We grew up with a single mum and couldnt always affort food for everyone. It got better over time, but we were never taught what to do with money. “Money comes and goes, dont worry too much”
I moved out when i was 18 and always had at least 3 jobs to finance university. I got by, paycheck to paycheck until finishing my phd this february, but now with this huge jump, i do worry. I worry whether they will realize im not worth that much money and ill lose it all again. I worry ill do something crazy with the money instead of following my plan and investing at least 20%. It almost felt easier with less, because there was less room to screw up.
Give me all your advice please?
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Been right there with you…. The smart trick is to maintain your current lifestyle for at least 2 years without upgrading anything other than basic necessities you need to live and work. Don’t run out and buy a new car, new wardrobe, take that long vacation etc….. put all that extra $$$ straight into a high yield savings account or money market fund until you’ve built a nest egg sufficient to replace your take home salary for 6 months. Then save 12% of every paycheck going forward and max out contributions to 401K’s /IRA etc….
After about 4 years at the higher salary, you can maybe start upgrading with essentials like a new reliable car. and take a well deserved destination vacation.
Way to many people jump right into spending it all and exhausting their pay increase and end up in debt and living paycheck to paycheck even at the higher wage.
save it for a rainy day, fake it til you make it
You have enough money to blow a couple thousand on a person to manage your stuff for a year and teach you stuff. Put your money in the stuff they suggest and then enjoy the rest.
Congratulations on your career advancements!! 😊 For advice, I don’t have much, but I would recommend having a high yield savings account (IRA or certificate you can’t touch) and yearly add to that, as well as a separate Emergency savings account. Add another account for Fun purchases, and start a list of things you’re interested in purchasing that may be more expensive/investments than you usually do. Keep an average of 4k in emergency funds, or more, depending on if you have a car, are a home owner, etc, to always be ready in case of sudden need. When you have excess after bills etc every paycheck, feel free to put that into savings as well — it doesn’t all need to be spent right away. Build yourself a budget that works for you, and make sure you include some funds for things you enjoy! Could be meals out with friends, museum passes, a trip you’ve been dreaming of for years, anything. You work hard and made it this far. Keep doing your best, because it has gotten you this far. I’m proud of you. 😊 Best wishes as you move forward!
I hope you know you earned this salary. It’s not a fluke. You were hungry enough to better your life that you worked your butt off to attain it. You’re not an imposter.
Since you know how to work with less and are worried about not having it in the future, saving will be your best friend. Think about what goals you’d like to attain and what it takes to get there. Just because you can afford something more expensive doesn’t mean you should do it, but you can treat yourself her and there. For example, not buying the most expensive car or the most expensive house, but something that meets your needs and makes you happy and can last for a bit.
It’s true that money and jobs come and go, but what you’ve learned and the grit you have won’t be lost in either event. When you’ve had scarcity in your life, it’s hard to get past it. So save for emergencies, rainy days, and goals, live a little, and keep learning.
Congratulations on your hard work!
You might be experiencing “imposter syndrome.” Clearly, you got the job based on your accomplishments. Continue to better yourself in your career knowing that there’s always room for growth. As for the income jump…save just like you always have; get your bank to help you automatically set aside that 20% into a high yield account so that it is like you never had the money to start with.
Agreed with the other commenter, I’m a high earner and I’ve arranged my life so that my monthly expenses are that of someone who makes half my salary, or less. Don’t let the money get to your head, you’ll realize as you start saving that while it gives you a sense of security, it will not really bring you happiness or fulfillment. What it will bring you though, is peace of mind.
Use the money when you need it, for things that really matter.
Congratulations. Work hard, keep learning, network in your organization, help others at work, and you won’t screw it up. Don’t change your lifestyle, save and invest as much as possible.
Similar situation. Best advice I got is take at least a year at your new income level living like you’re still at the old one. That’s going to give you a realistic idea of “need” vs “want” and gives you the opportunity to have a nice savings built up for the unexpected expenses that crop up. You don’t need the hottest new vehicle, you want to be able to stand at the pump and fill up without having to watch to stop at a certain dollar amount. And let me tell you, that is a hell of a feeling the first time you get to do it. The biggest change for me was just being able to pay for things (food, gas, bills) and know that I had enough to cover it, without having to track every cent.
ETA: Congrats!
If you’ve managed to survive on 35k, then invest the 70k.
First of all, congratulations!
Second, you grew up poor, so you know what you can do without. You don’t need lattes. You don’t need flash and fads. You just don’t. When these things tempt you repeatedly, remember where you came from. Keep your wallet closed and consider that money well saved. Do not fritter your money away. Before spending, ask yourself how much value that item would have if you lost your job tomorrow. Take care of the pennies, and the dollars will take care of themselves.
You want to set up your bank account to automatically divert 20% of that to a savings account which you never, ever touch. Ever. Decades from now, you will be able to retire comfortably on that alone.
In the future, never discuss your finances with anyone because there are always people who will help you spend your money. Tell no one how much you earn, where you bank, how much you have in various funds, or how you manage your money. Do not co-sign any loans or documents for anyone. Do not loan money to anyone. Do not combine your money with anyone else’s money. Do not co-own property. If you contemplate marriage, consult with an attorney who specializes in prenups. If you decide to live with a partner rather than get married, still consult with a prenup attorney.
None of us know what is in the future. However, you do know what was in your past, and you are certain that you don’t want to be there again. You have this wonderful opportunity, so do not squander it. Be smart, and future you will be glad that you were.
Congrats! I highly recommend maxing out your 401k contribution if you can. Also, if your company has a high deductible health plan with an HSA (health savings account) you can max out your HSA contributions every year. The HSA will roll over every year (FSA does not).
Those are both pre-tax contributions.
You’ll still be way ahead of your old salary.
Recommended reading : The psychology of money. A book that helps all of us who didn’t receive practical financial education.
With the increase in cash comes something people don’t always expect- you’re going to qualify for higher and higher credit limits.
Don’t. Just do not do it. If you do get a credit card, treat it like a debit card. Do NOT spend money you do not already have in your bank account and would not be willing to part with on that day.
Credit cards can make it feel like you can afford anything. But the debt they put you into is hard to climb out of because of the insane interest rates.
Make a budget for yourself and everything you don’t need plus a little for fun start talking to people about what to do with it. Invest whether it’s land investments the stock market. It is dicey right now. I don’t know what the bond market is like, not a financial person so talk to a financial person. Even money markets have some interest, but I would start putting money away or start investing like in another property and build wealth.
Always take 10% of your paycheck and store it in savings.
Congratulations on finishing your PhD!
Moneywise, give yourself a treat. You’ve worked hard your whole life so treat yourself to something special.
Besides that, set up a meeting with a financial planner who can help you make a plan that’s tailored for you.
But I can give you some general advise:
Look over ALL your insurences and make sure you’re covered if something were to happen. You have money now but you want to be secured in the future.
Divide your savings into three parts (this is were a financial planner is useful):
Your fear is real, you have never been taught how to actually have money so there’s a risk of over spending and ending up in debt instead. So by having “rules” for your fun money, you’re more likely to lay the ground for a working financial life.
Good luck!
If you’re really worried about it then I suggest using a financial planner that can set you up to where your money automatically comes out of your paycheck and goes into savings accounts. Right now I use a planner through the company that has my 401k and I max out a Roth IRA and I put a certain amount in a high yield savings account. I figured that amount out by doing a budget and having an emergency amount saved in my regular savings. I talk to the planner once a year to make sure I’m on track for retirement. For me this is easier because I don’t know what I’m doing on my own and since I’ve switched to working with them I’ve saved a lot more. Congratulations! The other advice about not loaning money or discussing your salary is really wise!
the mentality never goes away… It’s called an imposter syndrome and it’s very common especially with people with big pay jumps or grow up poor.
my partner will make close to 200k, we have good investments + fully funded emergency accs but he is anxious about paying a landscaper to redo our garden mulches ($100). He worries about not deserving his pay all the time. But just make sure you don’t overinflate your life and you’ll be fine.
Avoid lifestyle creep:
Set a bare minimum budget.
Set your preferred lifestyle budget.
Determine your savings amount.
Auto withdrawal for everything.
When you get a raise, adjust your savings/investment money and not your preferred lifestyle budget. You certainly enjoy adding a but more to your lifestyle here and there, you’re allowed to enjoy your money. Just maintain your savings going away so fast you never “see it”.
First, congratulations!!!! Get a financial planner and, perhaps, a more personal advisor. Putting away 20% is a great first step, but also, budget, Budget, BUDGET – knowing where you are, and what you’re spending will lessen your anxiety.
Having also grown up on the poor(er) side, here are some things that helped me…
The number one thing: stocking the pantry! The relief I felt at having enough food in the house was enormous. I’m not saying be wasteful with things likely to go bad – fruits & veggies & meat. But having plenty of dry goods and jarred/canned items available felt like safety. I could open my pantry, and there would be multiple kinds of pastas and sauces, boxes of chicken/beef broth, rice and canned or dried beans, etc. It always made me feel good to know there was food. If you don’t have time to shop for yourself, a grocery delivery service is great. Secondly, realizing that buying an expensive item like shoes or boots is actually cheaper in the long run because they don’t have to be replaced as often. Thirdly, having that person who can advise you on more personal and daily things – not your financial person for your investments and retirement – I luckily made a friend who grew up more upper middle class and they really helped me with understanding what was worth spending money on (good clothes, good furniture, etc.) and what was not (eating out at expensive restaurants all the time, treating everyone because I finally had the $$ to do it – don’t throw away your money. Of course, you can treat people sometimes, but dont become the default payer). She also helped me to recognize users. That was a tough one. Fourthly, the ability to hire someone to do the things I hate. I never liked deep cleaning the house and the ability to hire someone to come in 2x/month and do that – huge weight off. I don’t mind doing the day-to-day stuff, but ugh to deep cleaning. This also goes to hiring someone to do the yard.
I don’t make anything close to what you do, but I was so unused to not having survival anxiety, and actually having enough to get through the month was mind-boggling. You got this!!!
Congratulations!
You worked hard for this. It’s normal to experience anxiety as you are settling in your new job. It can take up to six months before you feel comfortable, and even then, you won’t know everything.
I think if you are already weary, you probably won’t mess up. Set an emergency fund first in case something happens, something you can easily access and is not risky. You need at least 3 months, but the more the better.
Personally, I love to have savings. The emergency fund is reassuring, but for the money I know I allow myself to spend, I can still purchase so many things in my head while it’s sitting there and I enjoy thinking of all my options!
If you need a car, carefully think about your options, because when you think about it, that is money that won’t generate interest for decades, basically until your retirement. The depreciation is heavy on a vehicle, so you can buy a used car or, if you buy new, consider buying a reliable model that will last you a very long time.
Make sure you understand credit cards and interests in loans. Use online calculators to figure out how long term debt will cost you; that could motivate you to save up instead of taking a loan for what you purchase.
Rig your direct deposit to divert the 20% right to your investment account, and you’ll effectively be dollar-cost-average investing 20% of your paycheck every 2 weeks. You never see the money…. until you open that account and see it growing! Then you’re forced to be an adult with the remaining 80%, but you’ll figure that out with time.
If your company can withhold taxes, do that (sounds like you’re not in the USA so not sure how that works over there)
And remember: get rich quick schemes are all a load of bullshit. The old folks I know who dollar-cost-averaged and saved gradually from a young age are the ones who could afford to retire, and take vacations. The get rich quick ones who made the same paychecks are the ones who can barely get by.
Please save and invest 33%.
That will still leave you with 70k a year, double what you’re making now.
Don’t impress others with things. Impress yourself with savings.
Get on a roll where when it’s time to buy a new to you car, you have savings to just buy it. Buy nothing with credit. Use credit cards for the perks and miles and pay them completely off every month.
Eat most of your meals at home and make your own coffee in the morning.
Use your past to light a fire under your ass
Congrats, you earned it! Most people save what’s leftover after spending. Always spend what’s leftover after saving. The greatest feeling in the world is financial independence. You don’t have to be wealthy, but it’s awesome to have the knowledge that you’ll be okay even if you lose your job or have other setbacks.
Coke and hookers.
Still continue to pay your rent. Still continue to drive the same old car. Still do about 95% of your daily life the same for about a year.
With the other 5%, have a little fun. Don’t take any massive vacations or anything, but get yourself that dinner you wanted on your night off. Do you need new boots for work? Get nicer ones that’ll last for a long time. Still be mindful, but don’t not allow yourself any luxuries. That’ll put a different kind of stress on you.
In the meantime, pay off any debt, put money in savings and investments, plan (within reason) a humble, but decent vacation in the next few months. You deserve it.
You are worth of that much money.
Maybe my own experience can help 🤷♀️
You sound a lot like me 3 years ago.
I went from a job at $23,000 (with a bachelor’s degree) to a tech job at $105,000 (with a master’s degree in an unrelated field).
I had the same feelings and truthfully they have never gone away for me. I always had and always will have imposter syndrome, and I’m forever worried that it won’t last because I screw it up. I just have to embrace the fear for what it is.
And the thing is: I KNOW it won’t last. Nobody stays in the same job forever anymore. I fear the day that happens, and that’s OKAY. I’m just going to do the best I can with what I have now and prepare.
It’s completely normal to feel this way. We made it before. We will make it again.
Good luck!
I was in your shoes 15 years ago. My advice:
But the NUMBER ONE thing I wished I had known a long time ago:
Even if you don’t have lifestyle creep yourself, blowing all your money “helping” friends and family will not only drain the money YOU earned, but it will destroy your relationships. People will try to make YOU feel bad for not giving them more of YOUR money. There are people who will take take take an unlimited amount of money. Even if you give them a million dollars (or $100K in my case)they will STILL try to manipulate you into being the bad guy when you cut them off.
If you’re like me, you probably have a feeling in your heart and brain where you know you’re taking too much in a relationship. Not everyone has that. Some people are like the boy in the giving tree. They consume insatiably without remorse. Avoid these kinds of people at all costs.
It’s easy to get starry-eyed and go overboard and that almost always comes back to bite you in the ass later on. My suggestion, learned after a hard lesson: save. Keep living as if you got only a small raise. Pay your bills, buy a FEW niceties, and sock the rest away. Maybe take a trip or two, but do it sensibly. You’ll still be living better but you’ll have a huge nest egg for later — you might even get to retire earlier than you expected.
I have two friends who grew up poor. Always left wanting as children. As adults they pull in about $190K combined and they always have spending issues. Lots of debt and they suck at budgeting, living nearly paycheck to paycheck. It’s frustrating to watch sometimes.
Pay your credit card balance off as soon as you can.
Out of sight out of mind. Have your work place redirect a portion to your bank (just where you can live off of ie rent, utilities and allowance), and put into ABC accounts and XYZ accounts for savings retirement and yada.
I have everything done since my work place only allows 3. I have emergency savings x amount, savings x amount and checking x amount. Then have roth pulled from savings and yada yada. I don’t touch or have to remind myself for anything.
P.s. if you’re doing an roth Ira calculate and divide 7k from x amount left in the year so you don’t have to worry about going over.
Congratulations. It’s weird AF to transition to a new socioeconomic class … and our poverty habits are hard to break. I wish someone had told me to speak with a financial advisor to set goals and make my money work for me. I’d been so starved of so much that I saw the additional money as latitude to spend, not an opportunity to spend. Anyway, your HR may offer those resources for employers. If not, it’s worth just thinking through. High yield savings accounts? Awesome way to make your money grow while it just sits there. Yayyyy for you and sending you my best!
Make a budget spreadsheet, put all your bills, your food budget, savings/investments and set yourself a discretionary allowance, and keep actual track of ALL your purchases. Know where your money is going. Know when and why you go over budget in any particular month, if it happens.
Keep living go on a 35@
K budget and squirrel away the rest
This is great. But not to be a Debbie downer, depending on where you live 105K isn’t that much anymore. Looking at CPI inflation calculator, 105K in 2025 is equivalent to 56K in 2020 and 42K in 1990.
So great for OP, but we gotta start recalibrating that a six figure salary means you are ‘rich’. That really middle class these days and not even upper middle class.
So in other words, don’t go crazy. Generational wealth is not built by buying fancy stuff. It’s built one dollar at a time and investing it in appreciating assets. Invest in your kids (if you have them).
Simple. Live like you make 35k and save the rest until you’ve got around 10 years of the 35k annually sitting around drawing interest. Then you live like you make 65k and save the rest.
You’ll never run out of money again.
Working 3 jobs is commendable and getting a phd, you more than deserve the hike.
First goal is to chalk out your expenses. Maintain a sheet where you can see your exact monthly expense. Save atleast 9 to 12 months in your bank account.
If you don’t realise now the biggest expense will be buying a house in the future. Next I would start saving in a high yields saving account with this goal as next priority.
Invest some portion of your money in an ETF. Long term investment.
Investing in your self – health and knowledge. Be it gym, sports, hobby you enjoy do it.
Invest in travelling / vacation. World is amazing and we all should see it.
Don’t tell a lot of people about your success.
Best of luck. You will never be poor again.
Working 3 jobs is commendable and getting a phd, you more than deserve the hike.
First goal is to chalk out your expenses. Maintain a sheet where you can see your exact monthly expense. Save atleast 9 to 12 months in your bank account.
If you don’t realise now the biggest expense will be buying a house in the future. Next I would start saving in a high yields saving account with this goal as next priority.
Invest some portion of your money in an ETF. Long term investment.
Investing in your self – health and knowledge. Be it gym, sports, hobby you enjoy do it.
Invest in travelling / vacation. World is amazing and we all should see it.
Don’t tell a lot of people about your success.
Best of luck. You will never be poor again.
I went from dirt poor to crossing the six figure boundary in my late 20s.
Here’s some of my biggest advice:
Advise:
1- don’t take advise from people with no money, take advise from people who already are where you eventually want to be.
2- Take that 20% and DCA into bitcoin long term (doesn’t matter if it goes up or down as long as you keep investing monthly you will get the average).
3- “They will realize i am not worth that much money”. You are not worth less than anyone else. So you can definetely achieve your goals if you are dead set and plan for it.
4- 100k isn’t really a lot of money. I am not sure how old you are but you can still grow A LOT professionally.
Enjoy the ride!
Buy property, live like you’re poor. Eventually you’ll figure out how to keep building. Buy property as soon as you find something that is a home run.
I was in this boat too
You got a lot of great info in this thread so all I will say is congratulations!!! You struggled and it paid off. You aren’t just lucky, you earned this. Don’t let imposter syndrome creep in
Don’t go crazy and save money but it’s okay to spend a few hundreds on stuff you actually need, like maybe something is broken in your house and you never had money to fix/buy it, maybe you need new jeans or a pan.
You can definitely treat yourself from time to time but DO NOT over spend!! Do not apply for more credit cards! Life style creep is true.
And save save save a fixed amount per check!!!
Budget yourself to life frugally, all the extra money goes into a high interest savings account.
First of all, you have a PhD. You’re worth the money. Secondly, if you keep living like you’re JUST above paycheck to paycheck and put the rest in savings, you’ll always be okay.
You might benefit from finding a financial advisor. Interview two or three, it’s very common and they will help you understand what they do, and how they can help you. Make sure they are a fiduciary, they have to put their client’s interests first, so no pump and dump nonsense or expensive investments that pay huge bonuses to the advisor.
It will help greatly if you have some idea of what your priorities are in advance. Whether it’s building a good savings plan, or investing for retirement, or buying a house, have a good idea of what’s important to you. Most of them can also advise you on strategies for saving/investing that will help your tax status.
Congrats on the new job! And the PhD.
Continue living like a student till you figure out things!
Congratulations and celebrate all your hard work