I was working at a start up making 50k a year, but they ran out of cash and as soon as word started to get out, everyone got offers from other companies.
I just accepted an offer to work at a big tech firm for 120k, plus an annual bonus.
Any tips on how to manage a massive sudden uptick in income?
Invest it, dont spend a cent extra. Thats the real secret behind wealth. Most people will get a raise and spend the extra money, which is a bad idea.
Is this actually something that happens? Most of my friends who worked at startups that went OOB had to go job hunting...
If they match 401k put in as much as possible.That's a start w/free extra money.
They do, should I put in more than they match?
I took some finance classes in college and have the crux of marketers and equities down, should I manage my own portfolio? 120k doesn’t really seem like it’s worth hiring a manager or fiduciary or something.
Don't buy brand new cars
Don't go on expensice vacations
Don't use instagram
Dca into s&p500 and slowly into btcð
Be patient
I wish I could make that much money, but all I can do is fucking draw.
give it away to poor muslims in your city.
they need the money more than you!
read mr. money moustache
buy VTSAX
max out 401k every year
invest in taxable accounts too
Max out your 401k contribution, up to what your employer matches. E.g. if you work at Facebook, they match up to 7%, so you should put in 7%. There’s not much benefit to putting in more than what your employer will match (and you might hit the federal limit for 401k contributions), so don’t go higher than what you have to in order to maximize what your company pays you. I suggest you go with a pre-tax (not a Roth) 401k. Put it all in a Target 2060 retirement fund, if your company’s 401k offers target retirement funds.
Then you should open a Roth IRA on Vanguard and deposit the maximum amount every year. The limit for this year is $5,500 and next year’s is $6,000. Also put it all in a Target 2060 retirement fund.
Take any leftover money and put it in a brokerage account. This is your YOLO account. Buy whatever stocks you think will do well.
That’s pretty much it.