How to make $150k in a year

[lisarox]

Only eat rice and beans. No going out.

[Pats20]

That’s what I tell my kid.
Beans
Rice
Milk
Eggs
Tuna
Potatoes
Throw in some frozen veggies at $1 a bag.

You could live off just that. Of course milk eggs and potatoes are thru the roof right now. But still a cheaper meal.

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Plenty of people with IT degrees have six figure jobs. Finding one takes time and experience. Did you complete an internship? How's your LinkedIn? Networking? Many jobs in IT are found by networking.

I’d say many are in this range after a few years experience.

[dfrecore]

I'm awaiting the day I break 6 figures so I can maybe one day actually be able to afford a house.

My daughter and her boyfriend haven't broken the $100k mark combined income - but will be buying a house sooner rather than later.  The key is to live somewhere that's cheaper than average.  Iowa, Indiana, Alabama, Oklahoma, etc. - all have cities where housing prices are very affordable.

[MNomadic]

I'm awaiting the day I break 6 figures so I can maybe one day actually be able to afford a house.

I feel you, just as I got close to 6 figures, the phoenix market exploded out of reach again, and I had originally moved back to AZ 5-6 years ago because it was cheaper than CA...

[nyvrem]

I'm awaiting the day I break 6 figures so I can maybe one day actually be able to afford a house.

I'm confused. why do u need 6 figures to afford a house?

[rachel83az]

If y'all get malnutrition from eating badly, the medical bills will take away from whatever you had saved to buy a house or pay down any debts.

[davewill]

I'm awaiting the day I break 6 figures so I can maybe one day actually be able to afford a house.

I'm confused. why do u need 6 figures to afford a house?

You don't, most places. A median house price in Phoenix seems to be around $400,000. Assuming that you can put down $40,000 (10%), then your monthly payment (at 5% interest) will be around $2000/month or $24k per year. Add property tax, insurance, HOA fees, etc... and you're paying maybe $28k per year for your housing expense. If we assume spending of, say, 50% of net income on your house, then you need to gross about $84k in my book to be able to afford it.

Do the same calculation using the $650k median price here in San Diego, and you get a gross salary of $136k.

Note: Part of the reason I think you can go as high as 50% of your net is that you've locked in your housing expense for a long while, and any raises will improve the situation.

[LevelUP]

Job
If you have the skills, then you get a job for $150k. If not, you need to work your way up. A decent entry-level starting salary is $25hr or 50k a year. You can make 6 figures right away in a commission sales job, but it's not for everybody.

Paying off debt
F.I.R.E. stands for “Financial Independence, Retire Early.” The goal is to save and invest aggressively—somewhere between 50–75% of your income. That's how you would pay off your debt the fastest.

Buying a house
During the housing crash and for many years after, you could buy a house in some parts of the Midwest, such as St. Louis, for only $20,000.

Another strategy is house hacking, for example, buying a duplex and renting out the other half to pay your mortgage, so you're living there basically for free.

[Pats20]

Another strategy is house hacking, for example, buying a duplex and renting out the other half to pay your mortgage, so you're living there basically for free.


This is what my brother did. Lived in 1/2 for 15 years. Now he lives in a half million dollar plus home in an area where the median home price is about $175k.
He rents out both sides now and says it pays for his big house he’s in now.

Me. I grew up in a duplex. So I like my privacy and a nice yard.
But I kinda wish I’d a went his route.

[ss20ts]

You don't, most places. A median house price in Phoenix seems to be around $400,000. Assuming that you can put down $40,000 (10%), then your monthly payment (at 5% interest) will be around $2000/month or $24k per year. Add property tax, insurance, HOA fees, etc... and you're paying maybe $28k per year for your housing expense. If we assume spending of, say, 50% of net income on your house, then you need to gross about $84k in my book to be able to afford it.

Do the same calculation using the $650k median price here in San Diego, and you get a gross salary of $136k.

Note: Part of the reason I think you can go as high as 50% of your net is that you've locked in your housing expense for a long while, and any raises will improve the situation.

Mortgage lenders tend to require your mortgage payment including escrow to be no more than 33% of your income. 

ashkir lives in Cali. Probably the most expensive state to buy real estate in the nation. He's not relocating to save a few bucks. Relocating isn't easy or cheap also the job he has may not be available if he relocates and he'd be hard press to find the same job with the same pay elsewhere. Lower cost of living areas generally have lower incomes as well. 

There's no way you can get a mortgage for $650K with an income of $136K. 3 X $136K = $408 The general rule of thumb has been 3 times your salary for the amount of house you can afford.

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Buying a house
During the housing crash and for many years after, you could buy a house in some parts of the Midwest, such as St. Louis, for only $20,000.

Another strategy is house hacking, for example, buying a duplex and renting out the other half to pay your mortgage, so you're living there basically for free.

Did you see the state of said $20K houses? They needed a boatload of work. 

Owning a duplex is great when the tenant pays and the place doesn't need many repairs. Covid left many landlords with deadbeats who weren't paying their rent for years (depending on location). The courts are finally get through the evictions here. Meanwhile, the place was trashed and the landlords went 3 years without payment.