When do you feel that your salary is “enough”?

[blessedwith4]

@athaddeus I don't know if you ever really feel okay.

I make 70k now in my early 30s. It's good pay, but I have friends who make almost double what I make. If I compare myself to others I'll get depressed.

I just focus on the fact that I am saving money for both emergencies and retirement and can go on vacations and I'm not stressing to pay bills or rent or eat.

So I guess that means I'm okay with my salary in that regard. But that's different from not being fairly compensated for what you do at work. I hope that helps

 

[athaddeus]

@blessedwith4 What I'm gathering is to not spend much or any time on comparisons. Ignoring the feeling of not being fairly compensated, I feel good about where I am.

 

[chente209]

@athaddeus The salary entirely depends on expenses.

$80k where I first lived would have been amazing. $80k the second place I lived would have had me scrape by.

So what are your expenses? $80k off the bat is typically pretty good.

At my starting salary of $60k, I saved considerably for retirement because my expenses were low. So everything is relative to expenses.

 

[athaddeus]

@chente209 I'm in the Bay, but I split my expenses, no debt, no kids, and have been good about tracking spending while also saving. When I think about getting a house in the Bay, however, I become queasy.

 

[chente209]

@athaddeus So the question becomes whether you want to stay there long term or not.

 

[resjudicata]

@athaddeus Listen to this clip from the founder of Twitch, Justin Kan, talking about how even at the highest rungs of wealth, it's still human nature to compare yourself with people who have more and envy their position.

It's a never-ending cycle. We adapt to where we are, compare ourselves with people who are doing better than us, and feel like we will finally have enough or feel happy if we get there... only to adapt to that new place and strive all over again.

You're making $80K after finishing school, and I'm sure your career trajectory will place you well into six figures as you grow in your field. You're doing great.

Focus on gratitude and contentment in the present, and continue to work hard and get better in your field. You'll be much happier, and you'll progress at your own pace and still thrive.

 

[athaddeus]

@resjudicata Thank you for sharing this clip! That was really helpful to hear. I also appreciate the assurance. When I step back I do feel that sense of relief again.

 

[amadeus250]

@athaddeus It’s “enough” when you start to significantly value the non-financial aspects of your career (i.e. work-life balance, autonomy, respect of peers, etc.) over the financial aspects of your career.

 

[droxy]

@athaddeus Websites like glassdoor and payscale can give you a pretty good idea of what you're worth based on career and experience. I wouldn't pay attention to random redditor's salaries. This subreddit self-selects for high income earners, and they are the most likely to share their salaries with others.

As for your question "When do you feel your salary is enough?" For me, its when the increased responsibilities out weigh any potential salary bump. I'm not interested in management and the hours/responsibilities that involves. I happily make enough to meet all my needs and can hopefully save enough to reach r/financialindependence by 50.

 

[gibsla2]

@droxy Glassdoor isn’t accurate anymore. It’s skewed lower due to old stale data from 5-8 years ago. For tech I’d go with https://levels.fyi

 

[mcv222]

@athaddeus 75k was my magic number. That seemed to be a comfortable level of income to live on. That medium/low COL area.

could afford a 200k house and a car payment without stressing about money.

 

[x1027xoxo]

@athaddeus To put it simply, your salary is enough when you meet all your needs, enough of your wants, and you are still able to save.

 

[tkernan]

@x1027xoxo I feel like even though all your needs etc are met and you're still underpaid compared to your peers and industry, then you should still ask for a raise because it's not fair to you and the company is benefiting at your expense. What do you think about this?

 

[athaddeus]

@tkernan I think I can have that conversation once I'm at work longer / switch jobs. In terms of the difference between public vs private, I am paid fairly compared to my public friends but not with my industry peers.

 

[mile006]

@athaddeus I know team members in private sector who are salaried and working 18 hour days for months; sometimes 7 days a week. Vacations cut short, etc. That level of work demand can easily come with that high salary. YMMV.

 

[athaddeus]

@mile006 dear lord

 

[mile006]

@athaddeus Yeah, I am a consultant and I have had 70+ hour weeks with this client, but I bill by the hour so they don't ask that of me too often.

 

[lotusm]

@athaddeus Usually public gets better work life balance, lower stress, more in terms of retirement, usually better medical. And even though private companies say unlimited time off, they usually don't give you much cuz you're expected to be on call (without pay) and have to have a decent manager to actually take time off. Public also lets you cash in overtime for either extra money or extra pto.

 

[jeff34]

@tkernan

I feel like even though all your needs etc are met and you're still underpaid compared to your peers and industry, then you should still ask for a raise because it's not fair to you and the company is benefiting at your expense.

There are other intangables that are very valuable however. You could also negotiate a better work / life balance which can mean different things to different people, and still be ahead.

 

[jschmitt429]

@athaddeus Comparison is the thief of joy.

I set financial goals for myself as my salary increases. For example: Paying off debt -> Buying a car -> Buying a house -> Saving for kids' college -> Maxing retirement savings.

You should make a list of SMART goals (short- and long-term). That will help you figure out what you need your salary to be at different points in your life.