cforst513 said:
yes, i understand where you're coming from, saying that cost of living is high in certain areas. but think about this for a second: my roommate will graduate 2 days after he turns 22, he's single, and has no experience in the field he's going into. they're willing to pay him $45,000/year, starting off. think of the advancement possiblities. they're not going to rope him in with a high offer, then leave him at $45K for the next 10 years. he'll be making some serious money. that's the point i'm trying to make. i don't think that this particular company would take that risk with someone only holding a G.E.D. or a high school diploma. he's a 3.8 student who is very active at our university.
With age comes wisdom (hopefully). My mother takes a lot of things on blind faith. I don't. Take a look at flying for a career. Everybody puts up with sh!tty pay at regionals all in the name of 121 TJ PIC time so they can get a good paying job at the majors. What a lot of them fail to realize is that those coveted "majors" jobs may not be there. I'm looking at a 6 figure a year job when I'm 30, which may not be there due to medical reasons. If it was guaranteed, I'd be taking out tons of loans, having lots of fun, and working a lot less.
Have they promised your friend advancement? Have they guaranteed him pay raises greater than 3% or whatever the cost of inflation usually is? If they have, I hope it's in writing. If it's not, there's a reason. If there's no guarantee at all, there's also a reason.
I looked at going to school for pharmacy. A family friend who is a pharmacist advised against it. I told him, "Hey dude... look at the dough they pay out of school." He told me "Hey dude... there's not much advancement opportunity in pharmacy, so don't expect drastic pay increases every year." He said I would pretty much be limited to COLA adjustments every year.
Also, why wouldn't they take the risk at roping him in at $45k a year and leaving him at that? If he leaves, they hire another graduate from school at $45k per year. You want to tell me that is not feasible? The airlines do it all the time. If you don't like it, quit, because somebody else will do your job for the same money or less.
I still submit that $45k ain't sh!t, at least depending on your cost of living. I make about that as a line guy. Let's look at what $45k gets you in Los Angeles (and figures are close to what I was at in another major city as well).
There are 26 pay periods in a year. My after tax income is approximately 71% of my gross pay, and I haven't started a 401k yet. $45,000*.71/26 = $1228 per pay period.
Rent (includes util but not cable/phone, and I live in the cheapest building I could find without rat infestation) $825. Car payment (I don't drive anything fancy): $225. Insurance(liability only): $50. Student loan payment (the one I have to make): $80. DSL/Phone/Cell: $800. Cable: $45. Gas: $150. Food: $175 (I don't eat out that much). Grand total $1630. This isn't including about $400 in student loan payments that I can defer while I'm in school, and that a new car would cost me more per month, my insurance rates would be significantly higher, and credit cards that I might have. Also, this figure 1) doesn't include 401(k) investments and 2) savings for the 3 to 6 months of "immediately available" funds you should have for emergencies. If that was the case, for the $400/mo that you have left over after all normal bills are paid, you'd have to save for 15 months for three months of expenses and 30 months for six months of expenses (assuming monthly expenses of $2000).
Now, my brother's making $56k out of school, no experience, and only a four year degreel, and lives in an area where the cost of living is much lower than it is here. *That* is decent money.
So, in summary... $45k/yr is what everybody out of school should be making to pay their bills. It's good money for a college graduate, but sh!tty pay overall. I'm thinking about things that you want me to think about, and unless they've charted him a clear career progression, I'm not convinced that he will be guaranteed to make stellar cash with his present employer.
And kid, you seem to be saying that because they are starting your friend off at a "high" starting salary, that and that alone means he will get substantial pay raises every year. Unless he works under a collective baragaining agreement, I would be very leery of any promises. Regarding your comment about letting him sit at $45k/yr being unethical... What are you smoking? *Nothing* requires them to give him *any* pay raise every year. Look at the airlines... They're CUTTING employees' pay. Is that ethical? Why not?
