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.)
Male Age 30. Single (long term girlfriend of 2 years), no kids, live in the Bay Area, California. Spent all my life in the South.
What do you do for a living?
I'm a Project Manager for a large tech company.
What is your educational background/field of study?
I have an undergraduate degree in Accounting and Finance and a Master's in Accounting from a large state school. I started in Big 4 accounting and moved on from there.
How much do you earn annually?
Salary is 110k
~ 5k bonuses
~4k stock options per quarter
My company provides many perks (401k maximum match, cheap healthcare, free food) that make my compensation much more.
How long have you been working?
Since August of 2007
How long have you earned at least six figures?
Since March of 2012
What have been the key steps you have taken that have allowed you to earn this level of income?
The most important thing I can stress and do stress to everyone is to spend as much time as possible honing your interview techniques and learning to negotiate salary. Every time I am looking for a new job I read articles on Free Money Finance, I Will Teach You To Be Rich, and other blogs to get help refreshing my resume, preparing for my interview and negotiating salary/benefits. I don't understand why people will spend 40 hours a week for 3 years to get a promotion/salary increase and not spend 4-6 hours preparing for an interview and getting a 20% or more increase in salary immediately. If you are very bad at this (you know you are) then you need to take a class/hire a coach. It will be the best money you ever spend on your career.
As an example. My first job out of big 4 I was making ~56k in salary. My initial offer, from a job I didn't take, was 58k. Using simple negotiation techniques I read for free online I got a final offer of 70k plus a commitment of a full year bonus package (I was starting in September). That is a 25%+ increase by just talking. What is an easier way to make 14k+?
Second I saw the jobs that people were getting out of big 4 and looked for opportunities that were above average for my experience or offered a lot of experience. Your second job out of school is your most important. I made it known on my resume and initial interviews with recruiters that I was interested in small business and entrepreneurship. This landed me a role as a controller of a company that was asking for 5-7 years experience ( I had 3). Through this job I learned a considerable amount and was actually recruited to work in the Bay Area as I was one of the youngest controllers in the country. At least coming out of Big 4 I feel that you should be looking for a job for 3-6 months. Don't wait until you get burned out and leave without doing a thorough search. There are tons of mediocre jobs available, in my field, at any time. The exceptional jobs take some time to search out. Send your resume to as many headhunters as possible when you are ready to move on. You know it's time to leave when a company starts focusing on attendance and looking busy over development and your personal growth. Ramit Sethi has some great suggestions for how to deal with recruiters during your search.
What are you doing now to keep your income growing?
Doing well at work. There is an expectation of work product and you should meet or exceed those standards. Most important is to invest in the people you work with and help folks any way you can. In my view, don't make enemies with anyone and don't criticize anyone unless it is in private and you are responsible for their performance; be thankful for the time spent by others helping you and give them credit and encouragement. At the end of the day you want their endorsement. These were tough lessons for me to learn as an introvert. At the end of the day a business is filled with people. If your boss likes you, then you will get promoted. If they don't, then your work product matters very little. This goes back to interviewing, if you do not get a long with your boss/don't like them them DO NOT TAKE THE JOB. No matter how good the salary is. Talk with potential coworkers and get a feeling for the role, why the previous person left (good if they got promoted, bad if it's the 4th person in the role in 4 years), and what it takes to be successful there. I personally don't like places that value work hours over work product and that come off as stuffy/regimented.
My current role has taught me a lot about tact and compromise. Don't take negative constructive feedback personally and have lunch/meet with the folks who give it to you. A lot of the time they want to invest in your future. Learn holistically your role and the role of others around you. If someone asks a question you don't know the answer to then go and find the answer for them. Become a person that people go to when they want things to get done. Don't hoard information. Give as much as you can and help others accomplish their goals.
Always be open to other opportunities. You never know where your next one will come from. Listen to everyone and keep open lines of communication open with recruiters. Don't burn bridges. Moving on is part of business. Be respectful of the company you are leaving and convey why you are leaving. When I told my Big 4 firm the offer I was given they basically pushed me out the door. In the words of the partner I had the highest exit salary he had seen. And I was not an exceptional auditor/performer, I just studied interview techniques and learned the job market. If you aren't getting a 15-20% increase or other considerable benefits then it's not worth leaving. The right opportunity will feel right. NEVER EVER EVER ACCEPT A COUNTEROFFER. I have never done this, but only read and hear horror stories of people who have.
Compounding works for salary as well. FMF has some great posts on this. Never leave money on the table. Understand that a company upon selecting you has dismissed all but 1 or all candidates. They now have you and don't want to lose you. Get as much money as you can (through respectful negotiating) and then NEVER complain about your salary or pay once work starts. Be a professional. Know what you should be paid and then upon accepting your salary; accept it. I don't understand why most people do the opposite.
What are your future career plans?
I am enjoying my role here. Long term I plan on growing my base salary and benefits and then negotiating this into a very good job back in the south. Not sure which city as I want to keep an open mind. I plan on investing in real estate rentals in the next 24 months.
Have you been able to turn your income into a decent net worth?
Net worth is about 175k. If that is decent or not is relative.
Why or why not?
I feel I have saved a fair amount. Always max out your 401k to the company match. I track my money in quicken and try not to have idle cash sitting around. I track my expenses and my savings over time and leave it at an amount I feel comfortable with. Being a good saver is not related to how much you make. I have met people that make twice what I do with no savings and people who make much less than me with more. The key to being a good saver is being conscious of what you will spend your money on and what you will not. For me personally, my motto is to spend money on experiences with people I care about. Therefore I splurge on vacations, dinners, social activities and cut costs with material objects. You may be the opposite just commit to a plan and stick with it.
What advice do you have for people wanting to grow their incomes?
Focus on the big wins. If you have not spent a considerable amount of time learning how to market yourself in interviews you are doing yourself a disservice.
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.)
Male Age 30. Single (long term girlfriend of 2 years), no kids, live in the Bay Area, California. Spent all my life in the South.
What do you do for a living?
I'm a Project Manager for a large tech company.
What is your educational background/field of study?
I have an undergraduate degree in Accounting and Finance and a Master's in Accounting from a large state school. I started in Big 4 accounting and moved on from there.
How much do you earn annually?
Salary is 110k
~ 5k bonuses
~4k stock options per quarter
My company provides many perks (401k maximum match, cheap healthcare, free food) that make my compensation much more.
How long have you been working?
Since August of 2007
How long have you earned at least six figures?
Since March of 2012
What have been the key steps you have taken that have allowed you to earn this level of income?
The most important thing I can stress and do stress to everyone is to spend as much time as possible honing your interview techniques and learning to negotiate salary. Every time I am looking for a new job I read articles on Free Money Finance, I Will Teach You To Be Rich, and other blogs to get help refreshing my resume, preparing for my interview and negotiating salary/benefits. I don't understand why people will spend 40 hours a week for 3 years to get a promotion/salary increase and not spend 4-6 hours preparing for an interview and getting a 20% or more increase in salary immediately. If you are very bad at this (you know you are) then you need to take a class/hire a coach. It will be the best money you ever spend on your career.
As an example. My first job out of big 4 I was making ~56k in salary. My initial offer, from a job I didn't take, was 58k. Using simple negotiation techniques I read for free online I got a final offer of 70k plus a commitment of a full year bonus package (I was starting in September). That is a 25%+ increase by just talking. What is an easier way to make 14k+?
Second I saw the jobs that people were getting out of big 4 and looked for opportunities that were above average for my experience or offered a lot of experience. Your second job out of school is your most important. I made it known on my resume and initial interviews with recruiters that I was interested in small business and entrepreneurship. This landed me a role as a controller of a company that was asking for 5-7 years experience ( I had 3). Through this job I learned a considerable amount and was actually recruited to work in the Bay Area as I was one of the youngest controllers in the country. At least coming out of Big 4 I feel that you should be looking for a job for 3-6 months. Don't wait until you get burned out and leave without doing a thorough search. There are tons of mediocre jobs available, in my field, at any time. The exceptional jobs take some time to search out. Send your resume to as many headhunters as possible when you are ready to move on. You know it's time to leave when a company starts focusing on attendance and looking busy over development and your personal growth. Ramit Sethi has some great suggestions for how to deal with recruiters during your search.
What are you doing now to keep your income growing?
Doing well at work. There is an expectation of work product and you should meet or exceed those standards. Most important is to invest in the people you work with and help folks any way you can. In my view, don't make enemies with anyone and don't criticize anyone unless it is in private and you are responsible for their performance; be thankful for the time spent by others helping you and give them credit and encouragement. At the end of the day you want their endorsement. These were tough lessons for me to learn as an introvert. At the end of the day a business is filled with people. If your boss likes you, then you will get promoted. If they don't, then your work product matters very little. This goes back to interviewing, if you do not get a long with your boss/don't like them them DO NOT TAKE THE JOB. No matter how good the salary is. Talk with potential coworkers and get a feeling for the role, why the previous person left (good if they got promoted, bad if it's the 4th person in the role in 4 years), and what it takes to be successful there. I personally don't like places that value work hours over work product and that come off as stuffy/regimented.
My current role has taught me a lot about tact and compromise. Don't take negative constructive feedback personally and have lunch/meet with the folks who give it to you. A lot of the time they want to invest in your future. Learn holistically your role and the role of others around you. If someone asks a question you don't know the answer to then go and find the answer for them. Become a person that people go to when they want things to get done. Don't hoard information. Give as much as you can and help others accomplish their goals.
Always be open to other opportunities. You never know where your next one will come from. Listen to everyone and keep open lines of communication open with recruiters. Don't burn bridges. Moving on is part of business. Be respectful of the company you are leaving and convey why you are leaving. When I told my Big 4 firm the offer I was given they basically pushed me out the door. In the words of the partner I had the highest exit salary he had seen. And I was not an exceptional auditor/performer, I just studied interview techniques and learned the job market. If you aren't getting a 15-20% increase or other considerable benefits then it's not worth leaving. The right opportunity will feel right. NEVER EVER EVER ACCEPT A COUNTEROFFER. I have never done this, but only read and hear horror stories of people who have.
Compounding works for salary as well. FMF has some great posts on this. Never leave money on the table. Understand that a company upon selecting you has dismissed all but 1 or all candidates. They now have you and don't want to lose you. Get as much money as you can (through respectful negotiating) and then NEVER complain about your salary or pay once work starts. Be a professional. Know what you should be paid and then upon accepting your salary; accept it. I don't understand why most people do the opposite.
What are your future career plans?
I am enjoying my role here. Long term I plan on growing my base salary and benefits and then negotiating this into a very good job back in the south. Not sure which city as I want to keep an open mind. I plan on investing in real estate rentals in the next 24 months.
Have you been able to turn your income into a decent net worth?
Net worth is about 175k. If that is decent or not is relative.
Why or why not?
I feel I have saved a fair amount. Always max out your 401k to the company match. I track my money in quicken and try not to have idle cash sitting around. I track my expenses and my savings over time and leave it at an amount I feel comfortable with. Being a good saver is not related to how much you make. I have met people that make twice what I do with no savings and people who make much less than me with more. The key to being a good saver is being conscious of what you will spend your money on and what you will not. For me personally, my motto is to spend money on experiences with people I care about. Therefore I splurge on vacations, dinners, social activities and cut costs with material objects. You may be the opposite just commit to a plan and stick with it.
What advice do you have for people wanting to grow their incomes?
Focus on the big wins. If you have not spent a considerable amount of time learning how to market yourself in interviews you are doing yourself a disservice.
I loved this one! Great advice about salary negotiation - I am also a fan of Ramit's blog. I do think there are a few times when it is okay to accept a counteroffer, though - I have done so once in the past and it turned out great.
Posted by: #1 Six Figure Interview | November 14, 2013 at 08:17 AM
Well done and you are definitely on the right track. I've reviewed Ramit's blog before, but just didn't seem right for me. Seemed too much of a sales hack.
Posted by: Limey Junior | November 14, 2013 at 09:19 AM
Interesting story, my experience was a bit different. I've had many managers over my 25-year career. One of my earliest bosses we hit it off from the get go, but in terms of raises it was nada. My next boss was a guy who grilled me when I first interviewed-- and I heard from another manager that he was the only one who opposed giving me a job offer. Well that guy got me the biggest annual raises that I had ever seen. Go figure. As for counteroffers, I went looking during my time between these two managers, and I got an offer for 33% more. When I handed in my resignation my manager's manager asked for 24 hours, and he came up with a higher number. I told him I had promised the last word to the other company, and they flew me in just to tell me that they stood by their original offer. So I took the counter and stayed. I lucked out because that other company went bankrupt the next year. It wouldn't have mattered, though, because an old colleague of mine had the same deal offered at that other company, took it, and when it went bust he did some stints at other competitors before coming back to our company over a decade later-- at the same level as me. So overall I'd agree with your message about never taking anything personally and never giving anyone else a reason to take anything you do personally. It all works out in the long run.
As for helping everyone around you, this approach has worked well for me over the years, but watch out when people start to dump on you. I'm all for sharing how I do things or bits of software I've written to make life easier for others. But when this encourages dependency, it's not a good thing. Making yourself indispensible is a great idea when you're young, but when early retirement buyout packages were offered not long ago, my application was rejected because I was too entrenched into the workflow and could not be replaced. It's a bit annoying when going the extra mile locks you out of a bonus, but that's life sometimes.
For a net worth target you might try Millionaire Next Door by Dr. Thomas Stanley. His formula is age in years divided by ten, then multiplied by annual salary. If you're double that, you're doing well, but if you're half of that, then you have some work to do...
Posted by: freebird | November 14, 2013 at 10:48 AM