{"id":5694,"date":"2009-08-19T05:00:22","date_gmt":"2009-08-19T12:00:22","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=5694"},"modified":"2023-10-02T14:52:59","modified_gmt":"2023-10-02T20:52:59","slug":"whats-the-difference-between-high-income-earners-and-low-income-earners","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/whats-the-difference-between-high-income-earners-and-low-income-earners\/","title":{"rendered":"What’s the difference between high-income earners and low-income earners?"},"content":{"rendered":"
In June, a user at Ask Metafilter wondered: What are the differences between someone who makes $100,000\/year and someone who makes $30,000?<\/b><\/a> As you might expect, this question generated a lot of discussion \u2014 all of it interesting.<\/p>\n Many commenters noted that, from their experience, high-income earners generally exhibited several of the following traits:<\/p>\n A few commenters noted that there are two other factors that absolutely play a role in how much a person earns. Chief among these is choice of profession. Even if you’re the best damn high school physics teacher in the world, you’ll still probably earn just $50,000 or so. (But if that gives you a fulfilling life, that’s probably worth more than a high salary.)<\/p>\n Hard work, etc. do not guarantee<\/i> a higher salary \u2014 but they do improve the odds.<\/b> A second oft-overlooked factor is luck. Chance. Happenstance. There’s no question that luck plays a role in how much a person is paid. But as I’ve argued in the past, in most cases luck is no accident<\/a>. It’s possible to make your own luck<\/a> \u2014 to a degree.<\/p>\n There are many great comments in the Ask Metafilter discussion<\/a>, including a mention of a Platonic dialogue<\/a> about wealth and economics. One of my favorite comments is from decathecting, who writes<\/a>:<\/p>\n Lots of people make six figures, including plumbers, business managers, attorneys, high school principals, military officers, technicians, landlords, psychologists, and people in thousands of other professions. The common denominator is that they’ve figured out what they’re good at that other people are willing to pay them to do<\/b>.<\/p><\/blockquote>\n From my own experience, I know that while I was stagnant and uninterested in my career, my income was also stagnant. It wasn’t until I decided to take charge of my own life that my financial situation improved \u2014 including the amount I was earning.<\/p>\n I’ve seen the same in the lives of my friends. It’s easy to coast, to become complacent. But it’s important to remember that with incomes especially, nobody cares more about your money than you do. If you want to earn more, you<\/i> must play an active role in obtaining the money.<\/b><\/p>\n Finally, I want to note that a high salary is not the the panacea that many people believe it to be.<\/p>\n Sometimes the costs of a high income make the payoff less than you might expect. For example, I have a friend who is an attorney. He makes a fair amount of money. But he’s also burdened by outrageous student loans and business expenses. Though his income is high on paper, it’s actually rather modest after he’s paid for his necessities.<\/p>\n\n