Pick your salary
 

You've just been offered a job for the rest of your life. It's not the best job in the world, but it's also not the worst one. You'll neither love in nor hate it. It's your basic 9-5 office job.
The catch is in the salary. You have the following choice when it comes to salary:
1. start out making $200K a year. This amount will never change neither higher nor lower
2. start out making $2500 a year. But every year your salary doubles. First year 2500, second 5000, third 10,000 etc etc

You have no way to supplement your income. No pokre, no stocks, no outside monetary support. Just what you make from this job.

Re: Pick your salary
 

Who the [censored] picked 200k... Are you within 12-15 years of your death?

Re: Pick your salary
 

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Who the [censored] picked 200k... Are you within 12-15 years of your death?

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you'd be living in relative poverty for the first 5 years with the doubling method....

Re: Pick your salary
 

If you take the 200K job, after 7 years you would have grossed 1.4M and if you have used those 7 years wisely, could theoretically retire. If you take the 2500 job, after 7 years, you only have 317K and must work at least a few more years before you can retire. Yes, the upside is higher on the 2500 job, but if your goal is to get to retirement, the 200K job might be better.

You're also going to have a much more comfortable decade of preparation for retirement spending 40-50K per year and saving 150K.

The 200K option isn't that bad, unless you want to retire super rich.

Re: Pick your salary
 

i think i could find enough friends and family members to help out with my expenses for the first 4 or 5 years knowing they would be paid back more than their share a few years after that.

I Take the 2500 a year to be making 8 figures a year in 13 years all day.

Re: Pick your salary
 

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i think i could find enough friends and family members to help out with my expenses for the first 4 or 5 years knowing they would be paid back more than their share a few years after that.

I Take the 2500 a year to be making 8 figures a year in 13 years all day.

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the rule is you're not allowed outside help. You're completely on your own.

Re: Pick your salary
 

the only problem with the 2nd option is that i would find it hard to retire

Re: Pick your salary
 

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i think i could find enough friends and family members to help out with my expenses for the first 4 or 5 years knowing they would be paid back more than their share a few years after that.

I Take the 2500 a year to be making 8 figures a year in 13 years all day.

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I'm not so sure this is allowed. If it is then this is a 100% no brainer for anyone decently young. I think "no outside monetary support" could mean no place to stay or food provided by anyone you know, etc and especially no money.

Re: Pick your salary
 

Punker,

There is no way you can retire except in a 3rd world country on 1.4 mil unless you are already 60 when you start this.

TBM,

Relative poverty? By year 5 you make a decent living to get by. If you can use some debt for the first 4 it becomes EZ.

Re: Pick your salary
 

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I think "no outside monetary support" could mean no place to stay or food provided by anyone you know, etc and especially no money.

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correct

Re: Pick your salary
 

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Who the [censored] picked 200k... Are you within 12-15 years of your death?

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you'd be living in relative poverty for the first 5 years with the doubling method....

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I think knowing the location of this job could change things, mainly the differance in cost of living in lets say the middle of missouri and los angeles

Depending on where it is, the $2,500 and $5,000 years will be super tough but at $10k it would become bearable in some places with super low cost of living

Also the OP said no outside sources of income becuase I would have said to just run up some credit cards but that seems like cheating

Re: Pick your salary
 

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TBM,

Relative poverty? By year 5 you make a decent living to get by. If you can use some debt for the first 4 it becomes EZ.

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if you can live comfortable on 7500 for two years, it's very easy. But again, it's just you and the salary you chose.

Re: Pick your salary
 

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I think "no outside monetary support" could mean no place to stay or food provided by anyone you know, etc and especially no money.

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correct

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Ah, so we're barred from the common fiscal tools of society. Much more interesting question.

Re: Pick your salary
 

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i think i could find enough friends and family members to help out with my expenses for the first 4 or 5 years knowing they would be paid back more than their share a few years after that.

I Take the 2500 a year to be making 8 figures a year in 13 years all day.

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the rule is you're not allowed outside help. You're completely on your own.

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When you say no outside help, do you mean i have to sustain myself off this 2500 regardless of my savings right now and possessions i own...or are we assuming you must give up those savings and objects to take this job?

Re: Pick your salary
 

i would move to a 3rd world country for a few years with the doubling method

Re: Pick your salary
 

I still think I go the $2500 route, even if that means a few years in homeless shelters/etc. I imagine the experience would be meaningful.

Which one of these options would lead to a more fulfilling life at the end of it? I imagine the guy who's made both $2500/yr, $more money than currently exists/yr and everything in between would have a richer life to look back on.

Re: Pick your salary
 

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If you take the 200K job, after 7 years you would have grossed 1.4M and if you have used those 7 years wisely, could theoretically retire. If you take the 2500 job, after 7 years, you only have 317K and must work at least a few more years before you can retire. Yes, the upside is higher on the 2500 job, but if your goal is to get to retirement, the 200K job might be better.

You're also going to have a much more comfortable decade of preparation for retirement spending 40-50K per year and saving 150K.

The 200K option isn't that bad, unless you want to retire super rich.

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

Re: Pick your salary
 

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or are we assuming you must give up those savings and objects to take this job?

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yup

Re: Pick your salary
 

depends on what happens if i quit the job. do i have to work only this job until i retire? do i have to work until normal retirement age (since it's 'the rest of my life')?

what about those of us who have live in womenfolk or wives?

Re: Pick your salary
 

If I could just move in with my parents and/or live off of savings for the first 5-6 years, then $2500 is obviously an easy choice. However, if this is some sort of theoretical question in which that is the only money I get and can get no help from anyone or use other cash, then I would take $200k/yr.

Re: Pick your salary
 

200k doesn't change with inflation?

Re: Pick your salary
 

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depends on what happens if i quit the job. do i have to work only this job until i retire? do i have to work until normal retirement age (since it's 'the rest of my life')?

what about those of us who have live in womenfolk or wives?

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you could either say someone offered you this proposition at this moment in your life or when you graduated college/high school.
As for women folk. That certainly does complicate things...if you have them already and get this job, your choice seems pretty obvious. If you want them and you get this job, you have more wiggle room

Re: Pick your salary
 

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However, if this is some sort of theoretical question in which that is the only money I get and can get no help from anyone or use other cash,

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that's what it is.

Re: Pick your salary
 

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Who the [censored] picked 200k... Are you within 12-15 years of your death?

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you'd be living in relative poverty for the first 5 years with the doubling method....

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hello, credit cards?!?!?

Re: Pick your salary
 

rofl 2,500 doubling and it's not even remotely close.

Re: Pick your salary
 

With no help from anyone at all? As in, not even begging?
At 2500 for a year, that equates to 6.8 dollars a day.

What provisions do you start with? Would I have to go hungry for a few days to buy some clothes for my job? Would I be fired if I came to work smelly and with wrinkled clothes?

I suppose, at $6.85 a day, I could survive on

Breakfast:
2 Oranges- 0.50-75
Granola Bar- 0.50

Lunch:
Cup of Noodles: .25

Dinner:
McDonalds Dollar Menu for protein once or twice a week,
otherwise PBJ ~1

Ok, so Food would cost about 3 dollars a day for the first year. Allowing 250 extra 'flex' dollars to eliminate monotany, have some supplemental nutrition once and awhile, and for days when I really need to eat, that would leave about 1000 for other various expenses.

Hmmm. I'd only do the double if I could guarentee I'd survive the first two years.

Re: Pick your salary
 

You people are seriously so out of touch with the reality than you possibly can be. 2,5k a year?? You would be [censored] homeless, get it? 5k a year? You would be [censored] homeless? 10k a year? You may get a shack from a middle of nowhere with no luxuries whatsoever.

I find it so amazing that you all are saying "rofl 2,5k a year and it's not even close" when you don't realize that you would be risking your health and safety for at least two years while doing it. Living on the streets is not easy. Is it really worth it to become super rich while risking everything?

200k a year is an extremely well paid job. Anyone who says otherwise is completely delusional. You would be wealthy for the rest of your life with very little effort (9-to-5 job, no serious risks or challenges in your work). How money hungry you people can be? If that's not enough for you I can't imagine what your values are like. This may sound harsh but it just seems that you really don't understand that living as a wealthy person for the rest of your life and taking the 200k option really is a serious option here. It's easy to say now that you'd take the 2,5k option but write me back after two weeks on the street.

Re: Pick your salary
 

The fact that I'd have enough money by my 20th year to buy a small country and the New York Yankees make this decision pretty damn easy.

Re: Pick your salary
 

you are assuming that you couldn't get a loan under option 2. you should easier get a revolving line of credit secured by future wages if you had option 2 in a contract.

Re: Pick your salary
 

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With no help from anyone at all? As in, not even begging?
At 2500 for a year, that equates to 6.8 dollars a day.

What provisions do you start with? Would I have to go hungry for a few days to buy some clothes for my job? Would I be fired if I came to work smelly and with wrinkled clothes?

I suppose, at $6.85 a day, I could survive on

Breakfast:
2 Oranges- 0.50-75
Granola Bar- 0.50

Lunch:
Cup of Noodles: .25

Dinner:
McDonalds Dollar Menu for protein once or twice a week,
otherwise PBJ ~1

Ok, so Food would cost about 3 dollars a day for the first year. Allowing 250 extra 'flex' dollars to eliminate monotany, have some supplemental nutrition once and awhile, and for days when I really need to eat, that would leave about 1000 for other various expenses.

Hmmm. I'd only do the double if I could guarentee I'd survive the first two years.

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That would get pretty boring after about two weeks

Re: Pick your salary
 

assuming that i have job security for the rest of my life, meaning that i wouldn't get fired before i started making the 'big money', this is an easy choice.

i've been broke before, and my girlfriend makes enough that we could survive for a few years...

Re: Pick your salary
 

Under option 2: I assuming some sort of loan as there is no way you'd live in America beyond the first two years. Like zero chance with no outside help (food, begging etc)

If you could start in a third world country, option 2 is v v good. Just avoid rampant Aids, typhoid and TB and you're home free.

Re: Pick your salary
 

By year 35, you would bankrupt the entire world economy collecting your salary. ($85 trillion.) I think a few years of deprivation can be managed for that.

Re: Pick your salary
 

I voted for the double but damn, living with 2500 the first year, [censored] that. I take the 200k

Re: Pick your salary
 

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

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Disagree. You should also remember that I will have many years of interest on the already saved money at that point (ie, 7 years of the first 150K, 6 years of the 2nd 150K, etc)

Re: Pick your salary
 

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

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Disagree. You should also remember that I will have many years of interest on the already saved money at that point (ie, 7 years of the first 150K, 6 years of the 2nd 150K, etc)

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Haha. Good luck ever retiring.

Re: Pick your salary
 

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

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Disagree. You should also remember that I will have many years of interest on the already saved money at that point (ie, 7 years of the first 150K, 6 years of the 2nd 150K, etc)

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$200k will have you trying to live off of $100k because of income taxes. You'll have to spend something on rent/food. If you can save $50k you're doing great.

So after 7 years, you will be far short of a million. If it were easy to retire on half a million, most of my friends could retire right now. I wonder why they don't?

Re: Pick your salary
 

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

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Disagree. You should also remember that I will have many years of interest on the already saved money at that point (ie, 7 years of the first 150K, 6 years of the 2nd 150K, etc)

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Dude, you're not saving $150k from $200k pretax.

Re: Pick your salary
 

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You're overrating the 200K. After taxes and living expenses you could not retire after 7 years.

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Disagree. You should also remember that I will have many years of interest on the already saved money at that point (ie, 7 years of the first 150K, 6 years of the 2nd 150K, etc)

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Uh, you can't save $150k from $200k pre-tax. It's actually impossible.

Re: Pick your salary
 

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i think i could find enough friends and family members to help out with my expenses for the first 4 or 5 years knowing they would be paid back more than their share a few years after that.

I Take the 2500 a year to be making 8 figures a year in 13 years all day.

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I'm not so sure this is allowed. If it is then this is a 100% no brainer for anyone decently young. I think "no outside monetary support" could mean no place to stay or food provided by anyone you know, etc and especially no money.

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I would gladly live as a squatter/homeless person on 2500 and 5000 for the first 2 years since in 10 years I'd be earning $2.5M. Just go someplace warm, try not to get AIDS, and wait it out. looks like by year 35 I'll own the entire globe (current US GDP is $7 trillion.)

Year 5 income: 2500*2^5 = $80,000
Year 10 income: $2,560,000
Year 15 income: $81,920,000
Year 20 income: $2,621,440,000
Year 35 income: $85 Trillion