The other day, I read a very interesting piece from Financial Samurai where he was asking his readers what the ideal income and the ideal amount of work was for them. Sam recently “retired” from corporate life and now aims at a new objective; making over 200K in less than 20 hours per week. Sam and I are not always on the same pace, but we agree on something; making 200K+ and working 60-80 hours a week is not really impressive. In fact, if you want to work hard and have no life outside of work, you can probably reach the 200K. But the real challenge is to reach it without burning out!
In my own terms; I’ve already reached the perfect balance between money earned and work done in a week. My family is the most important thing in my life, so having a huge career has been taken off the bucket list a long time ago. My goal was to make a low six figure income and work less than 35 hours per week. I’ve reached a 6 figure income at 28, and have been working four days a week for a while now. But if I can find a way to make a few extra bucks without working more, I’ll definitely do it!
Since life is full of coincidences, I had a similar discussion with one of my friends before I read that post. The discussion was about how to make 250K per year without working 60+ hours per week. We were trying to find a way to make it happen with a realistic plan. Unfortunately, while it’s not impossible to make it happen, it’s not easy either. To make it clear, we are talking about a gross income of $250,000 and less than 35 hours worked per week (which leaves us 7.5 hours per day of work).
The first thing that came to my mind was to list potential jobs that would lead to a $250K salary and forget about the number of hours worked. Even then, the list is pretty short:
– Health professional with a specialty (doctor, dentist, veterinary, etc)
– Top notch lawyer
– Associate accountant in a big firm
– VP and CEO positions
– Sport professional
– Incredibly talented artist
Hum… that’s about it… right? The list is short but it will become even shorter if I add that you must work “normal hours”. Actually, I could even extend my criteria from 35 to 40 hours a week. Unfortunately, none of those jobs would actually pay you $250,000 and more and allow you to work less than 40 hours a week.
That’s a very tricky question. To answer it, I’ll try to take my own situation and see if I can grow my income to 250k without working more than what I am now. So the first point I need to work on is my day job. I don’t want to change it as it is one of the rare positions where I can manage my own schedule and limit the number of hours worked. This is, obviously, conditional to bring more numbers than expected. But the rule stands; as long as I kill my objectives, I can work four days a week.
When I’m being conservative, I can expect to make $96,500 from my day job. This is including a bonus of $10,000 which is very conservative. Over the past three years, I’ve made bonus of $33K, $33K and 64K. This year, since I’m starting a new portfolio and I don’t have many clients yet, I expect to make 10K.
Over the next five years, I can work on two things to get my day job pay me more. I can’t get any promotions as I’m already on the top of the “food chain” in this department. Since I don’t want to become a manager or VP, I can’t expect big salary jump. However, if I get a 2% raise for the next 5 years, I could roughly increase my total income by 8K. 2% is fairly reasonable and cover for inflation.
The next point I can work on is my year-end bonus. This bonus is calculated based on my performance. If I perform well, I can expect to make 40K in bonus. If I go crazy, I can expect a bonus around 100K. But I like being conservative so I give myself five years to reach an average bonus of 40K. So in five years, I should show a total income of $144,500 with my day job without working more hours than I am right now.
That’s not so bad, but I have still $105.5K to find!
To be honest, I think that the only way you can actually reach a $250K salary with less than 35 hours a week is definitely through your own company. But even then, you’ll have to work several years at more than 35 hours/week if you want to reach that goal. Building a business is not easy and a lot of time and energy is required. This is why I’ve decided to keep my day job and slowly build a sideline.
My online company currently generates the equivalent of $30,000 in gross income each year. This includes all benefits derived from my company. Before I looked at my side company, I had $105,5K to find to reach 250K in five years. Considering my company, I’m now at $75,5K.
I guess the good news is that in five years, I should show a stable income of $175,000. This is what I made last year but it was an exceptional year and never thought I would reach such high figures in my life! In five years, this should become my expected income. With the current numbers I see in my company at the moment, I think I can expect to double my “benefits” and reach $60,000 in five years. We are currently using most of our cash flow to pay off debts and it’s working perfectly. So if we continue in the same direction, we will be able to pay ourselves back for all our efforts in five years!
With this plan, I should be making $235K in five years. To be honest, when I started writing this post, I didn’t know what the final figures would be. After an hour of planning and calculating, I found out that I could reach a huge income within the next five years. I’m actually surprised by the outcome of this post and now believe that I will reach 250K by working 35 hours a week. It will be darn hard, but it’s feasible!
Have you ever thought of doing such calculations? The point is not to reach 250K, but to reach your own goal. It could be 80K if you are currently making 50K. I think that if you plan it, you can make it happen and will be surprised by the outcome of your calculations!
|How I Suck at Not Paying Debts||Hitting 6 Figures Income at 28|
|How I Get a Huge Income Raise Each Year||Making $125K Online in 12 months|
|How I Buy Blogs||Most Debated Articles: The Primerica Saga|
|How I Have Survived My MBA||What is So Wrong With Making Money?|
|How I run multiples blogs and makes money without burning out|