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Early Retirement Extreme Forums » Resources & Recommended Reading

1. 

   SkaraBrae
   

   Apprentice
   Joined: Mar '11
   Posts: 30

   I picked up this book the other day because it's eminently applicable to my life. In the decade that I've been a member of the workforce (much of it part time, or while as a student, but some of it at full time or more), I have not grossed more than $26k in a single year. In fact I only broke $20k 2 out of 10 years.

   I'm just beginning to read Stanny's book and have realized that a web of intertwined, carefully nurtured fears lie at the bottom of my underearning. There may be good reasons why I didn't earn more -- but there was certainly nothing to stop me from finding ways to overcome those reasons. Nothing except the stories my family told, about "rich" people and high-income earners, and their reinforcement by my fellow underearning wage-slaves.

   For some reason, despite priding myself on my independence, I never thought to critically examine any of the beliefs I was indoctrinated with before I picked up this book?!

   Has anyone else read this book, or are you reading it now? Is anyone else struggling with their underearning? (My spouse is an underearner too. I don't know if that is typical, but it seems like it will make pulling out of the spiral a bit more challenging.)

   Posted 2 years ago #
2. 

   Robert Muir
   

   Journeyman
   Joined: Jul '10
   Posts: 280

   Thanks for mentioning the book SkaraBrae. I don't need it, but from what I see on Amazon, it looks perfect for my sister.

   A (more general) book along similar lines is "Linchpin" by Seth Godin. Check it out at the library. Good stuff!

   Posted 2 years ago #
3. 

   m741
   

   Master
   Joined: Jan '11
   Posts: 733

   I'm in the process of reading Linchpin (about 75 pages in). Underwhelming so far but it's easy reading and I'll be done in a few days. I'll give a little summary when I'm done.

   Posted 2 years ago #
4. 

   SkaraBrae
   

   Apprentice
   Joined: Mar '11
   Posts: 30

   @m741, I look forward to the review. I have a habit of trying to read far too much at once, so I'm trying to cut down. I have had to have more than one stern talk with myself about only reading one non-fiction book at a time, and actually APPLYING something from each chapter before I'm allowed to move on. (I'm an INTP to the core.)

   Posted 2 years ago #
5. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   I guess I consider myself an under-earner. This will be my first year over $30k, and that's more a result of working extra hours than any high-income job. But with the changes I made in pursuit of ERE, I'm saving over 75% of income, so it (under-earning, relative to peers) doesn't bother me as much as it used to.

   I would like to earn more, as it would get me to my goals more quickly, but I don't need to. I'll be interested to follow this thread, though.

   Posted 2 years ago #
6. 

   Shandi76
   

   Journeyman
   Joined: Jan '11
   Posts: 111

   @SkaraBrae - I haven't read the book, but you make an interesting point about the possible reasons why you don't earn more. I was brought up by very left wing parents so never considered the idea of working my way up the corporate ladder and instead went into education. I was too much of an idealist when I was younger and my older, wiser self is paying the price.

   @Robert Muir & m471 - I've read Linchpin and was definitely underwhelmed. It might be really great advice in some fields, but not in mine unfortunately. I also think that if you have all the qualities needed to become a linchpin, why not go into business for yourself rather than working for an organization?

   Posted 2 years ago #
7. 

   Robert Muir
   

   Journeyman
   Joined: Jul '10
   Posts: 280

   What I took from Linchpin was to increase awareness of linchpinness so-to-speak.

   If one is a linchpin, then they need to realize their own worth and either demand adequate compensation for that worth or utilize their new awareness to find a place that will adequately compensate the linchpin.

   If one isn't a linchpin, then the realization of the cost of not being one can come into play. Surely the employer knows they're not a linchpin.

   It's amazing how quickly a true linchpin can ratchet up their revenue once they achieve full understanding of their value to employers.

   As for going into business for oneself, that's exactly what I did 9 years ago and it's worked out quite well. That said, not all linchpins work well as entrepreneurs.

   Posted 2 years ago #
8. 

   SkaraBrae
   

   Apprentice
   Joined: Mar '11
   Posts: 30

   @Shandi - I was always told that I should go to university "because it's a natural fit for your academic inclinations". I was told to study what I love, not be income-focused. (As a consequence I studied two years of Anthropology and History, then dropped out with student debt equal to my yearly income.)

   My parents never once mentioned skilled trades to me. They did teach me about job interviewing, but nothing was said of networking, climbing the corporate pyramid, negotiating salary, etc. As a consequence, I've spent my working life hopping between entry level jobs. Right now I'm caught in the call centre trap, and looking to get out of it, while paying off the debt.

   There is a larger company across town that will pay 50-100% more for essentially the same job I'm doing now. Three of my co-workers have actually left my employer to go work for them. I'm in the process of interviewing for a position there, but, man, is this surprisingly hard to do for me!

   I have also debated becoming an entrepreneur. I dabbled in that a little while ago and really liked some things about it. There were some bumps, but I'd be willing to modify it and give it another go with a better business model if this job change doesn't work out.

   Posted 2 years ago #
9. 

   Shandi76
   

   Journeyman
   Joined: Jan '11
   Posts: 111

   @Robert - Yeah, I agree at least partially with what you are saying. I just kind of took from the book that he was saying you need to devote your entire life to your career, and do it not for the monetary benefits, which may or may not come, but for the intangible benefits.

   Because I am in public sector employment, there is no performance related pay, or ability to create new job titles and additional compensation. I do get a few non-financial benefits that are important to me which other colleagues might like to have, but they wouldn't want the quid pro quo.

   I also agree with what you say about not all linchpins making good entrepreneurs. My partner is definitely a linchpin, but he has no business sense. What he really needs is a patron. Or to be employed by some blue-sky research centre.

   @SkaraBrae - Your first paragraph really resonates with me. I 'had' to go to university because I was too intelligent to waste my talents on a non-graduate career, but I was also very keen on 'education for the sake of education' and studied two subjects that had poor or low paying career options, before doing a conversion course to get into computing. Have you thought about what you would like to be doing career-wise (other than retiring asap)? Would it be possible for you to do an apprenticeship, or get an employer to sponsor you through your education?

   Posted 2 years ago #
10. 

    SkaraBrae
    

    Apprentice
    Joined: Mar '11
    Posts: 30

    @Shandi: I'm not much of a skilled tradesperson (although I bet I'd pick it up in a hurry if I wanted!). Right now I work in tech support and am looking to go from third party, end-user support to first party, in-house support. The company I'm applying at is an industry leader here. I would love to have them sponsor certification, but I'm not convinced that certs are really necessary if I can show I have hands on experience. And I can get that in my spare time. :)

    @Ralphy made two comments that I wanted to reply to. First, about the money being due to extra hours. My $26k was due to extra hours also; otherwise I'd be at about $24k. Also, about earning $30k not mattering due to saving 75%+ of income. Right now I am still digging myself out of the debt hole (should be out Dec 2012) and have a spouse who is both decidedly less ERE and refuses to split finances. It is a long process -- and perhaps one that belongs in another thread. But I am in this for the long haul. He knows how much ERE means to me, and I know how much going back to school and shiny computers mean to him.

    Posted 2 years ago #

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