I increased my salary from $38,000 to nearly $3 million in 20 years

You can learn a lot from people who achieve financial success, including a Redditor who shared a detailed post in the Salary subreddit. The Redditor breaks down how they went from earning $38k/yr to $3.0 million per year in 20 years.

Initially, it took a while for the Redditor to make big salary jumps. For instance, the individual went from $38k to $39k in the first year and then ended up with $42k after the second year. The Redditor worked five years before getting to $50k/yr, but the Redditor’s salary growth soared after crossing the 6-figure plateau. 

There are a lot of things you can learn from this inspirational story. Following these lessons can help you climb the corporate ladder and boost your earnings. 

Job Hopping Can Boost Your Income

Job hopping is one of the best ways to boost your salary. Most companies give small raises to existing employees but aren’t afraid to make better offers to job candidates. You can use this to your advantage and jump ship every few years to pursue bigger paychecks.

I wouldn’t be shocked if the Redditor job hopped in 2013 when their income surged from $64k to $170k. The Redditor acknowledged a job hop in the comments when they went from $850k in 2022 to $1.45 million in 2023. The Redditor also explained it as building expertise with employer A and then monetizing that expertise with employer B.

Regularly Save Money

A high income increases the likelihood of achieving long-term financial goals and retiring early if you desire. However, it’s not about how much you make but how much you keep. 

Investing money into stocks and real estate will help it compound faster. You can also use real estate to capitalize on manytax benefits, such as cost segregation. With this strategy, high-income earners can depreciate a property’s entire value in one year, legally allowing them to avoid taxes through Section 179 of the tax code.

Regardless of what investments you choose, it’s important to make your money do some of the work for you. This advice is basic, but it’s worth the reminder. Reviewing your finances can help you discover opportunities to reduce your expenses and ensure that you live below your means. 

Pick A Highly Profitable Career

Some careers offer more attractive salary trajectories than others. If you are still deciding on a career or are considering a change, you should compare options based on how much you can earn. Check job titles in different career paths and look for the average salary. That way, you’ll know what roles to look for during your job search. 

Knowing highly profitable career options can also help you develop skills that align with the opportunity. For instance, if you want a cybersecurity career, you can take online courses and receive certificates now so your application looks more attractive in the future.

Continue to Set Big Goals

The Redditor didn’t stop growing their income after surpassing $1 million per year. After earning $1.45 million in 2023, the Redditor proceeded to earn $3.0 million in 2024. It takes a lot of ambition to continue growing your income even when you may be earning more than enough.

Continuing to set big goals around your salary and portfolio can inspire you to take more action than most people in your industry. Working harder and smarter than the competition can help you scale your salary and wind up in a good position within the next few years.