The difference between 20k a year. 8 upvotes | February 17, 2017 | by weakandsensitive ------------------------- My annual review was completed last week. I'm 2 years out of my PhD and broke the 100k mark. It felt good. 100k was a goal of mine. Every single piece of advice I've heard from C and D level folks has been - if you like what you do and you're treated well - the money will come. I fully support and buy into this notion. I also separate salary from job satisfaction. I'd say I'm 8/10 satisfied. The 2/10 is really me having to learn how to get the workplace to work for me. But I was thinking - since I'm a bit of an impatient guy - and know my salary is on the junior end of average, I figure if I put in real effort, I could get a 20-30% jump. So I ran some numbers. Suppose I was making 20k more a year. For a year - that doesn't really matter. I've broken the salary ranges down into how you can travel.  50k = vacation  50-75k = couple of vacations a year  75k-150k = you can sit in business class  150k-500k = first class  500k-5mill = private jet  5mill+ = personal aircraft  But the point is an extra 20k at the 100k mark doesn't really matter. So I broke it down further. What does it mean in terms of future value. YEAR CURRENT SALARY INCREASED SALARY ANNUAL DIFFERENCE COMPOUNDED SAVINGS 0 $100,000.00 $120,000.00 $20,000.00 $20,000.00 1 $103,000.00 $123,600.00 $20,600.00 $41,600.00 2 $106,090.00 $127,308.00 $21,218.00 $64,898.00 3 $109,272.70 $131,127.24 $21,854.54 $89,997.44 4 $112,550.88 $135,061.06 $22,510.18 $117,007.49 5 $115,927.41 $139,112.89 $23,185.48 $146,043.34 6 $119,405.23 $143,286.28 $23,881.05 $177,226.56 7 $122,987.39 $147,584.86 $24,597.48 $210,685.36 8 $126,677.01 $152,012.41 $25,335.40 $246,555.03 9 $130,477.32 $156,572.78 $26,095.46 $284,978.25 10 $134,391.64 $161,269.97 $26,878.33 $326,105.49 11 $138,423.39 $166,108.06 $27,684.68 $370,095.44 12 $142,576.09 $171,091.31 $28,515.22 $417,115.43 13 $146,853.37 $176,224.05 $29,370.67 $467,341.87 14 $151,258.97 $181,510.77 $30,251.79 $520,960.76 15 $155,796.74 $186,956.09 $31,159.35 $578,168.15 16 $160,470.64 $192,564.77 $32,094.13 $639,170.69 17 $165,284.76 $198,341.72 $33,056.95 $704,186.17 18 $170,243.31 $204,291.97 $34,048.66 $773,444.14 19 $175,350.61 $210,420.73 $35,070.12 $847,186.47 20 $180,611.12 $216,733.35 $36,122.22 $925,668.02 21 $186,029.46 $223,235.35 $37,205.89 $1,009,157.31 22 $191,610.34 $229,932.41 $38,322.07 $1,097,937.24 23 $197,358.65 $236,830.38 $39,471.73 $1,192,305.84 24 $203,279.41 $243,935.29 $40,655.88 $1,292,577.01 25 $209,377.79 $251,253.35 $41,875.56 $1,399,081.42 26 $215,659.13 $258,790.95 $43,131.83 $1,512,167.32 27 $222,128.90 $266,554.68 $44,425.78 $1,632,201.46 28 $228,792.77 $274,551.32 $45,758.55 $1,759,570.09 29 $235,656.55 $282,787.86 $47,131.31 $1,894,679.90 30 $242,726.25 $291,271.50 $48,545.25 $2,037,959.15 This assumes an annual cost of living increase of 3%, an investment rate of return at 5%. Over the 30 years, the difference in salary and cost of living increase alone is $1 million. The total difference, assuming all of the increase money is saved and invested, is 2 million. The interesting thing though is that most of the increase is later on in the career - so as long as I get caught up quickly early on, i.e. I'm rewarded for the effort in the shorter term, the actual difference of the 20k should be negligible. I guess the point is that a 5-7 year time frame of seeing what a company is willing to invest into me seems like an acceptable trade-off. I think this does a good job of answering the question of "when does money really matter?" with regards to the ceiling/floor salary trade-off. In any case, the only way to get G6 level rich is to be a successful business owner of a scalable enterprise. ------------------------- Archived from https://theredarchive.com/post/359561