For those w/ work experience -- what is the minimum annual comp you'd be satisfied with making by age 35-40 (assume non-NYC/SF)
Basically the title, want to court opinions from folks who have a couple years (or decades!) of experience under their belts. Assume this is not in NYC / SF given insanely high COL over there
Let's also assume hours are 50-55 per week, so plenty of time for a life outside of work as well which I'd imagine you want by age 35-40
Not asking about net worth here as that topic has already been fleshed out in a lot of depth across many topics. Posters older than 35-40 also of course welcome to respond ofc
I’m 36. I think the minimum I’d be happy with is $250,000/year.
That's awesome. Very grounded answer
At $250k as a single guy (or with a partner who also has a job with decent income) at 35 you'll retire with $5+ml easy, if not $10ml
Retire at what age?
400k+
Some loser got triggered and MS'd my post and you & CRE lol
Just curious, why 400k as opposed to 300k or 250k? Is it a function of you living a high cost lifestyle with expensive hobbies or something else?
Hahaha. I'm in the Bay Area right now and would want to purchase a house by early 30s. To afford a $2m home with a 20% downpayment the recommended salary is $500k, and $2m for a home down here gets you maybe a single story 3 bed in areas like Palo Alto or maybe a 4 bed in some areas that aren't as well off
It’s because of the overabundance of 18 year olds on this site who think they’re going to be pulling in an effortless $1M a year. Good for them, but it also isn’t happening.
Judging by how inflation has increased in my lifetime and being in my late 20s now, $1m/yr at least all-in in whatever combination.
I imagine you could lower that number a ton if you lived outside a T5 COL city in the US, no?
It really depends on the cost of a house in your city, how much your spouse makes and if you have kids.
I’m 29, single and no kids in HCOL city (not nyc/sf) at $275k and I feel pretty good about it. If I was 40 in HCOL city with a spouse that works as a teacher and we had two kids together? I would guess the number is closer to $600k to maintain a similar level of comfort to what I have now.
That's fair man -- at 300k at 35 as a single guy forever, you will retire with 10+ml in the bank I think. When 2-3 kids and a low-earning wife enter the picture, it's amazing how much comp has to scale to match that lifestyle
When you refer to comfort though, curious what those key things are for you? Is it mainly rent in a nice place / travel / etc?
I guess i just feel like I don’t have to deny myself many things. I live exactly where i want, eat whatever i want, never have to say no to a social event for financial reasons, can stay in any hotel when I travel, etc.
It helps that I’m not super materialistic. You can spend a ton of money on things like cars and watches but it’s harder to spend money on experiences bc we spend a decent amount of our lives working.
Biggest thing I’m missing is additional free time. Have some friends that make a fraction of what I do but they’re off at 4-5 and are at happy hours or other social events at 5:15… I’ll probably never get to live that life
This response doesn't account for taxes.
I think a lot of it depends on what someone is accustomed to being paid, and their standard of living now/before.
Most people tend to establish a minimum threshold with most things (at least in their mind) of whatever standard they have enjoyed before.
In some cases, that minimum might be higher than current/prior, if they are struggling or displeased at that current/prior level.
Once a person earns $100k, they won't want to accept less. Same with $250k, $500k, $1M, etc, because even if it doesn't change their life to drop, it's a mental thing of not wanting to feel like a failure.
Also, most will set minimum threshold at what they assume others are being paid. Most people tend to assume that everyone wise is making X amount, easily, and so they want that too.
I think most people also inflate what comp they claim, and that tends to keep the perception high. I can tell you that not as many people make $500k or $1M as many like to assume. Yes, it often does happen, but not automatically and not everyone is making that amount.
A lot of factors might go into declaring a minimum, because it depends on your obligations, your current/past income, location, other income, etc.
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