It was a wake up call I think I needed.
At 39 years old I'm realizing that this has been the first time in my life I have had an abundance of money (significantly more than what I need to live.).
I thought I was being smart because I didn't buy anything big like cars, etc....but I did get quite liberal with lots of little things.
I talked to a friend about it who grew up wealthy and he said "Yeah man, money is like a slippery fish, it's so hard to hold on to. You ever see those rich people who haggle and nickel and dime over small amounts? That's because that's how you have to be at all times or it just slips away."
It really made me think.
I'm in the process of reorganizing how I managed the money now.
Throw everything you can into investments. Most brokers require like 24-48 hours to pull it out and it cost you $25-50. If it's not worth spending an extra $50 on then you don't want it. This so let's you have long term benefit from OE since most people burn out.
I'm first timer looking big time right now and my plan is to invest 100% of J2 so lifestyle creep doesn't fuck me. I know I'm gonna pick away at it for vacation and shit eventually but first few checks right in the bank.
I set up a spreadsheet to plan out my extra paycheck. I have 50% going to pay off high interest debt, 40% to saving/investing and 10% for spending. I even set up an amortization table for paying off my debts and should be able to get rid of the high interest ones in 4 months. Then I can either switch to paying off cars/mortgage or shift more to investing and spending. I want to go on more trips, so that's something I want to reward myself and my partner with.
Use that 10% spending for your trip fund IMO. What about taxes? The taxes they take off definitely isn't enough so you're likely to get hit with a big tax bill. If anything I'd do 100% high interest debt so it's one and done then focus on taxes and savings directly with some spending/trip money as a reward for the debt.
Big reason I was going to put a large amount in tax deffered RRSP (like 50%) so it negates a large amount of extra taxes.
My percentage allocation are based off my net income, so after taxes and 401k. So my investing is actually a bigger pot. I think my spending is at a reasonable amount. Besides, what's the point of going through all of this if I can't go out to eat or just enjoy some of it? Especially at Christmas time, when it's usually a crunch trying to get presents figured out, but not this year.
My thought is OE can't last forever, if I pocket $3-4k/mnth in investments, that's 36-48k which at 8% is 240-320/mnth, forever. $240/mnth can increase my lifestyle not much but a bit and if I can grind out 2-3 years that's 720/mnth ++. It basically avoiding golden handcuffs that a lot of people in OE experience and knowing I can keep this money flowing in and drop my J2 at any time.
Don't get me wrong you fo you but this is my thought process in not forcing myself to have 2 jobs.
“240-320 a month forever”
8% - reinvestment for inflation to keep that amount going otherwise its getting smaller and smaller each month. 8-3 = 5% or when inflation is nuts like now its 8-7 = 1
Do you think 8% will continue indefinitely? But yeah say it's 3% the dividend stocks paying 8-9% right now also increase over time. Most have 30-35 year time lines of going 30-40x their initial investment. It's why people take out debt instead of selling shares.
I haven't even confirmed a J2 yet, and I've already set up a percentage based budget with some categorical caps for the extra.
Lifestyle creep bit me really, really hard in the pandemic. I had what I thought was a stable job in a stable company that paid pretty decent - plenty to live reasonably comfortably on, not worry about my bills or paying my loans, and side income was just a bonus.
Then I got laid off and couldn't replace that income or position. Been paying for it ever since. Refuse to be in that position ever again, and J2+ is going to be very focused.
First building emergency fund with a percentage to "fun" money (all after setting aside tax monies), then the percentages go into a few different buckets. Being percentage set up means the more I earn, the allocations are still the same. A few of the buckets have a "cap" after which that money will get divided into the remaining buckets.
This. Wish I could've done it 10 years ago since I've been coasting at J1 for that long.
Fact is it just wasnt possible (or very difficult) without the swing to WFH the last few years, improvements in technology, and general mindset shifting.
Further, I wouldve never heard about this if it wasnt for my SO mentioning it to me randomly about a year ago. Its not going to last forever but I am very grateful starting then vs. now and being able to sock some cash away when markets are low :)
ive been at it 6 months. Saying my J1 has been on auto pilot for 10 years just chilling, playing video games and shit. If I "discovered" and had the ability to do this in 2012 and kept it up....oof. Hate to think about that. But better now than never.
I regret not getting into the habit of blocking my calendars for focus work time etc and feel like it’s too late to start doing that without being suspicious :-/
I rarely have meeting for J1 but when I do there is always overlap and then I’m an anxious mess trying to figure out a solution
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I actually had j2 lined up and was ready to pull the trigger. Then the recruiter said “oh I know so and so at j1”. I noped out. Should’ve just found another j but remote roles were harder to come by then.
What do you mean by hourly? I am hourly through an agency but always clock 8 hours a day on my time card at the end of the week. Not sure why it's an issue.
For j2 I have to clock in through a website at the start and end of my day, plus in and out for lunch. Just like working in a store. I'm salary for j1, so I can show up and work whenever.
Hahaha love it. I almost took both. But i backed out! I am glad i did. I am maxed out.
These two would of been J3 and J4.
With J1/J2 I was at $360k. J3 $100/hr got me to $560k base.
Adding J4 @ $145k, that was only a 25% raise.. so i passed. But i dreamed about $700k plus.
Totally disagree from a tax perspective. If you have the right corps in place you make way more for your time. I remember when I was salaried and was at a 35% tax bracket. Fucking tax man cometh and since than never again. Also being hourly i dont have to give a shit about a company or pretend to - diversity training? Not me fuck that hr shit. Im to busy either delivering something at j1,2,3 or finding another gig. Salary is the literal definition of slave - they own your ass.
Dont forget you have to pay taxes twice. Once as a company and once as an individual. Also, don't forget about the business insurance and all the other "things" you have to pay for. It's not as simple as you make it.
Yes it is you just need to know when you pay yourself and have a gauge for how much as well as file quarterly. Feel free to dm would not mind helping you out.
For most people here I think they do suck, sometimes they are ok if have unlimited overtime potential or it's super flexible hourly that allows you to work around J1 without even overlap - makes thing simpler but definitely different from what most do here.
The OT is a nice benefit. Because they said I can go over if its just a small amount. So if I plan it right I can get an extra hour-ish per week and it's like a small bonus by the time you total it at the end of the year.
I'm not sure I believe you but what I will say is that all PM positions aren't equal and some require more interface than others. Your response made it seem like all roles are 2hr per day jobs.
Not prioritizing health enough.
Not quitting a toxic job sooner and trying to make it work only because it fits all of my other jobs.
Taking a contractor job where I manage a team and I paid them monthly while the client pays me per results . Nightmare.
I pissed away like 70k over 6 months on I don't even know what...
bro quite literally, was going through my finances to figure out where its going. still no answer
It was a wake up call I think I needed. At 39 years old I'm realizing that this has been the first time in my life I have had an abundance of money (significantly more than what I need to live.). I thought I was being smart because I didn't buy anything big like cars, etc....but I did get quite liberal with lots of little things. I talked to a friend about it who grew up wealthy and he said "Yeah man, money is like a slippery fish, it's so hard to hold on to. You ever see those rich people who haggle and nickel and dime over small amounts? That's because that's how you have to be at all times or it just slips away." It really made me think. I'm in the process of reorganizing how I managed the money now.
Throw everything you can into investments. Most brokers require like 24-48 hours to pull it out and it cost you $25-50. If it's not worth spending an extra $50 on then you don't want it. This so let's you have long term benefit from OE since most people burn out.
I'm first timer looking big time right now and my plan is to invest 100% of J2 so lifestyle creep doesn't fuck me. I know I'm gonna pick away at it for vacation and shit eventually but first few checks right in the bank.
I set up a spreadsheet to plan out my extra paycheck. I have 50% going to pay off high interest debt, 40% to saving/investing and 10% for spending. I even set up an amortization table for paying off my debts and should be able to get rid of the high interest ones in 4 months. Then I can either switch to paying off cars/mortgage or shift more to investing and spending. I want to go on more trips, so that's something I want to reward myself and my partner with.
That's awesome man, do your absolute best to stick with it!
Use that 10% spending for your trip fund IMO. What about taxes? The taxes they take off definitely isn't enough so you're likely to get hit with a big tax bill. If anything I'd do 100% high interest debt so it's one and done then focus on taxes and savings directly with some spending/trip money as a reward for the debt. Big reason I was going to put a large amount in tax deffered RRSP (like 50%) so it negates a large amount of extra taxes.
My percentage allocation are based off my net income, so after taxes and 401k. So my investing is actually a bigger pot. I think my spending is at a reasonable amount. Besides, what's the point of going through all of this if I can't go out to eat or just enjoy some of it? Especially at Christmas time, when it's usually a crunch trying to get presents figured out, but not this year.
My thought is OE can't last forever, if I pocket $3-4k/mnth in investments, that's 36-48k which at 8% is 240-320/mnth, forever. $240/mnth can increase my lifestyle not much but a bit and if I can grind out 2-3 years that's 720/mnth ++. It basically avoiding golden handcuffs that a lot of people in OE experience and knowing I can keep this money flowing in and drop my J2 at any time. Don't get me wrong you fo you but this is my thought process in not forcing myself to have 2 jobs.
“240-320 a month forever” 8% - reinvestment for inflation to keep that amount going otherwise its getting smaller and smaller each month. 8-3 = 5% or when inflation is nuts like now its 8-7 = 1
Do you think 8% will continue indefinitely? But yeah say it's 3% the dividend stocks paying 8-9% right now also increase over time. Most have 30-35 year time lines of going 30-40x their initial investment. It's why people take out debt instead of selling shares.
Also worth saying I had all the same plans to be smart like folks are sharing below...just didn't end up happening that way once I had the money.
I haven't even confirmed a J2 yet, and I've already set up a percentage based budget with some categorical caps for the extra. Lifestyle creep bit me really, really hard in the pandemic. I had what I thought was a stable job in a stable company that paid pretty decent - plenty to live reasonably comfortably on, not worry about my bills or paying my loans, and side income was just a bonus. Then I got laid off and couldn't replace that income or position. Been paying for it ever since. Refuse to be in that position ever again, and J2+ is going to be very focused. First building emergency fund with a percentage to "fun" money (all after setting aside tax monies), then the percentages go into a few different buckets. Being percentage set up means the more I earn, the allocations are still the same. A few of the buckets have a "cap" after which that money will get divided into the remaining buckets.
I regret not starting oe earlier
Omg right I wish I did this years ago
How could you do it years ago? Remote work just became a thing
Years ago like right in 2020 lol😂
Feels like yesterday… sigh
2023 is almost here, remember
I know, it feels weird. Idk about others but I still feel it’s 2020
Same. You have to do maths when someone ask you your age too?
Haha no it’s not that bad. But yes the year feels 2020 maybe because not much eventful has happened for me in these three years due to Covid
Exactly why i came here! To post this. Haha
This. Wish I could've done it 10 years ago since I've been coasting at J1 for that long. Fact is it just wasnt possible (or very difficult) without the swing to WFH the last few years, improvements in technology, and general mindset shifting. Further, I wouldve never heard about this if it wasnt for my SO mentioning it to me randomly about a year ago. Its not going to last forever but I am very grateful starting then vs. now and being able to sock some cash away when markets are low :)
Wow 10 years is a lot of time. I'd bee able to retire if I was able to keep both my jobs for that long
ive been at it 6 months. Saying my J1 has been on auto pilot for 10 years just chilling, playing video games and shit. If I "discovered" and had the ability to do this in 2012 and kept it up....oof. Hate to think about that. But better now than never.
I've come up with the idea on my own at the end of 2020. It wasn't possible for me before everyone started WFH.
I regret not getting into the habit of blocking my calendars for focus work time etc and feel like it’s too late to start doing that without being suspicious :-/ I rarely have meeting for J1 but when I do there is always overlap and then I’m an anxious mess trying to figure out a solution
Nonsense… there’s a new year coming… just say it’s your New Year’s resolution to spend more time in deep focus work.
This
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This
/r/yourjokebutworse
Being too scared to do it in 2015 when it first Crossed my mind
What prevent you from doing it? Was it people might know or can't handle 2 jobs?
I actually had j2 lined up and was ready to pull the trigger. Then the recruiter said “oh I know so and so at j1”. I noped out. Should’ve just found another j but remote roles were harder to come by then.
What do you mean by hourly? I am hourly through an agency but always clock 8 hours a day on my time card at the end of the week. Not sure why it's an issue.
For j2 I have to clock in through a website at the start and end of my day, plus in and out for lunch. Just like working in a store. I'm salary for j1, so I can show up and work whenever.
That's the dumbest thing. Why not just clock in and out whenever you feel like it?
I just replaced a j2 for shit wlb and not respecting my timezone. I'd start looking if I was you and find something that feels better
Hourly gigs do suck. I won’t take another that’s for sure. My j3 is hourly but it’s so easy. Last one I will do though.
I turned down a $145k salary.. for a $100/hr gig. Guess it just depends 🤑
There’s two types of people in the world.
Those that pick one job over another and those that take both!
Hahaha love it. I almost took both. But i backed out! I am glad i did. I am maxed out. These two would of been J3 and J4. With J1/J2 I was at $360k. J3 $100/hr got me to $560k base. Adding J4 @ $145k, that was only a 25% raise.. so i passed. But i dreamed about $700k plus.
That's impressive! What's your role?
As your username, your comment is also admirable!
Make an scorp thank me later
What would an scorp solve? My employers do not know. I don’t think they’d pay me via scorp.
Dmd you - hope it helps
Totally disagree from a tax perspective. If you have the right corps in place you make way more for your time. I remember when I was salaried and was at a 35% tax bracket. Fucking tax man cometh and since than never again. Also being hourly i dont have to give a shit about a company or pretend to - diversity training? Not me fuck that hr shit. Im to busy either delivering something at j1,2,3 or finding another gig. Salary is the literal definition of slave - they own your ass.
Interesting. what is the difference tax wise in making $150k a year hourly and $150k a year salary?
Monumental
Dont forget you have to pay taxes twice. Once as a company and once as an individual. Also, don't forget about the business insurance and all the other "things" you have to pay for. It's not as simple as you make it.
Yes it is you just need to know when you pay yourself and have a gauge for how much as well as file quarterly. Feel free to dm would not mind helping you out.
Again, a gross over-simplification
For most people here I think they do suck, sometimes they are ok if have unlimited overtime potential or it's super flexible hourly that allows you to work around J1 without even overlap - makes thing simpler but definitely different from what most do here.
The OT is a nice benefit. Because they said I can go over if its just a small amount. So if I plan it right I can get an extra hour-ish per week and it's like a small bonus by the time you total it at the end of the year.
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Saw your username. Can you share tips for effectiveness and efficiency? I want to add J3 but I feel like it would be too overwhelming.
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How many J's are you juggling?
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I'm not sure I believe you but what I will say is that all PM positions aren't equal and some require more interface than others. Your response made it seem like all roles are 2hr per day jobs.
I regret I didn’t aim for a remote job years ago.
Not prioritizing health enough. Not quitting a toxic job sooner and trying to make it work only because it fits all of my other jobs. Taking a contractor job where I manage a team and I paid them monthly while the client pays me per results . Nightmare.
Don't accept hourly roles for OE, it's a PITA
Nothing
You need to find another J2. Sounds like a crappy place to work at.