I’m just finishing my taxes for last year and I’ve kept pretty good records of my adjusted gross income from every year since I started working so I thought I would share here!

One thing I’ve noticed is that it’s way easier to make money now that I have money. In my twenties I was working hard. I worked long hours and pinched every penny and my taxes showed I didn’t have much income to show for it. Since I sold my company, I’ve had a few years where I did almost no (paid) work, yet my income always seems to be healthily in the six figures.

Some of that income is predictable. Dividends from the index funds I own. Last year that was about $70K. The rest of my “early retirement” income has been less predictable. Whether it’s the selling of stock, or a real estate investment paying off, or a good year for PFC, income seems to come a lot easier these days than it did in the past!

I think my story is atypical, although I think ALL of our stories are atypical to some degree. But there’s often a lot of similarities. One is that most people generally make more money as they get older and advance through their careers. So if you’re in a tough financial situation, remember that five years from now you may be making a lot more than you are now. And I would absolutely take steps to get there.

For what it’s worth, just as I did with my first company, I’m not draining the cash from PFC into my personal bank account. I’m taking the same from payroll as Vivi and Shane (actually less because they get profit sharing bonuses I don’t take). I also use some of the cash to cover the taxes owed on my personal income tax due to PFC’s profits. The rest of PFC’s cash stays in the business bank account so we can make sure to cover payroll for a while.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy