Comments on: raises – are they for suckers?

By: brip blap; Blog Archive; Getting rich, made simple - parts 2 and 3

brip blap; Blog Archive; Getting rich, made simple - parts 2 and 3 — Wed, 12 Sep 2007 15:03:09 +0000

[...] I promised a followup on how to get rich. I have discovered it through years of painstaking [...]

By: Brip Blap

Brip Blap — Mon, 10 Sep 2007 15:03:04 +0000

Here's the link to the followup!

By: The Financial Blogger » Financial Ramblings

The Financial Blogger » Financial Ramblings — Sat, 08 Sep 2007 11:08:16 +0000

[...] Raises – Are they for suckers? @ Brip Blap (a great blog that I recently discovered btw) [...]

By: bripblap

bripblap — Fri, 07 Sep 2007 03:10:47 +0000

@Finance Girl – I’ll be picky and say I was only talking about salary since obviously if you throw in more exotic compensation like options or significant bonuses (like investment bankers getting 110% of their base) you’ll have a chance to do much better. I’ll actually cover your 2 factors in future posts: what does getting rich MEAN for the first, and just a general mess of investing-related posts for the second.

If your 7 digits are all from salary and don’t include the net worth of your home then congratulations! Yet I’ll still stick by my point: if you expect to sit back and let raises get you rich, you will be waiting a long time. You may invest your money wisely or be terribly frugal or start a great business, but none of that comes to people who just spend their whole salary and wait for the next tiny bump!

By: finance girl

finance girl — Thu, 06 Sep 2007 15:58:59 +0000

Yet…salary is only part of the equation. If the total comp is going up every year (incl. bonus and stock) then that’s a fair trade.

RE: “you won’t get rich off a salary” who says?

Totally depends on 2 factors: 1) what rich is to you (your #) and 2) what you do with the income you receive.

We started with very little 8 years ago and are now flirting with 7 digits for the first time (on balance sheet).

By: bripblap

bripblap — Thu, 06 Sep 2007 00:42:52 +0000

@Joe: I understand that there’s a difference, but let me ask you – how much risk is there in an FDIC-insured high-yield savings account? Going to work does carry a risk of loss – your income stream can be cut off if you get laid off.

But I do understand it’s a comparison of apples and oranges – I’m merely doing it to highlight how we settle for less of a return on our careers than we would be willing to accept in an investment.

By: Joe

Joe — Wed, 05 Sep 2007 23:32:47 +0000

You are forgetting that investing comes with RISK of losing your investment – that’s why you make a good percentage return on your money. Going to work everyday does not carry risk of loss. You cannot compare investing returns with your salary increase.

By: Quit Your Job, Collect Credit Cards, Save With Grocery Deals: My Carnival Picks » Money and Personal Finance Blog In Silicon Valley

Wed, 05 Sep 2007 13:58:32 +0000

[...] to CAGR @ Moolanomy (nice charts!) Examine Your Motives Series: Introduction @ Clever Dude raises – are they for suckers? @ Brip [...]

By: bripblap

bripblap — Wed, 05 Sep 2007 02:46:01 +0000

Great comments! I guess to clarify what I’m getting at: waiting on raises to get you rich won’t work. You can work on saving, or investing, or alternative income to supplement your main income. For most people, though, if you’re waiting for your salary to grow fast enough for you to become ‘rich’ you’ll wait forever. That extra 3% per year will get eaten up by new expenses. The only way to financial independence is through frugality, investing and alternative/”passive” income (the link by moneygardener, above, illustrates how investing beats raises).

By: Pinyo

Pinyo — Tue, 04 Sep 2007 21:07:02 +0000

A steady job may not be the fast train to wealth, but you can do it. Although, I do agree that people should really not settle, and continually look for ways to improve their career/income.