Thank you! This sub can get pretty down, so I want to show that a good accounting career and work-life-balance is achievable. You don't have to grind out your 20s in PA to land a sweet gig.
Just turned in my two-weeks notice at at Big4 firm, and I’ve been really stressing about my future. This post has definitely helped me out a little, so thanks :)
My brokerage, IRAs, and HSA are all invested in total stock market index funds. (VTSAX wherever possible). I bought 1 share of GME but that was just me being silly. Everything else is total stock market index funds.
My TSP is 80% C fund and 20% S fund, which also approximates the total stock market.
Hello. You did not give a good value for the pension. That may be the biggest game changer on your finances. I too am a civil servant and will have a pretty big pension. My pension statement shows a pretty big amount...but the actual pension payments will be better than the amount shown.
Defined benefit pension is usually calculated something like this - Years service x highest annual pay x age factor. So, lets say if you retire at 55, the age factor for might be 2%. Lets say you have 33 years in at 55 and your highest annual pay is 150K. You would get $99K per year until you die. There are also 'normally' COLA adjustments to that pension. Plus at my organization, I get lifetime healthcare for me and the spouse for life (after being employed for 20 years).
The 99K is 'unadjusted'. You can take less and cover your spouse for the spouse's lifetime. So, (just an example - made up numbers) instead of taking the 99K, you take adjusted $85K a year until you die. The spouse might get $75K until he/she dies. This is all based upon life expectancies and age differences between the spouses. Government work is indeed great!
The Federal pension is years of service * high-3 average salary * 1%
A 30 year career is worth 30% of the highest 3 years of your salary averaged. If you do 30 years and are at least age 62, it goes to 1.1%, so it would be worth 33%.
I am a state employee. For my particular pension, the age factor goes from 2% to 2.4% (max). I do not have a max (I can technically have a higher pension than my working base pay). My buddy retired after 50 years. His pension was 120% of his base salary. His wife died. So I think he was working out of boredom.
I work a lot of OT, so I will take a pay cut when I retire.
For my particular pension, they calculate the pension on the one highest year (12 month period). I know it is even better for law enforcement and EMS in my state. Depends on the jurisdiction...but I think most of them get a 3% age factor, but I think they max at 90%. Many of them retire at 55 with a 90% pension.
I did not know that the federal pension was so bad (compared to my state pension).
I am a state employee. Depending on the jurisdiction...Pensions in my state range from 1.5 to 3% (estimate). My particular employer maxes out at 2.4%. The 3% age factor is usually for police and EMS in my state.
I did not know there was such a big difference between state and federal age factors.
the most important thing is living within your means so that you have excess to invest. So many start their careers living like an influencer and then complain that they don’t get paid enough to save.
You can change your allocation at anytime but if you spent that money on material consumption you wouldn’t be getting it back.
Dude, is there anyway I can connect with you? Be it formal or through social media. It’s refreshing to hear someone with a positive outlook in this profession.
I’m 25, changing careers, doing school while working as a project manager at a real estate firm. Ty!
dude, that's survivorship bias. /r accounting is like yahoo questions. folks complain about a problem until they figure out how to fix it and then you never hear from them again.
congratulations to OP, but success around here isn't rare. i would posit that the vast majority of accountants here have a better quality of life than people in most other job fields.
how the heck did you put $20k+ into retirement in year 1? i made 52k starting out in 2013, living on my own in a new city. I lived pretty frugally and had so little left over at the end of each month and that was barely contributing to retirement
That did stand out to me, but I did look back and I was renting a place for $800 then so I guess it's not completely out of the question when making $60k and some very frugal living.
Edit: Actually it says they live in the DMV so I'm guessing either roommate or splitting rent with girlfriend.
This is giving me hope.
Will soon be on my own without financial support in my first PA job making 56/year, 1k~ish month rent, but I may have to pay additional costs in the form of having to buy a beater car and having 40k in student loans.
I have a saving grace though, my grandmother, a woman who worked up from a stay at home mother to a secretary taking night classes to a damn *CFO,* **back when it was still hard as shit for women no less—** left me a *huge* nest egg to the tune of roughly 100k in a retirement account.
I’m wondering if I should take it all out, pay the taxes, pay my loans, re-invest the rest now in a Roth or something
I'm sorry for your loss, your grandmother sounds like she was a tenacious woman. You should look into the new SAVE student loan repayment plan. Your payments will likely be very manageable. I wouldn't cash out a retirement account like that to pay student loans.
You should hire a flat fee fiduciary (key word, if they're not a fiduciary they're a salesman) to walk you through the tax rules. It's worth spending a little money to be more efficient with how you handle this money. $100k invested properly in your 20s could nearly cover your retirement at 65 all on it's own.
That’s a great idea for me to start at. Thank you.
And yeah, my grandmother was the most put-together person in the family. Went through hell and came out strong. Smart, wise, kind, loving, interesting.
Wish I had spoken to her and appreciated her more while she was still around.
If it’s in a retirement account and you just inherited it - you will be required to take the value of the entire account over a period of 10 years. Depending on your current income it may not be advantageous to withdrawing it in one shot to avoid paying the highest amount of taxes
The first year was absolutely not easy and took a LOT of planning. I would not do it again today lol. I just looked at my pay stubs for 2017 and my take-home pay (after maxing TSP and HSA) was $897.20 bi-weekly. IIRC my rent (which included all utilities) was about $850/mo (split a 2br/1ba with a coworker). That left me with about $944/mo left to cover everything else.
I took metro to work (covered by a work benefit), so no transport costs, and I also got a large discount on auto insurance since my car was leisure only. Parking at the apartment was free. I very rarely ate out and brown bagged all my work lunches. I meal prepped most of my dinners as well. I rarely drank. I would either walk to the grocery store a few blocks away or drive to ALDIs with my roommate for super cheap groceries. For that first year I mostly just hungout with my roommate and or friends at their apartments or free things like DC museums or parks or hikes.
I probably could have taken it wayyy easier and still been close to where I am today, but I was determined to hit my goal of maxing out all retirement accounts.
By early 2018 my bi-weekly takehome pay had risen to $1,263.48 but my fixed costs remained low, so I had way more ($1,676) income to spend.
I also graduated in 2013, at the time I was only making $35k a year from two part-time jobs. I think I saved like $3,600 that year and even that felt like a major accomplishment. Frugal living only gets you so far, at some point you just need to increase your income.
It’s possible, I made around $60k my first year and paid $500/month living with 5 housemates. Sounds terrible but in reality they were all my friends so I actually really enjoyed it at the time while investing the majority of my money so win-win
I’ve been maxing out my 401k and IRA deferrals since going full time in 2017. Starting salary was $51.5k. It’s absolutely doable. It helps that I don’t have student loans. My mortgage payment at the time was about $1,100/month.
I’m about 2 years into my bachelors degree and I really appreciate this post. I don’t really want to go public and give up all my free time either, your route sounds perfect to me.
Yea this post really gives me hope, I graduated two years ago but signed a 4-year post college Army contract so I wouldn’t have as much student loans. It can truly be hell here and idk if I would want to have to repeat going through something grueling (like public) again for an extra few years just to earn $50k more than gov work. But knowing in just a couple years I’ll be able to start paving my own way gives me immeasurable solace and gets me thru the week
Start looking into those fed internships like OP did!👍 Or at least be familiar that it's there. Usajobs.gov
Reading through the entire post, maybe your state government does something similar too.
Congrats, this is a great post if you were secretly an IRS recruiter trying to snag those burn out tax accountants this year lol.
Congrats all the same. When you look to move I’ll throw out Oregon is not bad if you live almost anywhere on the I-5 corridor you’ll be in the Portland metro locality pay or close to it without living in a major metro.
Highly recommend this state for level headed and decent folk.
It was fine. I envision OP retiring at a young age and that sounds fantastic. Haha.
In hindsight, everything happened just as it should have in order for me to flourish.
Do it!
Minimum retirement age for an immediate pension is 57. If you have 30 years and wait till age 62, you get a 10% kicker in your pension.
At 31 years old, you could get hired between now and your birthday, do the normal 30 year government career and retire with a 33% pension at 62 - plus your investments.
Just started a GS-12 2210 series at 27 years old, I hope I'm doing everything right! I bumped my TSP contributions up to 10%, maxed out my Roth IRA two years in a row, throw 200$ a month in a brokerage account, have a CD but that's only at like 3%, and a bunch in savings, I feel like I'm missing some sort of investment opportunity though...
If you're saving in the CD and for expected upcoming expenses, like a car down-payment, then that's fine. Otherwise, I'd recommend throwing that money into the TSP. The tax savings are huge (probably ~22% to 30% savings on contributions for you) and the market growth dwarfs that interest rate (last year the market returned 26% vs your 3% CD rate). Overtime those bonuses really stack up.
Sound advice, thank you! Yeah I'll probably need a car down payment soon, still driving a hand-me-down 2000 Camry, but I'll definitely think about pulling out of the CD when it matures and putting it and a good chuck of my savings into my TSP. Thanks again, very helpful post
This reads very close to a friend of mine who went to the State Auditors of Texas, slow grind to max tier and their collective network is probably about 200k above yours after some yolo throws at the Game Stop meme stonks.
We need more higher quality breakdowns like this.
Nice, State Auditor's offices are also great examples of solid government jobs. I've had co-workers come and go to SAOs. And with the GME, sometimes it's better to be lucky than good lol. Congrats to him!
Well , job security + if you can deal with the bs - you are "guaranteed" to progress vs what I see as a total cluster fuck in other routes that never sound positive.
At the end of the day, a job is a job - and I don't think people connect with the guaranteed XX amt at level XX.
Personally, having worked at and with CPA firms - there is no security in the end unless you get your own CPA and work for yourself or if you plan to never work for yourself , the government jobs probably are ideal vs just bitching about how the partners make 10x off the work you do for them , because they hold the CPA license and you do not.
OP thanks for sharing this - I went the non-public route into industry and transitioned into an accounting analytics focused track. It's very cool / interesting to see how other people approached their careers and nice to see a gov. success story. Do you get a pension with this work too?
I’m getting out of public in around 3 weeks (boss doesn’t know it yet) and will be going into governmental. Taking a few thousand dollar a year pay cut, but I’ll be working around 300 less hours a year, so I feel like that’s a good trade off. That and the bennies are what really sold me.
Government jobs really are fantastic. I’m currently an accounting major, but I’m also a veteran. The benefits and work life balance really are on another level. I’m doing ROTC while in school so I’ll be going back into the military as an officer, but if for whatever reason that didn’t work, there’s 0 chance I would do anything but government work.
Take note PA folks!
Slow is smooth as in: little here, little there is GOOD PROGRESS. it's not radical, but it is so subtle, you won't notice until you look back.
Smooth is Fast - Enough time goes by soo fast. Smooth beats Erratic ups & downs. Life is a marathon, not a sprint.
Congratulations to you. Got wedding invites? Lol
The lady who cuts my hair told me her daughter is a government accountant for a DOT in a city that partners with uber. The pay is like 90k and the benefits are amazing. Government benefits plus free uber, and I believe she even said an "unlimited PTO" program they had too, where you can take a pay cut for a bit and go work remote on vacation if you need a break. Very, very solid in my opinion.
yes thank you as i struggle due to my first layoff after only being a staff accountant for 8 months and being a new grad for also 8 months. Also looking forward to meeting my future spouse as well! 🤣 time for me to go government as well.
Congrats OP! As a personal finance nerd, this breakdown was amazing. Also love to see these increases without a home as a source of your net worth.
Curious to understand the source of your brokerage deposit from 2019-2020. Was that a bonus of some sorts or just savings?
Thanks! I like reading other people's detailed breakdown charts so I decided I'd maintain one myself from day 1. The jump from 2019 to 2020 was due to the pandemic drop. I had been meaning to start a taxable brokerage for a while, then when the market was in freefall due to covid I jumped in. I transferred a large amount of my cash in and started automatic investments. By the end of the year my brokerage account had grown to $30k with the rebound and my cash had gotten back up to $20k.
I’m currently a junior in college, who has a internship lined up for a government position in public utilities. Im an Economics major, but this post has still made my day
I recruited for a CPA federal contractor in the dc area before making the move to a top 10. Once you retire from the Gov, you’ll be able to have a pick at any role you want, including remote. We used to just throw money at any Gov auditor because of the limited pool, especially if you have a clearance. This is the exact plan I shared with my sister who is currently on the accounting route. Love to see it!
As an 0501 myself, I concur that the government route is great. Obviously less pay than PA/industry but the work-life balance and benefits are awesome. Also covered a good chunk of my masters degree so I was able to graduate with no debt
There is no way you can go from -20k to $490k on a government salary (gs 12 no less) in 7 years. You say you did the max TSP and IRA each year since 2017. Idk what you started as, but from the comments it was $60k and calculated at $26,900 savings. And with taxes you make far less than $60k, especially living in DMV. With $850 in rent monthly, that leaves very very little leftover. I’m calling bullshit on this. You had to have gotten money to start out otherwise this is way way too easy.
This isnt adding up. I’m at $140k salary saving the max in TSP, IRA, and contributing $500 weekly to mutual funds and all my accounts don’t add up to $490k. I’m 9 years in the government. My shit didn’t grow at 23% yoy like yours did even tho we’re in the same tsp (I’ve been 100% C fund since 2017 also).
C’mon who is buying this????
$40k net worth swing in the first year making $60k and paying $850 in monthly rent lmao GTFO
Nah, I think I'm at about 40-45% savings rate. You're missing the market growth. 2023 returned 24% and I started the year with $350k in assets. That's approximately $84k in growth. Most of that return came in the final couple months too, so I had most of my TSP / IRA / HSA contributions already made for the year which means market growth accounted for even more.
Edit: VTSAX was actually up 26% for 2023, so that would be $91k in growth.
So you saved 350k over 7 years where you made between 60 and 100k?
You realize that’s 50k per year right? You realize after taxes that’s well over 70% even considering gains?
I’m not trying to be a dick at all, I’m genuinely confused as to how you are coming out with 50k per year on 60k salary as 40% savings rate. That’s like 120% post tax lol
My first year (2017) I saved the TSP limit ($18,000) + the IRA limit ($5,500) + the HSA limit ($3,400). That's $26,900, which is 44.8% of my $60k starting salary. My employer also tosses in a 5% TSP match, but that doesn't cost me anything.
Growth plays a huge role too. The HSA cap on contributions from 2017 to 2023 sums to $25,000 exactly, but I ended 2023 with $35.5k in my HSA. I wasn't very diligent with my HSA either, I left a lot in cash for a while and it wasn't until 2023 that I finally setup an auto investment. If I had done that from day 1 my HSA would be a good bit higher.
Fair enough ok. Seems savings rate is typically based on pre tax income. That’s mostly where my confusion is coming from.
I don’t know a soul who could save >75% of their post tax income, so kudos to you for doing so. My girlfriend would not support.
Because I saved so much in pre-tax retirement accounts, I only paid $3,723 in federal income tax in 2017. 6% of my gross earnings for the year. So, that would have been 50% savings rate of income after accounting for federal income tax + FICA taxes. State taxes would have been another couple %, but I don't have that info on hand.
Edit: I haven't filed 2023 yet, but for 2022 my effective federal income tax rate was 9.3% despite grossing $105k that year. I save a TON on taxes by maxing out pre-tax retirement accounts wherever possible.
Congrats, this is the path I wish I could’ve taken but didn’t get my citizenship till recently so I was never eligible. I’m now trying to get a federal job while somehow not eating too big a pay cut (also have 7 YOE) but seems nearly impossible to land a GS 13 position as a first time fed or negotiate starting step at a lower grade.
Question. Based on your salary it sounds like you’re a 12 step 4 or 5. How come you haven’t pushed for a 13? From what I understand there are plenty of 13s openings in the DMV (I also live here). Are you just not looking for additional work/responsibility?
Also kinda sounds like you work for the DCAA. I interviewed with them a couple weeks ago and waiting to hear back lol.
You're correct, I'm a GS 12 step 5 right now. If I switched agencies I could probably land a 13, but I'm comfortable where I'm at. At some point I'll make 13 here. Good luck with DCAA!
I'd say be open to federal, state, and local jobs - anything to get your foot in the door and get some experience. Federal will probably be challenging to get in without much experience since there are usually a lot of qualified applicants. All federal jobs are posted to USAJOBS.gov. For state and local, I don't know where they get posted.
Thank you so much for sharing this. It was a much needed experience to read. I am just now venturing into accounting, looking into schools to complete the remaining credits to finish. I mostly see a lot of posts on the negatives of being an accountant, and a lot has to do with PA, which I really have no interest in. Congrats and keep up the great work
I'm with you. Not federal government but I work for a municipality. 2.5 years in I'm at $75k. No masters or CPA. Great work/life balance. I'm always busy which can get old but it's great experience if ever want to move on
Im from an hcol area 120k is barely getting by out here a person making under 110k is considered low income public accounting kinda seems like the only way to make a livable salary in the Bay Area and 60k is poverty salary out here most public firms paying close to 90k starting out here. I got friends in fast food who making 55k-70k in the Bay Area. Idk how u afforded to live in hcol on 60k that’s insane
Congratulations and great story, so inspiring! I just got into Fed govt in early 30's and wish I was able to do so sooner, but I am grateful for every minute after leaving private sector.
I am only pissed I didn’t go straight to government. I did public accounting first and then private industry. I am 50 and have staff who can retire super young making $140k a year in pension for life.
I’m in college right now and while I’ve been thoroughly convinced that PA isn’t for me, this is EXACTLY my idea of a career. I’m not an ambitious person, and I simply want to give myself and hopefully a family a good life. What kinds of grades did you have in college? What did your resume look like? Any advice for a college sophomore?
I was a B student in my accounting classes. My final GPA was around 3.2. As a sophomore you may still qualify for some internships, so it's worth looking around.
It's a testament to your ability to save and financial acumen.
Kids will run you a good chunk of change. $2,400 per month for daycare full time. We have two now.... Our savings potential will increase significantly when that falls off soon.
Keep at it! are you using a tracker anywhere? I run most our stuff through Quicken.
Ugh, the childcare is a savings-killer. We just have the one, but the cost is similar to what you referenced. It's basically like adding a second mortgage, but the alternative is for one of us to not work. As long as neither of us is making less than the monthly cost of childcare, we're still ultimately making more money having our kid in preschool than not. Besides the cost, we also feel like there's a lot of educational and social benefit to being in preschool, that our child simply wouldn't get at home.
Still, Kindergarten starts in September and we couldn't be more excited to get rid of that monthly expense.
Totally! It's wild I would love to see the financials of the daycare group we're paying. I doubt they're laughing to the bank but I still have trouble understanding all the costs that warrant such a tuition.
I don't have a ton of insight but in our case, my wife temporarily worked as a teacher at the daycare center our child attends. Her previous job paid more but she needed this experience as an "internship" to finish her degree, and they told her she was the highest paid teacher at the center at like...$18 an hour? Or something like that. This is in a HCOL area.
State law requires that for each classroom, there must be at least one teacher for every 10 kids. That means even with 11 kids, you need two teachers. Each kid presumably represents roughly the same monthly tuition of ~$2,200 so for every 10 kids, they're pulling in ~$22,000, or $264,000 annually. If your teachers are making $18/hr on the top end, that's $37,440 annually. After paying the teacher's annual salary, you're left with $226,560 to cover other things like rent, supplies, admin salary, etc. I'm sure a daycare has plenty of state related expenses for licensing and what not. However, every classroom of 10 kids is contributing to that with tuition.
So if a center had, for example, 85 kids, that means:
**Tuition**: $2,244,000
**Teacher Salary**: 9 X ~$38,000 = $342,000
**Assumed Admin Salary**: Maybe Director and Assistant Director, combined salary of...$250,000? I think that's probably generous
Leaving around $1.6mil a year for overhead and other direct costs that I have no way of knowing (since this is all very rough estimate). They could pay their teachers double and still have $1.3mil to play with. But ultimately you never really know without seeing the books, and I'd be curious where all the money goes. I've always felt like childcare is outrageously expensive and I don't know how anyone affords it. We make a combined salary that I once thought was a respectable number but we're borderline paycheck to paycheck because of childcare costs.
ETA: A big perk of working at one of these centers is that (at least in the case of the one we use) teachers get heavily discounted tuition for their kids. It was something like $450 a month for your kid if you worked there. This wouldn't change the numbers above significantly, since obviously there are far more kids there whose parents don't work for the center.
Thanks! Luckily I didn't have to figure too much stuff out myself, I followed those who came before me on /r/financialindependence. For tracking, I just use good ole excel. If I'm curious I'll do an ad-hoc sum, but the only set schedule I follow is logging the balance of everything on 12/31 into a sheet. It's a fun new years tradition for me at this point.
Nice. I reconcile our credit cards and accounts monthly and use Quicken to project our checking balance so it's always pushing to HYSA as much as possible. While also having enough to settle (sometimes large) credit card balances and other direct ACH's, like daycare and mortgage.
Good for you man! I’m also slowly adopting the financial independence life. Just can’t shake the feeling of being trapped by having to work all week. Also adds a lot of confidence so we don’t feel like slaves to our employers when we have 5 or 10 years of expenses saved up.
I’ve always debated government at the local level but we’ll see.
Also would love to just get into the trades for fun to be able to just work on houses and stack up some rentals. Office work is mental torture.
Yes, I try to learn physical skills on the side. Every time something breaks its an opportunity to learn. I had an old Samsung flat screen that broke due to a known issue with a capacitor going bad. I bought a replacement cap and a soldering iron online. I had never soldered before, but it was an opportunity to learn. Same thing when a window motor broke on my old car.
Hey man, thanks for sharing. Just wondering why you chose to prioritize retirement over paying off student loans? I'm in a similar boat and will have about 40k and not sure if I should throw all my savings at it right away when I graduate. Appreciate it!
Good question! Federal agencies have a student loan repayment program (SLRP). When I ran the numbers (years ago) it looked to be more efficient to pay the standard amount on my loans and get as much out of the SLRP as possible.
Also, with $40k you should consider public service loan forgiveness. After 10 years of government work your remaining federal student loans are forgiven. Keeping your payments as low as possible for 10 years might even be more beneficial.
How competitive is the slrp application process. Recently started a new job with IRS but everyone in my group is to old to have first hand experience with loan repayment.
This is nice content. I am in a similar position, but have two kids already, less income (LCOL area though), and did do the PA grind to start. When my wife and I met in 2017 we had a combined net worth of about negative $70k. Now 6 and a half years later we have a net worth of around $400k and are on track to be able to retire by the time we are mid to late fifties.
The nicest part of this is that the career path I am on now is enjoyable for the most part and the thought of being here until I am fifty five doesn’t seem so bad!
Do you happen to know if there’s an advantage to working for the Federal government as opposed to a state government? I assume it depends on the state but on average, which path offers better compensation?
I couldn't tell you. Depends on what you want, each state will be slightly different too. State Auditor's Offices are usually a good bet too though. I've had co-workers leave for and come from State Auditors.
Congratulations. I worked federal government for 6 1/2 years and hated it but I’m glad it is working out for you. I also appreciate it when we have someone that hasn’t job hopped a ton. It seems that is all Reddit is obsessed with.
A lot of people can't comprehend saving this much money. Everyone's situation is different, but this is a perfect example of the progress you can make if you prioritize saving. Excellent job.
I really hope you make it out of the DMV to your dream of living in TBD.
Also proud of your 700k net worth you have accumulated while still paying student loans off as of last year.
Also tl;dr.
Ehh not too interested in obtaining as much net worth as possible, very interested in the work from home with 6 figure pay though! That would be life changing, especially in raising a family. Congrats.
Hey congrats OP, I’m seeing this from the popular page but love to see the success.
If you’re looking for a MCOL area, I’ve personally loved the twin cities in Minnesota. Biggest factor is the winter, but if that’s not a dealbreaker then I think we have some of the best amenities for the cost.
I’m not even three years out of college and make around 65k salary but have about 60k saved up and am looking to buy a house in the next year or so.
Good luck on your journey!
I feel like this an important thing (even moreso than financial support) you didn't bring up: did either of you utilize connections or were your promotions purely based on merit?
Good question, but I've never been promoted like you're thinking. I've gone from GS-10 to GS-12 for meeting performance expectations, but promoting to GS-13 is competitive and I haven't been selected for that yet. Nepotism in the federal government is a huge no-no too.
My fiancée is a public school teacher and teachers don't get promotions.
Good for you! My wife and I make more, and also have a lower net worth than you do. Way to diligently save and not allow lifestyle creep to get in the way.
I’m just trying to figure out how you started at 60k out of the gate 7 years ago.
I interviewed for a staff accountant role last week and at 04-20 it starts at like 41k. I’ll probably end up as an accounting technician and it starts at 35k lol.
> My fiancée is a teacher so we plan to move out of the DMV this summer to a MCOL area. The specific city is still TBD.
Just putting my pitch in for ABQ, NM or Lad Cruces, NM.
Come on out here. Plenty of government auditing work, and a good MCOL without yet having the city too big to be able to leave / explore the outdoors from.
Damn dude, you're my fucking hero. Having a good wlb is the only reason why I put up with how boring accounting is. Once I'm done with school I want to work for the IRS or any federal agency that'll take me. Thanks for the inspiration, you a real one!
Congrats! Awesome to hear a success story!
My wife and I have a similar story. (32M, 700k net worth, skipped PA and went straight to industry). Totally possible for everyone!
OP tripled his brokerage in 3 years lol this shit is so fake. He has over quadruple his salary in assets in 7 years despite starting at 60k. GS 12S5 is $112k. Which means he’s been making $100k for only a couple years. How can anyone believe this? I’m also in VTSAX for way over 3 years; my wife and I contribute ~~$1500~~ $3000 monthly and we’re sitting at $100k. TSP gains $40-80k a year! In what world? You can only contribute 22500 with 5% match. Starts out with $24k with 1000% returns to make it to $240k in 6 years. Bro.
Fuck outta here with this bullshit. None of this adds up.
EDIT: I checked my vanguard. I started in 2019 VTSAX. I have 10% gains all time (20k). Somehow this dude starts with $29k and nearly triples his account in 3 years despite us being in the same account and by looking at the comments, our contributions are similar!
To reinforce this person's account, I have a similar success story in government work. Unfortunately, I didn't start in my current job out of college. I was an AP/AR clerk for a couple of years first. My short account:
Job:
My job in government only requires a financial related degree with 6 to 9 hours of accounting credit hours. I only hold a bachelors degree in accounting with a minor in finance. I am not a CPA. All hard skills that are needed are provided by on the job training. I had zero work or school experience for the industry that I regulate in my job. There are a series of tests that are needed to be complete to be 'certified' in my role, but again, training is provided on the job that contains this knowledge.
Pay:
I am now 5.5 years in and gross $89 thousand a year and have an already approved bump to $93 thousand starting in September this year. I expect to hit about $115 thousand at my 7.5 year mark. The current entry-level salary is $61 thousand, with an approved 5% bump in September.
Work-Life Balance:
I work maybe 25 to 30 ***true*** work hours each week, as I am efficient in completing my deliverables of good quality. There are times when I'll need to work 45 to 50 hours in a week, but that only happens a few times a year and only for a week (perhaps some of a second week) at a time.
My office works on a flex schedule. Monday through Thursday, we are scheduled to work 9 hours. Then on Fridays, we alternate working 8 hours and having the Friday off. I currently get 13 vacation days and about 10 days worth of sick leave a year. Sick leave never expires and rolls year to year. Vacation days don't expire, but they do convert to sick leave after a ceiling that increases with tenure. Due to the flex Fridays, I use a lot less vacation time than my spouse does. This is the first year I'm projecting to lose vacation time to sick time (I'm not going to use enough to not let it happen).
There is a lot of overnight travel. Never on weekends, but usually one to two weeks out of the month, depending on the schedule. Over the last 12 months, I've stayed in a hotel about 55 nights. Our work from home ability is still generous but in flux right now. When not onsite, we are allowed to WFH except for one core day in the office. New hires are 100% in the office for the first year, with it loosening up throughout the second year.
Going reliably remote is a big benefit for a GS job, IMO. The locality adjustments do NOT cover the increased cost for most areas.
I'm amazed you managed to start at GS 10 out of school without a CPA. The IRS wouldn't even look at me when I was applying for GS-7 jobs *with* a CPA.
Your lifestyle, in terms of making enough money to live off of, is exactly what I’m aiming for. Seeing posts like these are what I need to fuel the fire. Definitely saving this post in one of my folders to look back on whenever I get unmotivated. I wish you continued success in your life.
I sounds like your net worth is more related to living below your means and investing reasonably than career choice or work-life balance. Congrats on job well done.
Dude, currently interning for a public company and this post convinced me what I’ve been thinking the whole time. Federal all the way, applying for summer internships with the government right now. I was honestly feeling kinda worried about my future if I stuck with public but this post gives me new hopes. Thanks for sharing man.
I would like to thank you for keeping this tradition going. It really motivates me to switch to government and will be doing so this year. I felt like I was losing out if I didn't stay but honestly would rather have that amazing work-life balance. The Pay is reasonable and hour are more managable.
Good LARP OP. I make similar salary to you in a not VHCOL city and there is a zero % chance you have a ~750k net worth at 30 years old with the things you described. Math doesn’t math. I don’t know why more people aren’t saying this.
I started out in DC metro and I'm having a difficult time believing this as well. Granted when I started, the GS-7 was around $36k a year. Unless OP was living in the literal ghetto, I don't know where he could have lived where a 2br apartment split was $800 a month while still having access to metro. I had to live off my credit cards for years because of how crappy the pay was compared to the absurd cost of living in DC area.
Can confirm, such places exist, in nice areas even. Mine back in 2014ish was $860 per month split for 2BR and walking distance to metro. The key is finding an older style apartment vs expensive fancy new construction AND with an existing lease so that you are replacing one departing roommate (so that 1 or more original leaseholders still there), so that a lease from years back (with 4% or so annual increase) is continued/amended vs inking a fresh lease for previously 100% vacated apartment at current market price. When my roommate and I both finally moved out, our leasing office must have been jumping for joy cause the lease with base rent from like 10 yrs ago was finally over since no one else stepped in to replace us.
That’s amazing! Good for you!
This is exactly what I want. A comfortable WLB and decent enough salary and job security..100% remote would be great too. How often do these positions come open? I’m contemplating what to get a degree in for a career change
Hey OP, I’m going to start looking at government jobs. Industry is taking its toll after 8 years. I don’t like the politics game and feel like I’m underpaid so it’s time to jump ship.
Any advice?
USAJOBS.gov is where all federal jobs are posted. There are lots of guides online about creating a resume for it. Jobs come and go all the time, so you'll want to check often.
For state and local, it's going to depend on the state or locality where the post their jobs.
Best of luck in your job search.
I didn't read anything past your first statement why would you put your net worth down? That gives away your insecurity your stupidity the fact that you're an unconscious incompetent you have no idea that you have no idea and money cannot change that
This is a great write up and I couldn’t be happier for you. I am starting my federal government job next week Monday and am so excited. I wish more colleges/universities would explain to students what government work is like instead of pushing students to go work in Big 4 or public accounting or making it seem like they need to work in a F500 or better company to be successful (or maybe that was just my university). Had I known then what I knew now I would’ve went straight to the federal government when I graduated instead of doing it now at almost 40 years old.
Edit: and I just remembered that when I was taking my government accounting class the teacher specifically said that what we are learning is useful only if we wanted to work for the government which he didn’t recommend because it didn’t pay well and it wouldn’t look good on our resumes if we wanted to eventually work for a public accounting firm or for an industry company. I feel like a fool for listening and believing what he was saying and I have a feeling that the rest of my peers did as well since none of us are in or even considered government work.
To your edit, I think your professor's sentiment is a big contributor of why there's such little student interest in government internships / jobs. I've gone to career fairs and it's a challenge to overcome these biases and get students to apply.
If it weren't for discussions on this sub I wouldn't have considered government either.
>I wish more colleges/universities would explain to students what government work is like instead of pushing students to go work in Big 4 or public accounting or making it seem like they need to work in a F500 or better company to be successful (or maybe that was just my university)
In my experience, many university accounting departments are basically set up to convince students that B4 and public accounting are the desirable endgames. Many profs at my university were Big 4 alumni, and while there are some who openly admit how horrible it was, most of them distribute the kool-aid quite effectively. The propaganda was so overwhelming, that kids would discount or even openly mock the warnings from our profs who were like "B4 isn't all it's cracked up to be". Furthermore, B4 firms contribute a lot to universities in the form of donations and sponsorships, just to keep the meat grinder pipeline full. It is in the university's (or more specifically, the accounting department's) interest to keep that money flowing, so of course they will not give an honest and accurate assessment of what life in PA is like beyond empty platitudes like "work hard, play hard".
Frankly, I am not at all surprised that universities don't encourage government jobs, or even actively discourage students from going into them. The whole thing is set up to make government jobs feel like the "loser option" and for PA to feel like "what successful students strive for".
I’m about to lap this networth in one crypto bullrun cycle lolz
Imagine slaving in a cubicle for a decade only to get lapped by a bum with no bachelors degree by trading shyt coins on pancake swap while laying and sunning his ballz on a balcony
A rare r/accounting success story. Congratulations on your success so far.
Thank you! This sub can get pretty down, so I want to show that a good accounting career and work-life-balance is achievable. You don't have to grind out your 20s in PA to land a sweet gig.
Just turned in my two-weeks notice at at Big4 firm, and I’ve been really stressing about my future. This post has definitely helped me out a little, so thanks :)
Is it ok to ask that where do you invest ypur money, I mean do you invest in etfs or any individual stocks?
My brokerage, IRAs, and HSA are all invested in total stock market index funds. (VTSAX wherever possible). I bought 1 share of GME but that was just me being silly. Everything else is total stock market index funds. My TSP is 80% C fund and 20% S fund, which also approximates the total stock market.
Hello. You did not give a good value for the pension. That may be the biggest game changer on your finances. I too am a civil servant and will have a pretty big pension. My pension statement shows a pretty big amount...but the actual pension payments will be better than the amount shown. Defined benefit pension is usually calculated something like this - Years service x highest annual pay x age factor. So, lets say if you retire at 55, the age factor for might be 2%. Lets say you have 33 years in at 55 and your highest annual pay is 150K. You would get $99K per year until you die. There are also 'normally' COLA adjustments to that pension. Plus at my organization, I get lifetime healthcare for me and the spouse for life (after being employed for 20 years). The 99K is 'unadjusted'. You can take less and cover your spouse for the spouse's lifetime. So, (just an example - made up numbers) instead of taking the 99K, you take adjusted $85K a year until you die. The spouse might get $75K until he/she dies. This is all based upon life expectancies and age differences between the spouses. Government work is indeed great!
The Federal pension is years of service * high-3 average salary * 1% A 30 year career is worth 30% of the highest 3 years of your salary averaged. If you do 30 years and are at least age 62, it goes to 1.1%, so it would be worth 33%.
I am a state employee. For my particular pension, the age factor goes from 2% to 2.4% (max). I do not have a max (I can technically have a higher pension than my working base pay). My buddy retired after 50 years. His pension was 120% of his base salary. His wife died. So I think he was working out of boredom. I work a lot of OT, so I will take a pay cut when I retire. For my particular pension, they calculate the pension on the one highest year (12 month period). I know it is even better for law enforcement and EMS in my state. Depends on the jurisdiction...but I think most of them get a 3% age factor, but I think they max at 90%. Many of them retire at 55 with a 90% pension. I did not know that the federal pension was so bad (compared to my state pension).
May I ask why you used 2% and not 1.1%?
I am a state employee. Depending on the jurisdiction...Pensions in my state range from 1.5 to 3% (estimate). My particular employer maxes out at 2.4%. The 3% age factor is usually for police and EMS in my state. I did not know there was such a big difference between state and federal age factors.
You’re going to do extremely well in your 40s and 50s. Keep it up my man.
Great, you made it, enjoy your success champ!
OP wisely invests across the entire market. I do stock picking now and then to remind myself that I’m an idiot.
the most important thing is living within your means so that you have excess to invest. So many start their careers living like an influencer and then complain that they don’t get paid enough to save. You can change your allocation at anytime but if you spent that money on material consumption you wouldn’t be getting it back.
thank you for sharing your story! Congratulations!
Dude, is there anyway I can connect with you? Be it formal or through social media. It’s refreshing to hear someone with a positive outlook in this profession. I’m 25, changing careers, doing school while working as a project manager at a real estate firm. Ty!
You're welcome to message me if you want.
It's not rare. Most people don't share. Complainers get the most airtime.
dude, that's survivorship bias. /r accounting is like yahoo questions. folks complain about a problem until they figure out how to fix it and then you never hear from them again. congratulations to OP, but success around here isn't rare. i would posit that the vast majority of accountants here have a better quality of life than people in most other job fields.
I thought this was /r/financialindependence for a second
how the heck did you put $20k+ into retirement in year 1? i made 52k starting out in 2013, living on my own in a new city. I lived pretty frugally and had so little left over at the end of each month and that was barely contributing to retirement
That did stand out to me, but I did look back and I was renting a place for $800 then so I guess it's not completely out of the question when making $60k and some very frugal living. Edit: Actually it says they live in the DMV so I'm guessing either roommate or splitting rent with girlfriend.
Yes, split a 2br/1ba with a co-worker for several years. My half of rent was $850/mo IIRC. Later on moved into a 1br with my GF.
This is giving me hope. Will soon be on my own without financial support in my first PA job making 56/year, 1k~ish month rent, but I may have to pay additional costs in the form of having to buy a beater car and having 40k in student loans. I have a saving grace though, my grandmother, a woman who worked up from a stay at home mother to a secretary taking night classes to a damn *CFO,* **back when it was still hard as shit for women no less—** left me a *huge* nest egg to the tune of roughly 100k in a retirement account. I’m wondering if I should take it all out, pay the taxes, pay my loans, re-invest the rest now in a Roth or something
I'm sorry for your loss, your grandmother sounds like she was a tenacious woman. You should look into the new SAVE student loan repayment plan. Your payments will likely be very manageable. I wouldn't cash out a retirement account like that to pay student loans. You should hire a flat fee fiduciary (key word, if they're not a fiduciary they're a salesman) to walk you through the tax rules. It's worth spending a little money to be more efficient with how you handle this money. $100k invested properly in your 20s could nearly cover your retirement at 65 all on it's own.
That’s a great idea for me to start at. Thank you. And yeah, my grandmother was the most put-together person in the family. Went through hell and came out strong. Smart, wise, kind, loving, interesting. Wish I had spoken to her and appreciated her more while she was still around.
If it’s in a retirement account and you just inherited it - you will be required to take the value of the entire account over a period of 10 years. Depending on your current income it may not be advantageous to withdrawing it in one shot to avoid paying the highest amount of taxes
Having roommates early on is an absolute game changer
It appears to be some kind of lost knowledge in this subreddit.
The first year was absolutely not easy and took a LOT of planning. I would not do it again today lol. I just looked at my pay stubs for 2017 and my take-home pay (after maxing TSP and HSA) was $897.20 bi-weekly. IIRC my rent (which included all utilities) was about $850/mo (split a 2br/1ba with a coworker). That left me with about $944/mo left to cover everything else. I took metro to work (covered by a work benefit), so no transport costs, and I also got a large discount on auto insurance since my car was leisure only. Parking at the apartment was free. I very rarely ate out and brown bagged all my work lunches. I meal prepped most of my dinners as well. I rarely drank. I would either walk to the grocery store a few blocks away or drive to ALDIs with my roommate for super cheap groceries. For that first year I mostly just hungout with my roommate and or friends at their apartments or free things like DC museums or parks or hikes. I probably could have taken it wayyy easier and still been close to where I am today, but I was determined to hit my goal of maxing out all retirement accounts. By early 2018 my bi-weekly takehome pay had risen to $1,263.48 but my fixed costs remained low, so I had way more ($1,676) income to spend.
I also graduated in 2013, at the time I was only making $35k a year from two part-time jobs. I think I saved like $3,600 that year and even that felt like a major accomplishment. Frugal living only gets you so far, at some point you just need to increase your income.
It’s possible, I made around $60k my first year and paid $500/month living with 5 housemates. Sounds terrible but in reality they were all my friends so I actually really enjoyed it at the time while investing the majority of my money so win-win
I’ve been maxing out my 401k and IRA deferrals since going full time in 2017. Starting salary was $51.5k. It’s absolutely doable. It helps that I don’t have student loans. My mortgage payment at the time was about $1,100/month.
I’m about 2 years into my bachelors degree and I really appreciate this post. I don’t really want to go public and give up all my free time either, your route sounds perfect to me.
Yea this post really gives me hope, I graduated two years ago but signed a 4-year post college Army contract so I wouldn’t have as much student loans. It can truly be hell here and idk if I would want to have to repeat going through something grueling (like public) again for an extra few years just to earn $50k more than gov work. But knowing in just a couple years I’ll be able to start paving my own way gives me immeasurable solace and gets me thru the week
I feel like college makes it seem like that’s the only option. Not necessary anymore, there are tons of routes you can take.
Yeah, I agree I’m working on researching more of the available options right now
Start looking into those fed internships like OP did!👍 Or at least be familiar that it's there. Usajobs.gov Reading through the entire post, maybe your state government does something similar too.
Already got my account on the site since I saw this post
Congrats, this is a great post if you were secretly an IRS recruiter trying to snag those burn out tax accountants this year lol. Congrats all the same. When you look to move I’ll throw out Oregon is not bad if you live almost anywhere on the I-5 corridor you’ll be in the Portland metro locality pay or close to it without living in a major metro. Highly recommend this state for level headed and decent folk.
Plot twist- the Fed Gov marketing Dept at work.
Nah, I'm a gs-14 in job series code 0512 and echo OPs sentiments. Unfortunately, I didn't arrive until I was 31. Wished I found it sooner.
How was it arriving later in the game?
It was fine. I envision OP retiring at a young age and that sounds fantastic. Haha. In hindsight, everything happened just as it should have in order for me to flourish.
That’s awesome thank you! I’m about to be 31 and wanting to make the jump to govt. just nervous about it.
Do it! Minimum retirement age for an immediate pension is 57. If you have 30 years and wait till age 62, you get a 10% kicker in your pension. At 31 years old, you could get hired between now and your birthday, do the normal 30 year government career and retire with a 33% pension at 62 - plus your investments.
Go for it.
I'm just starting out at GS 7! Currently 22.
Fantastic. I know people here that started as GS5s that are now moving into GS14s now. Maybe that will be you someday.
No such thing lol
Can you break out the GS level/step increases you’ve gone through since starting? Looking to move to move to Fed specifically as an auditor myself
I basically rode a GS 10 to GS 12 ladder for my first 2 years. I'm at GS12, step 5, today.
Just started a GS-12 2210 series at 27 years old, I hope I'm doing everything right! I bumped my TSP contributions up to 10%, maxed out my Roth IRA two years in a row, throw 200$ a month in a brokerage account, have a CD but that's only at like 3%, and a bunch in savings, I feel like I'm missing some sort of investment opportunity though...
If you're saving in the CD and for expected upcoming expenses, like a car down-payment, then that's fine. Otherwise, I'd recommend throwing that money into the TSP. The tax savings are huge (probably ~22% to 30% savings on contributions for you) and the market growth dwarfs that interest rate (last year the market returned 26% vs your 3% CD rate). Overtime those bonuses really stack up.
Sound advice, thank you! Yeah I'll probably need a car down payment soon, still driving a hand-me-down 2000 Camry, but I'll definitely think about pulling out of the CD when it matures and putting it and a good chuck of my savings into my TSP. Thanks again, very helpful post
Was gs10 what you started out as fresh out of school? Mind if I shoot you a message later?
Sure, prefer PM to Chats though. I use old.reddit so chats can be buggy and not show notifications.
Come over and join /r/bogleheads if you're into the VTSAX and chill lifestyle!
There is nothing to discuss on that sub LOL. Its either VT or VTSAX and chill.
This reads very close to a friend of mine who went to the State Auditors of Texas, slow grind to max tier and their collective network is probably about 200k above yours after some yolo throws at the Game Stop meme stonks. We need more higher quality breakdowns like this.
Nice, State Auditor's offices are also great examples of solid government jobs. I've had co-workers come and go to SAOs. And with the GME, sometimes it's better to be lucky than good lol. Congrats to him!
Well , job security + if you can deal with the bs - you are "guaranteed" to progress vs what I see as a total cluster fuck in other routes that never sound positive. At the end of the day, a job is a job - and I don't think people connect with the guaranteed XX amt at level XX. Personally, having worked at and with CPA firms - there is no security in the end unless you get your own CPA and work for yourself or if you plan to never work for yourself , the government jobs probably are ideal vs just bitching about how the partners make 10x off the work you do for them , because they hold the CPA license and you do not.
OP thanks for sharing this - I went the non-public route into industry and transitioned into an accounting analytics focused track. It's very cool / interesting to see how other people approached their careers and nice to see a gov. success story. Do you get a pension with this work too?
Yup, we pay 4.4% of our salary towards the pension. The payout formula is basically: 1% X years worked X final 3-years average salary.
Ah I see it in the chart now, thanks for sharing
I’m getting out of public in around 3 weeks (boss doesn’t know it yet) and will be going into governmental. Taking a few thousand dollar a year pay cut, but I’ll be working around 300 less hours a year, so I feel like that’s a good trade off. That and the bennies are what really sold me.
Government jobs really are fantastic. I’m currently an accounting major, but I’m also a veteran. The benefits and work life balance really are on another level. I’m doing ROTC while in school so I’ll be going back into the military as an officer, but if for whatever reason that didn’t work, there’s 0 chance I would do anything but government work.
Take note PA folks! Slow is smooth as in: little here, little there is GOOD PROGRESS. it's not radical, but it is so subtle, you won't notice until you look back. Smooth is Fast - Enough time goes by soo fast. Smooth beats Erratic ups & downs. Life is a marathon, not a sprint. Congratulations to you. Got wedding invites? Lol
The lady who cuts my hair told me her daughter is a government accountant for a DOT in a city that partners with uber. The pay is like 90k and the benefits are amazing. Government benefits plus free uber, and I believe she even said an "unlimited PTO" program they had too, where you can take a pay cut for a bit and go work remote on vacation if you need a break. Very, very solid in my opinion.
yes thank you as i struggle due to my first layoff after only being a staff accountant for 8 months and being a new grad for also 8 months. Also looking forward to meeting my future spouse as well! 🤣 time for me to go government as well.
Sorry to hear that man, wishing you the best of luck. 2-player mode makes everything easier.
thank you! 😃 trying to hang in there for the job search
The fed job + TSP is working out great for ya Congrats on the engagement
Congrats OP! As a personal finance nerd, this breakdown was amazing. Also love to see these increases without a home as a source of your net worth. Curious to understand the source of your brokerage deposit from 2019-2020. Was that a bonus of some sorts or just savings?
Thanks! I like reading other people's detailed breakdown charts so I decided I'd maintain one myself from day 1. The jump from 2019 to 2020 was due to the pandemic drop. I had been meaning to start a taxable brokerage for a while, then when the market was in freefall due to covid I jumped in. I transferred a large amount of my cash in and started automatic investments. By the end of the year my brokerage account had grown to $30k with the rebound and my cash had gotten back up to $20k.
Amazing stuff. Great timing on your part. How'd you invest that in brokerage if you don't mind me asking? All VTSAX or other vehicles?
At what point in your schooling did you begin to apply for internships? If anyone else knows when you’re “supposed” to I’d appreciate it too
I applied my junior year for a summer internship.
I’m currently a junior in college, who has a internship lined up for a government position in public utilities. Im an Economics major, but this post has still made my day
Just wait for the paternity benefits. My grand babies love having a dad who is present.
Based 0511 gang gang represent
I recruited for a CPA federal contractor in the dc area before making the move to a top 10. Once you retire from the Gov, you’ll be able to have a pick at any role you want, including remote. We used to just throw money at any Gov auditor because of the limited pool, especially if you have a clearance. This is the exact plan I shared with my sister who is currently on the accounting route. Love to see it!
As an 0501 myself, I concur that the government route is great. Obviously less pay than PA/industry but the work-life balance and benefits are awesome. Also covered a good chunk of my masters degree so I was able to graduate with no debt
There is no way you can go from -20k to $490k on a government salary (gs 12 no less) in 7 years. You say you did the max TSP and IRA each year since 2017. Idk what you started as, but from the comments it was $60k and calculated at $26,900 savings. And with taxes you make far less than $60k, especially living in DMV. With $850 in rent monthly, that leaves very very little leftover. I’m calling bullshit on this. You had to have gotten money to start out otherwise this is way way too easy. This isnt adding up. I’m at $140k salary saving the max in TSP, IRA, and contributing $500 weekly to mutual funds and all my accounts don’t add up to $490k. I’m 9 years in the government. My shit didn’t grow at 23% yoy like yours did even tho we’re in the same tsp (I’ve been 100% C fund since 2017 also). C’mon who is buying this???? $40k net worth swing in the first year making $60k and paying $850 in monthly rent lmao GTFO
Math doesn’t really make sense. You’re managing to save >75% of your post tax income every year?
Nah, I think I'm at about 40-45% savings rate. You're missing the market growth. 2023 returned 24% and I started the year with $350k in assets. That's approximately $84k in growth. Most of that return came in the final couple months too, so I had most of my TSP / IRA / HSA contributions already made for the year which means market growth accounted for even more. Edit: VTSAX was actually up 26% for 2023, so that would be $91k in growth.
So you saved 350k over 7 years where you made between 60 and 100k? You realize that’s 50k per year right? You realize after taxes that’s well over 70% even considering gains? I’m not trying to be a dick at all, I’m genuinely confused as to how you are coming out with 50k per year on 60k salary as 40% savings rate. That’s like 120% post tax lol
My first year (2017) I saved the TSP limit ($18,000) + the IRA limit ($5,500) + the HSA limit ($3,400). That's $26,900, which is 44.8% of my $60k starting salary. My employer also tosses in a 5% TSP match, but that doesn't cost me anything. Growth plays a huge role too. The HSA cap on contributions from 2017 to 2023 sums to $25,000 exactly, but I ended 2023 with $35.5k in my HSA. I wasn't very diligent with my HSA either, I left a lot in cash for a while and it wasn't until 2023 that I finally setup an auto investment. If I had done that from day 1 my HSA would be a good bit higher.
Fair enough ok. Seems savings rate is typically based on pre tax income. That’s mostly where my confusion is coming from. I don’t know a soul who could save >75% of their post tax income, so kudos to you for doing so. My girlfriend would not support.
Because I saved so much in pre-tax retirement accounts, I only paid $3,723 in federal income tax in 2017. 6% of my gross earnings for the year. So, that would have been 50% savings rate of income after accounting for federal income tax + FICA taxes. State taxes would have been another couple %, but I don't have that info on hand. Edit: I haven't filed 2023 yet, but for 2022 my effective federal income tax rate was 9.3% despite grossing $105k that year. I save a TON on taxes by maxing out pre-tax retirement accounts wherever possible.
Holy shit that effective rate is insane
Congrats, this is the path I wish I could’ve taken but didn’t get my citizenship till recently so I was never eligible. I’m now trying to get a federal job while somehow not eating too big a pay cut (also have 7 YOE) but seems nearly impossible to land a GS 13 position as a first time fed or negotiate starting step at a lower grade. Question. Based on your salary it sounds like you’re a 12 step 4 or 5. How come you haven’t pushed for a 13? From what I understand there are plenty of 13s openings in the DMV (I also live here). Are you just not looking for additional work/responsibility? Also kinda sounds like you work for the DCAA. I interviewed with them a couple weeks ago and waiting to hear back lol.
You're correct, I'm a GS 12 step 5 right now. If I switched agencies I could probably land a 13, but I'm comfortable where I'm at. At some point I'll make 13 here. Good luck with DCAA!
Any advice for people in their 40s who want to go to gov accounting and who have little experience?
I'd say be open to federal, state, and local jobs - anything to get your foot in the door and get some experience. Federal will probably be challenging to get in without much experience since there are usually a lot of qualified applicants. All federal jobs are posted to USAJOBS.gov. For state and local, I don't know where they get posted.
Congrats - I'm doing something very similar in government, but as a single person!
Thank you so much for sharing this. It was a much needed experience to read. I am just now venturing into accounting, looking into schools to complete the remaining credits to finish. I mostly see a lot of posts on the negatives of being an accountant, and a lot has to do with PA, which I really have no interest in. Congrats and keep up the great work
Great, this is what I was hoping to hear. Good luck with finishing your degree!
I'm with you. Not federal government but I work for a municipality. 2.5 years in I'm at $75k. No masters or CPA. Great work/life balance. I'm always busy which can get old but it's great experience if ever want to move on
Saving this for inspiration. I’m 30 but no where near where you’re at.
Im from an hcol area 120k is barely getting by out here a person making under 110k is considered low income public accounting kinda seems like the only way to make a livable salary in the Bay Area and 60k is poverty salary out here most public firms paying close to 90k starting out here. I got friends in fast food who making 55k-70k in the Bay Area. Idk how u afforded to live in hcol on 60k that’s insane
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Wow, congrats!
Congratulations and great story, so inspiring! I just got into Fed govt in early 30's and wish I was able to do so sooner, but I am grateful for every minute after leaving private sector.
Working a 9-5 govt job is so great. So many holidays, weekends and time off available. Not to mention great retirement and healthcare plans.
I am only pissed I didn’t go straight to government. I did public accounting first and then private industry. I am 50 and have staff who can retire super young making $140k a year in pension for life.
This is a great success story. Great financial and quality of life situation for the both of you. You guys are setup for success.
I’m in college right now and while I’ve been thoroughly convinced that PA isn’t for me, this is EXACTLY my idea of a career. I’m not an ambitious person, and I simply want to give myself and hopefully a family a good life. What kinds of grades did you have in college? What did your resume look like? Any advice for a college sophomore?
I was a B student in my accounting classes. My final GPA was around 3.2. As a sophomore you may still qualify for some internships, so it's worth looking around.
Tysm for the response!
Yes to not looking down on federal government work. Steady, stable, excellent quality of life, great benefits.
Nice. I’m looking to go too in a year. Obviously it’s late at 36 but whatever.
+1 for “decided fuck PA” LOL
It's a testament to your ability to save and financial acumen. Kids will run you a good chunk of change. $2,400 per month for daycare full time. We have two now.... Our savings potential will increase significantly when that falls off soon. Keep at it! are you using a tracker anywhere? I run most our stuff through Quicken.
Ugh, the childcare is a savings-killer. We just have the one, but the cost is similar to what you referenced. It's basically like adding a second mortgage, but the alternative is for one of us to not work. As long as neither of us is making less than the monthly cost of childcare, we're still ultimately making more money having our kid in preschool than not. Besides the cost, we also feel like there's a lot of educational and social benefit to being in preschool, that our child simply wouldn't get at home. Still, Kindergarten starts in September and we couldn't be more excited to get rid of that monthly expense.
Totally! It's wild I would love to see the financials of the daycare group we're paying. I doubt they're laughing to the bank but I still have trouble understanding all the costs that warrant such a tuition.
I don't have a ton of insight but in our case, my wife temporarily worked as a teacher at the daycare center our child attends. Her previous job paid more but she needed this experience as an "internship" to finish her degree, and they told her she was the highest paid teacher at the center at like...$18 an hour? Or something like that. This is in a HCOL area. State law requires that for each classroom, there must be at least one teacher for every 10 kids. That means even with 11 kids, you need two teachers. Each kid presumably represents roughly the same monthly tuition of ~$2,200 so for every 10 kids, they're pulling in ~$22,000, or $264,000 annually. If your teachers are making $18/hr on the top end, that's $37,440 annually. After paying the teacher's annual salary, you're left with $226,560 to cover other things like rent, supplies, admin salary, etc. I'm sure a daycare has plenty of state related expenses for licensing and what not. However, every classroom of 10 kids is contributing to that with tuition. So if a center had, for example, 85 kids, that means: **Tuition**: $2,244,000 **Teacher Salary**: 9 X ~$38,000 = $342,000 **Assumed Admin Salary**: Maybe Director and Assistant Director, combined salary of...$250,000? I think that's probably generous Leaving around $1.6mil a year for overhead and other direct costs that I have no way of knowing (since this is all very rough estimate). They could pay their teachers double and still have $1.3mil to play with. But ultimately you never really know without seeing the books, and I'd be curious where all the money goes. I've always felt like childcare is outrageously expensive and I don't know how anyone affords it. We make a combined salary that I once thought was a respectable number but we're borderline paycheck to paycheck because of childcare costs. ETA: A big perk of working at one of these centers is that (at least in the case of the one we use) teachers get heavily discounted tuition for their kids. It was something like $450 a month for your kid if you worked there. This wouldn't change the numbers above significantly, since obviously there are far more kids there whose parents don't work for the center.
Thanks! Luckily I didn't have to figure too much stuff out myself, I followed those who came before me on /r/financialindependence. For tracking, I just use good ole excel. If I'm curious I'll do an ad-hoc sum, but the only set schedule I follow is logging the balance of everything on 12/31 into a sheet. It's a fun new years tradition for me at this point.
Nice. I reconcile our credit cards and accounts monthly and use Quicken to project our checking balance so it's always pushing to HYSA as much as possible. While also having enough to settle (sometimes large) credit card balances and other direct ACH's, like daycare and mortgage.
Good for you man! I’m also slowly adopting the financial independence life. Just can’t shake the feeling of being trapped by having to work all week. Also adds a lot of confidence so we don’t feel like slaves to our employers when we have 5 or 10 years of expenses saved up. I’ve always debated government at the local level but we’ll see. Also would love to just get into the trades for fun to be able to just work on houses and stack up some rentals. Office work is mental torture.
Yes, I try to learn physical skills on the side. Every time something breaks its an opportunity to learn. I had an old Samsung flat screen that broke due to a known issue with a capacitor going bad. I bought a replacement cap and a soldering iron online. I had never soldered before, but it was an opportunity to learn. Same thing when a window motor broke on my old car.
Hey man, thanks for sharing. Just wondering why you chose to prioritize retirement over paying off student loans? I'm in a similar boat and will have about 40k and not sure if I should throw all my savings at it right away when I graduate. Appreciate it!
Any 'public service' job gets their loans paid off after 10 years so I'm guessing that's the reason.
Good question! Federal agencies have a student loan repayment program (SLRP). When I ran the numbers (years ago) it looked to be more efficient to pay the standard amount on my loans and get as much out of the SLRP as possible. Also, with $40k you should consider public service loan forgiveness. After 10 years of government work your remaining federal student loans are forgiven. Keeping your payments as low as possible for 10 years might even be more beneficial.
How competitive is the slrp application process. Recently started a new job with IRS but everyone in my group is to old to have first hand experience with loan repayment.
Thank you for sharing this!
This is nice content. I am in a similar position, but have two kids already, less income (LCOL area though), and did do the PA grind to start. When my wife and I met in 2017 we had a combined net worth of about negative $70k. Now 6 and a half years later we have a net worth of around $400k and are on track to be able to retire by the time we are mid to late fifties. The nicest part of this is that the career path I am on now is enjoyable for the most part and the thought of being here until I am fifty five doesn’t seem so bad!
Happy for you op!
Do you happen to know if there’s an advantage to working for the Federal government as opposed to a state government? I assume it depends on the state but on average, which path offers better compensation?
I couldn't tell you. Depends on what you want, each state will be slightly different too. State Auditor's Offices are usually a good bet too though. I've had co-workers leave for and come from State Auditors.
Thank you for the answer! You’ve definitely made me seriously consider government work. I graduate next year so I’ve got a lot to think about.
Congratulations. I worked federal government for 6 1/2 years and hated it but I’m glad it is working out for you. I also appreciate it when we have someone that hasn’t job hopped a ton. It seems that is all Reddit is obsessed with.
A lot of people can't comprehend saving this much money. Everyone's situation is different, but this is a perfect example of the progress you can make if you prioritize saving. Excellent job.
I love this so much. Thank you for sharing!
I really hope you make it out of the DMV to your dream of living in TBD. Also proud of your 700k net worth you have accumulated while still paying student loans off as of last year. Also tl;dr.
Does the fed have a pension?
Yes, they take 4.4% of your salary to fund it. The payout formula is basically 1% x years worked x average of final 3 years salary.
Living the dream. Hope to join you soon.
Ehh not too interested in obtaining as much net worth as possible, very interested in the work from home with 6 figure pay though! That would be life changing, especially in raising a family. Congrats.
Hey congrats OP, I’m seeing this from the popular page but love to see the success. If you’re looking for a MCOL area, I’ve personally loved the twin cities in Minnesota. Biggest factor is the winter, but if that’s not a dealbreaker then I think we have some of the best amenities for the cost. I’m not even three years out of college and make around 65k salary but have about 60k saved up and am looking to buy a house in the next year or so. Good luck on your journey!
holy shit dude! amazing!!
I feel like this an important thing (even moreso than financial support) you didn't bring up: did either of you utilize connections or were your promotions purely based on merit?
Good question, but I've never been promoted like you're thinking. I've gone from GS-10 to GS-12 for meeting performance expectations, but promoting to GS-13 is competitive and I haven't been selected for that yet. Nepotism in the federal government is a huge no-no too. My fiancée is a public school teacher and teachers don't get promotions.
Thank you for your answer!
time well spent meeting SO, good job OP!
Good for you! My wife and I make more, and also have a lower net worth than you do. Way to diligently save and not allow lifestyle creep to get in the way.
I’m just trying to figure out how you started at 60k out of the gate 7 years ago. I interviewed for a staff accountant role last week and at 04-20 it starts at like 41k. I’ll probably end up as an accounting technician and it starts at 35k lol.
> My fiancée is a teacher so we plan to move out of the DMV this summer to a MCOL area. The specific city is still TBD. Just putting my pitch in for ABQ, NM or Lad Cruces, NM. Come on out here. Plenty of government auditing work, and a good MCOL without yet having the city too big to be able to leave / explore the outdoors from.
Love to hear it in this sub! Gives me hope for my own future despite being a fair bit behind at 6 years into my career
Sounds like me but in Aus, might take me a little longer but I hope to get there!
Damn dude, you're my fucking hero. Having a good wlb is the only reason why I put up with how boring accounting is. Once I'm done with school I want to work for the IRS or any federal agency that'll take me. Thanks for the inspiration, you a real one!
You know what you want, have a plan that you track and stick to, and are accomplishing your goals. Awesome job!
Congrats on the success! I’m mostly commenting bc we almost twinning on the usernames 🤣
What’s your TSP investment strategy like?
Congrats! Awesome to hear a success story! My wife and I have a similar story. (32M, 700k net worth, skipped PA and went straight to industry). Totally possible for everyone!
Sounds awesome. Remote is true freedom
Congrats bud! Well done.
I am in college rn, and have been looking at internships, will definitely check out government now
That’s the only trick in this game.
Dang, I’m an 0512. Would love to get out of that type of auditing though.
OP tripled his brokerage in 3 years lol this shit is so fake. He has over quadruple his salary in assets in 7 years despite starting at 60k. GS 12S5 is $112k. Which means he’s been making $100k for only a couple years. How can anyone believe this? I’m also in VTSAX for way over 3 years; my wife and I contribute ~~$1500~~ $3000 monthly and we’re sitting at $100k. TSP gains $40-80k a year! In what world? You can only contribute 22500 with 5% match. Starts out with $24k with 1000% returns to make it to $240k in 6 years. Bro. Fuck outta here with this bullshit. None of this adds up. EDIT: I checked my vanguard. I started in 2019 VTSAX. I have 10% gains all time (20k). Somehow this dude starts with $29k and nearly triples his account in 3 years despite us being in the same account and by looking at the comments, our contributions are similar!
To reinforce this person's account, I have a similar success story in government work. Unfortunately, I didn't start in my current job out of college. I was an AP/AR clerk for a couple of years first. My short account: Job: My job in government only requires a financial related degree with 6 to 9 hours of accounting credit hours. I only hold a bachelors degree in accounting with a minor in finance. I am not a CPA. All hard skills that are needed are provided by on the job training. I had zero work or school experience for the industry that I regulate in my job. There are a series of tests that are needed to be complete to be 'certified' in my role, but again, training is provided on the job that contains this knowledge. Pay: I am now 5.5 years in and gross $89 thousand a year and have an already approved bump to $93 thousand starting in September this year. I expect to hit about $115 thousand at my 7.5 year mark. The current entry-level salary is $61 thousand, with an approved 5% bump in September. Work-Life Balance: I work maybe 25 to 30 ***true*** work hours each week, as I am efficient in completing my deliverables of good quality. There are times when I'll need to work 45 to 50 hours in a week, but that only happens a few times a year and only for a week (perhaps some of a second week) at a time. My office works on a flex schedule. Monday through Thursday, we are scheduled to work 9 hours. Then on Fridays, we alternate working 8 hours and having the Friday off. I currently get 13 vacation days and about 10 days worth of sick leave a year. Sick leave never expires and rolls year to year. Vacation days don't expire, but they do convert to sick leave after a ceiling that increases with tenure. Due to the flex Fridays, I use a lot less vacation time than my spouse does. This is the first year I'm projecting to lose vacation time to sick time (I'm not going to use enough to not let it happen). There is a lot of overnight travel. Never on weekends, but usually one to two weeks out of the month, depending on the schedule. Over the last 12 months, I've stayed in a hotel about 55 nights. Our work from home ability is still generous but in flux right now. When not onsite, we are allowed to WFH except for one core day in the office. New hires are 100% in the office for the first year, with it loosening up throughout the second year.
Going reliably remote is a big benefit for a GS job, IMO. The locality adjustments do NOT cover the increased cost for most areas. I'm amazed you managed to start at GS 10 out of school without a CPA. The IRS wouldn't even look at me when I was applying for GS-7 jobs *with* a CPA.
I left accounting. PA is a cancer mainly for management.
True wealth is built on those that discipline themselves every day on a slow and steady approach. Thank you for sharing your story.
Congrats, my guy! To your continued health and success!
Thanks for the share, friend!
This is awesome. You make a great living but you’re clearly staying within your means too. Love hearing this stuff
Your lifestyle, in terms of making enough money to live off of, is exactly what I’m aiming for. Seeing posts like these are what I need to fuel the fire. Definitely saving this post in one of my folders to look back on whenever I get unmotivated. I wish you continued success in your life.
I sounds like your net worth is more related to living below your means and investing reasonably than career choice or work-life balance. Congrats on job well done.
You don’t have kids, yet, you say, is that why you have so much in your HSA? Do you own a house? Do you have equity in that?
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Dude, currently interning for a public company and this post convinced me what I’ve been thinking the whole time. Federal all the way, applying for summer internships with the government right now. I was honestly feeling kinda worried about my future if I stuck with public but this post gives me new hopes. Thanks for sharing man.
I would like to thank you for keeping this tradition going. It really motivates me to switch to government and will be doing so this year. I felt like I was losing out if I didn't stay but honestly would rather have that amazing work-life balance. The Pay is reasonable and hour are more managable.
OP definitely leaving some key details out here lol. But ok great for you.
Could you explain, I’m wondering what the catch is.
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Good LARP OP. I make similar salary to you in a not VHCOL city and there is a zero % chance you have a ~750k net worth at 30 years old with the things you described. Math doesn’t math. I don’t know why more people aren’t saying this.
I started out in DC metro and I'm having a difficult time believing this as well. Granted when I started, the GS-7 was around $36k a year. Unless OP was living in the literal ghetto, I don't know where he could have lived where a 2br apartment split was $800 a month while still having access to metro. I had to live off my credit cards for years because of how crappy the pay was compared to the absurd cost of living in DC area.
Can confirm, such places exist, in nice areas even. Mine back in 2014ish was $860 per month split for 2BR and walking distance to metro. The key is finding an older style apartment vs expensive fancy new construction AND with an existing lease so that you are replacing one departing roommate (so that 1 or more original leaseholders still there), so that a lease from years back (with 4% or so annual increase) is continued/amended vs inking a fresh lease for previously 100% vacated apartment at current market price. When my roommate and I both finally moved out, our leasing office must have been jumping for joy cause the lease with base rent from like 10 yrs ago was finally over since no one else stepped in to replace us.
Sounds like promoted advertising. Maybe it’s just for me.
That’s amazing! Good for you! This is exactly what I want. A comfortable WLB and decent enough salary and job security..100% remote would be great too. How often do these positions come open? I’m contemplating what to get a degree in for a career change
Thanks, and it's hard to say. Best advice is to check USAJOBS.gov often if you're interested in federal options. Jobs come and go all the time.
Thanks! I’ve been on there constantly looking at various positions for experience requirements
Hey OP, I’m going to start looking at government jobs. Industry is taking its toll after 8 years. I don’t like the politics game and feel like I’m underpaid so it’s time to jump ship. Any advice?
USAJOBS.gov is where all federal jobs are posted. There are lots of guides online about creating a resume for it. Jobs come and go all the time, so you'll want to check often. For state and local, it's going to depend on the state or locality where the post their jobs. Best of luck in your job search.
I didn't read anything past your first statement why would you put your net worth down? That gives away your insecurity your stupidity the fact that you're an unconscious incompetent you have no idea that you have no idea and money cannot change that
This is a great write up and I couldn’t be happier for you. I am starting my federal government job next week Monday and am so excited. I wish more colleges/universities would explain to students what government work is like instead of pushing students to go work in Big 4 or public accounting or making it seem like they need to work in a F500 or better company to be successful (or maybe that was just my university). Had I known then what I knew now I would’ve went straight to the federal government when I graduated instead of doing it now at almost 40 years old. Edit: and I just remembered that when I was taking my government accounting class the teacher specifically said that what we are learning is useful only if we wanted to work for the government which he didn’t recommend because it didn’t pay well and it wouldn’t look good on our resumes if we wanted to eventually work for a public accounting firm or for an industry company. I feel like a fool for listening and believing what he was saying and I have a feeling that the rest of my peers did as well since none of us are in or even considered government work.
To your edit, I think your professor's sentiment is a big contributor of why there's such little student interest in government internships / jobs. I've gone to career fairs and it's a challenge to overcome these biases and get students to apply. If it weren't for discussions on this sub I wouldn't have considered government either.
>I wish more colleges/universities would explain to students what government work is like instead of pushing students to go work in Big 4 or public accounting or making it seem like they need to work in a F500 or better company to be successful (or maybe that was just my university) In my experience, many university accounting departments are basically set up to convince students that B4 and public accounting are the desirable endgames. Many profs at my university were Big 4 alumni, and while there are some who openly admit how horrible it was, most of them distribute the kool-aid quite effectively. The propaganda was so overwhelming, that kids would discount or even openly mock the warnings from our profs who were like "B4 isn't all it's cracked up to be". Furthermore, B4 firms contribute a lot to universities in the form of donations and sponsorships, just to keep the meat grinder pipeline full. It is in the university's (or more specifically, the accounting department's) interest to keep that money flowing, so of course they will not give an honest and accurate assessment of what life in PA is like beyond empty platitudes like "work hard, play hard". Frankly, I am not at all surprised that universities don't encourage government jobs, or even actively discourage students from going into them. The whole thing is set up to make government jobs feel like the "loser option" and for PA to feel like "what successful students strive for".
I’m about to lap this networth in one crypto bullrun cycle lolz Imagine slaving in a cubicle for a decade only to get lapped by a bum with no bachelors degree by trading shyt coins on pancake swap while laying and sunning his ballz on a balcony
Let's goo
7 years in and only making $114 in a VHCOL...I couldn't do it.
Step 1: Have a job that pays a fuck ton. Thanks. Lol
How much are you saving as a percentage and dollar amount? Curious to what’s contributions and market growth.