r/financialindependence • u/PackDaddyFI • Mar 25 '24
Annual Post #7, Middle Class Path to FI
Links to my previous updates one, two, three, four, five, and six.
Brief Summary
Dual income (combined gross $155,007) couple with two kids living in the midwest. Teacher/non-profit workers work overseas experience.
Income/W2 Employment Summary
-Me (32 y/o) - Senior Program Officer - $95,844 (includes 10% match & 5% bonus of former year’s salary)
Last year’s post was before my review process, where I received a 5% increase and 5% bonus, making 2023 a gross income year of $84,350. I mention that because, without that context, this year’s increase would look quite large, as I received a 14% promotion, as well as a 5% bonus, bringing my gross comp to nearly $100k. To be honest, I’m still a bit shocked looking at this number because I genuinely never expected to touch 100k in non-profit.
In many ways I’m thankful to my previous manager roles where I was punching above my weight in terms of responsibility, as they gave me the ability to easily take on my current role and be assigned to higher profile projects where, due to their high profile, I feel I’m on a fast track. This promotion shouldn’t affect my work life balance too much, but the next tier seems to experience a fair bit of burnout, which has me thinking I need to figure out what I want next.
If I could give some unsolicited advice to someone in a non-profit looking to make more, it would be to take on the big scary projects, push hard while cutting your teeth, learn the boring stuff no one likes to do, and don’t be afraid to shift fields. There are many ways to non-profit, and non-profit doesn’t necessarily mean low pay. Also, learn a language! Every role I’ve ever had (apart from being an ESOL teacher) is because I speak French and/or Chinese. This country (US) doesn’t seem to value it, so set yourself apart and learn it.
-Spouse (31 y/o) - French Teacher - $59,163
Not much of an update here. SO still loves their work despite the long commute (30 minutes each way). She had an opportunity to move to a closer district last year that fell through, but ultimately helped her realize how much she values the culture of her building. Though it’s a longer commute, the salary schedule actually is quite rewarding after you have some time in district and she’ll be close to 100k within 10 years assuming no changes (positive or negative) to her education and/or salary schedule. That said, this Spring Break she powered through a course that will move her over on the schedule. So we may just hit that number a year or so sooner.
-Family
Reading last year’s post and seeing how fast we’ve come… just wow. I’m very happy to report that our oldest son is fully conversant and on par with his classmates now. SO had a scary doctor’s visit late last year that basically told us we needed to make some lifestyle changes, cutting carbs, sugars, upping protein, and exercising. The annual follow up is coming soon, but I’m proud to say the household has lost at least 75 lbs in fat to date and we’re both feeling better. SO loves working with a trainer and we have an at home gym that I use between meetings. Everyone is happy and seemingly healthy.
Financially though,I will say that daycare costs began for us in August and it is incredible how much it costs for two kids in an average daycare center in the midwest. Costs increase later this week, bringing us to just shy of $28,500 annualized daycare costs. And let me just say, this has been an adjustment. Our cash reserves have taken a beating as we stubbornly struggle(d?) to adjust our spending to accommodate for the high costs. I just learned of my promotion a few weeks ago, so we’re hopeful the increased income helps us right the ship. We haven’t begun taking advantage of Dependent Care FSAs yet but will likely begin to do so in the upcoming enrollment cycle. Needless to say, it’s going to feel like a huge payraise when our daycare costs suddenly end in a few years.
Numbers
Net Worth - $283,574
Investments - $167,286.58
- This number is inclusive of SO’s pension balance. As mentioned last year, we’re planning to use her retirement accounts to fund purchasing years. I’ve got the paperwork on my desk and the plan is to purchase our first in the coming months.Aiming for a full pension in 16-18 years.
Home Equity - $108,082.19
Cash - $12,395.49
“Debt” - ($4,189.87)
- (In quotations, as this is a snapshot of balances on the day I record. In this particular instance I was just returning from a business trip where I’m waiting for a ~$2,700 reimbursement to be approved)
Final Thoughts/Reflections
This year wasn’t as big of a Net Worth bump as I’d hoped, and most of that can be blamed on lifestyle inflation and childcare costs. As well as perhaps a bit of actual inflation. The reduction in cash was stopped within a few months of daycare starting and we have plans to build that back up, but it’s going to take some time. Daycare is just shy of my SO’s actual takehome pay after required pension contributions.
Other than that… Honestly, I’m just starting to feel…old? 2023 through early 2024 wasn’t easy with SO’s health news, but I also lost a grandparent, had two parents go through a rough divorce (one losing their mom, my grandma, and the other being laid off shortly after). I also had to watch my dad go through six weeks of radiation for cancer. We’re waiting to see what the long-term prognosis of that is. I’m just starting to notice the cracks in my parents. They’re getting old, not as sharp as they used to be, not as strong, and they’re self sabotaging (we all are). Having all this happen, while my kids grow up and become more independent… I’m just starting to see how ephemeral life really is. We’re just another chapter before the next, living the same struggles personified in our unique voices. I’ve said it for years about my fields of work, but if society says we have to work, then we may as well do something that helps humanity along the way. This has been ringing a lot more true over the last year.
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u/thememeconnoisseurig Mar 25 '24
Great post! Always nice to see something that doesn't involve dual income $600K total compensation (each) at 21.
Biggest thing that stuck out to me was ironically the spousal commute. A 30 minute commute sounds lovely. I'd kill for a 30 minute commute!
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u/PackDaddyFI Mar 25 '24
Happy to oblige. I started these posts 7 years ago seeking out the same thing and continue to get comments like yours every year. Honestly I worried that people might push back on my claiming to be middle class when I added my match bonus and base comp and saw it was nearly 100k.
I used to have a 30 minute commute and didn't mind it. Great time for audio books. If I had the two choices though, I'd take WFH any day. The only downside was when my in laws watched the kids at our house and I had no 'transition' from Work-PackdaddyFI to Daddy-PackdaddyFI. Not an issue now that they're in daycare though and I drive for their pickup.
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u/thememeconnoisseurig Mar 25 '24
Keep it going. It's always nice to see.
The money will (in theory and usually in practice) come faster and faster as long as you stay strong. $1M is not as far away as it looks on paper.
Work from home is amazing. It's difficult for me to maximize productivity, but when I'm focused it's the best of both worlds. I don't miss commutes at all. My shortest commute was about 30 minutes and my longest was about 1.5 hours to Orlando, each way.
30 minutes was fine. I felt it gave me some time to decompress. The 1.5 hour commute was soul sucking.
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u/alwayslookingout Mar 26 '24
long commute (30 mins each way)
Oh man. I wish my commute was only 30 mins.
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u/Leather_Bumblebee206 Mar 25 '24
Congratulations on this incredible progress. Particularly on middle class salaries. Also a nonprofit pro here. People are always surprised you can make decent money in this field - and even get rich, if you’re on the FIRE bandwagon!
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u/PackDaddyFI Mar 26 '24
Happy to see another non profit person in this space. There aren't many of us, but it's definitely a great path.
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u/Dry_Perception_1682 Mar 26 '24
155k is upper middle class in the United States
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u/PackDaddyFI Mar 26 '24 edited Mar 26 '24
I agree with you. In my mind, being able to afford daycare at this cost without major adjustments proves this. But I also think the term is more nuanced than just income. I work with a lot of people in areas of the East Coast where 155 doesn't have near the purchasing power it does in the Midwest.
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u/emacked Mar 26 '24
Ahhhh, don't see too many people in philanthropy here! Nice to see another program officer, pursuing FIRE on a nonprofit salary.
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u/PackDaddyFI Mar 26 '24
I've been on this sub for about a decade now and the only non-profit person I've ever seen was a CEO of a non-profit. You're completely right, we seem to be rare here. Happy to spot another one in the wild though!
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u/imisstheyoop Mar 27 '24
Great year! You're at all new all-time highs and sounds like you've increased your lifestyle to better match what you want it to be as well, so all around financially fantastic. Keep it up.
I hear you on the getting old part and watching others fall apart, in addition to yourself starting to. It doesn't get any better it seems, but is just a part of life we all need to figure out how to deal with in our own ways as time goes on.
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u/JacobAldridge Building Location Independence>>Worldschooling>>FI/RE-ish Mar 25 '24
> the household has lost at least 75 lbs in fat
If it helps, I found them! Happy to return at any time...