If your HHI went from $350k to $900k +
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Anonymous
Yes, this happens. Government to partnership. |
Anonymous
Does it happen with in-house to partnership? Very niche practice. |
Anonymous
You would know the answer, not us. |
Anonymous
OP here- I don’t want to go into specifics but it’s the type of job that is commission based, and the $ has been going up each year, $350K may actually have been a light estimate that doesn’t include my income. We definitely don’t spend the money like it is a salary that will always be there. I asked my initial question because I do feel that we have saved so much money in the past few years (7 figures) I was curious what others have done or would do with that kind of money and ongoing potential incomes. Having this much hasn’t changed my thinking, I still bargain shop, really don’t buy much,etc. People I know and in the same industry definitely have way more expensive and fancy lifestyles than we currently do! I think our neighbors would have no idea which is fine with us. I think maybe I should upgrade some aspects of our life (decorate our house, etc.) but I hate to spend money and feel guilty when I do. |
Anonymous
OP here- interesting list, thank you!! I do love giving gifts and spending money on experiences, not stuff. Definitely not $5000 handbags! |
Anonymous
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Anonymous
yes, it can happen from associate in a firm to partner.... often quadrupling or quintupling the salary in one year. Very hard-fought and well-earned with ridiculous amount of hours and work put in. |
Anonymous
If it is commission based, I'd definitely save it for a while. Set some good achievable goals for yourself and then live accordingly. For example, we set goals of 5, 10, and 15M. Before 5M, we lived as normal, no changes. After that we moved to a bigger house, weekly cleaning, hired landscaping, trips, vacations, and etc. When we hit 10M we picked up the pace a little more. Once we hit 15M I think we are going to dial back the income (work less) and keep our lifestyle the same as it is now. Even as we dial back the work income, however, we think our investment income will make up for the slack - so the key really is to try and build wealth as quickly as you can, because it helps you realize whatever lifestyle you are after, sooner. I understand your feeling of guilt, but it will ease off once you have reached your goals and milestones. Keep that guilt around, it's what keeps your spending in check, use it as a tool. |
Anonymous
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This happened to us to us about five years ago. DH was an equity partner working his ass off carrying a small firm circling the drain and guaranteed a ~$200K draw that he didn’t always get. Switched to another firm where he gets a cut of the business he manages without being on the hook for what the rest of the firm is doing that he’s not responsible for. HHI variable but has been between $600K and $1.1M.
We - Paid off a ton of debt we had accumulated while not always getting that draw Were finally able to refinance our house, cutting the payment almost in half Paid off student loans Replaced two cars that were 11 and 12 years old Stayed put but have renovated the kitchen and redone windows and siding Bought a vacation house and two investment properties. Have done a lot of work on all of them and they’re rented out Socked away a lot of money for retirement and 529s and we overpay monthly mortgage payments by about 20% extra every month going to principal |
Anonymous
I would highly recommend socking every dollar more than you making today into some savings. I have a friend who was in commercial real estate and when the market collapsed in 2008 commercial real estate dried up in less than a month. He went from high income to nothing. Since he was earlier in his career, it was some really rough times. |
Anonymous
What does your DH do? |
Anonymous
You are smart not to be spending that money like water. I have heard too many times about people who come into money and spend it lavishly only to find themselves begging relatives for money years later. A lot of times, the wealthiest people do not appear wealthy-- there is a reason for that! |
Anonymous
Op, assuming your husband works for a company, why don't you use your earnings to buy your own small rental property? |
Anonymous
Yup.... Questioning my career choices.. |
Anonymous
This happened to me when I inherited suddenly. It is a very weird feeling. My advice to you is to do nothing for six months. Make a wish list consider your options and then once the shock has worn off, start to change some things. The money won’t be hurt by sitting in a savings account for a few months. Also, make a plan to keep your friends. Money can do strange things to people - be careful who you tell right now and how much you show. Consider NOT moving to a neighborhood with other people like you (or at least not right now). The best things about money are the freedom and safety it buys you and it’s too easy to get into a consumer trap - particularly in those neighborhoods. It may be strange to imagine from your perspective, as it was from mine, but there are a lot of families who can find a way to spend all that every year. Decide if you want to be one of them 
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