Young and making substantial money...doesn’t feel real?
Not a shite post. Seriously, I’m 23 and making nearly $150k a year for manipulating excel templates and copying PowerPoint formats. I also still live like how I did in college, you could tell by me still using the beer glasses I won from a raffle on St Pattys Day, in my apartment, which are literally the only nice drink ware I own. I wear cheap clothes but I do have a pretty nice AP watch. Besides that, I just am having a hard time coming to grasp this reality. I don’t know. I’m sure some of you guys have experienced this or can relate.
Word of advice. Keep it like that, keep focusing on work and getting smarter in what you are passionate about in your down time. Put all the money you aren’t spending into the market. That’s how you become a millionaire by 30.
I am older than you and I still don't own any furniture, any glassware, cutlery, art, nice lights, wallpaper, curtains, or anything else. there was a plan to get all of these things at some point but didn't sound like fun, so didn't do it.
While my living expenses have gone up (mainly due to hobbies), I still don't vacation and have no "real home". The only item I actually bought was a my very first monitor I got for Prime Day this year. Never had one before. My laptop is like 13 years old. phone is a 50 $ Android.
Money on a trading account is just a number, and it doesn't "feel real" unless you buy a lifestyle with it. Buy the things you need, not the things you want.
I like how you described your account as just being another number. Even having padded checking accounts it just feels like so unreal. Almost as if the rich uncle wrote me a birthday check or something.
[READ: ERROR; DISREGARD THIS POST]
That number does give security, but as humans we have a hard time grasping things that are nonphysical. stuff like faith, love, numbers on accounts. Hence why so many people get married, have a family and buy their entire life on amazon.com. In a way they are trying to make their life feel more real.
Find out why you did all of this, what was the hope you had while studying and working to get where you are? Maybe you can now afford a certain hobby or interest.
Goals without a good execution are just dreams.
Continue living beneath your means. It's a GREAT habit and will provide you financial independence later in life (which provides you all sorts of independence). That doesn't mean don't buy things. Certainly buy things you need and get good quality so they last. OCCASIONALLY buy some things you want as I think it's important to reward yourself from time to time. Helps maintain your focus, reminds you why you do things, and provides some enjoyment. You have to have enjoyment to sustain anything long term (jobs, relationships, hobbies, etc.)
Just avoid the temptation to frequently live in the moment financially. When I was much younger, I had lots of wants without the means to afford them. Nice watches, cars, etc. Normal stuff. I used to look at the watches in the window and tell myself I'll get that when I do X. Funny thing, when I hit X I know longer cared about the watch or car. That allowed me to save and invest which gives you the freedom to pick and choose important things later (like jobs, houses, vacations, essentially anything). Gave me the freedom to start my own business knowing I had some cushion.
I think there’s also a joy in window shopping, that isn’t present when you have to actually shell out cash to purchase the item.
Reminds of that Nas line, "By the time you can afford it, the car ain't important."
Which AP watch?
[READ: ERROR; DISREGARD THIS POST]
Royal oak offshore. It was used and sold for around the price of a Kia. Biggest impulse buy of my life
Haha sick man, I got a black sub for my impulse buy. Honestly, use it to your advantage. You worked hard to get the job you have and living frugally should be a bad thing. By looking at your name your job revolves around cost of equity. You have equity now so try to build it up. Always more $ out there, shouldn’t feel like a bad thing that you’re making your fair share
Feel sort of like crap reading this because that was my exact mindset when I started. Fast forward 1 year and I moved in with my GF and I'm spending like crazy.
Need to go back to my roots
girls man
Tru dis. Not sure why someone gave monkey shit. There's a family guy scene, i think, where an alternate scenario is briefly visualized of a well-dressed Peter and Brian sitting around reading the paper in a vast mansion, just the two of them, at a somewhat older age having made tons of money but having clearly sacrificed family and friends to get there. At one point Peter says, "Welp, I think I'm going to go microwave a canteloupe and have sex with it."
I'm happily married, but it comes at a cost and there are times where I'd like to be that guy who's rich beyond belief fucking a microwaved canteloupe, alone, in his beautiful mansion.
Holy shit this is relatable. I’m single now and hardly spend any money, but when I had a girlfriend last year it felt half my paycheck went to overpriced brunches, dinners and drinks at pretentious restaurants. And the irony is that I made a lot more money than her, but she was the one who always wanted to go out.
That’s not irony bro, that’s called being taken advantage of.
That’s not irony bro, that’s called being taken advantage of.
Overpriced brunches - those were the days lol.
Find a woman as frugal as you, or better yet even more frugal.
Yeah, same dude.
Yeah, same dude.
a nice house in the suburbs will cost 900k (a basic house will cost 500k...but you'll want the nice house). Until you have a million in the bank, you are not rich...so don't spend like you are.
Also, 150k salary will be around 110k after taxes...and only 60k after basic living expenses...its a nice start...but you have no idea how much life will cost
I do not know many 23 single guys that need to live in the burbs
AKA, By the time you live in the burbs you should be able to make more or have significant savings. Also most 900k housing I feel like is dual income.
I had a similar feeling starting my career, albeit I was making much less money than you. I think most people feel like this when they start out. If I could things over again, this is what I would try to focus on:
These are just the things I wish I had done a better job of doing, hope they're helpful
This was the answer I was looking for. Thank you FelipeStache!
Sure thing. Just keep truckin man. Right now is a weird ass with COVID, people haven't interacted with their friends in a normal way in 6 months, they're worrying about their older family members, the economy, etc - then add onto that adjusting from college, which is the most freedom you'll ever feel, to an extremely demanding job, it's difficult to put it all in perspective
All good tips. I'd add that things just come with time. I don't live extravagantly and don't have a penchant for cars/watches/luxury vacations but eventually realized that toys like electronics, clothes (not talking Gucci but good stuff), misc. hobbies, etc. don't cost that much in the grand scheme of things. You won't live like a broke college kid forever and your lifestyle will creep but that isn't necessarily a bad thing if you're saving a lot and managing your finances. Then in a few years when it's time to upgrade furniture or apartment or whatever you know you can reasonably swing it. Just don't buy a lot at once or live outside your means. The truth is that people living it up at 23 are either broke/not saving or came from money.
Congratulations, but I know many 23 year olds who are already making more money than you are and are having a lot more fun than doing PowerPoint and Excel all day long.
Lol please, other than maybe big tech or big name social media people, who are these "many 23 year olds" making more money while having fun? 150k at 23 must be a high 90s percentile salary for that age.
More like 99.9 at the age of 23
I know this girl who started a local delivery business and she is making 300,000 per year. I also know several people who are power sellers on eBay.
I also know my ex who started an OnlyFans
Here's a link to a income percentile by age Calculator. If you make around 200K by age 30 you are very well off (in the 1%). I hate all this "you're not a billionaire by age 18 BS".
https://dqydj.com/income-percentile-by-age-calculator/
I feel ya man. I'm the same age and making similar amounts of money. (Also crazy that our paycheck will only go up and we could be making 2x that within the next couple years. And we'll still be under 30).
For about a year, I lived like I make 40k a year. I even felt guilty paying $600 for a super cheap vacation (first vacation in my professional life).
Now I increased my monthly spending by couple hundred bucks for the last 3 months (I still live like I make 60K a year), I feel even more guilty. Something just doesn't feel right. Even though I'm just buying better ingredients for my cooking, I feel like I'm living a life of sin for some reason.
Ultimately though, I think it's a good thing. I only spend on things I have to spend on. And whatever little luxury I do pay for barely impacts my overall financial stability in the long term.
I really feel this. And it feels inconsistent — I shop for the cheapest food but will also buy like $40 bourbon (but still absolutely feel the guilt). Headed into PE in a few months and the thought of paying $2k/mo in rent is nauseating. I think a slight guilt is healthy to keep us from blowing all of our cash, but here’s to hoping we don’t let it eat at us lol
I really feel this. And it feels inconsistent — I shop for the cheapest food but will also buy like $40 bourbon (but still absolutely feel the guilt). Headed into PE in a few months and the thought of paying $2k/mo in rent is nauseating. I think a slight guilt is healthy to keep us from blowing all of our cash, but here’s to hoping we don’t let it eat at us lol
Well put my friend. I relate to your feelings 100% and that’s what “bothers” me I guess? I wear a ~$13K plain looking watch that nearly nobody notices or would care about and pay an absurd portion of my income to rent in NYC while paying minimal food costs but god forbid I’m out at a networking dinner and I pay $60 for a bottle of house Italian wine. I feel it bro.
Well put my friend. I relate to your feelings 100% and that’s what “bothers” me I guess? I wear a ~$13K plain looking watch that nearly nobody notices or would care about and pay an absurd portion of my income to rent in NYC while paying minimal food costs but god forbid I’m out at a networking dinner and I pay $60 for a bottle of house Italian wine. I feel it bro.
How much do you pay in rent/what kind of place? (Manhattan?/walk up vs doorman?/flex?/roommates?)
Actually curious because I’m looking to decrease the amount I spend on rent.
How much do you pay in rent/what kind of place? (Manhattan?/walk up vs doorman?/flex?/roommates?)
Actually curious because I’m looking to decrease the amount I spend on rent.
How much do you pay in rent/what kind of place? (Manhattan?/walk up vs doorman?/flex?/roommates?)
Actually curious because I’m looking to decrease the amount I spend on rent.
Lol 150k isn’t even a lot in nyc. This kid actually thinks he’s rich 😂
Lol 150k isn’t even a lot in nyc. This kid actually thinks he’s rich 😂
I am currently wearing HANES underwear bro, I am not claiming to be rich. Just highlighting how interesting it is to be making towards the apex income for your relative age compared to your non-finance peers who do regular jobs making 40-50k annually.
Take some notes buddy
The average starting salary for a bachelor's degree in the U.S. is $50k.
And most will probably never climb a whole lot more in the income bracket.
This is likely a troll post but-
I feel sorry for you if your life/career is dictated by how much money you make every year and you base people's worth based on their perceived income/job.
Seems like this entire thread transitioned towards savings.
I think what OP is talking about relates more to this: https://en.wikipedia.org/wiki/Impostor_syndrome
OP - there's a substantial rift growing between the upper class and the middle class in America. What you're (and I'm) experiencing is one reason why.
Yes this was the original concept I was pushing. How has I.S. affected you?
In short, you get over it.
Imposter syndrome results from putting someone whose sense of self-worth is low, but they're in a "high-achieving" position or a position that they think requires more than they bring to the table. If you have a chip on your shoulder but work in IB/PE or some Director/VP role in a company, you'll have imposter syndrome. I know because I felt like this a little.
I eventually realized a few things that helped me get over it:
(1) leaders in our world everywhere (politics, companies, non-profits, etc.) are far less capable than they seem. Look at the state of our world and tell me that we have competent leaders everywhere. We don't. The demand for capable leaders has always exceeded supply. And some of the ones that seem capable are putting on airs.
(2) I realized that, if I got the opportunity to take on roles of my peers, bosses or collaborators, I could probably develop into the roles that they take on and perform just as well. In other words, I built confidence in my abilities.
(3) Realizing luck plays a role in separating the winners from losers
And regarding doing Excel/PPT and getting paid way too much...well, I'll just say you gotta put in your dues :)
Just wondering OP, is it a feeling of guilt or not deserving it, or just the "absurdity" making that much especially given the current economic situation? Im just a college senior but even having an IB job lined up rn while a lot of people in the class of 20 are struggling to find work is kinda crazy to me. Where I grew up the median salary for an individual is like 25k a year so IB salaries seem absurd to me in general but I do feel really thankful to be in this position.
Yes this is a big part of what I was going for
People say to not throw money away buying things but at the end of the day if that’s what someone wants to do and if that’s what makes them happy - then why not...
You won't meet anyone that regretted "saving too much". You'll meet plenty of people who did the opposite. Good on you!
BTW, the APRO was probably a good buy, most have skyrocketed this year in value.
Totally agree — I’ve had a fairly strict budget but haven’t really compromised on experience at all. Took multiple vacations, skied, ate fairly well, etc. — no regrets at all
Totally agree — I’ve had a fairly strict budget but haven’t really compromised on experience at all. Took multiple vacations, skied, ate fairly well, etc. — no regrets at all
Likewise. When the pandemic first hit this year it was nice not having to get too stressed out over funding a ridiculous lifestyle or anything like that.
My only suggestion based on mistakes i've made: don't let lifestyle creep get up to you. Enjoy life, buy nice things that make you happy but don't like spending scale up with income.
As i hit 7 figures i was easily spending over 100K a year on shit I didn't need. Fixed costs got higher and higher (ie 9 grand / mo mortgage on house).
I feel marginally richer than when I was an analyst in IB in terms of committed spending
2 years beyond where you are and no expensive outlays other than exotic vacation on my 2-3 weeks off every year. One bedroom, watch sports with the boys on the weekend afternoons, dinner with the girlfriend a few nights a week. Nothing wrong with having inexpensive tastes — keep doing you. I don’t have any aversion to spending money, but no reason to pay for a lifestyle you don’t personally enjoy. Don’t spend because you feel like your ‘have to.’
r/financialindependence
take a look, got plenty of people living way below their means and retiring early
I also feel weird spending "too much" money. Bought a used rolex (idk why, I don't even like watches) & never wear it. It makes me feel guilty/shameful.. Although I have no reason to feel this way?
u bought it. wear it. Go to the club and show it. Go home with girl. Show her the watch again. Then propose to her.
Depending on the watch it might be a worthwhile investment. Rolex (generally) has outperformed the s&p over the last 5-6 years
This is cool, dude. I am 20 years old, and I have been working online for two years now and earn 6-7 thousand dollars a month.
Uhm, what?! What do you do?
Yes 100%. But you've probably worked your a$$ off to get into IB, so kudos to you.
This is cool, dude. I am 20 years old, and I have been working online for two years now and earn 6-7 thousand dollars a month. I really like my life after I started making good money for my age, as I am saving up to open my startup. I work remotely playing games on android that pay you for it. I spend a couple of hours a day at work, and the rest of the time, I study and develop a startup plan. I would like to know more in detail about your work since lately I have been thinking about finding a second source of income. I will wait for an answer and wish everyone good luck in earning online
Fugit voluptatem qui autem esse. Maiores sed ducimus labore non quis. Nemo quia et eos neque quam.
Dicta aut dicta qui voluptatem fugit. Ut rerum sed error et itaque earum nihil.
Maiores officia eaque animi accusamus. Dolores eius qui animi quibusdam omnis velit. Similique suscipit tempora libero incidunt pariatur et voluptas amet. Et aut ut dicta doloribus culpa placeat impedit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Asperiores assumenda et dolores id. Dolores facere assumenda at sunt fugit harum dignissimos neque. Quia nam voluptas eos quasi quae. Et est facilis consequuntur placeat ut.
Laboriosam cupiditate id praesentium et. Et voluptatem velit iusto inventore. Ratione id veritatis enim sapiente. Vero sunt accusantium quis error ab.
Dolore veniam cupiditate quos. Id et iste ex facere. Veritatis corrupti suscipit nulla ut voluptatibus soluta.
Rerum sunt ex velit doloremque illum eum. Est ea excepturi delectus laboriosam adipisci qui harum. Et vitae cupiditate eligendi. Nisi est accusamus odio aut aperiam facere.
Fugiat minus saepe architecto alias odio. Rem et vel doloremque quae libero. Hic esse expedita ut fugiat labore itaque sunt. Sed expedita voluptate quo laboriosam facilis. Quaerat natus sint quia ullam.
Iste facilis tempore sed. Aperiam quod nihil architecto est eum sed. Vel rem facilis quasi dolorum. Qui voluptas debitis dolorum aspernatur sapiente perspiciatis quibusdam. Architecto blanditiis commodi doloribus quod repellendus.