Is $79,500 a good salary for a 23 year old?

[Mosaud1998]

I just started my new job as a salesman at a Ford Dealership 3 months ago.

I've been hitting the volume bonus every month. (Volume bonus is if you sell 12 cars you get an extra $250. Sell 18 cars $500 and 25 $1000).

I've been averaging about 13-15 cars a month. This month I only have 12. I was on vacation for a week. Still hit the $250 bonus though

My YTD so far is $19,877 in 3 months. That's about $6,625/month which adds up to $79,508. Take Illinois taxes out and my take-home is a lousy $59,101 (Screw IL )

I'm not sure if I should be happy about that or .

The average American made about $94k/year in 2020. I don't know if that number is with taxes and everything taken out or without. My assumption is that number is without taxes etc taken out.

The average college grad made about $56k/year in 2020....

[KennyFSU]

Yes.

[infinitekidM2C]

Si.

[243Racing]

In Chicago? It's not bad! Unadjusted for inflation, thats about double what I was making at 23.

[ryan stewart]

It's very good, but it's not a full-time salary. Right now you're in the peak of your industry and possibly the peak of your career.

Back when I worked in consulting I saw a lot of guys wash out because they didn't plan for the lean times, make sure you do.

[upstatedoc]

Get off my lawn. I barely made that as an intern

[Mosaud1998]

Originally Posted by 243Racing

In Chicago? It's not bad! Unadjusted for inflation, thats about double what I was making at 23.

I just don't know how I feel about the $59k take home. That's nothing

[Mosaud1998]

Originally Posted by ryan stewart

It's very good, but it's not a full-time salary. Right now you're in the peak of your industry and possibly the peak of your career.

Back when I worked in consulting I saw a lot of guys wash out because they didn't plan for the lean times, make sure you do.

ehhh I don't think I'm in the peak of anything.

This is my first sales job. I want to build my way up the food chain and become a GM soon.

[TheWatchGuy]

nice subtle brag

average salary is ok to use, i guess, but median is a much better representation of the workforce. Median salary in 2020 was ~$55k

[TheWatchGuy]

Originally Posted by Mosaud1998

I just don't know how I feel about the $59k take home. That's nothing

welcome to taxes.

[Mosaud1998]

Originally Posted by TheWatchGuy

nice subtle brag

average salary is ok to use, i guess, but median is a much better representation of the workforce. Median salary in 2020 was ~$55k

I'm not bragging. I just don't know how to feel about the $59k take home. can't do much with that.

can't buy a decent car without a loan or anything.

[CTinline-six]

Originally Posted by Mosaud1998

The average American made about $94k/year in 2020.

I feel like that is incorrect.

Like others have said, that is a good salary depending on what area you live in, but to me an important factor is work/life balance. It's also commission, so if car buying slows down, so does your income.

[Tommy-G]

Originally Posted by ryan stewart

It's very good, but it's not a full-time salary. Right now you're in the peak of your industry and possibly the peak of your career.

Back when I worked in consulting I saw a lot of guys wash out because they didn't plan for the lean times, make sure you do.

THIS!
Mosaud1998 I have been in car dealerships all my career (25+)
Thats great for starting out but I caution you of this. I have made well over 6 figures and I have almost been bankrupt and foreclosed on my home outside Milwaukee (obv not far from you)
The car market changes drastically and right now you are in some of the highest margins ever. Especially in a major metro area like Chicago. I assume your dealer probably has huge market adjustments right now. Remember inventory is going to run out, or the gross will go back to normal.

Back in 08-11 my department was rocking at an all Highline dealer outside Milwaukee but no one was buying new cars b/c of the recession. My dealer froze everyones wage increases for 3 years. I had just moved there and was due a high increase from straighting the ship and turning a profit. Well, as mentioned before I got in over my head on a house and almost lost it all.

Plan for a rainy day buddy b/c it will come in this industry. It was something I never did. Made stupid money as a 25yr old living on the east coast. I wish I knew then what I know now......just be careful is all I will advise and dont let the good times go to your head.

Congrats on the success.....12-14/month is a strong number

[Gregrobin]

I was paid $22,800 my first job out of college in 1990. I'd say you are doing well.

[spazzyfry123]

Does it work for you? Does it feel like a good wage for the work done? Yes or no?

Comparing to a national average is the Instagramification of life - someone is doing something better than me regardless of circumstance, so what I'm doing is bad.

Nearly $5k/month of take-home can get you a lot of things, again, depending on circumstance.

[upstatedoc]

Also, you have only been working for three months it seems like you're counting your chickens before they hatch. As long as you have reliable transportation, a roof over your head and food you're doing well. Oh and don't forget to get laid.

[Mosaud1998]

Originally Posted by Tommy-G

THIS!
Mosaud1998 I have been in car dealerships all my career (25+)
Thats great for starting out but I caution you of this. I have made well over 6 figures and I have almost been bankrupt and foreclosed on my home outside Milwaukee (obv not far from you)
The car market changes drastically and right now you are in some of the highest margins ever. Especially in a major metro area like Chicago. I assume your dealer probably has huge market adjustments right now. Remember inventory is going to run out, or the gross will go back to normal.

Back in 08-11 my department was rocking at an all Highline dealer outside Milwaukee but no one was buying new cars b/c of the recession. My dealer froze everyones wage increases for 3 years. I had just moved there and was due a high increase from straighting the ship and turning a profit. Well, as mentioned before I got in over my head on a house and almost lost it all.

Plan for a rainy day buddy b/c it will come in this industry. It was something I never did. Made stupid money as a 25yr old living on the east coast. I wish I knew then what I know now......just be careful is all I will advise and dont let the good times go to your head.

Congrats on the success.....12-14/month is a strong number

I mean, our new cars are only marked up $2k

We have a 21 Limited F-150 and King Ranch Expedition that is $4k marked up. But some dealers are marking their cars $15k above sticker..

I sold a new Mach 1 that we brought from a texas dealer for over sticker. We sold it for $2k above sticker. We paid like $8k above sticker. Took a loss on that.

Some aren't even marked up.

I've been selling a lot of used cars tho.

[TheWatchGuy]

Originally Posted by Mosaud1998

I'm not bragging. I just don't know how to feel about the $59k take home. can't do much with that.

can't buy a decent car without a loan or anything.

save your money and dont buy something you cant afford.

getting a loan on a car isnt a bad thing, and in a lot of instances, is smarter than paying cash with where interest rates are right now.

FWIW, i made right around there out of school at 23, and bought a new car with a similar take home pay on a 3 year, 0% interest loan. it can be done.

[Mosaud1998]

Originally Posted by upstatedoc

Also, you have only been working for three months it seems like you're counting your chickens before they hatch. As long as you have reliable transportation, a roof over your head and food you're doing well. Oh and don't forget to get laid.

I live with my family right now.

Thinking about rental properties ones the market cools down.

I am still thinking about going to school.

But I hate school. Love what I do right now...

[clutchdj]

All depends on how much you have to pay in taxes ;-).

Short answer is yes though

[TheWatchGuy]

Originally Posted by Mosaud1998

I mean, our new cars are only marked up $2k

We have a 21 Limited F-150 and King Ranch Expedition that is $4k marked up. But some dealers are marking their cars $15k above sticker..

I sold a new Mach 1 that we brought from a texas dealer for over sticker. We sold it for $2k above sticker. We paid like $8k above sticker. Took a loss on that.

Some aren't even marked up.

I've been selling a lot of used cars tho.

2k mark up on new cars is huge fyi. those cars were selling for 2k + under MSRP earlier this year.

Hell, the last 4 new cars i bought ranged from 5-10% under MSRP before manufacturer incentives.

[CTinline-six]

Originally Posted by Mosaud1998

I live with my family right now.

Thinking about rental properties ones the market cools down.

I am still thinking about going to school.

But I hate school. Love what I do right now...

Education is never a bad investment, it's always good to have options.