I came across an interesting article Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less and thought to share with you.
Let’s use the rule of 72 as an example.
Basically, the rule of 72 is a simple method of determining the number of years an investment will double by dividing 72 by the rate of return.
With a 4% annual salary increase, salary will double in 18 years (72/4).
With an average 6% annual salary increase, salary will double in 12 years (72/6).
What’s the likelihood of getting an average 6% annual increase for 12 years while remaining at the same company? Next to none!
It’s definitely possible to double salary in 12 years depending on the starting point.
For salary starting with $40k is easier to achieve versus starting salary of $100k, per se.