Discussion in 'Teacher Time Out' started by futuremathsprof, Nov 22, 2018.
Dec 11, 2018
I don't understand how one can become "wealthy" on a teacher's salary plus tutoring on the side.
Yes, I work many 60 hour weeks, but there's no way in he** I"ll ever be a "rich" school administrator. I'm okay with that, though.
Doesn't that also depend on what you consider "wealthy"?
Someone who was poor growing up may see middle class as wealthy where someone comfortably middle class who never went without would not see more of the same as wealthy.
Maybe, but it really depends, I think. In my case, because I am diligent about saving and growing my wealth I have amassed quite the savings for someone so young despite working a 9-5 job.
To demonstrate, I’ve saved 63k for a down payment on a house, I’ve set aside 20k for my next car, I’ve socked away 33k for retirement, I’ve currently got about ~7k in stocks (I sold the stocks in my prior portfolio to help pay off my car and credit card debt), and have ~16k in my checking. I have no consumer debt (no student loans, no car note, etc.) and my rent is dirt cheap so I can invest the majority of my income that would normally be put to housing and other bills. Plus, I’ve done all this and I’m only 26.
How will I become wealthy? Well, I’m getting into investments more and more. That’s how. I’ve been corresponding with my some of my wealthier friends and with their stock brokers to see where and how I should invest.
It’s actually pretty easy to grow wealth if you have discipline and the necessary funds. But, having the mindset that you cannot because you work a 9-5 job and because you have a teacher’s salary are reasons why people *won’t* ever get wealthy.
For instance, my bills total $12,000 a year and have consecutively over the last five. For just this year alone, I will have a projected disposable annual income of ~$90,000 after taxes. Next year, I will get a $7,000 raise and then invest that and continue living off of my current salary.
How could I not grow that to millions?
Thank you for your enlightening contribution to this discussion.
Please read my post above of how I will achieve this. With your awesome salary as an administrator, you should be able to also because you are obviously very intelligent and fiscally savvy since you have to manage school budgets.
I think YTG is already "rich".
I wouldn’t consider those things extravagant, necessarily. We take vacations, eat out when we want, go out when we want, buy what we want, drive the cars we want, own the house we want. I did the same thing single. It’s always been on a teacher salary. Living within your means (no matter the amount) is the key.
I agree with Ima Teacher. I think my objection to the point of this thread is it is still putting forward the idea that this is the 'right' way. For example, I don't think YTG actually aspires to be wealthy. I don't. If someone handed me 2 million dollars tomorrow, I'd retire, buy a modest house, take about 5 or 10 years to do those slower, quieter things in life and then add in part time work as I saw fit. Since that isn't likely to happen and I"m probably going to work a regular length career, I'm happy to live within my means without spending too much time focused on money.
For the record, I was making 36 K a year, moved up the grid, used some savings from good summer job and paid 200 K for my house and I actually paid it off in about 6 years. No one is doubting that paying off a house in an expensive market is harder than a softer market - which is kind of the point that people have been making about the salary being high but relative to the housing market.
I also don't understand if your rent for the year is $6000 why you would ever buy a house. Assuming you are going to work for 30 years, that would be about 180,000 in current dollar rent. When you consider the taxes, insurance, power, etc on a 600,000 house I think you'd be better off just renting and putting all that money into your investments.
I bought because I wanted to own.
How did you pay off a 200k house in 6 years making only 36k/year? 36k*6 = 216k before taxes. How did you live off of 16k in less than 6 years, which amounts to $2,666.67/year? That doesn’t make sense to me.
To answer your rent question, I don’t want to be at the mercy of a landlord forever and I will have to move eventually unless the landlord nevers decides to sell the house I’m currently staying in. I have to be prepared for the future.
To be fair, I never prepare my own food and always eat out at restaurants every day. I want to go on vacations several times a year, not just one or two. I want the best that this world has to offer within my means, which is why I constantly try to increase my means.
So your comment about a landlord speaks to the idea that some intention other than money influences your decisions. I think that is the main point others have tried to make. That money is not the ONLY factor people consider in making decisions. As such, we all make the decisions that are best for us, which might be different from yours or the next 10 people who share a perspective.
Dec 12, 2018
FMP -- no offense intended, but are you actually in the US currently? I ask because I have never heard an American refer to a "car note" and I don't know of any American school salary tables that offer a $7k step.
Exactly. My district's steps are about 2k (and I thought that was high!).
That is a common phrase where I am from and friends from other states that I have met along the way say it too.
I thought car note was a common phrase. Hmm. I do live in California, though.
This is what I thought. I was concerned for a second and thought I was behind the times, haha!
Really? I’ve listed several salary schedules before that have anywhere from $2,000-$4,000+ jumps.
Why are some places with higher costs of living so low?
My district has one of the higher salary schedules for the Central Valley (probably the highest) and the jumps are still only about $2,200.
When I was hired, I had a Masters + 5. I negotiated a $5,000 annual increase, but I started at $40,000, which is on the low side but I did so because of the opportunity for growth. When California passed a law to increase the state minimum wage by $0.50 or $1 per year, I argued that since minimum-wage workers were getting a $2,000/year increase, then I should, too, on top of my $5,000/year increase. They agreed that that was fair, hence the $7,000 figure.
My school board is not cheap and believes in compensating its workers that keep the school running. After all, it doesn’t make sense to lose critical staff just because you refuse to pay them a little bit more. Anywho, my private school has ~$25 million dollar annual budget, on the average, and $60 million in reserves with about a $1-2 million surplus each year. And of the surplus, we save half of it, give bonuses to staff in accordance with standardized test results, make repairs to the school grounds and buy supplies, and use the remaining amount for salary negotiations (enter futuremathsprof).
I’m happy with what I make currently, but I will always want more and because our math program is so successful, it attracts a lot of students (we had well over new 100 new students enroll this year alone) from surrounding schools, which I then leverage in my favor. Basically, I reckon that I should get paid more because I produce results and give a lot to my school and my higher-ups recognize this and compensate me accordingly.
Sure, I found out that some of my colleagues don’t think it’s fair that they don’t get as high of raises that I do, but they should have negotiated like I did and produce results like I do. Salary should be based on education level AND performance and I perform, so I get paid!
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