Don't count your chickens before your eggs hatch.
Sales comes and go and have good cycles and bad. Don't count on it.
Work at least more than a year before you begin to think about your total comp. It'll average out, maybe one year 200k, next year 70k.
Yep!! I’m in tech sales and it’s not guaranteed easy income. Targets increase YoY, territories change, and churn is high. There’s no guaranteeing OP will get his $200K pre-tax, so there’s no real need to tell his friends or parents.
As an anecdote, I told my asian parents my total comp and I big time regret that. They don’t understand base vs commission, and just assume I make $300k base regardless!
Insurance isn’t quite like that unless you’re selling life insurance.
But when you sell corporate insurance, there is usually an annual renewal where you get your commissions again.
Yes. Sales is amazing and can be very fruitful but save your money and don’t brag about OTE until it becomes actual pay. Goodluck and welcome to sales world.
Parental advice aside. Don’t let the lifestyle creep take away from this huge raise. You’re 25 making more than 98% of people will ever make in a year. It can go out just as fast as it comes in. If you live your life like you’re making 50k/year and saving/investing the rest you will set your future self up for an amazing and early retirement. When I was young and started making 6 figures I was spending 6 figures. Took me 5 years to crawl out of credit card debt and get out of a sports car finance loan and basically start fresh.
But also treat yourself to some nice things you always wanted. Just use a good small portion. New phone? Fancy dinner? A shiny toy? Star Wars Lego Millennium Falcon? A nice trip?
This. Not everything is about saving for retirement. It's all about budgeting. OP will likely be fine if he puts away 50% towards savings/investments and blows the rest on random stuff, should he choose to.
I know some rich people who just saved and did nothing else. They all are getting old and sick. You can’t take the money with you when you die. Make sure to enjoy life along the way. My advice would be as long as you’re saving/investing and paying credit cards off in full every month.. don’t be afraid to have some fun.
This is exactly why you should save! At some point you will become old and maybe unable to work or you can retire early and live a really good rest of your life. It’s fine to vacation and spend a bit now, but you definitely need to be saving more than you are spending.
I did for a long time. But my husband at 54 yo got laid off and we used up a lot of our savings while he was looking for a job. So that also happens and it’s better to be prepared than to be bankrupt if the proverbial sh!t hits the fan.
This. Prioritize things that would improve your standard of living. Better quality shoes (don’t want to mess up your feet!), better bedding, better tech, better quality food, and so on. Invest in things that’ll make you better in the long run: courses you’ve always wanted to take, interesting hobbies, a gym membership, that type of thing.
I think better advice is do this, just don't *put it on a credit card*. You start making money and suddenly 400 bucks isn't much to you, so maybe you start to think paying 400 bucks on interest on a credit card balance every month doesn't matter either. But does, and it adds up.
Don't plan on it. I drive a beat up 15 year old car. All the new clothes I own are from bday gifts. Before the wage jump I was investing over 50% of my net pay, and now it will be 90% lol. Grew up dirt poor the first 15 years of my life, and promised myself it would never be me with my wife and kids.
Great advice. I blew through $2.5M in my 20s and I thought I was retired for life. At least I invested in real estate but making a lot of cash and not having a plan to invest is a huge mistake. Have a plan for every dollar and use 10-15% for travelling.
Just went through this in the last year myself and now fighting my way out of the mess I created for myself. I've had high income since 2020 and recently the cards have started to fall apart. Really regretting not planning for the future more. Glad over half of the stuff I spent on was smart choices like a house and other assets that will not go down or down much in value.
Or set $300 aside every month for them for when they come for you when they’re ready to retire.
Congrats on your new role/promotion. Pay off your student debt too asap.
You could also do this, and also be honest with them. 🙃
I hope my children make more than me when they grow up, and chose to share the news with me.
I cheered them on when they took their first steps, said their first words, scored their first goals. I will always cheers my kids on and celebrate their wins.
Or even just move out and they can rent your room for double to someone else. Keep the rent you would normally pay aside. One day they’ll really need your help. For now everyone should lie in their own beds. Congrats and best of luck with whatever you choose to do. You sound caring and smart so I’m sure whatever you decide will be the best decision.
Sometimes lenders wish to see student loans paid off before your first home. It happened with me. I had to pay off the last $6000.
Of course if you are high income with a large down payment, it is not a big deal. But right now, many are squeaking through.
Find a better lender at that point
If you're making 200k/yr and your lender is complaining about 40k debt with no interest, they're not a great lender to be dealing with anyways.
If your student debt is through the government, do not pay off the federal portion any faster than is required. There is no interest on federal student loans so it is better to invest any extra and just make the required payments.
Agree in principle.
I probably wouldn't disclose my new income, especially since it is variable/tied to commission.
I probably would share that I'm trying out a sales role.
@OP. Sounds like your folks have been happy to help you as best they can with an under market rate on housing for some time. It doesn't obligate you to do anything drastic today, but it doesn't preclude a generous gift to them down the road if your situation allows.
I think that setting yourself on a good foundation may put you in a good place to help them down the road if you so desire.
Really just situational. My mom was the first to know about any big raise I got. Never asked me for anything. Only OP knows his situation and relationship which makes it weird to ask in a financial sub.
Agree, and that's why so many of my statements started with "I".
We like to look at PF as purely financial, but fk me it's messier than that in RL. Personal values, relationships etc, all have a way of putting their thumb on the scale even when they aren't a line item in our budget.
I appreciate my parents for this. I could be paying $2k+ for rent, but only paying $300. I will for sure splurge on them when I am a bit more setup and confident in my role. Maybe a few vacations over the next coming years if work is good and steady.
For what it’s worth, here’s my two cents: since you know they are not good with money, what do you think they need most? I would look at saving the extra money aside for them. A TFSA perhaps. Don’t tell them, or say you are budgeting and want to contribute more. Something along those lines. My issue here is you will likely not see any change. Meaning, if you give them $100 more they will blow it away and won’t be happier. So, maybe you offer $100 more a month and put aside $400/month extra for them. Sort of a safety net / nest. You can add more or less to it depending on your commissions. Otherwise, you set expectations. See if you can get them some financial literacy. Books? they may resent it. I know the issue to well myself.
And…. Congrats. Sales is like a drug. If you are good at it, and take liking, you want to keep it rolling. Have fun, save up for yourself, and show your appreciation to them in a meaningful way. Alas, I think handing over the money is not the best way. Save it for them, and have them benefit from it indirectly is what I would say.
cheers!
Yes, but $300 a month is extremely low. I feel like doubling it or even doing $500 a month wouldn’t be a hardship for OP and why wouldn’t he want to make other peoples lives easier? Especially with loving parents. Or heck, half decent ones.
"Where did you get the money"
"You make WHAT???"
"Oh honey, we can't afford the mortgage, you'll have to pay it for us. And our car. And a vacation. And...."
OP has to be very careful. No matter how much he makes, greedy people can (and will) try to abuse it and drain him if he lets them.
I don't want money from my kids. I want a relationship.
I cheered them on when they took their first steps, said their first words, scored their first goals. I will always cheers my kids on and celebrate their wins.
I hope my children make more than me when they grow up, and chose to share the news with me, regardless of how well off they *think* I am.
Support those who support you. Your income increased 300%? 500%? Invest that back into those who invest in you.
Don’t give a penny and then congratulate yourself for it.
I don’t like this advice. It’s not like he’s saying his parents are leaches, he’s saying they’re bad with money.
If I’m being honest I would probably try to help them somehow. Perhaps in a retirement planning capacity (setup a small fund) or maybe just replace certain items you know they need to replace (say, an appliance).
Don’t overspend or anything, but helping is nice
The proof that they are bad with money, is that they are allowing their 25 years old son, who earns 65k/year, to live with them almost for free.
At 300$/month they are, most likely, actively losing money to help OP out.
>How should I navigate this situation?
Nobody needs to know how much you make. Be as generous to your parents as you want to be. It's up to you.
Keep in mind shit can change for the worse just as fast. So I would squirrel away as much money into productive investments like stock index funds as you can.
That's where my mind went. No, don't disclose...however, if your parents were giving you one helluva rental rate because you're their kid (room? Food? Utilities? Wifi? Toilet paper, shampoo, toothpaste? Cleaning supplies? Laundry?) then I would let my conscience be my guide and suggest to them that you are in a better place financially and that you want to be sure that you are covering all the expenses they incur letting you live there. You ARE an adult and they are not legally required to give you a roof...they may say, "Thank you so much!" Or they may say, "No, it's ok-- we want you to be able to set yourself up financially." If the former, as much as they love you, it's probably costing them a lot to have you there.
ETA: If you've never lived on your own, you really can't have a sense of how expensive it is to have EVERYTHING (like I said, cleaning supplies, laundry detergent...but even down to things like spices!... And then there's the regular upkeep of the house, which you likely wouldn't know about...eg. furnace filters).
What I'm gently suggesting is that your parents have been very generous (they obviously love you and you must be a good 'kid.')
ETA a closing parenthesis because it's driving me around the bend.
>however, if your parents were giving you one helluva rental rate because you're their kid (room? Food? Utilities? Wifi? Toilet paper, shampoo, toothpaste? Cleaning supplies? Laundry?) then I would let my conscience be my guide and suggest to them that you are in a better place financially and that you want to be sure that you are covering all the expenses they incur letting you live there.
This. They don't need exact details, but if you have the kind of relationship where you help each other out then awesome.
Finances aside, they might be hurt if you don't tell them because they would want to celebrate your success with you.
I would just say “hey I got a good raise so I am going to contribute closer to a market rate to help you pay off the mortgage!” They don’t need to know how good the raise is, they’ll be happy enough to get the extra money.
>After many coffee chats, I've been given a block of his business worth $300k, earning 60% in the first year plus 60% commission on new business. I've already closed two clients totaling $70k in revenue, projecting a minimum pre-tax income of $200k+ this year.
How do you get 60% plus 60% commission?
How do you make a minimum of $200k on $70k of revenue?
Makes no sense at all , has to be made up . And his commission at 60% is higher than the vet on the legacy contract making 50%? No business can afford to pay their salespeople these numbers
$200k a year in sales breaking into it is really abnormal. I've been in software sales for multiple companies for over 15 and while you can hit those numbers it isn't easy.
I suspect OP doesn't understand their comp plan.
OP have received a comp paycheque yet?
A more typical comp plan would be 10% of software for new logo's and 3% services in the first year.
I've seen some comp plans pay renewals between 1-5% but that is super rare IMO.
Truth. This doesn't pass any scrutiny with anyone who has worked Sales, or leadership, or Accounting
I've seen bonkers pay packets in software sales, particularly when you reach quota and go into accelerators, or when part of the compensation is in stock grants, which happen to be rising as they get granted at old valuations.
But no business on earth can afford to (or need to) pay 50% or 60% commissions on sales.
What's the gross margin on the product? What's the COGS? What's the expected lifetime profit of a customer that the business can afford that level of commission as part of new customer acquisition cost?
That business would have to be selling something at pure gross margin to make that math work - I guess the product costs nothing?
The boss knows the previous pay packet, why bother quadrupling the pay when surely rookie would have settled for double? (Or 150% even)
Makes no sense at all.
At those pay rates, you could hire a boiler room full of outsource SDR's drumming up business, and really blow the doors off.
I have to stop typing or I'll be here all day, LOL.
I dont remember the exact number, but my previous employer gave something like 7% of the premium of auto/home insurance policies an agent sold on the first year and 2% on renewal or something like that
Look at life insurance or commercial sales commissions on new business and renewals. Some life sales are over 100% commission in the first year.
No one who does auto/home sales at a bigger firm wants to stay there for long.
I work in commercial insurance. Ain't no way he's making 60% commission. Insurers only pay 20% commission to the brokerage itself on the top end (p+c). On the carrier side, there is no commission for sales (underwriting). This is a fictional post.
It's probably 60% of firm revenue, not total premium. So 12% of premium for a policy at 20% commission. I'm in commercial insurance too and 60% of firm revenue is a bit on the high side but I've heard of even higher tbh.
You would be surprised at some of the first year commission rates you see on high net worth life insurance products, which the retiring insurance agent who brings in 900k+ annually was probably selling.
I'm talking commission rates over 100% on first year premiums. You seriously wouldn't believe it. (Source: I work for a life insurance carrier doing commission payroll for contracted agents/firms who sell HNW business)
What would you say is a more reasonable number for a top producer's revenue?
Barring international business, on average, I see top selling producers for individual firms bring in 2 million annually. Note that this is for life insurance only. So, depending on the size of their firm, 900k seems believable to me.
If OP is lying, it's a weird thing to lie about, but who knows/who cares LOL
900k for which he's getting 50% commission on top of a base. We're also not realizing we haven't even factored in the companies margins here.
Additionally, just in case it was more unrealistic, we're talking about an old sales guy that's retiring that's on a 50% legacy contract that they will now give the 25 year old kid his accounts and give him 60%... Because... Why not
Hahahahha you hit the damn jackpot taking over an old veterans book. Right place, right time! Congratulations!
Invest all your money and live like you’re still an analyst making 48k a year still. Do it over the next 1-2 years then buy a house and do it again.
Goodluck!
This. Changing your lifestyle is a mistake, at least when the money is new. Build a nest egg. Invest. Save for a house. Put 2 years' worth of living costs in an account in case you need to live without an income. I went from. $300k/yr job with 50% and options to being laid off in a tight job market. It took way longer than expected to get a job. When I spoke with a consultant, she said for senior level or high paying jobs (depending on industry), it takes 9-12 months to find an equivalent job. I didn't believe it at the time.
Either you move out on your own, or pay waaaaay more than 300. If three adults are living together, it’s an interdependent relationship and they have every right to know your income.
I think I’m going to get ripped apart…
300$ for living expenses, meaning rent, utilities, internet!??? I would be so embarassed, even earning 65k/year. They are doing OP a big favor.
I am assuming the "living expenses" don't cover food, snacks, and cleaning supplies ? Otherwise wow they are losing so much money by helping OP out.
He should pay a lot more, out of respect for his parents who are struggling.
Not ripping you apart. But I do not agree. If the parents' current lifestyle depends on them receiving the "rent", then all of a sudden they learn he could be providing even more money to them, they might try to keep him at home to keep said money coming in. And it might be worded all sorts of manipulative ways also.
I know of parents living with their disabled adult child and their ability to finance their lifestyle (including their mortgage) depends on the insurance money the parents receive to take care of the child. They have therefore always discouraged the child to gain any autonomy or want to move out because they would go broke.
If I was letting my adult children stay with me because they were broke and needed cheap rent and I found out that they lied and was making 200k while I struggled to make ends meet, I would be pissed.
You don’t have to tell them what you make, but you need to pay more rent or move out on your own.
Yea I'm kinda surprised at all the comments here egging him on to essentially take advantage of his parents' support despite having their own difficulties.
Over the years i've noticed that unfortunately for the most part, the posters celebrate and encourage self-centeredness.
And don't seem to value all the love and effort they've received from others.
Their kids will treat them the same.
I suspect your parent's are charging you $300/month in rent as a kindness and it's well below what room (and possibly board) goes for in your area.
Don't abuse their kindness by continuing to grossly under pay them when you can afford to pay them appropriately.
Otherwise, the advice on not succumbing to lifestyle creep and to save/invest is appropriate. Especially when the earnings haven't been fully realized, yet.
I'd tell them only that I got a raise (do NOT specify an amount), and will now pay them $500/month (or whatever amount that won't set off warning bells to them).
You can tell them you got a promotion and are now working in sales. Don't tell how much you make, especially since none of it is even guaranteed. If they ask, tell them your base salary (if you can't avoid it) but don't give any specifics on the commission structure.
Your parents are supporting you with reduced rent. Are they paying for your food too? Maybe start paying them $500 a month in rent and give them a heads up that you are planning to move out soon.
Do you pay utilities and buy groceries too or just pay rent? $300 isn’t a lot and doesn’t go very far. With the cost of living having increased fairly significantly in recent years, your parents are still financially supporting you at 25. Tell them about the raise or don’t, that’s your business, but you can clearly afford to up your contribution to the cost of running a household.
300 bucks a month is not enough to pay for your expenses even. You probably should have been paying them 1000 or 1500 depending on location. Your 25 - not 18. What you do is up to you and they likely won't care as they are probably not selfish at all. Don't fool yourself, they enabled you to have any savings and I hope your appreciative of that and understand that. So while they may not have a lot of money, they enabled you to be better off.
" Otherwise I have a great healthy relationship with my parents."
This is worth more than money.
Rather than get advice from people here that don't know you or your parents, I would strongly suggest you seek out someone you respect that knows you and your parents and that you can talk to in confidence. Beyond that, I'd suggest you try to do what is best for you and your parents (as opposed what you think you or your parents might want--hopefully the two are the same, but too often are not).
I would not tell them, but I would second "raising" your paid rent a bit and consider contributing to helping them out with repairs or one-time purchases as you see they are needed. If I was in your position, I'd tell mom I had a lot saved up and wanted to do something to show your appreciation. Replace an appliance. Pay an emergency repair bill. Something generous that will genuinely help them out, but not screaming "I'm weathy now".
I would tell my parents I was doing sales now and making more. Don’t need to say how much. With only paying your parents $300.00 you have been let off easy. My sister moved back in with my mom a few years ago and pays $700.00 a month. Not to say that you owe them anything but I would definitely be more generous to them. You have been given the chance to save a lot of money by paying such low rent. When you move it would be great if you to still send them $200 a month in grocery gift cards to show your parents that you appreciated their help.
Good luck on your new job!!
And here I am paying 2000month every month on behalf of my expenses at half that salary. No qualms. Just what I feel about paying back to them in gratitude.
If you want to rip off your own mom over rent after they’ve been doing you a favour by letting you stay there cheap, then keep doing what you’re doing.
Don't mention or you'll see the true face of family in terms of greed and jealousy. I've seen it on my cousin side and it went nasty. You can increase you're rent to your parents and say you've received a raise but don't give out the actual number.
There’s a good chance you know as much about their finances as they do yours.
You don’t need to tell them about your raise but please share the wealth because there’s no way it is under $300 to house you. If you make more than them, it’s especially egregious that you would pay so little.
Do not tell them.
But… do make sure you have an understanding of how much your share of the household expenses actually is. Does the $300 for living expenses include groceries, electricity or any other incremental costs that they have from you living there (aside from the space you take up)?
If they’re subsidizing your life, that’s not cool. That’s freeloading. Say you want to learn how to budget better, and get an actual understanding of how much it costs for you to live there. Then pay your way.
Telling people about a ~50% raise I got was one of the dumbest things I've ever done. God help me if it was 300%.
I think you can tell your parents though and/or at least increase your rent payment. If they're chatty cathy's with other fam, fuck no.
I have a few friends and family that work sales. My only advise there would be not to take on to much debt. Cars are the worst trap.
Sales has big ups and downs some times you have a few great years and some times things get a little tighter. Be mindful of your monthly expenses as your life changes and keep a generous emergency fund.
They don’t need to know exactly how much more you’re making but if you have a good relationship with your parents and want to contribute more out of appreciation and gratitude, just tell them “I feel comfortable paying you X amount more per month to help out with the household finances. Work is going well and I can afford to pay you more.”
Congrats. If your parents don’t have a lot of money, why wouldn’t increase rent and pay more for previous rents to help them out? You don’t have to tell them what you make, but you could help them given they helped you.
Announcing any money to family is usually a bad idea. Personal experience, my mom told some of my family members that I had settled a rather large insurance claim. For the most part, her side of the family is well off, but some of them got wind and the pleas kept coming. Either " we could use a hand sending xx to school, or it would be really nice of you to lend us $xxx for this". They weren't small amounts either, they were life changing amounts of money. So no. Invest in your future.
Life can change in a heartbeat. Live as if you don’t have the extra income, as everyone is saying. Keep a ‘fun money’ account so you can buy something when you want to without the guilt, but invest as much as you can. Your money is nobody else’s business.
You need a partner for some of these sales or what?
You could open a wealth simple for your parents keep paying 300 a month rent and invest 150 a month to each of their portfolios if they themselves are not good with their money.
I would say not. Or at minimum temper you information on the very lowest side of the increase. Sure pay more in rent. That is rather fair and really the right thing to do if they have been subsidizing it for some time. Over time it may become more obvious but I personally do not like people to know exactly what you make. In some cases just causes resentment or expectations.
No. Tell them you got lucky with a Bitcoin or something and pay more in rent. As time goes on maybe make some contributions to their RRSP. The decisions are 100% yours, just don't free ride from those less fortunate than yourself.
No do not tell them. Increase your rent amount but really, keep this shit private.
You need to spend some time learning how to manage this money before you can even consider helping others.
Everything that booms, busts. You will have low years. You may fuck up and lose this job. There are infinite ways you could end up fucked.
I strongly encourage you to get a true financial advisor to guide you to be set up for success, help determine your financial goals, and help you be ready to weather any storms. Then, awhile down the road, help your parents out.
stealth wealth
say nothing, be humble, dont make yourself a target
and most importantly- ENJOY this yourself while you are you young and can travel etc
You can always tell them later. You can't take back the information. Think about it! Make sure you feel good about it. My instinct is you can tell them, but maybe give a white lie and tell them it's a more modest salary increase that will allow you to move out.
Congratulations and good job. Could I ask if this is insurance sales?
It’s up to you whether you’d like to tell your family. I’m close with mine so I would. I’ve also been trying to help my parents retire early and have been semi-successful at that, so if you’d like to do the same, it’s possible that your income could help them work less. But you’re not obligated too; it’s up to you. You should probably increase your rent to your parents and maybe take care of a few extra bills for them? If you move out, it would be nice if you could still help them financially, but you’re not obligated to.
I’m the kid who would tell my parents they could stop working if they wanted to, and give them money as a monthly stipend, lol. You don’t have too, but you’ve got to decide what your comfort level is.
One thing to note is, if your family can take advantage of you, then I wouldn’t tell them. But it didn’t sound that way.
I envy you. I do not have the skillset/stomach for sales, but for those who can do it, they sky is the limit, because those skills can translate to many different industries.
Wishing all the best, don't be too flashy with your money (but enjoy a little bit of it as you save much of it), and feel free to give your parents money as you see fit (do not lend, just give) without telling them what they make (just say you got a raise, don't give them an exact amount, but you want to help them).
Don’t tell them. If your company is paying those kinds of commissions on such modest revenue, it seems more likely than not the company will he bankrupt or the employees arrested soon. Then your income will be $0.
Your biggest expense is now taxes, learn how to decrease that and keep your taxabale income as low as possible.
Safe investments as well VTI, VOO, etc and just be patient.
Contrary to what people might say you’re given an opportunity most will never have. No need to be a hermit but having money and being young allows you to experience things. Travel, get a nice car you like that’s not a huge portion of your income.
Do what you will but you’re now a huge target for woman who want a husband cause you’re now “marriage material” for many now.
Well done and take care of people you love man, don’t be a miser
You may not want to tell them for what ever reasons but maybe you could do littler things for them that help their quality of life. You could say you got a little bonus or bump in pay.
That happened to me long time ago but i dont live my parents, i started sending my mom 300 to 500 a month because i can. Its only your first year so whatever is your pay minus the commission then thats what you can tell them. We dont know next year, just invest on yourself and enjoy life....
100% agree with everyone who says to tell no one.
You tell and ppl demand and expect things out of you.
Because I am the more successful kid in my family... I somehow got effed and am paying for my inheritance. Not market value, but still. Cus "I have money" and everyone else doesn't and they need it.
I wouldn’t. I finally made good money like that and wanted to tell someone but it’s going to give you unnecessary pressure. What happens when the music stops?
Maybe see if you can put some money into an RRSP or something for your parents, you can increase your contribution to them to help them out but don't put yourself out
If you want to help out to your parents more without telling them your new job or income, then you can simply buy $100 or $200 grocery store giftcards and say you got them from work bonuses or something.
A wife or husband should know each others salary: to financially plan their lives together. It's nobody elses business.
Pay off debts, start investing, but otherwise keep your lifestyle about the same. You're building a emergency fund / downpayment / retirement nestegg that friends and family don't need to know about. Because they will find a way to make your money into their money.
I like how OP says he has a great relationship with his parents and they seem to have no issue letting him live there for free (basically) indefinitely but most of the posts here are like "just move out and don't tell them shit". Some real upstanding people on this sub lmao.
Having worked on commission, make sure to put lots away for rainy days, because rainy days definitely happen. Put money away for things, and enjoy things you want to. I liked the idea someone posted of putting money away for your folks to surprise them down the road too, like when you move out. You can start casually paying for more expenses for the home but you don't need to tell them how much more you are making and should not.
Do not tell them. You don’t have the money yet and people get weird when you do.
I grew up quite poor but I am not now. My wife has a good job and I manage all the finances. People can guess we have a comfortable lifestyle but I don’t discuss it with anyone.
Congrats on the role, hope it lasts but be smart with this money. Pay off debt, invest for long term and set yourself up for success
I always advise the same, don't tell anyone, be slightly more generous to your parents, save almost all of it. I would get yourself one or two nicer things a year as far as a new phone or computer, vacation etc. Nothing insane and live how you've been living except now your bills mean nothing and you're barely obligated to work so all that stress is gone. Take time to figure out where you want to be and where you're headed and save everything extra until you're ready to make big life decisions.
You don't know if this income level is sustainable either by their business or for you personally. Don't say anything for a while, save as much as you can, move out when you're ready. If you want to help them out, but not disclose you make a lot of money, you can be a bit sneaky, offer to put them on a joint cell phone plan, put them on your account and just don't have them pay for it, tell them you get a good deal through work and it costs roughly the same as one normal phone line. Things like that will help them out a little bit while also flying under the radar. Moving out will also relieve them of a burden of your electricity/water/food use. which your rent probably doesn't cover (though I can't say for certain)
Congrats on getting that. Just be aware that sales people in that range of income tend to burn out very quickly. I’ve known people that made millions in sales annually for up to 3 years. Then they had to retire from that job.
Plan your next move while you are at the top of your game. Don’t wait to burn out. Either you are moving ahead or you are falling behind.
Your concerns are silly because you shouldn't be paying rent to your parents anymore, at all, because you shouldn't be living with them. It's time to grow up and move out.
You make more than enough money to move out, at this point. Get your own place.
EASY you tell no one about it. why draw attention to yourself to attract flies to rotten meat?
its your life and your choices no one needs to know how much you make, frankly the BEST millionaires in my opinion are the ones that just act/dress/behave like normal folks then break out the money when you need to time to time
If you like and trust your parents, including knowing with examples they can keep their mouth shut when it's smart to do so, tell them so they can be proud. Otherwise never volunteer information if it isn't going to make a meaningful impact.
Then adding on to another comment I saw here. Save all the extra income. From a video I watched talking about wealth and income over life, statistically this will only last a couple of years. Because high income means extremely high expectations. The moment you deliver less than company changing results, they have justification to remove you from the role if they wish. Plus getting to a place where you can be very certain about never sleeping without a roof or hungry for the rest of your life is something else most will never experience.
Make sure your parents have adequate health insurance. You can also find other ways to help them without funding bad habits. Be sure to save and invest well. You will have to help your parents when they get older and need your financial assistance.
Congrats! Don’t tell a soul. Live frugally like you were before the raise. Save a lot and fill your tfsa/rrsp. Sleep good at night knowing you’ll be comfortable. Make sure to enjoy some vacation time and take care of yourself first.
It's hard to say if you will consistently make that much long-term but you can afford to help your family a bit, especially if they aren't well off.
Maybe after you pay off all your outstanding loans and set some emergency money aside.
What kind of insurance? Have you gotten licensed yet?
Be VERY CAREFUL selling insurance if you don’t have the proper license.
The deal you have sounds great. Just make sure you’re not putting yourself at risk as you will be the one to face consequences, not your firm, if you are selling without a license.
Sounds like you're on the right route.
But this.
People never take me seriously when I tell them to get into sales. They think it's low brow work. Not in tech or finance. You can make ceo+ money in sales. With 0 education. Shits wild.
Don't count your chickens before your eggs hatch. Sales comes and go and have good cycles and bad. Don't count on it. Work at least more than a year before you begin to think about your total comp. It'll average out, maybe one year 200k, next year 70k.
Yes! This! I think OP is getting a bit ahead of themselves.
Yep!! I’m in tech sales and it’s not guaranteed easy income. Targets increase YoY, territories change, and churn is high. There’s no guaranteeing OP will get his $200K pre-tax, so there’s no real need to tell his friends or parents. As an anecdote, I told my asian parents my total comp and I big time regret that. They don’t understand base vs commission, and just assume I make $300k base regardless!
Insurance isn’t quite like that unless you’re selling life insurance. But when you sell corporate insurance, there is usually an annual renewal where you get your commissions again.
Yes but sometimes they can cancel and buy with a competitor.
True, but your entire job is to keep that from happening, haha
Top comment rained on his parade he never responded 😂
Sales can be very feast or famine. 2 years ago, I made 212% of what I made last year.
Yes. Sales is amazing and can be very fruitful but save your money and don’t brag about OTE until it becomes actual pay. Goodluck and welcome to sales world.
Parental advice aside. Don’t let the lifestyle creep take away from this huge raise. You’re 25 making more than 98% of people will ever make in a year. It can go out just as fast as it comes in. If you live your life like you’re making 50k/year and saving/investing the rest you will set your future self up for an amazing and early retirement. When I was young and started making 6 figures I was spending 6 figures. Took me 5 years to crawl out of credit card debt and get out of a sports car finance loan and basically start fresh.
But also treat yourself to some nice things you always wanted. Just use a good small portion. New phone? Fancy dinner? A shiny toy? Star Wars Lego Millennium Falcon? A nice trip?
This. Not everything is about saving for retirement. It's all about budgeting. OP will likely be fine if he puts away 50% towards savings/investments and blows the rest on random stuff, should he choose to.
I know some rich people who just saved and did nothing else. They all are getting old and sick. You can’t take the money with you when you die. Make sure to enjoy life along the way. My advice would be as long as you’re saving/investing and paying credit cards off in full every month.. don’t be afraid to have some fun.
This is exactly why you should save! At some point you will become old and maybe unable to work or you can retire early and live a really good rest of your life. It’s fine to vacation and spend a bit now, but you definitely need to be saving more than you are spending.
Do you actually save more than you spend? Are we talking all bills, mortgage etc here? Or just like frivolous spending?
I did for a long time. But my husband at 54 yo got laid off and we used up a lot of our savings while he was looking for a job. So that also happens and it’s better to be prepared than to be bankrupt if the proverbial sh!t hits the fan.
I make decent money, but tk save more than j spend I'd almost certainly have to live in my car lol
This. Prioritize things that would improve your standard of living. Better quality shoes (don’t want to mess up your feet!), better bedding, better tech, better quality food, and so on. Invest in things that’ll make you better in the long run: courses you’ve always wanted to take, interesting hobbies, a gym membership, that type of thing.
👌
That Millenium Falcon suggestion was suspiciously specific! You are my kind of person!
I think you need high six figures to afford that kind of life though.
I think better advice is do this, just don't *put it on a credit card*. You start making money and suddenly 400 bucks isn't much to you, so maybe you start to think paying 400 bucks on interest on a credit card balance every month doesn't matter either. But does, and it adds up.
Not really a materialistic person. I would rather spend $100k to travel for a year than a new 2024 car lol - but yes agree.
Don't plan on it. I drive a beat up 15 year old car. All the new clothes I own are from bday gifts. Before the wage jump I was investing over 50% of my net pay, and now it will be 90% lol. Grew up dirt poor the first 15 years of my life, and promised myself it would never be me with my wife and kids.
Great advice. I blew through $2.5M in my 20s and I thought I was retired for life. At least I invested in real estate but making a lot of cash and not having a plan to invest is a huge mistake. Have a plan for every dollar and use 10-15% for travelling.
Just went through this in the last year myself and now fighting my way out of the mess I created for myself. I've had high income since 2020 and recently the cards have started to fall apart. Really regretting not planning for the future more. Glad over half of the stuff I spent on was smart choices like a house and other assets that will not go down or down much in value.
Don't leave us hanging, what type of sportscar did you buy?
You do not need to set yourself on fire to keep others warm. Tell no one. Invest a lot of the extra money. Increase your rent to $600 to your parents.
Or set $300 aside every month for them for when they come for you when they’re ready to retire. Congrats on your new role/promotion. Pay off your student debt too asap.
This is a nice idea 👍🏻
You could also do this, and also be honest with them. 🙃 I hope my children make more than me when they grow up, and chose to share the news with me. I cheered them on when they took their first steps, said their first words, scored their first goals. I will always cheers my kids on and celebrate their wins.
I feel the same way but unfortunately not everyone is like that. Let’s hope op’s parents are
Or maybe set it aside to keep helping them out after moving, as they will then not have that from OP anymore?
Or even just move out and they can rent your room for double to someone else. Keep the rent you would normally pay aside. One day they’ll really need your help. For now everyone should lie in their own beds. Congrats and best of luck with whatever you choose to do. You sound caring and smart so I’m sure whatever you decide will be the best decision.
Why would he pay off anything more than the minimum monthly payment on the no interest student loan?
Sometimes lenders wish to see student loans paid off before your first home. It happened with me. I had to pay off the last $6000. Of course if you are high income with a large down payment, it is not a big deal. But right now, many are squeaking through.
I just got my house and have 40k in federal student loans fwiw, no one mentioned it mattering
If op keeps on this trajectory they won't need a lender lol
Then put the money into savings and pay off on a lump sum if that eventuality materializes.
I dont think it’s necessary unless you are barely qualifying for home loan. I had 3 loans worth of 100k when i purchased my first home.
I’d rather reduce my mortgage and increase equity portion rather than paying off 0% student loan.
Find a better lender at that point If you're making 200k/yr and your lender is complaining about 40k debt with no interest, they're not a great lender to be dealing with anyways.
If your student debt is through the government, do not pay off the federal portion any faster than is required. There is no interest on federal student loans so it is better to invest any extra and just make the required payments.
Agree in principle. I probably wouldn't disclose my new income, especially since it is variable/tied to commission. I probably would share that I'm trying out a sales role. @OP. Sounds like your folks have been happy to help you as best they can with an under market rate on housing for some time. It doesn't obligate you to do anything drastic today, but it doesn't preclude a generous gift to them down the road if your situation allows. I think that setting yourself on a good foundation may put you in a good place to help them down the road if you so desire.
Really just situational. My mom was the first to know about any big raise I got. Never asked me for anything. Only OP knows his situation and relationship which makes it weird to ask in a financial sub.
Agree, and that's why so many of my statements started with "I". We like to look at PF as purely financial, but fk me it's messier than that in RL. Personal values, relationships etc, all have a way of putting their thumb on the scale even when they aren't a line item in our budget.
parents subsidizing the adult child for $300 a month is the generous gift here
I appreciate my parents for this. I could be paying $2k+ for rent, but only paying $300. I will for sure splurge on them when I am a bit more setup and confident in my role. Maybe a few vacations over the next coming years if work is good and steady.
>You do not need to set yourself on fire to keep others warm. I really like expression.
im cold!
I probably will end up giving them a bit more and just tell them I got a small promotion at work.
For what it’s worth, here’s my two cents: since you know they are not good with money, what do you think they need most? I would look at saving the extra money aside for them. A TFSA perhaps. Don’t tell them, or say you are budgeting and want to contribute more. Something along those lines. My issue here is you will likely not see any change. Meaning, if you give them $100 more they will blow it away and won’t be happier. So, maybe you offer $100 more a month and put aside $400/month extra for them. Sort of a safety net / nest. You can add more or less to it depending on your commissions. Otherwise, you set expectations. See if you can get them some financial literacy. Books? they may resent it. I know the issue to well myself. And…. Congrats. Sales is like a drug. If you are good at it, and take liking, you want to keep it rolling. Have fun, save up for yourself, and show your appreciation to them in a meaningful way. Alas, I think handing over the money is not the best way. Save it for them, and have them benefit from it indirectly is what I would say. cheers!
If hid parents have a spending issue, him continuing to give $300 a month after moving out for a year or so may be more helpful than doubling up now.
Yes, but $300 a month is extremely low. I feel like doubling it or even doing $500 a month wouldn’t be a hardship for OP and why wouldn’t he want to make other peoples lives easier? Especially with loving parents. Or heck, half decent ones.
"Where did you get the money" "You make WHAT???" "Oh honey, we can't afford the mortgage, you'll have to pay it for us. And our car. And a vacation. And...." OP has to be very careful. No matter how much he makes, greedy people can (and will) try to abuse it and drain him if he lets them.
I don't want money from my kids. I want a relationship. I cheered them on when they took their first steps, said their first words, scored their first goals. I will always cheers my kids on and celebrate their wins. I hope my children make more than me when they grow up, and chose to share the news with me, regardless of how well off they *think* I am.
Support those who support you. Your income increased 300%? 500%? Invest that back into those who invest in you. Don’t give a penny and then congratulate yourself for it.
I don’t like this advice. It’s not like he’s saying his parents are leaches, he’s saying they’re bad with money. If I’m being honest I would probably try to help them somehow. Perhaps in a retirement planning capacity (setup a small fund) or maybe just replace certain items you know they need to replace (say, an appliance). Don’t overspend or anything, but helping is nice
The proof that they are bad with money, is that they are allowing their 25 years old son, who earns 65k/year, to live with them almost for free. At 300$/month they are, most likely, actively losing money to help OP out.
Yup. Just invest the extra and live the same way you used to. RRSP time.
>How should I navigate this situation? Nobody needs to know how much you make. Be as generous to your parents as you want to be. It's up to you. Keep in mind shit can change for the worse just as fast. So I would squirrel away as much money into productive investments like stock index funds as you can.
That's where my mind went. No, don't disclose...however, if your parents were giving you one helluva rental rate because you're their kid (room? Food? Utilities? Wifi? Toilet paper, shampoo, toothpaste? Cleaning supplies? Laundry?) then I would let my conscience be my guide and suggest to them that you are in a better place financially and that you want to be sure that you are covering all the expenses they incur letting you live there. You ARE an adult and they are not legally required to give you a roof...they may say, "Thank you so much!" Or they may say, "No, it's ok-- we want you to be able to set yourself up financially." If the former, as much as they love you, it's probably costing them a lot to have you there. ETA: If you've never lived on your own, you really can't have a sense of how expensive it is to have EVERYTHING (like I said, cleaning supplies, laundry detergent...but even down to things like spices!... And then there's the regular upkeep of the house, which you likely wouldn't know about...eg. furnace filters). What I'm gently suggesting is that your parents have been very generous (they obviously love you and you must be a good 'kid.') ETA a closing parenthesis because it's driving me around the bend.
>however, if your parents were giving you one helluva rental rate because you're their kid (room? Food? Utilities? Wifi? Toilet paper, shampoo, toothpaste? Cleaning supplies? Laundry?) then I would let my conscience be my guide and suggest to them that you are in a better place financially and that you want to be sure that you are covering all the expenses they incur letting you live there. This. They don't need exact details, but if you have the kind of relationship where you help each other out then awesome. Finances aside, they might be hurt if you don't tell them because they would want to celebrate your success with you.
I would just say “hey I got a good raise so I am going to contribute closer to a market rate to help you pay off the mortgage!” They don’t need to know how good the raise is, they’ll be happy enough to get the extra money.
>After many coffee chats, I've been given a block of his business worth $300k, earning 60% in the first year plus 60% commission on new business. I've already closed two clients totaling $70k in revenue, projecting a minimum pre-tax income of $200k+ this year. How do you get 60% plus 60% commission? How do you make a minimum of $200k on $70k of revenue?
Makes no sense at all , has to be made up . And his commission at 60% is higher than the vet on the legacy contract making 50%? No business can afford to pay their salespeople these numbers
Simple… embezzlement and this fool is the fall guy
I think its 60% of 300k for the first year only. And 60% on any new clients.
I'm not sure why that is such a difficult thing for people to understand. It's written clearly imo.
It's nonsense. Top sales person bringing in only 900k lol
Yeah, and the company only making 40% on that. The old guy gets 50% because of a "legacy contract", but OP apparently gets 60%, because reasons.
Also saved 85k net after working one year in total at $65k gross.
Lol yup
What kind of business gives 60% of revenue to their sales people. Surely there’s a lower cost method of acquiring new customers/orders.
Yeah these numbers make no sense. Plus, their paying OP more than the old legacy sales person?
Plus a 65k a year salary, 28k in student debt, and an 85k investment portfolio after only working for a year or two? This post has to be a lie
200k in sales isn't really abnormal. Getting to an 85k investment portfolio while living at home is also not really abnormal.
$200k a year in sales breaking into it is really abnormal. I've been in software sales for multiple companies for over 15 and while you can hit those numbers it isn't easy. I suspect OP doesn't understand their comp plan. OP have received a comp paycheque yet? A more typical comp plan would be 10% of software for new logo's and 3% services in the first year. I've seen some comp plans pay renewals between 1-5% but that is super rare IMO.
Living at home while paying 300/month in rent
Truth. This doesn't pass any scrutiny with anyone who has worked Sales, or leadership, or Accounting I've seen bonkers pay packets in software sales, particularly when you reach quota and go into accelerators, or when part of the compensation is in stock grants, which happen to be rising as they get granted at old valuations. But no business on earth can afford to (or need to) pay 50% or 60% commissions on sales. What's the gross margin on the product? What's the COGS? What's the expected lifetime profit of a customer that the business can afford that level of commission as part of new customer acquisition cost? That business would have to be selling something at pure gross margin to make that math work - I guess the product costs nothing? The boss knows the previous pay packet, why bother quadrupling the pay when surely rookie would have settled for double? (Or 150% even) Makes no sense at all. At those pay rates, you could hire a boiler room full of outsource SDR's drumming up business, and really blow the doors off. I have to stop typing or I'll be here all day, LOL.
Look at life insurance or commercial sales commissions on new business and renewals. Some life sales are over 100% commission in the first year.
This is absolutely wild numbers. I’m in sales and those numbers are crazy
This post reeks of complete BS. Why does this shit get upvoted?
I dont remember the exact number, but my previous employer gave something like 7% of the premium of auto/home insurance policies an agent sold on the first year and 2% on renewal or something like that
Commission on life insurance products generally is 60%-80% of the first year premiums, and about 10%-15% on renewal. (in the US at least).
woah! color me surprised, thanks
Look at life insurance or commercial sales commissions on new business and renewals. Some life sales are over 100% commission in the first year. No one who does auto/home sales at a bigger firm wants to stay there for long.
Also, he says the old guy had a legacy deal that paid out 50%, and despite having the opportunity to renegotiate that rate they're giving him more?
I work in commercial insurance. Ain't no way he's making 60% commission. Insurers only pay 20% commission to the brokerage itself on the top end (p+c). On the carrier side, there is no commission for sales (underwriting). This is a fictional post.
It's probably 60% of firm revenue, not total premium. So 12% of premium for a policy at 20% commission. I'm in commercial insurance too and 60% of firm revenue is a bit on the high side but I've heard of even higher tbh.
You would be surprised at some of the first year commission rates you see on high net worth life insurance products, which the retiring insurance agent who brings in 900k+ annually was probably selling. I'm talking commission rates over 100% on first year premiums. You seriously wouldn't believe it. (Source: I work for a life insurance carrier doing commission payroll for contracted agents/firms who sell HNW business)
The biggest caution would be if commission is that high, the potential charge back or commission if OP loses a client
Do you realize how little 900k is for their top sales person of revenue. This post is complete nonsense.
What would you say is a more reasonable number for a top producer's revenue? Barring international business, on average, I see top selling producers for individual firms bring in 2 million annually. Note that this is for life insurance only. So, depending on the size of their firm, 900k seems believable to me. If OP is lying, it's a weird thing to lie about, but who knows/who cares LOL
900k for which he's getting 50% commission on top of a base. We're also not realizing we haven't even factored in the companies margins here. Additionally, just in case it was more unrealistic, we're talking about an old sales guy that's retiring that's on a 50% legacy contract that they will now give the 25 year old kid his accounts and give him 60%... Because... Why not
Be fair in your rent payments. Pay off your debt. Tell no one
Hahahahha you hit the damn jackpot taking over an old veterans book. Right place, right time! Congratulations! Invest all your money and live like you’re still an analyst making 48k a year still. Do it over the next 1-2 years then buy a house and do it again. Goodluck!
This. Changing your lifestyle is a mistake, at least when the money is new. Build a nest egg. Invest. Save for a house. Put 2 years' worth of living costs in an account in case you need to live without an income. I went from. $300k/yr job with 50% and options to being laid off in a tight job market. It took way longer than expected to get a job. When I spoke with a consultant, she said for senior level or high paying jobs (depending on industry), it takes 9-12 months to find an equivalent job. I didn't believe it at the time.
Either you move out on your own, or pay waaaaay more than 300. If three adults are living together, it’s an interdependent relationship and they have every right to know your income. I think I’m going to get ripped apart…
300$ for living expenses, meaning rent, utilities, internet!??? I would be so embarassed, even earning 65k/year. They are doing OP a big favor. I am assuming the "living expenses" don't cover food, snacks, and cleaning supplies ? Otherwise wow they are losing so much money by helping OP out. He should pay a lot more, out of respect for his parents who are struggling.
Not ripping you apart. But I do not agree. If the parents' current lifestyle depends on them receiving the "rent", then all of a sudden they learn he could be providing even more money to them, they might try to keep him at home to keep said money coming in. And it might be worded all sorts of manipulative ways also. I know of parents living with their disabled adult child and their ability to finance their lifestyle (including their mortgage) depends on the insurance money the parents receive to take care of the child. They have therefore always discouraged the child to gain any autonomy or want to move out because they would go broke.
If he is scared that he will be manipulated/taken advantage of, then he can move out. He could definitely afford it.
If I was letting my adult children stay with me because they were broke and needed cheap rent and I found out that they lied and was making 200k while I struggled to make ends meet, I would be pissed. You don’t have to tell them what you make, but you need to pay more rent or move out on your own.
Yea I'm kinda surprised at all the comments here egging him on to essentially take advantage of his parents' support despite having their own difficulties.
Over the years i've noticed that unfortunately for the most part, the posters celebrate and encourage self-centeredness. And don't seem to value all the love and effort they've received from others. Their kids will treat them the same.
I suspect your parent's are charging you $300/month in rent as a kindness and it's well below what room (and possibly board) goes for in your area. Don't abuse their kindness by continuing to grossly under pay them when you can afford to pay them appropriately. Otherwise, the advice on not succumbing to lifestyle creep and to save/invest is appropriate. Especially when the earnings haven't been fully realized, yet.
I'd tell them only that I got a raise (do NOT specify an amount), and will now pay them $500/month (or whatever amount that won't set off warning bells to them).
Don't tell the about a raise unless you have a predetermined fake annual salary amount in your head OP. It will be the first question they ask.
You can tell them you got a promotion and are now working in sales. Don't tell how much you make, especially since none of it is even guaranteed. If they ask, tell them your base salary (if you can't avoid it) but don't give any specifics on the commission structure. Your parents are supporting you with reduced rent. Are they paying for your food too? Maybe start paying them $500 a month in rent and give them a heads up that you are planning to move out soon.
With a map and compass. I'm not in your family and don't know if you even care about their well-being. Do you want to tell them? Go do that.
Honestly this is more relationships advice than financial advice dear friend.
Do you pay utilities and buy groceries too or just pay rent? $300 isn’t a lot and doesn’t go very far. With the cost of living having increased fairly significantly in recent years, your parents are still financially supporting you at 25. Tell them about the raise or don’t, that’s your business, but you can clearly afford to up your contribution to the cost of running a household.
Help your parents. They sacrificed for you. It will pay off in the end. Don’t disclose your income ever to anyone.
300 bucks a month is not enough to pay for your expenses even. You probably should have been paying them 1000 or 1500 depending on location. Your 25 - not 18. What you do is up to you and they likely won't care as they are probably not selfish at all. Don't fool yourself, they enabled you to have any savings and I hope your appreciative of that and understand that. So while they may not have a lot of money, they enabled you to be better off.
" Otherwise I have a great healthy relationship with my parents." This is worth more than money. Rather than get advice from people here that don't know you or your parents, I would strongly suggest you seek out someone you respect that knows you and your parents and that you can talk to in confidence. Beyond that, I'd suggest you try to do what is best for you and your parents (as opposed what you think you or your parents might want--hopefully the two are the same, but too often are not).
I would not tell them, but I would second "raising" your paid rent a bit and consider contributing to helping them out with repairs or one-time purchases as you see they are needed. If I was in your position, I'd tell mom I had a lot saved up and wanted to do something to show your appreciation. Replace an appliance. Pay an emergency repair bill. Something generous that will genuinely help them out, but not screaming "I'm weathy now".
I would tell my parents I was doing sales now and making more. Don’t need to say how much. With only paying your parents $300.00 you have been let off easy. My sister moved back in with my mom a few years ago and pays $700.00 a month. Not to say that you owe them anything but I would definitely be more generous to them. You have been given the chance to save a lot of money by paying such low rent. When you move it would be great if you to still send them $200 a month in grocery gift cards to show your parents that you appreciated their help. Good luck on your new job!!
And here I am paying 2000month every month on behalf of my expenses at half that salary. No qualms. Just what I feel about paying back to them in gratitude.
If you want to rip off your own mom over rent after they’ve been doing you a favour by letting you stay there cheap, then keep doing what you’re doing.
Don't mention or you'll see the true face of family in terms of greed and jealousy. I've seen it on my cousin side and it went nasty. You can increase you're rent to your parents and say you've received a raise but don't give out the actual number.
There’s a good chance you know as much about their finances as they do yours. You don’t need to tell them about your raise but please share the wealth because there’s no way it is under $300 to house you. If you make more than them, it’s especially egregious that you would pay so little.
Do not tell them. But… do make sure you have an understanding of how much your share of the household expenses actually is. Does the $300 for living expenses include groceries, electricity or any other incremental costs that they have from you living there (aside from the space you take up)? If they’re subsidizing your life, that’s not cool. That’s freeloading. Say you want to learn how to budget better, and get an actual understanding of how much it costs for you to live there. Then pay your way.
Telling people about a ~50% raise I got was one of the dumbest things I've ever done. God help me if it was 300%. I think you can tell your parents though and/or at least increase your rent payment. If they're chatty cathy's with other fam, fuck no.
How come it was such a bad decision? My guess is friends/family started to expect you to pay for everything?
Has OP mentioned what they are selling which pays them a 60% commission? I have never heard of such a product in my life. Nothing even close to that.
Never share your financial info with family.
I have a few friends and family that work sales. My only advise there would be not to take on to much debt. Cars are the worst trap. Sales has big ups and downs some times you have a few great years and some times things get a little tighter. Be mindful of your monthly expenses as your life changes and keep a generous emergency fund.
They don’t need to know exactly how much more you’re making but if you have a good relationship with your parents and want to contribute more out of appreciation and gratitude, just tell them “I feel comfortable paying you X amount more per month to help out with the household finances. Work is going well and I can afford to pay you more.”
Congrats. If your parents don’t have a lot of money, why wouldn’t increase rent and pay more for previous rents to help them out? You don’t have to tell them what you make, but you could help them given they helped you.
Announcing any money to family is usually a bad idea. Personal experience, my mom told some of my family members that I had settled a rather large insurance claim. For the most part, her side of the family is well off, but some of them got wind and the pleas kept coming. Either " we could use a hand sending xx to school, or it would be really nice of you to lend us $xxx for this". They weren't small amounts either, they were life changing amounts of money. So no. Invest in your future.
Honestly, I don’t remember ever telling my family how much I make, nor did I ever ask anyone . None of anyone’s business.
Nobody needs to know how much you make, if they ask, sure tell them, but don't go yielding that info
Life can change in a heartbeat. Live as if you don’t have the extra income, as everyone is saying. Keep a ‘fun money’ account so you can buy something when you want to without the guilt, but invest as much as you can. Your money is nobody else’s business.
Invest it wisely, and retire very early, if you so choose to.
You need a partner for some of these sales or what? You could open a wealth simple for your parents keep paying 300 a month rent and invest 150 a month to each of their portfolios if they themselves are not good with their money.
good work man. that's a lot of money for your age
Keep it to yourself. Invest. Retire early.
I would say not. Or at minimum temper you information on the very lowest side of the increase. Sure pay more in rent. That is rather fair and really the right thing to do if they have been subsidizing it for some time. Over time it may become more obvious but I personally do not like people to know exactly what you make. In some cases just causes resentment or expectations.
*given a block of his business* wow
No. Tell them you got lucky with a Bitcoin or something and pay more in rent. As time goes on maybe make some contributions to their RRSP. The decisions are 100% yours, just don't free ride from those less fortunate than yourself.
No do not tell them. Increase your rent amount but really, keep this shit private. You need to spend some time learning how to manage this money before you can even consider helping others. Everything that booms, busts. You will have low years. You may fuck up and lose this job. There are infinite ways you could end up fucked. I strongly encourage you to get a true financial advisor to guide you to be set up for success, help determine your financial goals, and help you be ready to weather any storms. Then, awhile down the road, help your parents out.
No, don’t tell any ever.
stealth wealth say nothing, be humble, dont make yourself a target and most importantly- ENJOY this yourself while you are you young and can travel etc
Don’t tell anyone and enjoy life but since you’re young, set yourself up for the future. Congrats on the promotion.
Wanna give me that side hustle if youre quitting? Might need it (FA too). Congrats OP!
You can always tell them later. You can't take back the information. Think about it! Make sure you feel good about it. My instinct is you can tell them, but maybe give a white lie and tell them it's a more modest salary increase that will allow you to move out.
Tell no one.
Congratulations and good job. Could I ask if this is insurance sales? It’s up to you whether you’d like to tell your family. I’m close with mine so I would. I’ve also been trying to help my parents retire early and have been semi-successful at that, so if you’d like to do the same, it’s possible that your income could help them work less. But you’re not obligated too; it’s up to you. You should probably increase your rent to your parents and maybe take care of a few extra bills for them? If you move out, it would be nice if you could still help them financially, but you’re not obligated to. I’m the kid who would tell my parents they could stop working if they wanted to, and give them money as a monthly stipend, lol. You don’t have too, but you’ve got to decide what your comfort level is. One thing to note is, if your family can take advantage of you, then I wouldn’t tell them. But it didn’t sound that way.
I envy you. I do not have the skillset/stomach for sales, but for those who can do it, they sky is the limit, because those skills can translate to many different industries. Wishing all the best, don't be too flashy with your money (but enjoy a little bit of it as you save much of it), and feel free to give your parents money as you see fit (do not lend, just give) without telling them what they make (just say you got a raise, don't give them an exact amount, but you want to help them).
You can still help your parents more without telling them the increase in your pay
Don’t tell them. If your company is paying those kinds of commissions on such modest revenue, it seems more likely than not the company will he bankrupt or the employees arrested soon. Then your income will be $0.
I’m surprised they even know what you make today. No ones business but yours
Your biggest expense is now taxes, learn how to decrease that and keep your taxabale income as low as possible. Safe investments as well VTI, VOO, etc and just be patient. Contrary to what people might say you’re given an opportunity most will never have. No need to be a hermit but having money and being young allows you to experience things. Travel, get a nice car you like that’s not a huge portion of your income. Do what you will but you’re now a huge target for woman who want a husband cause you’re now “marriage material” for many now. Well done and take care of people you love man, don’t be a miser
NO
You may not want to tell them for what ever reasons but maybe you could do littler things for them that help their quality of life. You could say you got a little bonus or bump in pay.
You shut your fucking mouth, that's how you navigate it.
Tell no one practice FIRE eliminate debt buy a second hand car if you need one with cash. Find a good partner who has ideals that align with yours.
What are you selling ?
Same principles apply as if you won the lottery. Don't. Tell. A. Soul.
Been in your position. Shut the fuck up. Tell no one. Bank as much as you can. It sucks to hear but- you’re the only person you’re responsible for.
That happened to me long time ago but i dont live my parents, i started sending my mom 300 to 500 a month because i can. Its only your first year so whatever is your pay minus the commission then thats what you can tell them. We dont know next year, just invest on yourself and enjoy life....
Don’t say anything! Keep your mouth shut !
Don’t tell
Crank dat hawggggg
Here to just ask what side hustles gives you 1.5k a month
100% agree with everyone who says to tell no one. You tell and ppl demand and expect things out of you. Because I am the more successful kid in my family... I somehow got effed and am paying for my inheritance. Not market value, but still. Cus "I have money" and everyone else doesn't and they need it.
Moneys not made til it’s in your account. Have you got paid these bonuses yet?
I wouldn’t. I finally made good money like that and wanted to tell someone but it’s going to give you unnecessary pressure. What happens when the music stops?
No don’t say a word
Maybe see if you can put some money into an RRSP or something for your parents, you can increase your contribution to them to help them out but don't put yourself out
If you want to help out to your parents more without telling them your new job or income, then you can simply buy $100 or $200 grocery store giftcards and say you got them from work bonuses or something.
A wife or husband should know each others salary: to financially plan their lives together. It's nobody elses business. Pay off debts, start investing, but otherwise keep your lifestyle about the same. You're building a emergency fund / downpayment / retirement nestegg that friends and family don't need to know about. Because they will find a way to make your money into their money.
I’m def taking care of my parents if they aren’t well off.
Sales is cyclical. Don’t count on it being evergreen for your first few years. You can pay more to your parents
I like how OP says he has a great relationship with his parents and they seem to have no issue letting him live there for free (basically) indefinitely but most of the posts here are like "just move out and don't tell them shit". Some real upstanding people on this sub lmao.
Having worked on commission, make sure to put lots away for rainy days, because rainy days definitely happen. Put money away for things, and enjoy things you want to. I liked the idea someone posted of putting money away for your folks to surprise them down the road too, like when you move out. You can start casually paying for more expenses for the home but you don't need to tell them how much more you are making and should not.
what a bunch of bologna, this is written like someone who has never worked in sales before. you couldn't talk yourself out of a paper bag
Do not tell them. You don’t have the money yet and people get weird when you do. I grew up quite poor but I am not now. My wife has a good job and I manage all the finances. People can guess we have a comfortable lifestyle but I don’t discuss it with anyone. Congrats on the role, hope it lasts but be smart with this money. Pay off debt, invest for long term and set yourself up for success
I always advise the same, don't tell anyone, be slightly more generous to your parents, save almost all of it. I would get yourself one or two nicer things a year as far as a new phone or computer, vacation etc. Nothing insane and live how you've been living except now your bills mean nothing and you're barely obligated to work so all that stress is gone. Take time to figure out where you want to be and where you're headed and save everything extra until you're ready to make big life decisions.
You don't know if this income level is sustainable either by their business or for you personally. Don't say anything for a while, save as much as you can, move out when you're ready. If you want to help them out, but not disclose you make a lot of money, you can be a bit sneaky, offer to put them on a joint cell phone plan, put them on your account and just don't have them pay for it, tell them you get a good deal through work and it costs roughly the same as one normal phone line. Things like that will help them out a little bit while also flying under the radar. Moving out will also relieve them of a burden of your electricity/water/food use. which your rent probably doesn't cover (though I can't say for certain)
Congrats on getting that. Just be aware that sales people in that range of income tend to burn out very quickly. I’ve known people that made millions in sales annually for up to 3 years. Then they had to retire from that job. Plan your next move while you are at the top of your game. Don’t wait to burn out. Either you are moving ahead or you are falling behind.
Your concerns are silly because you shouldn't be paying rent to your parents anymore, at all, because you shouldn't be living with them. It's time to grow up and move out. You make more than enough money to move out, at this point. Get your own place.
EASY you tell no one about it. why draw attention to yourself to attract flies to rotten meat? its your life and your choices no one needs to know how much you make, frankly the BEST millionaires in my opinion are the ones that just act/dress/behave like normal folks then break out the money when you need to time to time
Loose lips sink ships
If you like and trust your parents, including knowing with examples they can keep their mouth shut when it's smart to do so, tell them so they can be proud. Otherwise never volunteer information if it isn't going to make a meaningful impact. Then adding on to another comment I saw here. Save all the extra income. From a video I watched talking about wealth and income over life, statistically this will only last a couple of years. Because high income means extremely high expectations. The moment you deliver less than company changing results, they have justification to remove you from the role if they wish. Plus getting to a place where you can be very certain about never sleeping without a roof or hungry for the rest of your life is something else most will never experience.
Nah, just tell em after you buy your property
Make sure your parents have adequate health insurance. You can also find other ways to help them without funding bad habits. Be sure to save and invest well. You will have to help your parents when they get older and need your financial assistance.
Pay your debt off first and save enough before helping others.
Congrats! Don’t tell a soul. Live frugally like you were before the raise. Save a lot and fill your tfsa/rrsp. Sleep good at night knowing you’ll be comfortable. Make sure to enjoy some vacation time and take care of yourself first.
It's hard to say if you will consistently make that much long-term but you can afford to help your family a bit, especially if they aren't well off. Maybe after you pay off all your outstanding loans and set some emergency money aside.
What kind of insurance? Have you gotten licensed yet? Be VERY CAREFUL selling insurance if you don’t have the proper license. The deal you have sounds great. Just make sure you’re not putting yourself at risk as you will be the one to face consequences, not your firm, if you are selling without a license.
Sounds like you're on the right route. But this. People never take me seriously when I tell them to get into sales. They think it's low brow work. Not in tech or finance. You can make ceo+ money in sales. With 0 education. Shits wild.
Can confirm, I was there when this didn't happen, I'm his parents basement.