Secure a $70K Job Now? Or Be Worth 7 Figures in 8 Years?
CNBC quotes a study which found that a single American with no kids can comfortably live in the United States with a $68,499 annual, post-tax salary. (The average “middle class” annual income is at $60,000).
Meanwhile, the MIT Living Wage calculator posted recent data that a family of four (two adults, two children) need at least $104,077.70 pre-tax annual salary to afford all basic necessities.
That means people earning way less than $70K may not be that financially comfortable.
- They’re likely having difficulties paying back their loans, if they have any
- They can’t take long vacations even if they want them bad
- And if a major emergency happens, like storms, accidents, or illnesses, they likely don’t have enough cash on hand to cover for everything
If you’re experiencing any of the above, it can be tempting to focus on looking for much higher paying jobs. It all depends on the urgency of your needs.
I’ve talked about what I would do if my net worth suddenly drops to zero. And among the first steps I’d take is to secure a good-paying job where I can build up my emergency fund. Since having that fund gives me peace of mind.
But if your circumstances aren’t as drastic, avoid focusing on your short-term income.
3 crucial elements of a good career
Back in 2014, I worked in a major IT research firm in London. It paid well enough. And I knew that if I really pushed for it, I could aim for promotion and earn much higher.
The best companies are often willing to pay well for expertise. With my skill-set, I also had the option of applying to a different company that offered a higher salary package.
But I passionately disliked the work and office politics. I just couldn’t see myself working for a large corporation for long.
I eventually quit that career and moved back to my hometown in The Netherlands. People at work were all trying to persuade me to stay. It started with, “We’ll give you more perks and a clear roadmap to a…