Venting about variable income

[Anonymous]

Would you rather have a job with a small base (say 150k) but big bonus potential (anywhere from 150k - 1 million) or a higher base but no or small bonus potential? (Say 300k with a 25-50 bonus).

Needless to say, we are in the first category. I'm just annoyed because it feels like feast or famine around here. We try to live on my H's base and treat the bonus like gravy. But it leads to strange paradoxes when you're scrimping on clothes or vacation planning one day and getting a million dollar bonus the next (minus half to taxes).

How do you deal with your variable income?

[Anonymous]

You're venting about a million dollar bonus? Really??

[Anonymous]

Waaaaaah

[Anonymous]

Classic DCUM. But seriously, if you can't live on 150K don't take a job with a 150k base. If you can live on that income and use your bonus for savings and luxuries, then it makes more sense to do so, assuming on average the bonuses are >175K or so.

[Anonymous]

Seriously? Were you profiled in the WSJ as hard luck 1%er??

[Anonymous]

OP -- we're in the same position. DHs base is low and his bonus is significant. We cannot afford to live on his base alone. Every year I put the bonus away, pay off bills and set up and automatic transfer of 1/26 th of the remaining amount to supplement the biweekly pay

All that being said, bonuses come out at the end of Sept. We currently have 9.92 in our primary checking account. It's hard not to freak out when you see you have less than $10 for 2 weeks even though rationally I know it's not really like living on $10.

[Anonymous]

Some people have it tough. I'm so sorry you have to deal with this, OP.

[Anonymous]

Anonymous wrote:You're venting about a million dollar bonus? Really??

Didn't you read?? It's only half that because TAXES. Lol

[Anonymous]

Np. We're in a similar situation. It can be annoying, I agree. The thing is, some years you do get that million dollar bonus and some years it's only 150k. Or less. Or, god forbid, zero. It does make planning g difficult. Plus, you don't normally include bonus potential on things like loan applications, do you? But they do look at your income over the past few years for things like private school financial aid. So it can complicate things.

[Anonymous]

Ok, such a troll post, but just saying, if you ever got a million dollar bonus and you were aware of this variable income situation, you should have set up savings for several years.

[Anonymous]

OP, I'm not in this situation, but I'd approach it by living on the base for a few years and saving the bonus or using it to pay off all debt (mortgage, cars etc). With the money in savings, you can supplement the low (?) salary each month or live more comfortable because you have very low monthly expenses.

[Anonymous]

The first year in scenario number 1 is tough. After the first big bonus, pay off your cars, a good chunk of your mortgage and keep some extra to supplement the low base. Once you get the mortgage paid off, it's a huge help.
Don't blow all of the bonus on frivolous stuff.
I suppose you are in finance?

[Anonymous]

Anonymous wrote:Would you rather have a job with a small base (say 150k) but big bonus potential (anywhere from 150k - 1 million) or a higher base but no or small bonus potential? (Say 300k with a 25-50 bonus).

Needless to say, we are in the first category. I'm just annoyed because it feels like feast or famine around here. We try to live on my H's base and treat the bonus like gravy. But it leads to strange paradoxes when you're scrimping on clothes or vacation planning one day and getting a million dollar bonus the next (minus half to taxes).

How do you deal with your variable income?

With a $150k base pay, 150k+ bonus, and an employed dh, if you're "scrimping" on anything, you're doing it all wrong.

[Anonymous]

Anonymous wrote:The first year in scenario number 1 is tough. After the first big bonus, pay off your cars, a good chunk of your mortgage and keep some extra to supplement the low base. Once you get the mortgage paid off, it's a huge help.
Don't blow all of the bonus on frivolous stuff.
I suppose you are in finance?

If your first year you are making $150k, how do you feel about us who first year out made $50k?

[Anonymous]

Wtf? You can't live on $150k? List your expenses. You are wasting money somewhere.