Pick your salary

[TheBlueMonster]

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.

[Thremp]

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

[TheBlueMonster]

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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....

[TheStation]

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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

[econophile]

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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?!?!?

[chief444]

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hello, credit cards

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What sort of limit is Visa offering now for someone with a $48/week salary?

$200k/yr for me...and it's not even close.

For those saying it's easy to get by for the first year with option 2 you do realize you actually need to work...and get to work...and home...and have work attire and be showered and simple things like that right? And the ramen noodles...do you just chew them raw out of the pack or do we need a pot or bowl? Toilet paper optional? Deoderant a luxury? Just let the teeth fall out and buy gold ones ten years later? Most people spend $2500 per year on little miscellaneous items you wouldn't even think about when budgeting.

I love camping...but not so much when i have to be at work in the morning.

I'm not greedy. $200k/yr is just fine.

[DonkeyKongSr]

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For those saying it's easy to get by for the first year with option 2 you do realize you actually need to work...and get to work...and home...and have work attire and be showered and simple things like that right? And the ramen noodles...do you just chew them raw out of the pack or do we need a pot or bowl? Toilet paper optional? Deoderant a luxury? Just let the teeth fall out and buy gold ones ten years later? Most people spend $2500 per year on little miscellaneous items you wouldn't even think about when budgeting.

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You'd make a horrible homeless person. If you are worried about:
- A $1 pot from the $0.99 store. Supplies to start a fire to cook food are free if you have half a brain.
- Acquiring toilet paper...hmmm, where might I find free toilet paper? Oh yeah, everywhere!
- Deodorant...completely optional, but also cheap. Seriously, hit a $0.99 store sometime. They have everything you could need for hygiene for $0.99 each.
- Healthy teeth rotting and falling out in one year...it's much more gradual than that, plus once again, buy some cheap toothpaste if that's a big deal to you. Anyway, if anything happens, you'll be able to buy the best teeth money can buy in just a few years.

These should be the lowest of your concerns with being homeless. They are all easily solvable with little money. If you are homeless and you spend over $2500 on miscellaneous items, you are paying too much for those items.

To me, the biggest issues are getting over the startup costs (the sleeping bag, initial hygiene and cooking supply costs, and clothes) and getting proper nurishment everyday on your $6.84 per day budget. You may have to get by on about $2-3 of food a day for the first couple months. After that it should be slightly smoother sailing and better food.

[Punker]

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.

[Toro]

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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.

[Punker]

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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)