I spent my first decade of adult life making less than $40,000/year (after taxes, my maximum income year was $31,800 in 2016 and my lowest while working “full-time” was $19,000 in 2010!). At 27, I thought I was really doing well when I was offered a job with a salary of $37,000. Even though I didn’t make much, I look back with amazement at how I was able to accomplish so much on so little income. I traveled to/worked in 10 different countries by the age of 30. I had a wedding ceremony here in the United States and in India. I bought a modern, beautiful house in a decent neighborhood. I bought a very reliable car and paid it off. I went back to school and earned a certificate in software engineering. Although I didn’t feel secure about money, I was able to do all of this without accumulating lots of debt (although I now have a mortgage instead of rent to pay).
Here are some of the advantages that helped me accomplish so much:
- My primary residence was Columbus, Ohio where the cost of living is significantly lower than much of the United States.
- I didn’t have student loans, unlike most of my peers. I chose to go to a college where tuition was paid for by donations, and my parents were generous and prepared to cover my boarding fees (approx $8,000/year for four years). I worked at least one job (often two) throughout my college years to cover my living expenses, books/fees, and start my post-grad life with ~$2,000 in savings.
- My family was very generous. Both my parents and my husband’s parents sponsored our wedding ceremonies, which were low-budget. My husband’s family also paid for my ticket to India so that I could meet them.
- I worked as an ESL teacher, so travel expenses to/from Dubai and Afghanistan were covered by my employer
- My husband provided financial security and an interest-free loan when I went back to school to learn software engineering.
During those initial years of earning less than $40,000, I also hustled hard. I used credit cards to my advantage, calculating which cards to use for which purchases so that I could maximize my cash-back bonuses and opening new accounts to receive the bonus rewards. I completed mystery shopping assignments, offered my services as a private tutor and did side gigs for local tutoring companies and non-profit organizations. I expanded my skill set wherever I could so that I could provide more value in my side hustles.
I limited myself by believing that my career choice was the reason why I was low-income. Throughout my hustling, I was too shy to ask my employer(s) for more money. I thought that because they were struggling non-profit organizations, they would not have the funds to increase my salary or provide additional benefits. I received a promotion and small bonus from one employer and a 2% raise from another employer, but I likely could have increased my income during this time if I had had the courage to discuss my compensation with my employer(s).
As I reflected on my career and life goals as well as observing others with similar abilities, I realized that my current career as an ESL teacher was neither providing me with a sense of purpose nor the ability to achieve my goals of financial independence and the ability to travel more frequently. I also realized that I was capable of doing something more challenging which would allow me more flexibility and opportunities. I began side-hustling even harder to fund my software engineering certification program through We Can Code IT.
After working multiple jobs in 2017 and an interest-free loan from my husband, I was able to pay for my software engineering bootcamp in full with a credit card (the points earned from this purchase paid for travel while his parents visited us in the U.S.)! Within a week of graduation, I landed my first job as a software engineer with a large employer in my area.
Now that I have more than doubled my salary from 2016 to 2018, I am gearing myself up to not only continue to increase my income, but to tell my money where to go for optimal wealth-building and financial security. I have done my research and developed a $0 budget.
In the past year, I have:
- Built up a mini-emergency fund ($1,000 cushion)
- Eliminated outstanding debt and paid for an international vacation without accumulating more debt
- Opened a Roth IRA in addition to my employer’s 401(k) plan
- Begun saving up my 6-month emergency fund. My plan is to save a nice cushion of $10,000 along with sinking funds for planned expenses.
I am so excited to share with you what I’ve learned along the way, as well as strategies to continue to build wealth. My plan is to live well, work to provide value and grow my income, and make my money work for me.
What are your financial goals and strategies? What would you like your money to do for you?