The Almighty Dollar

Restoring some fiscal sanity in our -- negative savings rate -- lives

3.16.2006

How much money you make is important

There are two great posts by Financial Freedumb about revealing one's salary: why some people do it and others don't.

On The Almighty Dollar, I don't publicize any of my personal information, such as net worth, debt or income. Instead, I have written extensively about my history with money and how it has shaped my thoughts and opinions about spending.

I know there are bloggers who post all of their numbers, but then choose to keep their salaries secret. I suppose there is no harm in wanting some privacy. However, income is actually a significant factor for those who use their blogs to hold themselves accountable and to judge their progress.

Here's an example. Take two single people, both aged 30 with no debt. One makes $50K a year and has $150K in cash and retirement savings. The other makes double the salary and also has $150K in savings.

Indeed, they are both in great positions at their age. But I would be more impressed with the financial habits of the person making $50K than the one making $100K. Who do you think is doing better?