I don’t want to send the wrong message. I’ve chosen the path I’m on, I take full responsibility for it, and knowing what I know now, there is a good chance I would still do it again. But if you’re frustrated with your income, I want to pull back the curtain and give you a taste of what it really costs to make six figures and up. I don’t want to trivialize your situation. I spent years of my life in circumstances of scarcity to the point where I still struggle with strange personality quirks that are probably rooted in those experiences. I don’t want to go back there. So in the interest of presenting both sides as fairly as I can, I’m going to write a second post to follow this one called “Why You Want to Make the Big Bucks.” But today, we’re looking at why you wouldn’t want to. Here are my reasons, in no particular order.
- You will have very few friends at work.
Sure, people might act friendly to your face. But nothing happens in a vacuum these days. They may not know the exact amount you make, but they know it’s a lot more than they do. And jealousy can definitely make people treat you differently. You may even have people trying to take you out in an attempt to get what you have for themselves. Additionally, in order to survive in a very high income position, you have to do unpopular things. If you’re in management, you will have to fire people, you will have to tell people NO all the time, and you will have to choose between options that seem terrible to everyone below you while ignoring the options they prefer because they simply aren’t feasible. If you’re in sales, you will have to fight for your deals. Hard. You can do all you want to try to maintain a relationship with an office employee. But when he is standing between you and payday, you’re going to roll over him or go over his head. If you don’t, you not only won’t make money, but you’ll eventually be fired for lack of production. Having more power may appear to give you more options. But once you have it, you realize that those options are limited by factors people on the outside rarely see.
- You will have a difficult time knowing if you have friends at all.
I have some wealthy friends who you would never think have more money than anyone else. If you were to meet one of them in a day to day situation, you’d see someone driving a normal car, wearing normal clothes, living in a normal house, etc. This isn’t just an effort to save money, or even to live modestly out of personal preference. It’s also an effort to hide. Lottery winners and sports heroes often don’t have that option and that is one reason so many of them wind up broke. They’re human beings just like anyone else, and they want to have normal relationships in their lives. But bad actors know that and they work their way in, taking advantage of any trust that is placed in them. Of course, there is a big difference between Adrian Peterson, who everyone knows has (or had) tens of millions to his name, and someone who has a mere one or two million in the bank. But the concept works similarly for both. Is that new girlfriend with you because she likes you and enjoys spending time with you, or is it because she can smell a payday if she can only get herself married, pregnant, etc? You want to trust her. But it is very difficult to know if you should. Often you won’t find out for sure until it’s too late.
- You will have a huge target on your back.
Like most companies in our industry, my employer has been under serious financial stress recently. Cost cutting has become necessary. And guess what? Firing highly compensated employees is a much quicker method of accomplishing that than firing low or average paid ones. I’m not saying people in the latter group will never lose their jobs. But if you make a lot of money and you’re not an elite level performer, you’re definitely the low hanging fruit. Even some of our most successful sales people are feeling the heat now.
- You will be in high demand…until you’re not.
I wrote about how a lot fewer people than you think make big money just last week. That means that especially within a particular industry, most people near the top will at least be aware of each other. If you’re fired, word will get out quickly along with all sorts of rumors and theories about why it happened. If you want to move to a different company, you will probably wind up working with people you know from the past. This can be either a good thing or a bad thing. But in a world where even the nicest people have to do some pretty ugly things to get to the top, it is bad more often than it’s good. And if you lose your job as a result of your industry tanking, it’s going to be very difficult to find another one because the other companies that could best utilize your skillset probably aren’t hiring. There are plenty of those people in my life right now, whether they’ve been fired or are just at the point where they feel a switch is their best option.
- You will be expected to give absolutely everything you have and it will never be enough.
There is no clocking out when you make six figures. You can’t really even go on vacation. You would basically just be working from home, except from a different place. If you have a family, friends, or other personal commitments, they will come second more often than not. The other option is to find another job. And remember, you’re a highly compensated employee. So when you succeed, well, of course you did. That’s what we pay you for and frankly, you still should have somehow done better. And when you don’t, you’re crucified – whether it was a result of factors under your control or not. Simply put, you’re paid to win, that’s expected, and anything less is a failure even if you did the best job you possibly could have.
- You will make a lot less money than you think.
Political pandering aside, the reality is that unless you’re part of a small fraction of the top 1% of income earners, you don’t have access to most of the accounting tricks that allow the truly rich to avoid some of their tax liability. And even if you are, the numbers don’t lie. In 2016, the top 1% of income earners made just shy of 20% of income in the US, but paid nearly 40% of the taxes. For the top 10% of earners, those numbers were about 50% and 70%, respectively. Meanwhile, the bottom 50% made almost 12% of the income, but paid only 3% of the taxes. Keep in mind that these statistics are just for federal income taxes. Making a lot of money is very expensive just about anywhere the government is involved. Long story short, the more you make on paper, the less of your income is actually yours.
When people talk about money, they tend to focus on the benefits and ignore most of the costs. The grass is always greener on the other side of the fence, as they say, but things are never quite as easy or wonderful when you make the effort to put yourself in someone else’s shoes and view them objectively. Like I said at the beginning of the post, my personal verdict is that I’ll take the money – at least for now. But everything has its cost. Plenty of people would be capable of making very high incomes, but they choose not to make the sacrifices required. And that’s fine – perhaps even admirable. There are definitely more important things in life than money and the higher you go on the income ladder, the less of any of them you tend to have. The most effective decisions in life are made when all costs and benefits are factored in. If I’ve given you a window into the costs of something very few people actually get to personally experience, then I accomplished my goal with this post. And it isn’t all bad by any means. Stay tuned…