Your Earnings in Your 20s May Set Your Financial Future

How much are you earning right now and what age are you? This is a very critical question that can determine what your value will be in the future. If you are still in your 20s, and you earn a somewhat high amount, you actually are in the safe zone, if you are older, it might be too late to raise your value now.

The Federal Reserve Bank of New York released a report which reveals that how much you earn in your 1st decade as a worker may determine how much you will earn in the next decades.

The Washington Post discussed the results of the report which was actually revealing. Want to know how much you will earn in the future?

If you are a median earner, your earnings may increase upto 38%.

For example, if you are earning around P 30,000 per month or P 480,000 annually, there is a chance that your earnings will increase up to P 41,400 per month or  P 662,400 annually from age 25-55. Also, this increase could be expected to happen at the age between 25-35.

If you are earning at the higher end or at the 95th percentile, your income will increase up to 230 %. Those in the 99th percentile like doctors, lawyers and engineers can increase their income up to 1,450%.

For example if you are earning P 100,000 monthly at the age of 29 (Think of Operations Managers in BPOs), you could actually earn as much as up to P 230,000 monthly in the future. That’s P 2.76 M annually!

For low level income earners, the trend is decreasing, however.

Low level income earners usually use what they call “brawn” which requires physical strength. And as people age, we become less productive physically.

So, why is there an exceedingly high increase for people whose earnings belong to the top 95-99th percentile? According to the study, these people use their “brain” and experience for their careers which raises their value.

What’s the point of this report? Well, unless your from a filthy rich family, and you want the best life when you retire, you better work hard and gain as much experience as you can while you’re young. Your first decade at work would help you determine how much more or less you can earn in the future.

So, how much are you earning right now?