Career & Employment Archives - Page 2 of 30

Who Makes A Million Dollars A Year? Exploring The Top 0.1% Income Earners

Published: 07/18/2020 | Updated: 01/03/2021 by Financial Samurai 155 Comments

Have you ever wondered who makes a million dollars a year? Making a million dollars a year or more puts you in the top 0.1% of income earners in the world. And apparently, plenty of people make more than a million dollars a year nowadays!

If you want to get rich, you might as well focus on joining industries that pay very well. But there’s more to just joining a well-paying industry to get you to a million dollar income. You’ve also got to perform at a high level, survive cutthroat competition, and receive lots of luck along the way. Let’s see who makes a million dollars a year.

Corporate politics can be brutal on your climb to the top of the pyramid. Oftentimes, it’s those who’ve been able to successfully sell themselves internally who achieve the greatest rewards.

During my career in investment banking, I was too defiant. Despite getting promoted quickly in my 20s, I stalled in my 30s because I didn’t want to relocate to grind cities like New York or Hong Kong. Nor could I pretend to like enough people who could push me forward. In the end, I decided to see what I could do entirely with my own fingers.

Today, we know that an American top 1% income starts at around $470,000. We also know that a top 1% income varies by age as well. For those interested in making a top 0.1% income, let’s take a look at some career profiles.

I think you’ll be surprised at exactly who makes a million dollars or more.

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Definitions Of A Middle Class Income: Do You Consider Yourself Middle Class?

Published: 06/06/2020 | Updated: 01/12/2021 by Financial Samurai 196 Comments

A middle class income is all you need to be happy. However, we are a society who always wants more. Even after we reach an arbitrary income level, we aren’t satisfied for very long. This post will go through the various definitions of a middle class income.

We Think We’re All Middle Class

I have a theory the majority of us, no matter how little or how much we make, consider ourselves part of the middle class. When I worked at McDonald’s for $4 an hour, I was dirt poor, but considered myself middle class because both my parents had jobs and I had a bicycle and a cozy home to come home to.

When I finally graduated from The College Of William & Mary and started making more money, I felt poor because all I did was work in expensive New York City!

For example, I shared a studio with a high school classmate for $2,100 a month and that was in 1999. It was the only way I could attempt to achieve financial independence on a modest income.

It was only after I moved to San Francisco did I feel I was part of the middle class again. Money was more plentiful, a starter home back then was “only” cost about $1,100,000. I also had more free time to explore.

I’ve experienced all three classes to varying degrees and I believe there are wonderful merits to each of them. From the poor Haitian immigrant who goes to college and becomes the first black female mayor in Utah, to the billionaire investor who gives 99% of his net worth to charity, everyone tends to come to center.

My favorite class is the middle class. But first, we must define what middle class means.

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Candid Advice For Those Joining The Startup World: Sleep With One Eye Open

Published: 05/19/2020 | Updated: 01/15/2021 by Financial Samurai 72 Comments

Thinking about joining a startup to get rich in the new decade? You’re not alone. After so many successfully IPOs, during a pandemic no less, startup fever is high!

There’s been a great shift away from traditional careers like big law, medicine, and banking towards joining startups. With promises of riches and the greater ability to make an impact, who wouldn’t want to join a startup?

The Importance Of Equity Ownership

Ever since college graduation in 1999, I’ve had equity ownership in every single company I’ve worked for. When you get equity, no matter how small it is, you tend to pick up the litter in the hallway, champion your company outside of work, and work harder than the actual value of your total compensation. In short, having equity makes you care more!

Pride of ownership is important for maximizing employee production. There’s just one problem: sharing.

If you’re a founder, you’ve got to have the generosity and foresight to let your employees share in your company’s equity. Giving up equity is one of the hardest things a founder can do because we are all naturally greedy. We want everything for ourselves despite the need for great people to make our company a raging success.

Sometimes, we’d rather fail and hold onto everything than give up equity in order to succeed. Irrational.

As an owner of an online business and as a consultant/advisor for startups, I straddle both sides of the fence. I’ve found it impossible to get truly passionate about something without any equity.

Working with no equity feels off. It makes me want to do only 101% of what is expected, not 130%. I wonder if this is how much of the workforce feels where they don’t have any stake in the organization they are working for? Please let me know.

If you want to join a startup, this post offers up some candid advice. I’ve lived in San Francisco, the startup capital of the world, since 2001. I’ve seen the good and bad. This post is a 3,500 word beast that will make you see the world a little differently by the end.

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How To Get Revenge From An Old Employer Who Fired You

Published: 05/12/2020 | Updated: 01/14/2021 by Financial Samurai 77 Comments

Do you want to learn how to get revenge from an older employer who fired you? Then read on! In this mercenary day and age, it’s every person for themselves. Companies are no longer loyal to employees.

To get revenge from an employer who fired you, you must think deeper.

“What is the most resilient parasite? Bacteria? A virus? An intestinal worm? An idea. Resilient… highly contagious. Once an idea has taken hold of the brain it’s almost impossible to eradicate. An idea that is fully formed – fully understood – that sticks; right in there somewhere.” – Dominick Cobb, Inception

One of the benefits of sitting in my seat is that I continually receive amazing perspectives from readers who hail from all over the world. Sometimes I share these insights with you, and sometimes I greedily just keep them to myself. One reader wrote in from New York City and shared a job revenge strategy that I had never heard of.

Scenario: Let’s say you feel your employer wronged you by letting you go without cause. You’re pissed because you gave up a great job opportunity to work for them.

To lure you in, they showered you with expectations of a big bonus and fancy title. But after 11 months, they kicked you to the curb because they could. Employment is at will, and they had the will to cut you loose a month before paying your promised bonus!

You’re livid and want REVENGE! Here’s how to do it. Careful your boss doesn’t see you reading this post.

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How To Become A Rockstar Independent Contractor

Published: 05/07/2020 | Updated: 01/07/2021 by Financial Samurai 44 Comments

The government estimates that roughly 31% of the American workforce are independent contractors. Meanwhile, Intuit did a study a couple years ago saying that 40% of the American workforce, or ~60 million people will be freelancers, contractors and temp works by 2020. Well, it’s 2021+ now and more people want to know how to be a rockstar independent contractor than ever before thanks to the global pandemic!

It’s clear the trend towards independent contracting / freelancing is on the rise thanks to technology and the Internet. Company benefits like pensions and 401k matches, are also declining. Finally, everybody wants to be free from the constrains of full-time work.

79% of independent contractors say they are happier working on their own. This is according to the 2019 edition of the State of Independence report from MBO Partners, a business services company focussing on the self-employed.

As someone who unexpectedly consulted for the financial technology industry over the past seven years thanks to my site, I strongly believe independent contractors will overtake full-time employment in the near future. Furthermore, you can actually make a lot more money as a freelancer than a full-time employee if you pack your schedule.

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Taking A Vacation From Parenthood By Going Back To Work

Published: 05/07/2020 | Updated: 01/10/2021 by Financial Samurai 170 Comments

Being a full-time parent is hard. It’s way harder than any day job I’ve ever had. And I worked in the high-pressure world of investment banking fo 13 years. After being a stay at home father since early 2017, I long to take a vacation from parenthood by going back to work.

Entrepreneurship, Day Job, Parenthood

One of the things I learned after leaving Corporate America is that entrepreneurship is much harder than a day job. When you have to be the marketer, the creator, the accountant, the publicist, and the customer support, you often wonder how you can make any decision to move your business forward.

But after almost four years of being a full-time parent, I’ve come to realize that being an entrepreneur is a walk in the park in comparison! Full-time Parenting > Entrepreneurship > Day Job in terms of degree of difficulty.

As a stay at home dad to a newborn, you realize why sleep-deprivation is an effective torture technique used by the CIA. You experience mini-heart attacks on a daily basis because there’s always a close call as they learn to crawl and walk.

You endure pain in your knees and back because you constantly get down on their level to make a connection. Your patience is tested as you read the same books, work on the same dexterity exercises, and use the same hand signs over and over again. Then of course there’s the diaper changing, temper tantrums, and crying.

Despite all the difficulties of child raising, I wouldn’t trade the initial years of parenthood for the world. The joy you get from seeing your little one smile and waddle into your arms when you enter the room is priceless. There’s also an incredible sense of satisfaction helping your baby reach milestones.

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Examples Of Good Resumes That Get Jobs

Published: 05/01/2020 | Updated: 01/04/2021 by Financial Samurai 167 Comments

With the coronavirus pandemic causing local economies to shelter-in-place for months, finding a job is harder. Millions of jobs are not coming back either. Thus, having a good resume is crucial for getting a job. Below you’ll find many examples of good resumes to help get your own in top shape.

Before I share some examples of good resumes, let’s do a quick review of the best time to get a job and some general resume tips.

The Best Time To Get A Job

In normal times, the first half of the year is when ideally all hiring shall be done. This is because:

1) The best available people are still available. There is a bias against people looking in the 3rd and 4th quarter because rightly or wrongly, companies may wonder what’s wrong with you for not having found something earlier.

2) Companies need to spend their budgets while they are still available. There’s no time like the present.

3) Hiring an employee at the start of the year gets the most out of the employee, especially if there is a guaranteed compensation package.

If you find yourself looking for a job in the second half of the year, it’s important to hustle a little more or prepare for activity to pick up in the spring.

Don’t give up hope. Use this time to plan more thoroughly. And utilize the examples of good resumes below to improve your own, especially as economies start opening up.

I’ve seen over 10,000 resumes in my 13-year career in finance and hopefully this article can help you build an excellent resume. An excellent resume should be standard, not the exception.

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Is Your Job At Risk? How To Protect Yourself From A Mass Layoff

Published: 04/30/2020 | Updated: 06/28/2020 by Financial Samurai 56 Comments

One of the most curious things about the stock market is that it’s slow to rise and FAST to fall. This phenomenon simply points to the human condition of being cautiously optimistic when times are good. And then people absolutely freak the freak out when times are not! Scared that your job is at risk? Don’t panic. By the end of this post you will know how to protect yourself from a mass layoff.

Mass Layoffs Hurt Millions

The government forced shutdowns in 2020 due to the coronavirus has led to many a company having a RIF through a mass layoff. RIF stands for reduction in force.

Unemployment levels in the US and around the world skyrocketed. Over 44 million Americans filed for unemployment as a result of the lockdowns. Take a look at the chart below.

Lucky employees have managed to escape a mass layoff, but still fear losing their jobs. Others, have been temporarily furloughed and anxiously await news on if and when they can return to work.

Laid Off Versus Furloughed

Getting furloughed is different from getting laid off. When an employee is furloughed, they must take an unpaid leave of absence. The leave of absence may be short-term or long-term. It all depends on the employer and the state of its financial hardship.

However, furloughed employees can typically retain employee sponsored health insurance and retirement benefits. In addition, furloughed employees are eligible to receive unemployment benefits.

In contrast, when an employee is laid off they lose all ties to the employer. They are not able to return to their jobs in the future. They also lose employer sponsored benefits as well. However, some benefits may still be available for a short-term period after their last day of employment.

Employees who are able to negotiate a severance package, leave with the most. They can receive severance money, retain health insurance for a short time, collect unemployment, get paid unused vacation days, get paid deferred compensation, etc.

Managers Overreact On The Way Down

Hiring managers are just as bad as investors. Not only do they tend to over-hire on the way up because it’s not their money they’re spending, but they also tend to over-fire on the way down because it’s not their lives they’re hurting.

They selfishly think that the more people they let go, the better their chances are of keeping their own jobs! Stock market corrections of 10-20% are enough to make managers wig out, even if the markets are still up 50% since the day they started.

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The Best States For Unemployment Benefits: Would You Work If You Could Make $1,800 A Month Doing Nothing?

Published: 04/27/2020 | Updated: 01/13/2021 by Financial Samurai 119 Comments

Let’s go through a detailed look at the best states for unemployment benefits. With the pandemic causing tremendous job loss, some unemployed people are fairing better than others.

“Why work if I make $1,800 a month in unemployment benefits?” was a question asked to me by someone I met in the hot tub. At 28, Julie has been on unemployment for over 20 weeks. Her old job was as a designer for Billabong USA. During her time off, she’s been selling some of her paintings via Facebook where she posts her portfolio. Of course, all her art earnings are not reported, otherwise, her $450 weekly benefits will start getting garnished after the first $25 dollars of income earned.

We’ve stayed in touch over the year and she’s been generous enough to give me some insights into the unemployment process. She’s planning a two month trip to Jamaica with her friends, and she wants to do the right thing by suspending her unemployment benefits for that time period because she won’t be looking for work.

Despite her good intentions, she could not get through to the California Employment Development Department (edd.ca.gov) after calling 58 times. That’s right, 58 times!!

So guess what? She’s going to Jamaica for two months and will have her friend back in California fill out her bi-weekly continued claim form. One of the questions she will have to answer is, “Did you look for work during the week?” She will answer, “No.”, but undoubtedly, her unemployment benefits will still hit her Bank of America debit card like clockwork.

WOULD YOU WORK IF YOUR UNEMPLOYMENT BENEFITS EQUALED HALF YOUR EARNINGS?

$1,800 equals $21,600 a year in unemployment benefits. Back during the financial crisis of 2009-2011, President Obama has graciously allowed all Americans to collect up to 99 weeks, or $44,550 in unemployment benefits. Now that the financial crisis is over as of 12/8/2015, there is no more federal emergency unemployment benefits. The best we can now get is 26 weeks maximum by state on average.

If you make $44,000 a year, which is the income level you need to have in order to qualify for maximum benefits, would you bother finding another job making $35,000-$44,000 a year if you could make $21,600 a year ($1,800/month for six months) and do nothing?

Earning money under the table is rampant. You can sell artwork like my friend, or teach lessons for cash. There are random hole in the wall restaurants who have “no credit card” policies. Why you ask? Because they are not reporting their full income and have separate books for the IRS. We all know that accepting credit cards is way easier than only accepting dirty cash in a restaurant.

Take a look at income profiles of financially free people who are hustling to make more money on the side. There are a lot of people making a lot more money beyond their W2 income.

I don’t feel annoyed at all at my friend for collect unemployment benefits. She is holding out to the very end to find that ideal job. The government has allowed her to be patient, and that’s exactly what she’s doing. In fact, I feel happy that she gets to receive some benefits back from the government, since so few of us taxpayers even get 20% of what we pay to the government back.

THERE ARE STATES WITH EVEN BETTER UNEMPLOYMENT BENEFITS!

After doing some more digging, I’ve come to realize that California doesn’t even have the best unemployment benefits despite being a high cost State. Hawaii has even more generous benefits at around $525 a week, or $2,100 a month!

1. Hawaii
Percentage of Weekly Wages Covered By Benefits: 54.3%
Average Weekly Benefit Amount: $416
Unemployed Receiving Benefits: 43% (Seventh Highest)
> Unemployment: 6.3% (Ninth Highest)

2. Rhode Island
Percentage of Weekly Wages Covered By Benefits: 45.9%
Average Weekly Benefit Amount: $380
Percentage of Unemployed Receiving Benefits: 27% (Eighth Lowest)
Unemployment: 11% (Fourth Highest)

3. Iowa
Percentage of Weekly Wages Covered By Benefits: 44.9%
Average Weekly Benefit Amount: $321
Percentage of Unemployed Receiving Benefits: 40% (16th Highest)
Unemployment: 6.1% (Sixth Lowest)

4. Kansas
Percentage of Weekly Wages Covered By Benefits: 44.7%
Average Weekly Benefit Amount: $326
Percentage of Unemployed Receiving Benefits: 35% (20th Highest)
Unemployment: 6.8% (12th Lowest)

5. North Dakota
Percentage of Weekly Wages Covered By Benefits: 44.6%
Average Weekly Benefit Amount: $310
Percentage of Unemployed Receiving Benefits: 36% (24th Highest)
Unemployment: 3.6% (Lowest)

6. New Mexico
Percentage of Weekly Wages Covered By Benefits: 43.7%
Average Weekly Benefit Amount: $316
Percentage of Unemployed Receiving Benefits: 32% (28th Highest)
Unemployment: 8.1% (23rd Highest)

7. Wyoming
Percentage of Weekly Wages Covered By Benefits: 43.3%
Average Weekly Benefit Amount: $337
Percentage of Unemployed Receiving Benefits: 34% (22nd Highest)
Unemployment: 6.2% (Eighth Lowest)

8. Utah
Percentage of Weekly Wages Covered By Benefits: 43.1%
Average Weekly Benefit Amount: $316
Percentage of Unemployed Receiving Benefits: 27% (15th Lowest)
Unemployment: 7.6% (17th Lowest)

9. Montana
Percentage of Weekly Wages Covered By Benefits: 42.5%
Average Weekly Benefit Amount: $272
Percentage of Unemployed Receiving Benefits: 48% (5th Highest)
Unemployment: 7.4% (14th Lowest)

10. Washington
Percentage of Weekly Wages Covered By Benefits: 42.3%
Average Weekly Wage Paid: $384
Percentage of Unemployed Receiving Benefits: 33% (25th highest)
Unemployment: 9.2% (16th highest)

Unemployment Benefits By State In A Pandemic

Here is the chart of the best states with the highest unemployment benefits during the pandemic. The first CARES Act is finished. However, there is more unemployment benefits help on the way in 2021.

Recommendation For Leaving A Job

If you want to leave a job you no longer enjoy, I negotiating a severance instead of quitting. If you negotiate a severance like I did back in 2012, you not only get a severance check, but potentially subsidized healthcare, deferred compensation, and worker training.

When you get laid off, you’re also eligible for up to roughly 27 weeks of unemployment benefits. Having a financial runway is huge during your transition period.

Conversely, if you quit your job you get nothing. Check out the book How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye.

It’s the only book that teaches you how to negotiate a severance. It was recently updated and expanded thanks to tremendous reader feedback and successful case studies.

Start your own business: One of the best ways to make more money is to take matters into your own hand and start your own business online! It used to cost a fortune and a lot of employees to start your business. Now you can start it for next to nothing with Bluehost. Brand yourself online, connect with like-minded people, find new consulting gigs, and potentially make a good amount of income online one day by selling your product or recommending other great products.

Not a day goes by where I’m not thankful for starting Financial Samurai in 2009. I have maximum freedom now thanks to working on my side-hustle while working for 2.5 years. You never know where your journey will take you!

Updated for 2021 and beyond. Maximum unemployment benefits is now only 26 weeks provided by the state.

States With The Highest And Lowest Unemployment Benefits

Published: 04/20/2020 | Updated: 01/04/2021 by Financial Samurai 48 Comments

Besides dying, one of the worst things to come out of the coronavirus pandemic is the massive number of Americans losing their jobs. Millions of people are trying to figure out how to get the highest unemployment benefits possible to stay afloat.

On the flip side, the federal government significantly boosted unemployment benefits. The CARES Act provides an additional $600/week through the week of July 31, 2020. Another round of stimulus just passed for 2021 that will provide for another $600 stimulus check and enhanced unemployment benefits for another 12 weeks.

Before the CARES Act was passed, the typical maximum unemployment benefit duration was 26 weeks provided by the state.

Having millions of people out of work is terrible. However, the optimist would say millions of people are benefitting from enhanced unemployment benefits during a difficult time.

Let’s take a look at the states with the lowest and highest unemployment benefits. I’ll then add on the temporary $600/week to see what the total maximum unemployment benefit a person could get. It will take a long time to roll out the vaccines to achieve herd immunity. Therefore, expect to see more enhanced unemployment benefits in the future.

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