Your yearly average income while pursuing F.I.R.E?

[daylatedollarshort]

In our case we farm with a family C corp and have quite a few benefits that are deductible to the company and non taxable to us...all legit.

We had two LLCs and they definitely helped pave the way to ER. We had our own company pension plan (safe harbor) and had much higher limits for retirement savings than a 1099 job alone. Plus when our kids went to college the money in the LLCs and the retirement plan didn't count against us for financial aid so the kids went to college tuition free. We also could deduct some expenses like part of our Internet service and computer costs. DH had a job with a pension during this time, and we each had a job with a pension before that. It all helped.

 

[eytonxav]

My average was $94.3K post college. I felt fortunate to have a reasonably well paid and mostly enjoyable career at megacorp.

 

[djsander]

Started digging ditches at a construction site in 1979 at $2.90/hr. Retired this year and made close to 200k. The last 15 years I broke the 100k/year salary and lived in a LCOL area so it really helped. 2019 I made the highest salary ever do to a large bonus. Overall a big difference from where I started and we’ve lived way beneath our means for the last 23 years. Graduated from college at the age of 38 got married and was flat broke. DW was a big influence on our low spending which is a big factor.

 

[Golden sunsets]

Just for the heck of it, and because we have all of the info in our spreadsheets, I added up the combined income of DH and I since we each started our working lives and divided by the 45 years that we worked(I didn't work for 10 years while raising our children, but I worked 10 years longer than DH) and the average annual earnings came out to $191,111. As one would expect, the first 20 years were quite low, while the last 15 were quite high. Also, after I returned to the workforce I was self employed in an emerging tech industry, a good place to be.

 

[youbet]

Wow......... Reading all these examples of high salaries, successful businesses, profitable side gigs, etc. makes me wonder how I managed to call it "FIRED" when I got laid off from the factory at 58. Being a manufacturing guy in 2006 was not the place to be.......


Sorry OP, no wage records handy, so no number for ya. But likely a tiny fraction of the numbers I'm seeing posted. And no net inheritance. We got a few bux from my dad but spent more than that caring for DW's mom. HCOL area. No side gigs. Raised a special needs child. Hmmmm........ Maybe I better go back and re-run the numbers. Maybe I misplaced a decimal point and aren't really FIRE'd!

 

[aaronc879]

Wow......... Reading all these examples of high salaries, businesses, profitable side gigs, etc. makes me wonder how I managed to call it "FIRED" when I got laid off from the factory at 58. Being a manufacturing guy in 2006 was not the place to be.......

I was a "manufacturing guy" in 2006 and did just fine. My best years were from 2006-2010. If I hadn't let bad management drive me out in 2011 and stuck it out for a few more years I would be retired in my 40's easy and I never even made $50K in a year.

 

[youbet]

I was a "manufacturing guy" in 2006 and did just fine.

Many people did aaronc879. But the layoffs in the manufacturing sector were staggering during those years resulting in a high manufacturing unemployment rate. It doesn't have to be 100% unemployment in a sector to be painful. How about a 20% unemployment rate for example? 80% would still have jobs, but the 20% out of work would still be an historically large number and make it tough to find work. At least it was for me. Glad you were in the fortunate bucket![/QUOTE]

 

[teetee]

I would like to know, are the people that FIRE make there by earning $50k a year or are the majority that make it to FIRE earning $150k and more.
I think it is an interesting question and found that a least a few made it to FIRE with a middle class income. Yes I know those that make $150k think they are middle class, but I think $60k is middle class.

The only rule is if you spend it all, you won't FIRE.

The answer you get is probably all over the place because it is the saving / investment that get you there, not so much about how much you earn.

 

[targatom2019]

the saving / investment that get you there, not so much about how much you earn.

+1,000

my average salary was 85k for 25 years but my saving/investment rate was 80% of my paycheck so I was able to build a NW close to 9M. Zero or low debt, high saving rate, long time horizon, take some risk are the key to early FIRE.

 

[marko]

IMO two things stand out on this thread:

The large number of people who RE'd making under $100K (congrats!) and the number of people who have no idea how much they were making pre-ER.

To get granular on the OP's question, I never was 'pursuing' FIRE until three months before when I was first told of my involuntary departure. I was just saving and investing for the previous 35 years because "that's what you do".

 

[ivinsfan]

IMO two things stand out on this thread:

The large number of people who RE'd making under $100K (congrats!) and the number of people who have no idea how much they were making pre-ER.

There you go... you don't have to be numbers person to ER! When DH had his cluster of a heart surgery he was shocked in the OR multiple times. Actually got a burn under his armpit. A couple weeks later he asked me several times "How many times was it" and I would say "enough times" So you just need enough money to ER and you are good.

 

[Humbooster]

I suspect that I got a later start than most on the forum being an immigrant. I know I was being ripped off the first few years but I was my choice to come to the USA so I just stayed quiet and worked as best I could. Looking back at my social security report, I earned between $9,900 and $287,000 for an average of $118,000 over the years I worked here. Glad I quit when I did and glad I found this forum, I have learned a lot since joining.

 

[pacergal]

Never made over $100,000 in my life. But saved like crazy, lived below our means, had some fun along the way, and blessed to have been in a govt. job for 36 years, with a good pension.

 

[street]

IMO two things stand out on this thread:

The large number of people who RE'd making under $100K (congrats!) and the number of people who have no idea how much they were making pre-ER.

To get granular on the OP's question, I never was 'pursuing' FIRE until three months before when I was first told of my involuntary departure. I was just saving and investing for the previous 35 years because "that's what you do".

Exactly. I really never knew an true numbers where I stack up in my working years. I was saving but not a bean counter and had no clue where I was in the ball game.

 

[RetiredHappy]

IMO two things stand out on this thread:

The large number of people who RE'd making under $100K (congrats!) and the number of people who have no idea how much they were making pre-ER.

To get granular on the OP's question, I never was 'pursuing' FIRE until three months before when I was first told of my involuntary departure. I was just saving and investing for the previous 35 years because "that's what you do".

+1. We made alot of money and also spent most of it. I had not planned on retiring early. I had planned to work until 62 but my husband decided it was time for us retire. I was only 53. The numbers worked but I wanted to also be financially comfortable in the event of extended down market. After I turned all my IRA into deferred fixed term income annuities and I agreed to retire.

 

[f35phixer]

me GS12-10 last three 121982, 109116, 105438
DW county GOV last three 132900,128400,127200

 

[stepford]

Never made over $100,000 in my life. But saved like crazy, lived below our means, had some fun along the way, and blessed to have been in a govt. job for 36 years, with a good pension.

Exactly. Plenty of folks never saved a bundle, but still ER'd comfortably because of their pension benefit. From previous polls here it's pretty clear that most folks here have at least one of:

Significant savings from at least a middle income job over many years (or a high income job from fewer years)

Military or government pension. (Some corporate pensions also are enough, but that is becoming increasingly rare).

Other significant financial asset or income source (side gig, real estate, inheritance, stock windfall, etc.)


Some folks have managed to ER with a modest income and none of these other "legs in the stool", but they are very much the exception (and I find their accomplishment particularly impressive).

 

[braumeister]

Exactly. Plenty of folks never saved a bundle, but still ER'd comfortably because of their pension benefit.

I'm a good example of that. The average of my high 35 years (used by Social Security) was a little over $28K. But the military had a great pension system and I was diligent about saving and spending, so I was able to retire a bit early and enjoy life.

 

[thod]

Had to go look this up. (Combination of spread sheet and Quicken data).
Starting from when I got my first job out of college til last year when I retired.

29 years, averaged $126000, 1st year low of $33000, last year high of $179000

My wife averaged $24000 over that time span, but that is not a fair assessment.
She started out equal to me with $33000, but stopped and/or part time when we had kids, eventually starting back 75% time later.

P.S. Before we had kids, I wanted my wife to have the choice to be a stay at home mom. That meant that we lived pretty much off just 1 salary and saved the rest. Eventually she did choose to stay at home with the kids. I think that idea of living off of just one salary created the mindset that allowed us to both retire in our early 50s.

 

[rodi]

I went on the SS website for data. I used the MEDICARE earnings - because there is no cap on that. (I hit the cap 3 times... Twice because corporate moves were considered taxable income, and once because of a really good bonus that year.)

Avg post college was just over $70k for me. For the last 14 years or so before I retired I was only working 80% - that was my parenting compromise vs becoming a SAHM. As an engineer I had a fear of becoming technically obsolete if I took too much time off to parent. Plus I liked work.

DH's was a bit lower because his field (architecture) is more cyclical and he was under employed several times in our marriage because of market cycles. (He was always willing to go part time if it meant staying employed.) He also went to 80% hours after the boys were born. I didn't look up his SS data - but I suspect it was closer to $50k/year average.

We always tried to live on one *net* paycheck. Banked the other. Figured either of us could get laid off and wanted to have that comfort level of being able to get by on one paycheck. And net is important because I always maxed my 401k to the limit. DH only contributed if there was a match because most of the firms he worked for had crappy 401k plans or none at all.

High cost of living area. Managed to pay off our house. Drove older, paid for, cars. Only did "big" vacations every 4 years while the kids were under roof... Other years were more local road trips to national parks.

Not living large, doesn't mean we didn't have a great, comfortable, lifestyle. Feel very fortunate that we were able to live well, save well, and retire early. Life is good.

 

[daylatedollarshort]

We had two six figure jobs, though I didn't work for a time after we had kids. I regret not saving more and retiring in our forties instead of our fifties. I don't think it would have really lowered our lifestyle if we had watched the expenses closer. We didn't intend to retire early, but just saved for a rainy day. That day came when DH had a high stress job and was developing stress issues from it. DH asked when we would have enough to retire. The first time I actually started running the numbers with pensions, investments and SS we realized we already had enough. DH stopped full-time work after that and we started winding down the LLCs.

 

[aaronc879]

I'm a good example of that. The average of my high 35 years (used by Social Security) was a little over $28K. But the military had a great pension system and I was diligent about saving and spending, so I was able to retire a bit early and enjoy life.

Doesn't hurt that pretty much anyone who was enlisted can claim some amount of disability. If you served for at least a couple years and are not on disability then you need to talk to someone at the VA. My Dad never got any disability until he started talking to people at the VA after he retired from the Post Office at age 64. He spend 3 years in Vietnam and after talking to people at the VA and having a hundred or so DR appointments he has gradually gotten his VA disability up to 100% which is worth almost $40K/yr. If you put in 20 and get a military pension on top of the disability then add SS at some point, even low paid enlisted military should be living well.

 

[Letj]

+1,000



my average salary was 85k for 25 years but my saving/investment rate was 80% of my paycheck so I was able to build a NW close to 9M. Zero or low debt, high saving rate, long time horizon, take some risk are the key to early FIRE.

How does that math work when you factor in living expenses and taxes?

 

[Calico]

I don't remember what my sister and brother-in-law paid for their house around the same time but it wasn't much more than a year's salary.

Yup - my aunt and uncle paid $17,000 for their 4BR/2.5BA house in 1973.

I choke up every time they tell this story!

 

[Timeisprecious]

Thanks!

Yup, never got to 100 grand. Even when we were both working we never made a 100 grand. Close, but no cigar.

Nah, we did the LBYM thing when we were working so we could retire. Then wifey died at age 60 so...

I'm gonna try to have some fun with that dough before I go -

Well, all that time on that boat seems like a good start!