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keep living on 60K/year

put the extra into retirement, paying off the cars early, the mortgage depending on the interest rate on it (over 5% i'd chip away faster)

you can treat yourselves to a nice anniversary dinner & nicer vacation, but I would really focus on still living frugally so that you can put most of that extra income into future goals: retiring early, being debt free, something towards your child's future, ect...

Tripling your salary is insane, well done! Max out your retirement accounts and don’t really change your spending habits. How did you manage to triple your salary?

I've been a college educator for almost 13 years. Never did it for the money. Now that I have a baby, I actually responded to all the head hunting for cybersecurity experts.

Thanks for the input!

Congrats! Take a look at the wiki for guidance.

I agree with the recommendation of continuing to live like you’re making $60K because lifestyle creep is very real.

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Thank you for contributing to education! You chose a great time to break into cybersecurity.

Pump that 529 for the kid, they just changed the rules allowing them to roll unused funds into a Roth IRA when they are older. Could create generational wealth for your kids if properly funded/managed.

Wow, congratulations!

Take a moment to appreciate what you have accomplished.

Someone hired you and decided $185k is what they need to pay you. It doesn’t mean you will do more or less work necessarily.

I would focus on this job for the next 2-4 years but eventually explore other options.

There is always room for growth unless you are comfortable.

Also, now you need to figure out how to invest $100k a year!

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Congrats! Do not listen to everyone saying “continue to live like you are making $60k.” Most are likely Reddit optimization nerds without kids or a wife. Instead, save and invest a reasonable amount (since you don’t have any high interest debt to pay off) and use the money for low-cost, high-impact quality of life increases. Prioritize safety, health, and mental well being.

This does not mean nice clothes or flashier cars. This means moving from an unsafe area to a safe area. This means getting higher quality food for your child. This means getting a babysitter so you and a significant other can have some time together. This means getting a housekeeper. This means getting a gym membership. This means finally getting that weird pain in your back checked out by a doctor.

Congrats on the step up, now you can use it wisely to increase your quality of life substantially.

Funnily enough I’ve been looking into learning Cyber Security for a while here in the UK and really did wonder, if there’s so many high paying Cyber jobs why are there loads of Tutors/courses here when they could be in those jobs.. what’s your thought on going into Cyber Security? Apologies that this is off topic.

Unfortunately it’s limited to a lifetime cap of 35k on rollovers, the money can only be rolled over to a Roth IRA in the name of the beneficiary and the rollover counts toward the annual contribution limit. Not chump change but unlikely to create generational wealth. It’s more like a 529 that offers a touch of extra flexibility.

I don't mind at all. I actually taught cybersecurity and networking for those 13 years. It's a very lucrative job. It can be stressful because attacks are only getting worse. The learning curve is quite substantial. Even with computer skills, it does take some time to learn the security side well enough to pass the relative certs. Feel free to let me know if I can answer any other questions.

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• the amount rolled over is subject to Roth IRA contribution limits

• lifetime limit of 35k

• beneficiary must be the same for at least 15 years. Changing the beneficiary resets the clock.

• cannot roll over contributions/earning from the last 5 years

Still a great option but worth noting the limitations. All the more reason to start contributing earlier!

What certs do you have?

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Hard to do, but best advice is to not let your lifestyle “creep up” with your new pay. If you were doing fine prior, try to stay relatively close to that. The biggest mistake you can make is to grow into this new income.

Conceptually it sounds crazy not to spend what you make, but 3x’ing your income can get you to Financial Independence that much quicker. Again, easier said than done, but the more you can apply to FI with this new pay, the quicker you can eventually leave the rat race (assuming that is the goal).

Let your lifestyle creep up… to 80k or so. It’s ok to live.

Still leaves 100k to bank.

I’ll disagree a little bit with the other people here, in the sense that I don’t think you need to continue living as if you’re making 60k exactly. Lifestyle creep can be insidious, I agree - but you’re tripling your income after making a relatively static amount for 13 years.

(If you haven’t been able to save at all for retirement yet, then ignore what I say below. You would need to save very aggressively.)

But with a tripled income, I would allow yourself one or two areas of controlled increased spending. Life is happening now - enjoy it. You can afford to, for example, take a nice vacation + have more frequent date nights while still maxing out Roth and 529 contributions, and saving beyond that.

The advice in this sub is generally very good, but I think the idea that life is short can get lost in the sauce sometimes.

pretty clear why you posted this. cyber expert (clearly smart individual) triples their income and is just clueless as what to do next, except post here lol.

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congrats. you tripled your salary. don't start going to vegas every weekend and you'll be fine.

That's the best advice I've read so far. I don't see why op needs to live like he's still making 60k after tripping his income.

>But with a tripled income, I would allow yourself one or two areas of controlled increased spending. Life is happening now - enjoy it. You can afford to, for example, take a nice vacation + have more frequent date nights while still maxing out Roth and 529 contributions, and saving beyond that.

Really? Any state 529?

Exactly what he said.

This is a problem with the software field as a whole. You hear a lot about salaries like this, so you start to assume that’s what everyone makes. In reality, the average salary might very well be $200k, but I’d guess that the median is more or less around $75k. Basically, while there are jobs that pay an insane amount, the vast majority of people aren’t getting them. In fact, I assume the average person with a CS degree or a bootcamp certificate is working an IT style job making $75k give or take

The second problem is that things like Glassdoor seem to struggle with differentiating titles. So many people who graduate with a CS degree or get a certificate end up as “Information Technology Analysts” or some title other than “Software Engineer”, so when Glassdoor says Software Engineers make $XYZ, keep in mind that there’s a very good chance you get some other title that’s paid less

Add to this that it’s actually hard and some people just aren’t good at it, combined with people pursuing it blindly bc money AND with the fact that technical interviews are a thing (ie your interviews aren’t behavioral alone, they test your programming / security skills extensively) ~ we end up with a relatively low median salary & a giant misconception that all “qualified” people have $200k tech jobs

The point is that while you can get a job like OP’s, unless you’re truly good at it and work very hard, you likely won’t get that. Your salary may still be super good compared to other fields ($75k isn’t bad), but you may be sad to find that you left something you loved just to plateau out and never break into that super-mega-high-paying sector

THAT BEING SAID, if you do have the mind for it & you don’t mind working hard ~ you can get a job like OP’s! Because if you work very hard, you’ll show your worth in technical interviews

This is all coming from me, a CS grad with a good software engineering job. I would say that of the ~200-300 people I knew (to varying extents) from my major, maybe like 50 of us have those good jobs and the rest are all working IT stuff or even something totally different. And 50/200 or 300 may seem like a ton but I went to a pretty good university, so the percentage will be higher than bootcamp programs

Just to stress one more time ~ if you have the brain for it and you work hard, you can get the nicer jobs. Tech interviews majorly benefit people who know their stuff. So if you become super skilled, you won’t struggle to find a great job (like OP)

I mean, there are entire books for doctors (white coat investor) who are presumably intelligent individuals and generally horrible with money. He has the intelligence to filter bad replies.

This sub is always going favor aggressive savings and debt payoff over living life in the now, but I agree. If OP has been otherwise able to save and they aren't very behind, it's okay to live a little.

That doesn't mean go buy designer clothes and $100k cars, but if OP wants to upgrade how they vacation, buy higher quality groceries, donate more to their favorite causes, etc they totally have the income to do that.

Honestly? Follow the flowchart. And then with the extra disposable income, buy a mix of both fun and practical things.

One of the larger mental shifts you may have to make is being able to buy premium brands. In some cases it doesn’t matter (cereal). In some cases, it does (vacuum cleaner, dishwasher). You’ll need to do some research of course, but in a lot of cases the premium appliances, tools, and whatnot will save you money long term. It’s just not an obvious thing people think of when they have more income.

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Though you are getting 100k+ on paper, you might be looking at significantly lower pay based on your tax slab and deductions. Regardless, go for max retirement by using all options you have - 401, Roth; emergency savings based on your current cost of living and possible future expenses (renovations, new house, new city); 529 for the kiddo(s); life insurance and disability insurance for you - this is a must if you haven’t had one. Sure, you are here and getting a huge pay check, but if something unfortunate were to happen to you and reduce or completely stop your pay, then you family needs to be taken care of.

I thought 18 paragraphs usually came with the customary TLDR...

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Congrats, that is a huge increase. Happy New Year. 🥂

Well with the child set up the 529 account as well.

Stay conscious of your lifestyle and stay frugal. At off the cars, and start pilling up savings.

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Check to see if you can do a mega backdoor Roth and your new gig... It'll really allow you to pump up those retirement savings. Congrats!

whaddya know. post deleted lol.

my point is this man is capable of finding the sidebar.

Pay attention to the cutoffs and phaseouts on retirement savings, etc. I'd absolutely get debt free too. Having a paid-off house is a fantastic feeling.

35k compounding from post college plus potential no debt would definitely be a start.

I’m always curious why people feel like you can either save aggressively OR live life in the now. It’s absolutely possible to do both. You don’t have to pick between frugal and fun.

TLDR due to many things, people assume that software engineers / computer scientists all make $200k and due to other things, this isn’t true

If you make enough it's easy to do both. Not everyone is fortunate enough to do both.

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