Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself (age, marital status, kids, where you live, etc.)
My wife and I are in our late 20s, we have one daughter (hope to have more children) and we live in the American south. My wife has a Masters degree in professional counseling, and I have an Associate's (2 year) degree in Computer Networking, which I don't use, interestingly enough.
What do you do for a living?
I'm a web developer. I build web applications that help people create websites and publish online.
How much do you earn annually?
Somewhere between $100K - $120K per year.
How does this amount break down (salary, bonuses, etc.)?
I make about $90K from my full time position, and somewhere between $10K-$15K per year doing freelance work. My wife makes about $12K per year doing part time work.
How long have you been working?
I've had a job since I was 14, but I imagine you're talking about my professional career. I've been working full time since I was 19, after I was able to learn enough in college to start applying it as an employee.
How long did it take you to earn six figures (from the time you began your career)?
About 6 years. My first 6 figure year was 2010, the year I turned 25. Which is odd, because in 2009, I remember distinctly my adjusted gross income for that year ... barely over $30K. I've since looked at previous years' returns, and $30K was actually a pretty good year.
Strangely enough, 2009 was shaping up to be a decent year, but I ended up losing my job in August. My wife was still in school at the time, working an unpaid internship. Our friends offered to let us move in with them until we got back on our feet (we had similar offers from our parents, but that would have meant moving out of state). I tried my hand at starting a business, which didn't work out.
Eventually, I accepted an offer from a friend of mine who had been wanting me to work for him for a while. We negotiated, and he made me an offer I couldn't refuse. I still work there today.
What have been the key steps you have taken that have allowed you to earn this level of income?
The best thing you can do for your career is make connections. Friends go a long way in a career. The key is to start making friends long before you need them. I work on the internet, so making those connections was a bit easier than in traditional business. Even still, there's a good chance you can figure out how to make connections with people who know people.
Always be expanding your skills. I'm 100% self-taught in my field. No formal education in it. If you do HVAC, learn electrical when you have little bits of time here and there. If you're a carpenter, why not learn general contracting?
Always ask for more responsibility, and don't expect it to pay off immediately. One of the biggest mistakes people make is getting impatient. More skills and more responsibility mean more opportunities. Eventually, it will be worth the effort.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
I changed fields early on. But mainly because I got fired from where I was, and was already doing web development on the side by that point. I have, in fact, been fired (or "let go") 3 times in my career. Each time I found a better, higher paying position. This makes me terribly paranoid about losing my job, which I think makes me a more thoughtful and effective employee.
I'm pretty loyal, too, which probably isn't the best strategy. If I was more concerned with money, I might change more often. But I like where I work, and the people I work with. And perhaps I like the stability of being somewhere long term.
I've done well with raises with them, too. So I really can't complain. But I did have to ask for them, which is not easy. I'm not a Type A personality at all. I don't like to toot my own horn, so asking for more money is tough. But if you're putting the work in, and you know you're worth it, asking for a raise is essential. Trust me, most companies aren't going to pay you more voluntarily.
What are you doing now to keep your income growing?
At the moment, not much. I put in a lot of work the last few years getting to where I am, and I'm a little tired. So, I'm not doing a whole lot to move up. But that will change soon. Basically, produce more output in less time (becoming more efficient), being more vocal about my accomplishments (laying the groundwork for the money conversation), and asking for more responsibility.
As a freelancer, I've raised my rates so I can work fewer hours. I've also worked on systems so I can finish projects faster. This way, I only take the clients I want, and by working more efficiently and charging per project instead of per hour, I end up with a higher effective hourly income.
What are your future career plans?
I want to keep doing what I do as long as I possibly can. I'm not sure there will always be a market for the particular niche I work in, though, so I'll either have to adapt, or change careers. We save a lot of money, so hopefully that will provide me with some opportunity if I eventually have to change careers.
Have you been able to turn your income into a decent net worth?
Yes. My wife and I have paid off nearly $80K in debt (student loans, credit cards, taxes) since we got married. We're now debt free except for our house, and this lets us put a lot of money away. We currently save or give away over half our net income every month. We live what most people would call a "frugal" lifestyle.
We currently have a net worth of around $100K, with about half of that being liquid (after tax investments, savings accounts, etc.). We actually had a negative net worth before 2010, so being debt free is definitely one of the quickest ways of accumulating wealth.
What advice do you have for people wanting to grow their incomes?
Understand that income is about value. You are the asset, and useful assets are worth more money. Businesses don't exist to provide you with a job or health insurance ... your employer wants to make money. Businesses have to spend money to make money, so be the best money your employer spends every month.
But even valuable assets go unsold if no one knows about them. You have to make friends. You don't have to be a Type A to do this. It's probably the most important thing I ever did for my career. No, it absolutely is.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself (age, marital status, kids, where you live, etc.)
My wife and I are in our late 20s, we have one daughter (hope to have more children) and we live in the American south. My wife has a Masters degree in professional counseling, and I have an Associate's (2 year) degree in Computer Networking, which I don't use, interestingly enough.
What do you do for a living?
I'm a web developer. I build web applications that help people create websites and publish online.
How much do you earn annually?
Somewhere between $100K - $120K per year.
How does this amount break down (salary, bonuses, etc.)?
I make about $90K from my full time position, and somewhere between $10K-$15K per year doing freelance work. My wife makes about $12K per year doing part time work.
How long have you been working?
I've had a job since I was 14, but I imagine you're talking about my professional career. I've been working full time since I was 19, after I was able to learn enough in college to start applying it as an employee.
How long did it take you to earn six figures (from the time you began your career)?
About 6 years. My first 6 figure year was 2010, the year I turned 25. Which is odd, because in 2009, I remember distinctly my adjusted gross income for that year ... barely over $30K. I've since looked at previous years' returns, and $30K was actually a pretty good year.
Strangely enough, 2009 was shaping up to be a decent year, but I ended up losing my job in August. My wife was still in school at the time, working an unpaid internship. Our friends offered to let us move in with them until we got back on our feet (we had similar offers from our parents, but that would have meant moving out of state). I tried my hand at starting a business, which didn't work out.
Eventually, I accepted an offer from a friend of mine who had been wanting me to work for him for a while. We negotiated, and he made me an offer I couldn't refuse. I still work there today.
What have been the key steps you have taken that have allowed you to earn this level of income?
The best thing you can do for your career is make connections. Friends go a long way in a career. The key is to start making friends long before you need them. I work on the internet, so making those connections was a bit easier than in traditional business. Even still, there's a good chance you can figure out how to make connections with people who know people.
Always be expanding your skills. I'm 100% self-taught in my field. No formal education in it. If you do HVAC, learn electrical when you have little bits of time here and there. If you're a carpenter, why not learn general contracting?
Always ask for more responsibility, and don't expect it to pay off immediately. One of the biggest mistakes people make is getting impatient. More skills and more responsibility mean more opportunities. Eventually, it will be worth the effort.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
I changed fields early on. But mainly because I got fired from where I was, and was already doing web development on the side by that point. I have, in fact, been fired (or "let go") 3 times in my career. Each time I found a better, higher paying position. This makes me terribly paranoid about losing my job, which I think makes me a more thoughtful and effective employee.
I'm pretty loyal, too, which probably isn't the best strategy. If I was more concerned with money, I might change more often. But I like where I work, and the people I work with. And perhaps I like the stability of being somewhere long term.
I've done well with raises with them, too. So I really can't complain. But I did have to ask for them, which is not easy. I'm not a Type A personality at all. I don't like to toot my own horn, so asking for more money is tough. But if you're putting the work in, and you know you're worth it, asking for a raise is essential. Trust me, most companies aren't going to pay you more voluntarily.
What are you doing now to keep your income growing?
At the moment, not much. I put in a lot of work the last few years getting to where I am, and I'm a little tired. So, I'm not doing a whole lot to move up. But that will change soon. Basically, produce more output in less time (becoming more efficient), being more vocal about my accomplishments (laying the groundwork for the money conversation), and asking for more responsibility.
As a freelancer, I've raised my rates so I can work fewer hours. I've also worked on systems so I can finish projects faster. This way, I only take the clients I want, and by working more efficiently and charging per project instead of per hour, I end up with a higher effective hourly income.
What are your future career plans?
I want to keep doing what I do as long as I possibly can. I'm not sure there will always be a market for the particular niche I work in, though, so I'll either have to adapt, or change careers. We save a lot of money, so hopefully that will provide me with some opportunity if I eventually have to change careers.
Have you been able to turn your income into a decent net worth?
Yes. My wife and I have paid off nearly $80K in debt (student loans, credit cards, taxes) since we got married. We're now debt free except for our house, and this lets us put a lot of money away. We currently save or give away over half our net income every month. We live what most people would call a "frugal" lifestyle.
We currently have a net worth of around $100K, with about half of that being liquid (after tax investments, savings accounts, etc.). We actually had a negative net worth before 2010, so being debt free is definitely one of the quickest ways of accumulating wealth.
What advice do you have for people wanting to grow their incomes?
Understand that income is about value. You are the asset, and useful assets are worth more money. Businesses don't exist to provide you with a job or health insurance ... your employer wants to make money. Businesses have to spend money to make money, so be the best money your employer spends every month.
But even valuable assets go unsold if no one knows about them. You have to make friends. You don't have to be a Type A to do this. It's probably the most important thing I ever did for my career. No, it absolutely is.
Very interesting to see a more "nontraditional" path as part of this series. Thanks for the interview, mystery person!
Posted by: Laura | October 24, 2013 at 12:28 PM