make less than $100k per year, while a cardiac surgeon (10 years of residency) can make $500k+ per year. Keep in mind during residency you’ll be earning $40k a year and also working 80 hours a week.
Small Business Owner - Education needed: None. These are mostly the parent of my friends, who have created successful small businesses worth millions, from restaurants to import/export to service/construction. The common thread between all these people is that it takes enormous commitment and dedication, often at the expense of family life. Be prepared to work seven days a week, all the while knowing that you could easily lose money each month.
Marketing / MBA Grads - Education: MBA. Yet another degree-specific job. Get your Bachelor’s, work a couple years, get into a top MBA program, pay lots of tuition, and basically everyone gets a $100k job on the way out. It sounds generic but it’s true.
Manager of Tech Monkeys - Education needed: B.S. This includes engineering, computer science, and IT folks. I make fun because this includes a lot of people I went to school with. Many graduated in 2000 during the tech boom, quickly getting jobs at NoBusinessModel.com and such. Then the market tanked, and they jumped from job to job. Crazily enough, most of them still got salary increases during each transition. Six years later, many of them are project managers at large corporations and making $100k+.
Civil Servants with Overtime - Education needed: varies. You might be surprised to know how much police officers and fire fighters earn in your area. If you account for the overtime, it puts many into six-figure territory. Add in their pension plans, and you’ve got a got a great compensation package. I often think about getting a state job just for the retirement benefits.
Salesperson - The people who make the biggest money are those that combine knowledge about an specific area with great interpersonal skills. Cars, pharmaceuticals, whatever. A top software or product salesperson working on commission can bring in 7-figures.
In the end, there is no real shortcut to making a great salary. In many fields (although certainly not all), as long you work hard, get along with others, and keep improving your skills, sooner or later you’ll rise up the ranks and reach the 6-figure level. Many of these careers require a lot of upfront investment in tuition, but I’ve never heard one person regret doing it. With all these young people working 80 hour weeks, it’s no wonder people are waiting longer and longer to get married or even move out of their parent’s houses.
Do you make six figures, perhaps in a unique job? Share your story anonymously in the comments.
Update: See the Six Figure Salary Survey Results.
February 12th, 2007 at 2:11 am
Engineer - Education Needed: B.S. in Engineering. Degree specific , but B.S. will do for the most of engineering jobs.
I am a mechanical engineer and will probably break “that” 100k mark in a year or two. However, as Jonothan mentioned, an avg. salary of 100k became more and more meaningless especially if you live in areas where cost of living is expensive.
An article i recently read stated that a person living in New York, and making 200k is equal to another person living in Montena, making 85,000.
Where i live, median housing price is about 500k, and making 100k won’t even let me thinking about getting one of those.
February 12th, 2007 at 4:26 am
I think the claim of attorneys working 80+ hour weeks, as if that is normal, is somewhat inflated. While I’m sure that there are some attorneys that work that much, those people would be billing superstars at their firm. 80 hours per week * 50 weeks worked a year = 4,000 hours. 4,000 hours/year * 80% billing efficiency (which is low) works out to 3,200 hours billed per year. Given that many firms have bonus structures which do not pay additional $$ past 2,400 billed hours, I doubt that many attorneys are working 80 weeks consistently. While they may have a few 80 hour weeks leading up to a trial…many would also take 2-3 weeks off after the trial. Also, starting salaries at many big NYC firms have recently jumped to $160,000.
February 12th, 2007 at 5:01 am
If all goes according to plan this will be my first six figure year (before taxes).
I’m 25. I work for the federal government for 40 hours a week with great pay and benefits (at least 20 days off + 14 federal holidays per year and any unused vacation rolls over into the next year). Then I go home and spend 15-20 hours a week reselling wholesaled items on Ebay. I enjoy the challenge of both jobs and the work/life balance is great. Your site has definitely helped increase my income/savings a bit too.
February 12th, 2007 at 6:43 am
I think $100k+ isn’t a good indicator of anything at all. As you mentioned about the West Coast. It is relative to cost of living as you stated.
February 12th, 2007 at 6:48 am
I made over $100 k this year. finally. Sales in the software industry. Work over the phone and email. I work around 40 hours a week. I believe there needs to be a balance and life is too short to work all the time. Sales is the career to be in. Cincinnati, OH
February 12th, 2007 at 7:23 am
I am a IT Consultant and I make $100K+
February 12th, 2007 at 7:50 am
This is my third year owning a landscaping company in southern New Jersey (salaries are MUCH lower than north jersey/new york). I should bring in about $75-100k this year and over $100k next year. The work involved in attaining those numbers for myself- I work 4 days a week/10 hours a day, mid march through mid november. I have off the entire winter so I teach, ebay, get things ready for the spring, buy real estate, travel, relax.
I have an MBA and should probably be putting it to use, but I cant justify giving up this kind of money/flexibility to go be a slave for another company…
February 12th, 2007 at 8:22 am
I’m close to the 100k+ as a software programmer and under 30. I can’t even afford a home with the salary. Well at the 25% of the take home pay I can’t. I’m not willing to have the mortgage be over 50% of my pay.
So it is definitely relative to where you live.
February 12th, 2007 at 8:30 am
I worked as a creative director in a web design firm for a decade- at the end I was making $120k a year. Honestly I had no idea what to do with all the money I was making, so I saved it. I have an art school BFA, but I could have been self trained and it wouldn’t have made that much of a difference.
I don’t see why someone making $100k a year can’t buy a $500k house. If you’re young and frugal, affording a $3000 monthly payment when you’re making $8000 a month is easy. The problem is that in San Francisco houses start at 1 million, but you can always get a loft for 600-700k…
February 12th, 2007 at 8:36 am
I know a lot of people with a lot of post-graduate training, and I’m fairly sure that it doesn’t pay for some of those options unless your parents are bankrolling you through it. If you want to be a doctor in a big city, you have to do a LOT of extra/specialized training, and if you are carrying student loans (college? med school?!) through the low paying years of internship, residency, and fellowship you will be 50 by the time you are out of debt, I swear, no matter what your starting salary is when the system finally frees you from indentured servitude, I mean training. And dentists may have to buy their own equipment to get up and running.You need to think long and hard about the suffering you may have to go through for some of these 6-figure salaries; as you outlined, there are plenty of other options where you don’t need as much/as expensive training. And ironically many of those jobs actually prevent you from being able to live in a less expensive area. Another note on west-coast living; my friends make a combined 160K and they say they have never been poorer (and they went through grad school!), because of full time child care costs and housing. They share one car and it is an Accord. Scary!
February 12th, 2007 at 8:59 am
I am an E-learning consultant and make 6 figures (but on 1099). Education + experience needed. Masters with 6 years exp.
Wife also makes 6 figures because of her MBA + experience. (fulltime), so hers is actually a genuine 6 figure salary, mine is just inflated.
I am 31 and wife is 30. We just started making this money.
February 12th, 2007 at 9:06 am
100k is a lot regardless of location. I disagree with the notation that 200k in NYC is the same as 85k in montana. It really depends on how you live.
I know several Wharton students (UPenn MBA) getting their offers in the finance industry and consulting (BCG, Bain, Mckinsey, etc). Finance runs 250k+ and consulting runs 150k+. Note however, these are the best MBA students in the country so the numbers are higher than a second tier MBA graduate.
Also one thing to note is that a large majority of people in finance/consulting earn a large percentage of their salary from year end bonuses, which are taxed more heavily.
I hope to go towards the finance/consulting industry for the money. As an engineer, I am making 60k (23 years old) with a (CRAPPY) raise of 5% a year.
February 12th, 2007 at 9:38 am
I might hit $100k in total salary plus bonus by the end of 2007, almost definitely by 2008. But I’m almost 40 years old, and live in NYC, so it’s not as exciting a milestone as it might otherwise be! Nevertheless, it will be fun to see that extra digit.
February 12th, 2007 at 10:31 am
I always ask this question, how much money is considered a good salary? Givien today’s housing market, doesn’t seem like making $100,000 is a lot of money? Do you agree?
February 12th, 2007 at 11:10 am
I’m a professional blogger making about 20K a month on subscriptions, advertising and affiliate sales. Of course I spend more than 40 hours working, but since this is something I love doing anyway - I don’t consider work at all.
Expenses are pretty minimal - hosting, hardware necessary software, professional subscriptions, magazines, journals, etc.
Another source of potential income - a book deal and a series of e-books will probably push the income into 30K a month territory.
February 12th, 2007 at 11:14 am
E-Learning Consultant making 6 figures (but on 1099, so its a fake 6 figure salary really).
I disagree with people who say 6 figure salaries are nothing these days. You gotta be kidding me right?
I have attended interview in this VERY large city that I live in and been offered a $45,000 salary.
Everything will fall into perspective when
1) Economy starts tanking
2) Recession hits
Then tell me if your 6 figure salary is nothing. I know people who were making $140K and were dying for a $50K job in mid 2001.
If you are making 6 figures, work on trying to make more or maintaining it. Because going downhill from there is quite easy.
February 12th, 2007 at 11:52 am
2007 should be my first year earning over 100k. Here’s the breakdown:
80k/yr - work full time doing IT work for a local government agency
15k/yr - owner of small part time IT business that currently earns about 15k/year (sole proprietor)
10k+/yr - $90/hr - many small side IT jobs for home users and small businesses
All in all, I work about 50 to 60 hours/week, but the local government job really helps in that I received up to 42 days/year off for vacation/holiday/sick days. That allows me to work the extra hours (like today, it’s a holiday, but I’m working my on side jobs).
Wife doesn’t work, so I’m the sole bread winner. Funny thing, she’s the one with the degree, whereas I have less than a year of college. All I have is a simple MCSE+Security certification (which my job paid for).
And if that’s not enough, I’m starting another different type of business that will hopefully be more profitable.
February 12th, 2007 at 12:12 pm
Software Developer in Silicon Valley, had by 1st 100K year when I was 30 (2005 tax year). I had friends that made 100K straight out of MBA school, but they also lost their jobs due to down-sizing during the tech recession. I opted to go to a startup in an engineering job (BS was Comp Sci) which paid less, but had the potential to IPO. IPO didn’t happen, but benefits and pay got better when we got aquired. I bought a 2 bedroom townhouse for around $520K back in 2002 which has appreciated to $640K last I checked. I’ve maxed out my 401(k) and Roth IRA every year since I started (2000).
To me, the House and Retirement accounts have a lot more to do with my wealth, than how much I pulled down and paid out…
February 12th, 2007 at 12:21 pm
At 100K one will always be a renter in Silicon Valley
February 12th, 2007 at 12:21 pm
As a Corporate pilot I reached the 100K mark after 13 years. Airline Pilots and Air Traffic Controllers average around 180K. Flying is our hobby and we managed to find a way to be paid doing it! One important note, Its not what you make, it is how you spend it or invest it.
February 12th, 2007 at 1:08 pm
I’m a 3rd year pediatrics resident looking for jobs in general pediatrics in the New York/Long Island area. I will corroborate that many pediatricians do indeed make less than $100K and significantly less than our surgical counterparts with the same level of training. It’s not a bad salary by any means but it’s not luxurious with large med school/undergrad loans still hanging over your head.
February 12th, 2007 at 1:41 pm
Jay makes a good point about the housing market. To be able to comfortably afford a $300,000 condo (about the bare minimum needed to get into the housing market where I live), I would need to make over $100,000 a year. What is comfortable is relative to each person, of course, and I need a large cushion to feel comfortable. That being said, I still think $100,000 is a lot of money, and a salary like that would allow me to easily purchase everything I wanted (except real estate) while saving a very comfortable amount each month. Whether $100,000 is a lot or not really depends on your upbringing and your lifestyle, I think. Growing up, $100,000 a year was enough to comfortably support five people and live in a house, where I lived then, and my wants are fairly minimal. What constitutes a good salary also depends on what you’re doing to get that salary. For me, making $100,000 a year is a crappy salary if I have to work 100 hours a week to get it. I’d much rather make less and be able to enjoy time off.
February 12th, 2007 at 1:42 pm
Software Engr (MSCS from non-renowned university) at small company in Portland, OR making right at 100k. Benefits could be much better, but the work/life balance is just about perfect. Bought our home 5 years ago, so I can’t complain about the housing market.
February 12th, 2007 at 1:52 pm
In 1998, I left a job with the federal government to make $100K with a largish IT firm wishing to do higher-end consulting work with the feds. The firm hoped to have me leverage my contacts and reputation helping to found a new consulting group within the firm.
I found the corporate culture of the firm did not agree with me (esp after my boss was forced out), and I left to start my own consulting business. I doubt I would have left the federal job directly into self-employment, so it was a valuable stepping stone.
The salary was nice, but ultimately, the real benefit came from the realization that (1) diversification of the source of one’s “salary” or income is every bit as important in employment as it is in investing and (2) that the source of one’s value to an organization (skills, contacts, whatever), can provide value to another organization (or to one’s own organization). As such, one should not be worried at leaving a large organization, whether it is the federal government or a large firm. The skills and knowledge you take can be deployed in a thousand different ways. The key is to remember that EVERYBODY works for somebody (customers, clients, shareholders, depositors, grantors, whatever), and that you should always strive to be useful.
February 12th, 2007 at 1:54 pm
I cleared $100K last year for the first time in my life. I’m an attorney at a large law firm, which you noted in your post was one of the clear higher-earners. I don’t really think $100K is a lot in light of the huge expense to get a professional degree. By the time my wife finished medical school, we’ll have close to $300K in student loan debt. It’s an outrageous amount of money. Sure, it was our personal choice to pursue these professions, but I suppose it’s “good debt.” In any event, $100K does not go very far when you have to pay most of your paycheck in debt service payments.
February 12th, 2007 at 2:08 pm
Lawyer - –As an associate you?ll also be putting in 80+ hour weeks–
Not quite, if you specialize (IP, Energy, etc) you can luck out an work at a small firm, make $100K+, and work about 55-60hrs a week (on average). Of course, the starting salary in DC is now close to $160K, but I’d much rather take the 25% pay cut and not work the 80+ hours a week one needs at bigger firms.
February 12th, 2007 at 2:36 pm
I would add Veterinarian to the six-figure list. Although you have to put up with 4 years of grad school, the hours are not that difficult and the pay at most places (here on the West Coast) will hover around the $90,000 to $100,000 mark. Being a first-year associate at a small law firm, I’m making six figures but I’m also working more hours compared to my friend’s wife, the vet. Plus, she doesn’t have to deal with the fact that people assume you need to have nice things (car, clothes, house, toys) when you’re a lawyer. Fortunately, I’ve been able to avoid that kind of social pressure, but my other friends in the legal business have not been so lucky.
February 12th, 2007 at 3:03 pm
2006 has been the first year I have made a little more than 100k in work compensation. I am 23 working as an engineer in the Metro Detroit area. I did it with a lot of hard work through overtime and about 4 months of traveling overall. My real achievement is that my net worth has increased more than $100000 since 2005. Residual income and investment returns have given me almost as much as I spent this year. Your blog has helped me tremendously in being where I am today.
Thank you Jonathan.
February 12th, 2007 at 3:30 pm
I thought of adding my 2 cents here. When it comes to buying a house, you do need a lot of money to buy one in the west coast. The people skeptical about buying a house, they have to think more about how much of the $100K they’re keeping.
February 12th, 2007 at 3:44 pm
if your single, it is resonable to say that living off of a 100k salary is considered a “good salary” regardless of location. 100k taxed at 35 percent leaves 65k You could easily save 30k a year if you are single. I am being extremely conservative with my numbers. 2-3 years with a conservative 6% return, you could easily pay a downpayment on a 600k+ house.
February 12th, 2007 at 5:16 pm
I’m a PhD student so I’m not anywhere near the 100K, mark but I find it interesting that the vast majority of the comments seem to be from men.
February 12th, 2007 at 5:36 pm
Although still an important milestone in one’s career, $100K a year does not carry near the weight it did years ago.
Depending on the lifestyle you want to lead (housing, car, clothes, vacations, etc.), $100K will not go very far. If you live a high index area, $100K will hardly get you to the starting line.
I think $250K is the new benchmark where you can begin defining financial success.
Disclaimer: For all the young folks out there, please do not solely equate money with success, I know a number of miserable private equity analysts.
February 12th, 2007 at 5:37 pm
B-school isn’t a bad route. Two years of school, and yea, on exit, not hard to hit the 6 figures. And I’m in the Midwest, where $100k actually means something. Tuition, even if I wasn’t on a full fellowship, isn’t bad at all for in-state residents — About $20k total.
February 12th, 2007 at 6:26 pm
It may surprise some people, but the majority of big box (think Home Depot, Lowe’s, Wal-Mart, Target) store managers make $100K+.
February 12th, 2007 at 6:41 pm
Another misconception of people. I am a FIRM believer that if you cant afford the university fees, dont go to it. Go to a CHEAP state university. There are universites in the midwest that only charge $5K a year in tuition. Thats $20K for a 4 year education. And its these same people who end up making $100K 6 years later. Trust me, i have I have seen it happen over and over again.
If you do not get into the top 10 university in the country, it doesnt matter where you go. An employer is not going to know the difference between Southern Michigan or Nortern Texas or Trinity University or Daniel Boone university. People love to refute this but go ahead.
Being an international student 12 years ago, i chose the most cheapo school i could find. Met my wife there too. Today, we both earn 6 figure salaries and so do many of our friends.
Student loans? What student loans.
February 12th, 2007 at 6:51 pm
I make $157K working 84 hours a week in a combat zone as a security consultant. 27 y.o., MBA, 6 years experience.
February 12th, 2007 at 6:51 pm
Emergency physicians on the west coast make somewhere between 150-250K (I’m just out of residency and will make around $180K). It sounds like a lot, but the average medical student debt is $135 K, not counting college loans. Physicians also have to consider overhead costs, and malpractice insurance, which can run between 10-50K per year, depending upon specialty and state of practice.
It’s a long haul- undergrad, med school, residency, fellowship- and it’s not nearly as glamorous or fun as “ER” or “Grey’s Anatomy”. It’s a great job, and I wouldn’t want to do anything else, but I definitely wouldn’t recommend it to someone who just “wants to make a lot of money”.
February 12th, 2007 at 6:56 pm
To attend a top MBA school you need more than a couple of years of experience these days. Most students are older.
February 12th, 2007 at 7:26 pm
ER physician, $190k starting, not including year end productivity bonus; with seniority / experience will go up to $240k. Wife also a physician at $150k, and after subspecializing will bump up to $190k.
I currently work 32hrs/wk, 4 wks paid vacation, 2 wks “personal time” off, 1 wk “continuing education” time off. Wife works 9-5 & every other Saturday, 4 wks paid vacation, 1wk personal time off, 1 wk continuing education.
Upside: demand for our specialties are increasing & shortages in our specialties will last a good 10 yrs; Excellent job security; excellent lifestyle; no kids yet, both under 30yrs old, lots of free time to work on our real estate skills and bank for retirement.
Downside: ~260k in student loans, but only at ~2% interest rate; income was $50k during residency; not starting to make any money until almost 30yrs old.
I’d probably do the same thing if I could do it all over again.
February 12th, 2007 at 7:34 pm
I have a friend who did ibanking making ~300k/yr, but at the cost of working 80-100hrs/wk.
But I agree with the previous user who said that usually MBAs from the top schools are the ones who make really good money; I have several friends from 2nd & 3rd tier MBAs working middle management/exec positions for around 60-80k.
I also heard down the grapevine that retail managers (Target, Lowes) make 100+ but how much job security do they have? Is there a high turnover rate for these managers? And what percentage of people in these positions make 100+?
February 12th, 2007 at 8:02 pm
I am 28 years old and I make $120k a year.
I am an attorney, I am just beginning my 5th year.
I only work 40-45 hours a week and no weekends.
Only litigators work 80 hour weeks and while there is good money in litigation, there are less stressful more profitable jobs being a transactional attorney. No appearances in court, no getting yelled at by a judge, just clients and contracts.
I do not own a house (yet) since I live in LA and I do have $50k in student loans at 3.75%, so that should be taken into consideration.
And I agree that $100k is not a lot nowadays, especially if you live in Southern California.
February 12th, 2007 at 8:36 pm
No, not anywhere close, and probably won’t get there for another 10 years if I continue working at this large environmental engineering firm. I also wonder if female is having a more difficult time to reach that mark. My male coworker and I started out making the same, yet last year he made $7,000 more, and this year probably $2,000 more than me after I expressed my unsatisfaction to the management. I have a part-time tutoring job for 1 hr/wk that brings me a little extra each month, and my finance is stable with a quality life (my needs are perhaps lower than most people’s), but I believe I can do better.
Since I am not in one of the 100k professions, I know I have to work harder, so I will. I decided to take some exams to further my knowledge in my profession, and if that is not making my managers to re-think how much values I add to the company and reward me accordingly, I can easily go and find someone who will.
February 12th, 2007 at 8:40 pm
Here is one way to do it that I haven’t seen mentioned. Get an engineering degree (B.S.), work for a defense contractor, work on site. This doesn’t necessarily mean a dangerous place.
Pros - Money, most expenses would be included.
Cons - Not going to have much free time while you are there.
February 12th, 2007 at 8:55 pm
Unfortunately I don’t make 100K+ a year, but I work along side probably 30 or more people who do - Pharmacists. I’m from the Midwest and 100K is starting pay for a Pharmacist just out of school. I’m a Pharmacy tech (the person who actually does the work haha) and I make less than half of that and I get paid “well” in respect to other people in my career.
February 12th, 2007 at 9:02 pm
My wife (32) and I (33) both work as research scientists in biotech/pharma. We each are currently making a little over a 100K + bonus for the last several years.
Education: PhD in science (5-6 years). Good news is that you get a stipend going to grad school in science, so there are no additional loans after undergrad. Bad news is that you work like crazy and have very little life in grad school.
Now: We each work ~45-50 hours/ week for good companies w/ good benefits. Quality of life depends on the environment of the company.
February 12th, 2007 at 9:31 pm
First of all, thanks to everyone who commented! I definitely read every one with great interest, as I’m sure many others will.
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Making $100k in the Bay Area may not seem like enough to live well, but I’ve seen many people do okay even with no parental support. Live frugally, save for a few years, and you can afford a $300-400k condo in the East Bay or other places. Yeah, it’s a commute and it’s small, but my friends who bought years ago now have $100k in equity. The property ladder starts small there.
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Regarding hours and lawyers, maybe some people are exaggerating their hours to me. Maybe I should go to law school like my in-laws want me to…
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“Also one thing to note is that a large majority of people in finance/consulting earn a large percentage of their salary from year end bonuses, which are taxed more heavily.”
Salary, bonuses, it’s all grouped as income and taxed together at the same rate. Just my small nitpick
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Loans. Yes, some of my friends got parental support, some are sporting $200,000 in loans. But not _one_ person regrets getting those loans. I haven’t even touched upon the motivation and desire needed to actually make it into and graduate from those professional programs. Potential salary is part of it, but love for the work is also there. A pediatrician chooses to be a pediatrician and not any other type of doc knowing full well the impact on his/her future salary. Give your pediatrician a hug!
February 12th, 2007 at 10:36 pm
29, So California, Art School BFA dropout. ‘03 was my first > 100k year. My wife has a BA and is working on her masters, however she hopes to always stay home and be a mom. I left school and started working freelance in advertising at age 20. 80+ hour weeks, juggling multiple jobs, many free ones, and others with rubber checks that never cleared. Since 2004 I have worked under my own S-corp and rely on a dozen major clients for income. My wife is setup as a PT employee (18k / yr) to maintain two 401(k) accounts, both of which have been maxed out for the previous two years. We have a small house purchased in ‘04 for a little over 550k. We’re paying 2200 to 3600 month on the mortgage, interest is about 1700. Present debt, combined student loans 80k plus a 400k mortgage. The current strategy is allocate all funds to mortgage paydown and maximum retirement savings, we have approx 4 months of cash on hand to cover current cost of living. At present I average about 160 work hours a month, some weeks at 80 hours, others are only 20. My biggest spending weakness is meals, we eat out 1-2 meals a day, approx 1,200 a month.
February 12th, 2007 at 10:55 pm
Regarding tax rate of salary vs bonus. In my situation, as my own S-Corp, I can be paid (pay myself) a dividend which is subject to the same tax rate as income, however social security is not withheld on dividends. The typical scenario is a base salary of 60k/ yr plus a dividend of 34k. Social security is withheld for the first 94k / year of income. This scenario translates to a savings of 4200, which could be directed to a retirement vehicle with a better return than SS. However, this only applies if you are self employed.
February 12th, 2007 at 11:12 pm
anonsocal - I’m doing the exact same thing, on a smaller scale. As your “salary” goes over the Social Security ceiling, the benefit drops significantly though.
I wrote a bit about it here - Forming An S-Corporation To Reduce Self-Employment Taxes
February 12th, 2007 at 11:16 pm
Several friends and I will go into ibanking next year after graduation. Base salary at big ibanks are $60k, last year’s top tier bonus was $80k. So if you are ranked near or at the top of your analyst class, you can make $120k-$140k straight out of college.
Upside: $$$, experience, learning how to deal with very demanding clients/superiors in very stressful situations, feeling grateful for a 70-hour week, becoming a Jedi master of Excel.
Downside: insane number of hours at the office (80-120), lack of any control over “personal time,” little to no vacation, tied to the blackberry 24/7, broken relationships.
February 12th, 2007 at 11:29 pm
hmm, are there any small biz owners out there? would love to hear some success stories! i just finished my 1st year, only 15k so far. but i am building the business up and eventually will hit that 100k in a few years
i used to envy people who have high paying jobs. then i realized how much they work… a friend of mine makes 300k per year. at first, i thought wow that’s a lot. that’s so cool to have all those money. but then she also works 80 hours per week.. which comes down to $72 per hour. hmmm. doesn’t seem that fun if you work 80 hours per week and don’t have time to enjoy your 300k except buying expensive furniture & drinks? (although it’s true once she makes to senior partner she can bank at least a million a year. now that’s a lot!)
as a small business owner, i do work a lot. but because i choose to. learning and working to expand my business has become my hobby. my hourly is also actually higher than others when it boils down to total money made divided by how much i worked last year. so i end up working less than my friends who make 100k.
i am working to have a solid foundation for the business now and slowly hiring more people to help out. i want to make it solid enough to eventually have less working time and more supervision time
a few years down the line i would like to raise kids and be able to control the time i can be with my children.
anyway… the grass also seems greener on the other side!
February 12th, 2007 at 11:47 pm
28 y.o., 100k+ as an IT consultant, but in my local currency. as a benchmark, the entry level graduates (science & engineering) here get around 25 - 30k on average. you can get up to 40k if you applied to MNCs.
B. Sc.’s from a local private university (costs about 47k in local currency for the entire 4 years), joined a small company as a programmer at 30k p.a. at graduation, switched to another at 45k p.a. after a year and been there since.
i agree with jonathan that there is no short cuts around this. i wouldn’t have reached here by hard work alone, nor would i have if i had depended on luck alone. hard work, savvy and luck all plays a role in it.
February 13th, 2007 at 12:51 am
Software developer
$86k base salary
$2k bonus
$30k stock options
Education: MS (little difference from BS degree pay scale)
Experience: 3 years
February 13th, 2007 at 2:02 am
I make $25-40K a month doing import/export. No College Degree. 27yo.
Found a local contract manufacturing company, asked them what products they were interested in buying. Found a supplier oversees. Didn’t have the money to place the initial orders so I used back-to-back letters of credit to get my start. Have since expanded my business using same “sales approach” and now no customer represents more than 15% of sales and the products are delivered directly using the same financing methods. I never touch the product, and essentially just make the spread on the letters of credit.
February 13th, 2007 at 2:49 am
Well, judging from the volume of responses, there’s definitely something to that 100k mark.
I enjoyed especially those commenters that are pulling in side income through creative efforts (and sweat). Very cool idea Jonathan!
February 13th, 2007 at 5:07 am
The most important phrase in this post is “it is…considered by many to be a sign of success.” Based upon the number of comments to this post, people just plain enjoy talking about how far below or above Six Figures their annual income is. I support enjoyment, but regarding Six Figures…
1) it’s just a number that happens to be very near its Five Figure cousin $99,999, a purely psychological milestone like the DJIA at 10000, or akin to a basic fact of nature like the earth spinning 365+ times for each revolution around the sun
2) more important than any *sign* of success is success *itself*, which will always be a subjective matter, won’t it? people can feel successful as long as they socialize with people who mostly have lower salaries/net worths than their own.
3) not only is 100,000$ a relative signpost (well discussed in the post and the subsequent comments), it’s also an arbitrary one! (Let’s talk about 104,500$ salaries next year this time!)
4) since we like to enjoy our discussions, anyone care to propose what is the signpost net worth above which most people will feel wealthy / rich?
February 13th, 2007 at 5:16 am
MIT engineering graduate; earned income is $000,000.
February 13th, 2007 at 7:33 am
37 been making 100K+ for a couple of years now. Self employed project manager specializing in Information systems. Oil & Gas industry. My goal is to attempt to live on half of my salary for the future times where employment may be difficult to find or at least at a lower salary. I’m not at the half salary living yet, but hopefully will by late this year.
And running my employment as an s-corp helps as well.
My advice to anyone who wants to make a lot of money in consulting; its to meet as many people like yourself in the same business. Help them find jobs, and the same will be returned to you. Waiting at your cube for the 100K job to come around or applying on job websites won’t cut it. Networking is 100% the best way to move up in salary.
February 13th, 2007 at 7:51 am
I guess if you’re young and single, all this 80-100 hour a week stuff is fine… but for us married folks ( young and married, if you must know ), it just doesn’t cut it. I spent last year working 80-85 hours a week, and barely ever saw my wife and son. Not worth it. More family time wins over more money, every time. Now I’m down to 55-60, and 1000x happier.
February 13th, 2007 at 8:12 am
Also an independent IT consultant. I cleared $97k last year and expect to be around $110k in 2007. I’m 26, work from home and rarely work more than 40 hours/week. No, $100k is not a huge amount of money to live on but if you live reasonably, it is comfortable, especially if you are single. Honestly, I’d rather have more time than more money. Working anything more than 40 hours is not worth it to me…at least in the corporate world. If I were a doctor, that would probably change my perspective.
February 13th, 2007 at 8:13 am
“but on 1099, so its a fake 6 figure salary really”
How is a 1099 a fake salary?
February 13th, 2007 at 9:34 am
I am also a small business person and I agree that working long hours is the norm.
I am 25.
My first year I did 30K, second 42K and this year I’m expecting 60K+.
In the next 2 or three years I’m hoping to hit the 100K mark, but Jonathan you are correct it is no longer the magic number. I’m in the north east and housing is ridiculous.
The new 100K is easily 175K.
February 13th, 2007 at 9:37 am
btw jonathan, great topic!
February 13th, 2007 at 9:40 am
I make 70+k as a software engineer in the midwest, I’m in my upper 20s, just got married and bought a house last year. My friends in California/NYC still can’t afford a home and live poorly…
February 13th, 2007 at 10:35 am
there’s alot to the mental barrier of $100k+/yr. many people get caught up in the lifestyle attribution to making 6 figures. i know i do. i make a little over $100k/yr after taxes. my wife and i live on 5% of that, and do not have any debt. if you have a car payment, a large loan to payoff, mortgage (especially in high housing cost areas), that $100k gets pretty small.
you may be able to afford $3000/mo mortgage considering you make $8000/mo; however, take taxes of all kinds, other debt into consideration and that isn’t a great deal left over. bottom line, housing costs and taxes are a big factor in how far $100k/yr will go.
February 13th, 2007 at 11:11 am
My wife made >100k right out of grad school (MS in CS) in Silicon Valley without any school debts. I can’t complain! There are tremendous opportunities right now for motivated computer geeks.
February 13th, 2007 at 11:14 am
Personally, I think the new “100k” mark “successful” salary is more like $200k in this day & age.
And my personal definition of being financially wealthy is having $10 million+ in assets (versus the $1 million benchmark of the early 80s, ie “millionaire”)
Question to those who are doing consulting type work, esp the self employed ones: Is the stream of clients/customers pretty stable from year to year, or will there be years where you make 100k+ and others when the economy is down where you make way below the 100k mark? How is the job security for consulting work?
For Ibankers: how long do people usually stay in Ibanking working those insane hours to make the big $$$? Do most burn out around 5 yrs and find something else to do? (eg marketing or something more relaxing?)
February 13th, 2007 at 11:27 am
[…] This post from My Money Blog reminded me of another post from Startup Spark (click the image below). Scroll to the “Small Business” section on My Money Blog, and compare that to the 10 points in the post I link to on Startup Spark. […]
February 13th, 2007 at 12:12 pm
I am a small-business owner as well, I have a construction company. I started it 3 years ago, currently have around 42 employees. I’m 24 years old. My first year in business my personal earned income was $85k, second year $650k, and my third year (2006) it was $1.1m. It’s been a crazy ride and I am planning to level off the growth at this point because the company is still a size that I can personally handle. I work about 60 hours a week so as not to run myself or my marriage into the ground.
I think people often overlook being a small business owner as a tool for creating wealth. There are so many (legitimate) ways to bury your expenses in the business (cars, home office, life/health/umbrella insurance, memberships, etc), as well as the previously mentioned tax savings. I know that I have been extremely blessed with the early success of my business and that not everyone is as lucky, but I still encourage anyone to consider starting a business.
February 13th, 2007 at 12:23 pm
I’m really amazed how many programmers seem to read your page — you’re like a magnet! Yeah, me too - but I’m only in the high 80s and I live in an expensive area. I’ve been at my current job for 9 years and out of school for 13. I’m pretty sure if I ventured off there is more money out there now. People in my area (with experience) make a little over $100K to start for most positions. Still, thinking about living in a lower cost area sometimes sounds so appealing. Even making a little less, the lifestyle could be so much nicer …
February 13th, 2007 at 12:34 pm
I earn $100K+ as a free lancer - writing and consulting. Live in a very low cost-of-living area in the south in a state with no income tax. The low living costs here means that I have the funds to travel often to NY. DC, Chicago or ATL for fun/shopping/culture so I don’t feel deprived. Have no debt - not even student loans as I went to a cheap state school (which did not hinder my earning potential). Have been able to save well for retirement as well as give generously to charity.
February 13th, 2007 at 1:15 pm
1099 is fake as opposed to someone making $100K as a fulltime or on W-2 coz on 1099, you have the pay medicare, Social security at the full rate (around 15%), so in a nutshell, 100K on 1099 is like $85K fulltime.
But off course as Jon mentioned before, there are ways around this if you are an S corp.
February 13th, 2007 at 1:22 pm
Andrew, out of curiosity, how did you start up your company? How did you come up with the capital? Did you do small projects on your own and then build it up? Or did you have connections or inherit the business from family?
February 13th, 2007 at 1:28 pm
I am a wedding planner in California and am 27, and own my company. My husband is a jeweler with his own store and is 29. I roughly make $70K a year and he makes $120K a year. We work our tails off and have not had a day off in two years. While I enjoy working in my PJs quite a bit, the $100K mark is not a motivator.
We’re both looking to work smarter, not harder.
We live off my income, and have been home owners for the past 2 years. We purposely don’t live the high life, but I must admit, it’s hard not to keep up with the Joneses.
We have zero debt–no student loans, car loans, etc…just our mortgage. California has a lot of smoke and mirrors. Most of my colleagues and friends drive sports cars and live it up, but are in massive debt. To each his own, I suppose….
February 13th, 2007 at 2:17 pm
Mike, I started my company from the ground up, however I did have several advantages that wouldn’t be available to everyone: 1) I was able to take a sizeable loan from a family member to fund the business. $500k, at an attractive interest rate. I have paid back approximately half of that at this point. 2) I had an inside track on a company in the industry that I wanted to be in that was going out of business. I was able to purchase many of its assets at a discount and hire many of its well-trained employees. Probably the most important thing I acquired from this company was its phone numbers - I’ve had 20 years worth of their previous customers calling me from day one.
However, the branding and culture of my company has been built from the ground up over the past three years, and we have a very specific and profitable niche. We did start small, with small projects, but thanks in large part to a robust local construction market we have expanded quickly and are now involved in some of the larger “legacy” projects in the area. It’s interesting to note that we have been far, far more profitable on smaller projects than larger ones, although it’s cool to see the high-profile projects recognized and know that we were involved.
February 13th, 2007 at 2:35 pm
Mike:
Depends on what your skillset is, but my experience over the last four years has been that there’s lots of work out there. I frequently turn down new business because I like to have time for other interests and I want to keep my girlfriend happy.
Sri:
That is a pretty simplistic calculation. As you noted, as long as you are incorporated, additional taxes are defrayed and the added write-offs available with self-employment make a huge difference. My tax burden is significantly lower now than when I earned a “real” salary and the independence is priceless.
February 13th, 2007 at 2:39 pm
Andrew, congratulations on your success & good fortune at such a young age. I guess it would be extremely hard for someone to buy/start a company if they didn’t have the connections & client list that you had. What state do you do construction in if you don’t mind me asking?
February 13th, 2007 at 2:56 pm
I’m 22 and expect to make $85+ this year including bonus as a management consultant. $100 will come next year. At the high end of the consulting and banking fields, salary is $60-65 first year, with a bonus of $20-25 in consulting and upwards of $100k in banking. Consulting hours can run 50-75, while my banker friends will put in 80-100+. The next step up the ladder is either bschool (first tier only; as people have pointed out the salaries only jump post MBA if you stay within Harvard, Stanford, Tuck, Wharton or a handful of others). Post MBA salary looks more like $150 and $50 bonus right out. And if you get really lucky, you can get it paid for by the firm. $200k with no debt looks good. I don’t know what Wall Street pays for fresh MBAs. $100k is a nice milestone but I agree that $250k is a better sign of real success these days.
February 13th, 2007 at 3:21 pm
You forgot DBA’s make well into the six figures. With an Oracle Certification as a DBA, and about 3-5 years of experience, you can easily clear six figures or more in hot tech job markets. (DC, CA, etc.)
I’ve been eyeing DBA work, but it’s a bit scary to be on call all the time for production data. I’m not sure I want to be back on a pager again. It really killed me the last time I did it, but the extra pay was really nice. At six figures, I’m definitely thinking about again.
February 13th, 2007 at 3:24 pm
People who say they work 80 hours must be bluffing. Even if it does happen, maybe 1 week of a month. I think it makes some people feel important to say that they put in 80 hours this week!!
80 hours is 16 hours a day in 5 business days.
So lets see, you go to work at 7am, leave at 1 am. (with no lunch break)
Ok some of u may say how about weekends….ok fine….but that means ur working all 31 days in a month. Not humanely possible. Even dogs take a break after a brisk walk
February 13th, 2007 at 7:16 pm
Wow. I work 7:30am-8pm at Samsung Semiconductors in Korea, and got $45K for 1st yr out of college (top engineering school in the US, but I took a management job here). I can’t imagine ever earning 100K for a 40hrs/wk job. Are these guys the exception?
February 13th, 2007 at 8:18 pm
I got a PhD in math/science at 27 and have been working for a major pharmaceutical company for 2 years. My job is to design and analyze clinical trials. I started at near $100k with bonus. Now I am making a little more than $100k. Job pressure is very reasonable: 40 hours/week with flexible working hours. It is a very stable job. But potential of increase is also limited. Other than climbing up the corporate ladder, it is pretty much just about 4-5% annual increase.
February 13th, 2007 at 8:30 pm
IT Architect at a very large insurance company in New York City. $125K base + bonus (usually 25K). Work 45 hrs most weeks.
37 years old, married with 2 kids. Own a 3br apartment with 500K mortgage. Cost is about $4500/month for mortgage + maintenance + utils.
$150K married with 2 kids and a mortgage feels like a LOT less money than $75K did when I was single and renting!
February 13th, 2007 at 8:31 pm
32 years old, 10 years of experience in IT and implementing ERP systems, last 3 years as an independant consultant.
2004 - $140k, 2005 - $200K, 2006 - $330K, with a salary of around $100K for the 5 or so years prior to that. Thought it was the ‘big’ money until I realized I still like cheap beer and pickup trucks so it didn’t matter all that much… now just savings as much as possible for some freedom.
Setup as an S-corp with wife as employee for 401(k) purposes. Able to put away just over $55k in tax deferred savings in 2006 between 401(k) and HSA. And yes the benefits of the S-corp go down after the SS limit but YOU decide what a fair salary is (within reason).
Bored out of my mind with my career. Still trying to figure out what to do with my life, MBA seems pointless (payback wise) and too late at 32. Looking at lots of small biz type opportunities but hard to walk away from the money to something alot less certain. Not whining, don’t get me wrong.
February 13th, 2007 at 9:00 pm
I used to work in a factory running an embroidery machine making 9 dollars an hour. I quit my job at thanksgiving to stat a small business. I honestly don’t know how much money im making now. I geuss i will have to figure that out by tax season.
February 13th, 2007 at 9:06 pm
Brian - I am also currently working for the federal government and I don’t see how you can be making 100k by 25. All of the jobs I have seen you have to put in years of service to move up that high of a pay band.
I do agree that the federal government offers great benefits (at least 20 days off + 14 federal holidays per year)
February 13th, 2007 at 9:56 pm
I’m about to touch 100K in IT field in NYC.
But I’m at cross-roads of career. I’m a but bored with my current job and want to try something new. I have been seriously thinking about 2 options:
1) Law school
2) MBA in finanace and joining a wall st. firm
One of my main motivations is money and continued increases in salary every year. Surely being a lawyer would be very good for that - esp. in a big city like NY - where I read the entry level salary is 160K + 30K bonus. Added advantage of lawyer is that it is a licensed job - so no danger of job getting outsourced or you getting fired so that ur boss can hire someone else with substantially less pay.
MBA - the aim of doing mba is to land an investment banking job at a NYC wall st. firm. I’d love this work, but I read that that investment bankers need to put 100+ hrs (is this really true??). Although I like the job, 100+ hrs would kill my family life. Another bad with this job is that it is non-licensed. So you are in danger of getting replaced with a short notice.
I’d really appreciate people’s comments on what they think of the 2 options that I listed above.
Thanks.
February 13th, 2007 at 10:14 pm
Answer to Mike: how long do people usually stay in Ibanking working those insane hours to make the big $$$? Do most burn out around 5 yrs and find something else to do? (eg marketing or something more relaxing?)
Many analysts head to corporate development, the buyside (venture capital, private equity, hedge funds), or business school. I knew a couple of bankers who got their JD but came back to banking.
The burnout rate is very high in banking and most analysts don’t stay after 2 years.
February 13th, 2007 at 10:17 pm
Jim & SAP Jim: what exactly do you do as an independent IT consultant? Please excuse my ignorance; I don’t have any friends in this field and I’m interested to find out.
Do you guys design computer systems (hardware & networking) or set up software for companies to use? Is it mostly a desk type job or do you do a lot of hands on, on-site stuff (ie physically fixing systems)?
Seems like you guys have it the best if you could work at home, earn 100k+, work around 40hrs/wk, all without having to spend the time to get a graduate degrees.
February 13th, 2007 at 11:55 pm
31 years old:
I can see how people put in 80+ hours a week. Dunno about the corporate guys, but as a resident in the surgical ICU, I easily put in 100+ hours a week (24+8 hours every third day on call, 12 on post call days, then 24+8 again). I worked 32 hours straight, didn’t sleep, ate candy and coffee for lunch and dinner, and got one day off a week. Its inhumane, and although life got better after the 80 hour work week law, I still have friends who work far beyond 80 hours a week.
Personally, life got much better after residency- I now work 30 or so hours a week in Emergency Medicine, and am thankful that I now have time for my friends and family.
February 14th, 2007 at 12:12 am
In the bay area it’s all about when you got into housing. I interact with co-workers in lower ranking positions. They bought houses 10 years ago. I’m far better compensated and more skilled, but I’m under no illusion who’s really successful between us.
Call it real, housing-adjusted income.
February 14th, 2007 at 7:07 am
Mike, I build web applications for compaines. It’s just software so it almost never requires on-site work.
February 14th, 2007 at 9:01 am
mimi, typo? 5% of 100k is what you live off of?
31 year old: 80 hours is very common and is not a “lie”. Currently I am an engineer working 60 hours a week + 20 hours a week on grad school classes.
As for the ibankers, I know my fair share in the top ibanks- UBS, goldman, etc. They work 100-120+. Imagine 7am-1am mon-friday (thats 90 hours) and an additional 10+ hours a day on weekends.
I have friends that are analysts and associates. Usually straight out of undergrad, thats when they work you. the top companies (goldman, ubs..) work you hard…100+ a week for 2 years. They then pay for your MBA and you come back as an associate…where you eventually work fewer and fewer hours.
February 14th, 2007 at 9:27 am
another fed worker here. 28, just promoted to a 13, special pay band, 87k. with overtime and bonuses should clear 100k. 1.5 yrs should be promoted to 14 with 102k salary.
February 14th, 2007 at 10:19 am
I had a goal of “6 (figures) by 30″. Starting off in IT and moving into business development, I beat that goal by 2 years. By the time I was 30 my salary was approaching $200k, but I was miserable. I was working 60-80 hours a week, interactions with my (second) wife were transactional, and I wasn’t having fun. So I quit, took a job with over a 50% pay cut, and 10 years later I work 40 hours a week, have a happy marriage with 2 kids, own our home outright, and I’ve just again broken the 6 figure mark.
February 14th, 2007 at 12:39 pm
I’ve been over $100k since the year I turned 28. I paid for college and law school myself (bartending and GI bill). Worked at a big firm for a long time to pay it all off and save for the down payment. Got married, went in house, had baby, make significantly less (but still >$100k). Maybe it’s the people I hang around with, but it’s a pretty low benchmark.
Also, wrt 80hr weeks at big firms, it’s one of those average/mean problems. Throw out the four weeks of vacation and the holidays, and you’re at 3800 for the year. Bill about 75% of the time you’re actually in the office (again, this goes from 100% most of the time to 50% between deals/cases) and you’re at 2800 hours. That’s high enough to be at the top end of most classes, but definitely not unheard of. I’m using extremely general numbers here and rounding off… but I billed between 2300 and 3000 hours (2000 was a busy year and I hit just over 3000 hours) from the mid 90s on. If you hit 2000 hours billed you qualify for the bonus at most firms, which still requires >40 billable hours/wk.
February 14th, 2007 at 1:28 pm
Murph, not necessarily. there are plenty of fed. jobs out there where Brian could be making 6 figures at his age. Translators, intel analysts, certain IT fields, certain fields in the military, etc all can make 6 figures at his age. moreover, with bonuses and tax exclusion for war zones, 6 figures is definitely a possibility. remember, the fed. govt needs to retain certain critical areas and pay heavily for it.
February 14th, 2007 at 1:29 pm
i forgot to mention State folks who can get up to 60% differential pay on top of regular pay overseas.
February 14th, 2007 at 6:58 pm
Management consultant: 30 yrs old. 130k + 25k bonus. Chicago. 40 hrs/week. 20% travel.
February 14th, 2007 at 9:38 pm
I wanted to be #100!!!!!!
February 15th, 2007 at 12:27 am
I am in software development. I can understand that lawyers, doctors, and successful MBAs can break the 100K barrier. However, I am in doubt that an average software engineer can break the 100K barrier unless you are in Silicon valley and have niche skillset. A lot of posting showing 20ish and 100K in IT. Are you guys including benefits and bonus as pay? I assume that we are talking 100K as in your base salary only.
February 15th, 2007 at 1:28 am
In regards to what Hoang said, do those who listed >100K with bonus consistantly get the same amount (if not more) bonus every year? Or are there slow years where these people don’t get any bonus at all?
February 15th, 2007 at 2:58 am
Im 32 and make 18,000 a year doing 3rd shift security I made 30,000 at a factory before it moved to Mexico. 50,000 a year would be the magic number for me I could be happy on that. Im going to go to truck driving school. Just posting for all the poor people who read this site and will never see 100,000. I think people who make 100k and complain are cry baby’s.
February 15th, 2007 at 5:13 pm
Well put Steve. As Jonathan said, only 5% of the US population makes > 100,000… Can’t feel too bad for the folks at the top.
February 15th, 2007 at 5:21 pm
I am 26 and work in the Utility Industry. I have been in the work force for just about 2 years now. I have no debt and live free and easy. I used to have a goal of 50k a year by 30, but after OT and bonuses, I am up to 75k already. 100k by 28 is feasible and my new goal. After that I should max out around 175k by the time I retire. 7 million is my magic number through retirement vehicles and real estate.
Like someone said earlier, 100k isnt what is used to be and everything people may earn is also an illusion.
February 15th, 2007 at 9:13 pm
I’m curious about people who are in their 20s (some posted above said their ages around 22 to mid 20s) who said that they are making 100K and doing management consultant. How can you consult any company about management if you are that green? I do not recall having the experiences and enough exposure to the industry one or two years after college. Heck, even after 5 years I were still learning and wouldn’t call myself an expert. What are your secrets? Unless you worked for Arthur Andersen and overcharged clients while helping shredding papers! lol lol
February 15th, 2007 at 11:38 pm
Hi everyone, Im 21 and although im still a full time college student (ivy league :-)) i make money as a self employed commercial/free-lance photographer. Last year I made about 50k before deductions for equipment (camera bodies, lenses, lighting equipment, etc)… this year I’m looking at something in the 120-150k range. Most of my income is in the form of passive income (royalties from licensing photos for commercial use, imagine itunes with photos instead of music) so I make money without actually having to actively work. I was told all my life that artists are poor, starving people with no futures so I feel truly blessed being able to do what i love as a living
My mum is a pediatrician and my older brother (23y/o) is an IT consultant, and for the past few months I’ve been earning about the same as both of them put together. My brother plans to work for another year or so then apply to business school. So he should have his MBA in a few years and will be above 100k as well.
February 16th, 2007 at 5:25 am
Will make over $200K this year, unless economy tanks suddenly. NY biglaw. Given that Manhattan cost of living is twice the US average, I will count myself as making around $100K!
And about the 80hr p.w., it’s on the high side, and generally drops if you do an average, but many people do work those hours for weeks and months on end. To the poster who said this doesn’t make sense because it’d be 7am to 1am - if you’re working these hours, of course you’re working weekends. My firm also has a folding bed so people can nap for an hour when they’re too busy to go home. It’s often used.
February 16th, 2007 at 12:37 pm
As a computer consultant (almost 7 yrs) now and worked previously at a bank for very little (considered a waste of time), in roughly 9 years at this rate I should hit slightly over 100k. Something tells me if I change jobs I could be making that in about half the time or less. I’m considering doing side jobs to supplement my income. Photog how does one get started in your line of work?
February 16th, 2007 at 2:56 pm
Jonathan, what an interesting post. I find it fascinating that people are asking themselves,’How can I get into a field that makes me $100K?’
I think I appreciate your readers who have done the 60+ hour work weeks and write about how unhappy their lives were trying to make billable hours. It’s easy to make $100+K/yr if you want stomach the work, hence my comment about maybe not wanting to take the leap into a new job position and it’s attendant responsibilities.
For everyone who is asking themselves how can I make $100+K/yr, it’s out there. You can do it. It can be hard work, but know what you’re working for. Is it the money? Is it the passionate fun of working at a job you love? I’m making more money now than I ever have before, but I am loving what I do. I can honestly say that after working 5-7 years in jobs I really didn’t enjoy.
Thanks for the thought-provoking post!
February 17th, 2007 at 7:18 am
In repsonse to
“People who say they work 80 hours must be bluffing. Even if it does happen, maybe 1 week of a month. I think it makes some people feel important to say that they put in 80 hours this week!!”
It is true. I did this for years. It’s not 1AM, its 4AM (but I started at 9AM and worked weekends too). I loved it while I did it, but I’m glad I don’t do it anymore. I also get to chuckle at myself when I work until 7 or 8 and consider it “late”:)
I was in management consulting in NYC and a start up in San Francisco. Now I’m in Austin, back to 40-50 hours a week, and made $299K last year. This is more on a per year basis than I made in consulting (and per hour for that matter), but no one would ever pay me this much now if I didn’t have the consulting experience — that’s where I learned all my skills. I also have MBA from a top 5 school, which was the only reason I got the MC and Startup gigs.
February 18th, 2007 at 10:03 am
A troll from Canada says hello!
I accidentally stumbled across this site when looking for ‘Credit Cards with Rewards’. I wished I had seen this blog sooner - it does seem to have some solid investment ideas - even if they are a touch US centric.
A fascinating article, and some surprising and enlightening responses. As for me, I’m 23 and been out of university for 2 years after completing my Bachelor’s in Electrical Engineering. Right after graduation I decided to forgo working for a company and instead pursued options in Power Engineering Consulting for Industrial projects. It’s been a tough struggle for a new grad with limited Industrial exposure and even more limited support infrastructure, both personal and financial, but overall a completely satisfying experience. What my friends and mentors thought was “career suicide” has turned out to be, with a lot of perseverance and hard work, a very profitable enterprise indeed.
For a typical work week of around 50-60 hours with some occasional traveling for site visits, I manage to clear slightly over CAD 100k a year. Just trying to say that if you have the will, the resources and the perseverance then starting something on your own can be a very viable proposition.
February 18th, 2007 at 1:54 pm
Great discussion here…
I’m a 30-year old magazine/website publisher that works in the gaming industry living in Las Vegas. I work for a small sized media company, in charge of the day to day for a 20 person content team. I’m an efficient manager and work about 30 hrs a week. I made about 175k in 2006, with 50k in that coming from bonuses.
Question for this group: I would like my wife (PhD, works as a researcher for the local govt) to start our own company. The problem with my salary is that nearly none of my money can be saved in a tax deferred account. My employer does not have a 401k plan and I only get my traditional IRA contribution each year.
We both turn down freelance work all the time. Any comments on whether an S-corp, LLC or ?? makes the most sense? Where do I start?
Comment, for those 20-year olds out there that only care about 6 figures and are willing to work 80 hrs + a week to achieve this. Many intelligent employers care way about your experiences away from office. I spent a few years in my early 20s working as a freelance journalist, traveling to over 50 countries and familiarizing myself with global affairs. This got me where I am at today. My advice is to do the same as understanding how the world works if far more important and pays a larger dividend than most think.
February 18th, 2007 at 8:26 pm
$110K - Insurance - 35 hours/week - 5% travel
pretty sweet…
February 19th, 2007 at 3:48 pm
Im 28. In 2005, I made over $100K in the mortgage industry. In 06, I wasn’t even close to it. Im hoping to do better in 07 but so far, its been pretty slow… So that is to say, I’ve felt both sides of $100K. And Ive lived in some of the most expensive cities, LA, SF and now NYC. $100K is a big deal. It does pay for alot. Just think about it! If you make $100K/yr, you’re pulling in over $8,000 per month. If you can’t live well with that much money, you got a problem. The important thing is to not go from $15 meals to $50 meals once you start making the $. Just keep your lifestyle and you will see that once you make $100K, your current lifestyle gets better. But if you start to try to live like you’re making $1MM instead of $100K then of course you are going to feel like $100K is no big deal. Its all in the lifestyle people…
February 21st, 2007 at 12:14 pm
I’m pulling in a little over 100K per year these days and while I can afford the basics plus some niceties (like a Wii!), I can’t afford the most important thing: a house. I mean, we have our cars paid off, no credit card debt anymore (finally), and have a bit of cash, 401K, IRA stashed, but just not enough for a house. We save about 3K per month into 401K and cash savings which is nice, but still not a house.
Yes, I live in the bay area and it has completely sucked for house shoppers in the few years. I’m hoping that the house market truly does take a dive (something like -30 or -40% over the next 3 years). I mean we COULD have afforded a house in the last few years, but I was paying off the cars and credit cards as one mortgage guy recommended. He COULD have put us into an IO or NegAm loan, but I thought that was a really bad idea and figured if we couldn’t afford it then we should just wait.
So I say to those that think 100K is enough, it’s really a question of where you live. If you live in a place where houses cost about 200K then 100K per year salary should be about right to buy a home and have enough to save, take trips, etc. But here in the bay area, 100K is basically the ground floor that lets you rent and save a little cash on the side.
February 22nd, 2007 at 12:24 am
I’m a 31 yr old Registered Nurse (I work for the state of Connecticut) and I made $150K (work about 60 hrs/wk as a per diem nurse) in ‘06. I simply attended a 2 year technical school nursing program at night after I liked the medical field but could not see myself enduring/paying for med/dental school. Best bang for the buck education available monetarily speaking. I’ve since realized that I’m never going to get rich trading my hours for dollars so I obtained my real estate broker license on the side and just bought a 6 unit apartment building for $330K that rents for $700.00/unit per month (which equals about $50k/year in income). I’m looking to buy 2 more buildings like that in the near future with my decent earning from nursing. My goal is to have those buildings paid off in 7 years and generating over $10,000.00/month for me *without* me have to work 60 hours anymore. Having passive income that works for you even when you’re not there is king in my opinion. Having a high paying job is nice, but if you don’t go to work for whatever reason (illness, downsizing, etc.) you don’t get paid. So I guess I’m living proof that civil service jobs can be lucrative. My best friend is a cop (sargent) and made $170,000.00 last year by doing lots of road jobs (bet you did’nt know how well those officers that wave you through construction zones got paid, huh? Me either until my friend told me what he made!).
February 22nd, 2007 at 7:37 pm
People were earning 100k in the 80’s. If your in sales and not making $250k then you are the bottom of the barrel. My police officer friends are making 100k and have a great pension ( and little education). Regardless of where you live 100k is a decent living, but by no means lets you live like a “rockstar”.
February 24th, 2007 at 8:56 pm
I work in the recent-college grad friendly neighborhood of Lincoln Park in Chicago. I make 40k a year with a 3-4K bonus planned for Jan 2008. (I live comfortably, although nowhere near where I want to be) I am in logistics brokering which is basically trucking sales. fortune 500 company with all those benefits. Show up in sweatpants/hoodie when I feel like it. I’ll admit, this is my first job and i would love to move into a position where I wear a suit. I will probably try to get my MBA before I’m 30 to pursue a higher paying job. My dad owns a company so being self-employeed is very attractive to me. At my job income levels are all over the board (no speculation, daily commissions for every employee are in our program) recent hires make 40k and about 30 ppl in my office make 200k+ year. 10 make 400k+ year, and 3 make 650k plus a year. I’m happy with my job now, but would love to experience a new job/locale. Anybody know an opening for an Indiana University grad with degs in Communication and Culture / Telecommunications management? Loves to travel
(sorry about my choppy composure of this posting, I’m trying to pay half-attention to the new Rainn Wilson (Dwight Shrewt in The Office) SNL.
March 1st, 2007 at 12:52 pm
I guess it’s all relative. But $200K seems more like some minimum cutoff level to get to, and you have to talk about $300K or 2 Meg liquid assets as getting to some minimum level of exclusivity (is that the right word?). Here you’re talking about 3% or the population who file income taxes–so is that really exclusive? If you are talking about exlusive, then we’re really talking about $500K/yr, or 5 Meg total assets–at this point we’re talking about under .5% or less than 1/200, which to me is exclusive. The rest seems to be self-delusion about making ourselves feel better. At least, this is the way things appear to me.
March 2nd, 2007 at 5:46 pm
The sad part is, the more money you make, the more money you spend. 100K, 200K or even 500K will never seem like enough. I remember living happily on 36k years ago and somehow having extra money to do fun things. Now i make 100k and my house and other expenses leaves not much to play with.
March 22nd, 2007 at 7:28 pm
Regional Sales Manager: Manufacturer/Distributor — 27 years old
I will hit about 100-120k this year, third year in business. However, I agree 200k is the new 100k. The real milestone is hitting 1mill ayear. I agree with the guy up top to a degree, there are only a few cops making 100k, but there are more and more people doing it, especially households. There are sales guys we pay out 250k-300k per year and that is only one line they carry. Lots of sales guys in my industry make easily 100k, but the best are pulling in millions. Thats the top 1 percent i want to be in!
April 9th, 2007 at 6:47 am
I have been at this a long time ( I bought my 1st stock in 1974). How much you make is not as important as what you do with it. There are spenders and savers. Spenders will never have enough. I could amaze you with stories of savers who started with nothing and are now multi - millionaires. This is a really good website especially for those just starting out.
April 10th, 2007 at 8:07 am
Yes even if you don’t make alot of money, if you invest it appropriately you can become a multi millionare. Where to put your money is the 64k question.
April 12th, 2007 at 4:50 pm
I’m a web programmer, working in New Zealand but getting paid in US dollars. That means I’m into six figures with the exchange rate. I so mostly software support, and documentation. I have a diploma in Internet Technology, and a long history in sales, teaching (skiing and paragliding) and writing (Magazine articles). I’m very agressive in salary negotiations, and I attribute at least the last $25K of my salary to my dogged pursuit of higher pay.
My partner is a Project Manager as a short ternm ocntractor. She is paid in the $200K per annum range, but she usually only works 7-9 months a year to bring around $150K.
Together we knock back about $260K per year on average.
We live pretty nicely too, thanks!
April 17th, 2007 at 7:52 am
I live in northern new jersey and i am a union truck driver this year i will break the 100k mark with this new company. just goes to show you .. you dont need a college education to make money..just the drive to succed in a carreer that you love.
April 21st, 2007 at 6:16 pm
27 yr old living in NYC working in IT project management. Worked in IT consulting right after undergrad for 4 years before switching to a tech group in a bank. While in consulting, comp was horrible (paycuts) due to dot-com bubble bursting and general state of practice.
This year I’ll make $120k salary + $30k bonus. I just started working at this place so I figure there’s still some room to grow. While I wasn’t making too much in consulting, I know there was potential there, however life is about experiences and spending time with the ones you love.
Working 80-100hours a week is not an option to me…rather have 25 vacation days+holidays, good benefits, work 35-40hrs a week and make half because that’s 40 extra hours a week I can spend with my friends, family, travelling, etc.
Wife works in sales and has very flexible work schedule, she brings in $80+ with bonuses, etc. so that helps too.
That’s just me though.
April 24th, 2007 at 11:11 am
I am a 24 yr. old graduate student in Chemistry. I will graduate at 26. I am paid 24K a year stipend as a graduate student, so no student loans, and tuition is waived. Everybody that leaves my research group for a tech company has been hired on at about 110K with a ~10K signing bonus.
Just one option for clearing that six fig. mark… work in R&D with a Ph.D. in the hard sciences.