Below is a Top Secret discussion on money:
Have you ever wondered how much money somebody makes?
Every single day actually.
I wonder how much my friends/co-workers/bosses/ and CEOs make, but I’m not going to ask. I actually think it’s illegal to ask. Maybe it’s not illegal, but frowned upon. I don’t know, I’m not in Human Resources.
I do know it almost seems natural to wonder.
How did that person afford that car or that house?
For me, I really want to know what my boss makes because that is “the next level.” If I’m ever promoted to manager, I would be making X amount. X is why I wake up and go to work. X is why I grind hour after hour trying to better our organization. X is what pays for groceries, bills, travel, entertainment, etc.
Why is X such a secret?
I’m throwing my financial cards on the table for all to see.
My annual salary is $50,053.12.
I get paid every other week (aka bi-weekly). 26 times a year, money gets deposited from my work, telling me that I am doing a good job and as a “thank you.” I wanted to show just how much I make once everything is broken down.
When you divide my annual salary by 26, you will see every paycheck I make $1,925.12.
After my pre-tax contribution is taken out for my 403b, which I have set at a rate of $800 per paycheck, the total left is $1,125.12.
Now the government can have their way with my paycheck. They take out $291.82 for Taxes/Medicare/Social Security. $1,125.12 – $291.82 = $833.30
I present my Net Wage of $833.30.
This adds up to $21,665.80 a year after everything is taken out.
This also means I must live on less than $1,805.48 per month or $59.36 per day or $2.47 per hour to “live within my means.”
Yes, the savings rate is a bit extreme, but I can see my net worth and dividend income going up in every monthly update. This is completely worth it to me.
I have also picked up a side hustle so I can continue to stay aggressive with retirement savings and still enjoy adding guacamole to my burrito bowl.