An assumption a lot of people make when thinking about their income is that it’ll have a sort of linear, upward trajectory. It’s a logical assumption to make. Each year, you gain more experience, get promotions, earn raises, and move to higher-paying jobs. It’s natural to think that as you progress in your career, your income will steadily rise.
And while this is probably generally true that your income will rise over time, it’s unlikely it’ll do so in a linear trajectory. Income can actually be pretty volatile. One year you might do very well for yourself thanks to a new job or a big bonus. In another year, unforeseen circumstances might cause your income to drop. Maybe you get laid off. Or you move into a lower-paying job. Or you move to part-time work. There are a million reasons why your income can go up or down and there’s really no telling where your income will go.
My own income trajectory is a good example of how your income can be all over the place. I went into my career assuming my income would rise each year. But for most of my career, my income has actually gone the other way. Each year, I always seemed to make less than I did the previous year.
I will say, I don’t recommend purposefully trying to make less money each year. I didn’t do it on purpose. It happened because I was trying to find the right job for me – one that gave me purpose and made me happy and gave me the right balance between work and life. Or maybe it was just because I was stupid, I don’t know.
In any event, stupid or not, there was an unexpected benefit of seeing my income go down each year. It gave me a bit of a test run in living on less and figuring out how much I need to be happy. And importantly, making less money each year gave me the flexibility to make big career changes, something that I might not have been able to do if my income had been steadily rising each year.
A Brief Look At My Income Trajectory
My first job out of law school was at a large law firm, where I started at a six-figure salary. This was an absurd amount of money to me at the time – I was 26 years and before that, my highest paying job ever paid $13 per hour. I ended up working at the big law firm for three years, during which each year my income went up by a set amount (a $5,000 raise in my second year, followed by a $10,000 raise in my third year).
Like many young lawyers, I didn’t last very long in biglaw. After three years, I found my way over to the public sector, snagging myself a job at my state Attorney General’s Office. This new job paid me much less – I ended up taking a $50,000 pay cut to move into public service. The trade-off was that the new job would theoretically give me a better work-life balance.
Unfortunately, the dream of a better work-life balance didn’t end up panning out. I found myself working as many hours as when I was working in biglaw, but only now I was making much less money. After a year, I once again began looking for a new job.
I ended up finding a new job at a legal non-profit. This job came with another pay cut – this time I was making $20,000 less than what I made at my government job. If you’re keeping track at home, my income started at six figures, peaked in my third year of practice, then dropped $50,000 the next year before dropping another $20,000.
Exact numbers are always helpful, so here are the salaries at each of my jobs. As you can see, unlike what most people would aim to do, my income went backward.
- Biglaw – Started at $110,000; Peaked at $125,000
- Government Job – $75,000
- Non-Profit Job – $57,000
It Made My Transition To Self-Employment Much Easier
I didn’t go into my career with the plan to try to earn a lower salary each year. It happened by accident. For most people, making more money every year is obviously what you should try to do.
That said, this strange income trajectory did come with an unexpected benefit. It made my transition to self-employment a lot easier because the income I had to replace was much less.
I knew around my third year of writing on this blog that figuring out a way to work for myself was what I really wanted to do. For a long time, I thought financial independence was what I wanted but in reality, financial independence was a proxy for what I really wanted. I wanted to control my life and control my time. Even with an aggressive savings rate, it would take years or decades for me to reach financial independence and then finally do what I want. So instead, why not figure out what I want to do now and go do it?
As glamorous as some people make blogging and writing out to be, it’s not always a money-making venture – at least not for a long time. I’m not getting rich off my writing. But I am earning enough to live a respectable life – especially when you consider how much more of my time I now control.
When I was making six figures, trying to replace that sort of income with my self-employment income would have been very difficult. But my last job only paid me $57,000 per year. That was a number I could totally hit. I only needed to make about $5,000 per month from anything to equal what I made at my last job. The numbers worked out. I could make $1,000 to $2,000 per month from my side hustles (which I’ve been able to do without fail for years). That meant all I needed to do was make $3,000 to $4,000 per month from this blog to live the same lifestyle as I’d been living before.
I knew I could do it. And it was because my income was going the wrong way for years that I was in this position where I could take bigger risks.
What Can We Learn From This?
Most of us tend to have an upward income trajectory over time. This is obviously the right thing to do. When your skills are better, you should be compensated more for them.
But if you’re thinking about major career changes or retiring early or moving to self-employment, consider testing yourself first. What is your life like if you’re making less money? You can try a different job, one that’s hopefully less stressful and gives you more of your time back. And if you aren’t comfortable downgrading your income, then treat your current job as if you’re making way less money. Put everything else aside to use for whatever future venture you are thinking about doing.
For me, each job change I had didn’t really impact my lifestyle. It turns out I wasn’t spending that much money anyway, so I surprisingly found myself living the same lifestyle as I’d been living before, even though I was making as much as $70,000 less than what I made at my peak.
A higher income is good. But that higher income can sometimes act as golden handcuffs. If you’re paid too much, it’s often not easy to make the move to something that you maybe want to do. If I’d managed to stay in biglaw, who knows. This blog might not exist. I’d be making too much money to get out.
More Recommended Ebike/Scooters
Check out these other ebikes and scooters I've reviewed:
- Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
- Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
- Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
- Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
- Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
- KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
- Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
- Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
- Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
- Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
- Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
- SoFi Invest ($50) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $50 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Upgrade ($150) – Upgrade is a free checking account that’s currently offering a $150 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $150 Referral Bonus – Step By Step Directions.
- SoFi Money ($275) – SoFi Money is a free checking account from SoFi. They’re currently offering a $25 referral bonus if you open a SoFi account with a referral link and deposit $10. You can also make an additional $250 as well if you complete a direct deposit. This is a good bank that is also 100% free, so you won’t have to worry about managing this account. Here’s a post I wrote with instructions on how to earn your SoFi Money bonus: SoFi Money Referral Bonus: Step By Step Guide.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($800) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- Fifth Third Bank ($350) – This offer is limited to customers in the following states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and South Carolina. If you don’t live in one of those states, you won’t be able to open an account online but you can still open an account in-branch if you happen to be visiting a city that has a branch. This is a fairly easy bank bonus to earn, especially since there are plenty of data points showing what will trigger the direct deposit requirement. In addition, you can open the Fifth Third Momentum Checking bank account, which comes with no monthly fees or minimum balance requirements. Read my guide on this bonus here.
- GO2Bank ($75) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $75 referral bonus.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- Netspend ($40 + 5% Interest Savings Account) – Netspend is a company that provides 5% interest savings accounts. If you sign up using my referral link, you’ll get a $40 signup bonus once you make your first deposit into your Netspend account of $40 or more. That means you get a 5% interest savings account and a free $40 to start! Make sure to check out my in-depth guide on how to set up these accounts.
- Digital Federal Credit Union ($20) – Digital Federal Credit Union (DCU) is a free, nationwide credit union that I recommend to readers for two reasons. First, DCU has a $20 referral bonus if you open a free DCU checking account with a referral link. Second, DCU has a saving account that gives you 6.17% interest on your first $1,000. Check out my in-depth post on how to set this account up.
- Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Varo ($30) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $30 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $250 if you complete a direct deposit.
- 5% Savings Accounts. I'm currently getting 5.25% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
- US Bank Business. US Bank is currently offering new business customers a $800 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- Personal Capital. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
Thanks for sharing! I did the opposite really – starting in a very low paying field where I expected to be lucky to ever crack $60k in my career. Then I changed fields…
I did take a paycut for my second job, effectively. I used to work shifts and was on a collective union contract which meant that working my weird schedule, I effectively made like 40% more than my normal pay. Then I took a small pay cut from that typical amount to go to a regular 9-5 salaried job. It was worth it.
I earned solid money as a consultant but it is a different world. I earn less money now and much happier.
Health is Wealth!!!!
Great perspective!
“That said, this strange income trajectory did come with an unexpected benefit. It made my transition to self-employment a lot easier because the income I had to replace was much less.”
It became harder and harder for me to leave banking, until I got a terrible 2011 bonus. Then, it was much easier for me to try and negotiate a severance in 2012 and be free.
The lower income is one of the reasons perhaps why you see A LOT more Midwestern and Southern bloggers in the personal finance spaces versus the coasts.
I don’t know any other bloggers in San Francisco, for example.
Sam
Exactly – if your bonus in 2011 had been bigger than the previous year, who knows. Maybe you’d have kept sticking it out because it’s not easy to jump off when you’re making more each year.
I think there might be some prestige element too with the coasts that makes it harder to do something outside of the norm. I’m from DC originally and there’s a lot of pressure to define yourself by your job.
Here’s something you didn’t mention, but I’m sure that you appreciate and that gave you the freedom to make decisions that have come with lower earnings: those BigLaw bucks you earned after graduating law school enabled you to pay off your debt in 2.5 years. That was yuuuge, because it eliminated in short order an albatross that, for many years after graduating, might have forced you to make decisions you might not have preferred. I spent 13 years somewhat aggressively paying off my law school debt on a salary very far from BigLaw numbers. Most of that time it was very painful as there wasn’t much financial slack for probably the first 10 years of that timeframe. I certainly couldn’t easily have afforded to take a lower-paying job. Lemme tell you, being in that situation sucks. So, yeah, you’re earning less money now than earlier in your career. But your smart moves paid the dividends that have enabled you to trade time and control for money. Well done.
Absoulutely. I went into biglaw with that plan – use the income and pay off my student loans fast. If anyone is going into law school, I always tell them to pursue biglaw first unless you’re really in a position where the student loans don’t matter.
I’ve often though about taking a government position and slow down – however I know I would work the same no matter where I was spending my time. I’m sure with your work ethic you are the same. Unfortunately there are public servants the world over that abuse the system that has been built up around them. I totally agreed that you have to happy with what you spend your valuable time each day.
I went into govt work thinking it’d be a slower pace and more satisfying. I think it was probably a little more satisfying, but the hours weren’t any better. Funny enough, while our pay was for 40 hours per week, our handbook required all lawyers to work at least 45 hours per week. So in effect, I was required to give 5 hours of work per week for free.
This completely rings true. After the last five years of making big money it has been an adjustment for my wife and I to not be making ANY for the last six months. Sure my investments are performing and they are churning out more than I would have hoped this year, but it still is uneasy to to make such a quick and fast adjustment. I think your transition was definitely timely and glad that you are blogging now!
I didn’t mean to do it, but it was a nice way to sort of ease myself into self-employment. The funny thing is I’m making the same amount as I made at my lowest paying job these days, but I’m 100 times happier. And with my self-employment, the income can actually scale a bit too, which means more upside.
My pay did the other thing, it almost always went up, especially near the end of my career. I admire you looking on the bright side. My last year was huge, several hundred thousand dollars in pay and bonus, and my timing was perfect to leave. Profits fell off a cliff the next year and there were no bonuses at all. My compensation would have been cut by more than half! And the amount of abuse I would have taken for global economic factors nobody could control would have been epic! I really got out at the perfect time.
Nice!
I bet it was hard to walk away, right? The more you make, the harder it is to walk away from that income.
how nice, and light – all the very best –
Thanks!
Marvelous perspective. When the money we earn is the only metric we judge (or a judged by) our success on, those “golden handcuffs” can quickly become an impenetrable golden prison.
Thank you for sharing this- I have been a “failure” for years, moving from higher-pay to lower-pay in order to prioritize my time with my kids, while they are still kids, because THAT is what is important to me.
Comforting to read a “money blog” that remembers our humanity is not defined by what we earn, but by what we choose.
Thanks Kevin. Made my Tuesday a better day.
Glad you found this post helpful Alex!