Salaries top out at age 40

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Whatever you earn at age 40 is likely to be the top of your earning potential. This is one of a gazillion things I’ve learned from talking with Al Lee, the director of quantitative analysis at PayScale.

Al’s data, which is based on the careers of college graduates, is basically that the salary curve for most people in their 20s is very steep. Then it starts to flatten in the 30s, and then you get into the land of the 3% raise. In real dollars, those 3% raises are not actually raises, they are just keeping up with inflation.

The information is grim. But here are some things you can do with it:

1. Go where the men are. To be precise, pay tops out at age 38 for women ($61K) and age 45 for men ($95K). But the difference, according to PayScale data, is not due to unequal pay for equal work. Rather, the difference is that women choose lower paying careers, and women are more likely to take time out of the workforce for kids. So the first thing you can do to prevent your salary from flat-lining is choose a career that men dominate. But it’s not just about industry—it is also about influence. Stick to line-management positions rather than support roles. For example, skip human resources and go to supply chain management. Read more

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Volkswagen Super Bowl ad is an anthem to Gen X

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Now that I live on a farm, which, by the way, has been inescapable for three days because of snow, I keep up with the world by watching trending topics on Twitter.

Right now, a trending topic is “Volkswagen commercial” which is about their new Super Bowl commercial. Volkswagen has conveniently released the commercial early so we don't have to spend this Sunday watching men giving each other concussions to see it.

Here's the commercial:

This makes me happy to be part of Generation X. First of all, this is the small window of time when Generation X will have the largest buying power in the consumer market. We are at our highest earning power, which, admittedly, is not impressive, but earnings are all relative, and people are discriminating against the Baby Boomers because of their age, so it's our heyday.

It's also our heyday because Gen X values are front and center. And we're about family. We don't earn as much as Baby Boomers did because we work such fewer hours. We've downsized our careers to take care of our kids. We've taken back the dignity of working part-time. We've deconstructed stay-at-home parenting as a respectful career alternative. Read more

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Achilles heel of minimalism: It’s boring

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We took a trip to NYC because I was worried that we are were not being exposed to enough visually stimulating inputs. I want the kids to see new things, do new things, and I wanted to see the Barney’s Christmas windows. The theme was foodies. I was stressed that I was not up on Food Network enough to get the high-brow insider references. Still, the windows were gorgeous.

I was talking with Leo Babauta about minimalism. Well, actually, we were talking about his new book, and his minimalist process of promoting it, which I will now contribute to with this link. Read more

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Frugality is a career tool

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I have earned a lot of money in my life. But I have never had an extravagant life. I don't own a house. I've never bought a new car. I've never bought a new piece of living room furniture, and I do not own a single piece of real jewelry. What I have spent money on was always intended to help me with my career. That was so I know that I can always earn money doing something I love.

I leased a BMW when it was clear that that mattered when it came to making deals in LA. I hired a stylist when I realized my clothes were holding me back in NYC. In Madison I have tons of household help so my kids don't have a crazy schedule because of my work schedule.

I am convinced that frugality is a key quality for a successful career. Here is why frugality helps your career:

1. Spending money is generally a distraction.
We know this. That people use it as therapy. People use it to fill holes they perceive in their lives. But the psychic energy it takes to spend money actually distracts us from what matters to us. Pay Pal reports that people wish their significant other would spend less money on Valentine's Day. This encapsulates the whole problem to me. Read more

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Thanksgiving drama on steroids: Adding a family business to the mix

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I think its safe to say that for the majority of people, Thanksgiving is not about goodness and gratitude, but rather, family drama.

Until now, I have been pretty much on the outside of this American tradition: The tradition of building up Thanksgiving to be a great family moment and then the family not living up to it. But everyone still does Thanksgiving basically because they love their parents. I'm not gonna say here that I don't love my parents. But it's a special kind of love that does not involve being with them for holidays.

But this year is a big switch for me, because I'm doing Thanksgiving family drama—with the farmer. There is family drama because the farmer has three sisters who think I have a morality problem. Like I don't have morals.

In fact, the whole family thinks this, and those with Internet connections print out blog posts about sex acts and send them, via US mail, to less connected family members. The outcry crosses state boundaries from Wisconsin to Illinois, and sometimes, I think they are googling terms like Penelope Trunk and sex. I mean, it's not easy to find the stuff they are finding.

Wait. You are wondering, right? What they're finding? Here. Here's a list of some links. And, now no one has to do any morally-compromising searches. It's all right here: Read more

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3 Questions you ask me a lot, about money

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I don’t usually write question and answer columns. (Although I have once or twice before.) I do read every single question that people send me. And these are three questions I’ve been answering a lot lately.

Q: Why do you pay $50,000 a year for a house manager?

A: The short answer is that I am buying a stay-at-home wife. Most people, who are at a similar spot in their career and have young kids at home, have a stay-at-home wife. (This is, of course, because I have the type of career that is dominated by men, and women without kids.)

I know you are thinking that most stay-at-home wives are taking care of kids. But almost all kids are in school most of the day. But the women are still busy. They are doing the infinite number of things required to run a household. Here is a sampling of things that I am sure that none of the startup CEOs I met with last week thought about for one second:

–What should we get my niece for her birthday?
–Who is the best teacher to request for third grade?
–Should the kids have private swimming lessons or is group okay?
–What’s the best way to train the dog not to pee on the sofa?

Those questions actually require thinking and planning, and they are constant. Running a house is like running a business, and very few people can do both well. Read more

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Do you belong in NYC? Take the test

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More than 80% of young people say they want to live in New York City, according to Time Out New York. I can understand that. I lived there for seven years. Of course, NYC is amazing. But I have also lived for about ten years each in Chicago, LA, and Boston. And now I live in Madison, WI. And I can tell you with certainty that anywhere you live requires you to give up some things.

NYC has the most extreme benefits to it, but it also requires the most extreme concessions in order to get those benefits. This makes sense. It’s how most of life is. So in order to understand how good a fit you’d be in NYC, you don’t need to look at the benefits — we all want the benefits of NYC. What you need to look at is what you give up.

Here are three questions to ask yourself. You need to answer yes to at least two before you start researching movers in New York.

1. Are you a maximizer?

Optimizers are people who are always looking for the best of everything. You know if you are this kind of person because you are never complacent. You are always trying to find if there is something better. It could be a someone who cuts bangs better, a better pickup basketball game, you keep trading up boyfriends, maximizers are always looking for something better, and they usually get greatness in their lives in many aspects. Non-maximizers can be satisfied with what they have. Each of us falls somewhere on this spectrum. New Yorkers skew heavily to strong maximizers.

This is because you can find pretty much the best of everything in NYC. (Yes, maybe there are some things, like the best ski slope, that you cannot find there, but if that’s what you want most, you probably shouldn’t be in NYC.) Read more

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New gender gaps for the new millennium

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I have said about ten million times that there is no more glass ceiling, there is no more salary gap between men and women, and there is no reason to keep bitching about sexual harassment because it's merely a legal issue, not a men-are-evil issue.

Okay. So if the gender gaps are not around these feminist favorites, then are there any gender gaps we should be concentrating on? Yes. Here are three:

1. The startup gap. Women need to be compensated at a higher rate than men if they are to give up their personal lives in order to work. Law firms accomplish this by keeping women on partner track even when they're part-time. Corporations do this by offering flex time and other business-bending options for high-performing women who want to take care of kids.

VCs talk endlessly about why there are so few women running venture backed companies, but it's incredulous talk. The reason is that VCs don't pay women more. Here's the bottom line: If you take a man and a woman doing the same office job and the same parenting job, the man will think he's doing a good job at parenting, but not the woman.

This makes genetic sense. The men had to think the kids were fine when they left the cave to hunt. Or else they wouldn't leave and no one would have eaten. The women had to think the kids always needed more attention. Otherwise, the women would say, “This is good enough” and then the kids would starve or get eaten by lions. Read more

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How to decide where to live

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Three years ago, I made a decision to move from New York City to Madison, WI based purely on research. I put economic development research together with positive psychology research. Then I combed the Internet for city statistics, and I moved. (If you want to read the research I used, I linked to it all in this post.)

I had never been to Madison in my life, and you know what? It was a good decision. Except for one thing: I ignored the data about schools. I didn’t believe that a city known for progressive social programs and university filled with genius faculty could have poorly performing public schools. But it ended up being true, and all economic development research says do not move to a place with crap schools—it’s a sign that lots of things in the city are not right.

So when you decide where to live, pay attention to the research. Ignore stuff like the geography of personality because it’s interesting, but there’s no data that says it correlates to what makes you happy. And pay attention to research that flies in the face of everything you know, like you can be a millionaire anywhere. But, then, you should probably not be looking at that research because being a millionaire won’t impact your happiness so it should not impact where you choose to live.

Here’s some research I’ve found recently that you should consider if you’re considering relocating:

Live by water.
People who live inland are not as happy as people who live near water, according to research coming out in the American Journal of Preventative Medicine. And some scientists think this is because humans evolved by following the shorelines and living off water life. So, the Journal of Preventative Medicine shows that if you live in the Appalachian Mountains you are twice as likely to have mental illness than if you live in Hawaii. Read more

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6 Tips for being a CEO without ruining your kids' lives. I hope.

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I get questions all the time about how I manage having kids and a startup at the same time. After trying to answer the question a few times, I realized that there’s the pretty-much-BS answer about how it’s all about being clear on your values. Or there's the complicated, too-long-for-interviews answer.

To really get tips for being a CEO with young kids, you’d have to hang out with me for a day. Like, last Tuesday. Which was just another day of being a parent and running a startup. Except this day starts at midnight. When I decide that I am not going to go to sleep because I have to get up at 3:30 a.m. to drive to Milwaukee to catch a plane to Atlanta at 7 a.m. And here's the first tip:

1. Get sleep. The kind that is not warm and sweet.
I decide I'll stay up late and work but what I find is that I'm mostly eating. First coffee. Then coffee doused in sugar. Then peanut butter and jelly sandwiches, which I covet each morning I make them for school lunches. But normally I restrain myself.

I see now I'm too stressed for normal restraint, so I go to bed.

My three-year-old is in my bed. If I get in, he will snuggle and whisper “I love you” in his sleep. But when I get up to go to the airport, he'll have a fit, because what kid wouldn't hate to wake to his mom leaving his house in the middle of the night?

To shield my son from childhood trauma I take him out of my bed and put him in bed with my ex husband, who is sleeping in the bedroom down the hall so that I can leave on business trips.

2. Be great at business travel. But get out of it whenever you can.
I set the Blackberry for 3:30 a.m. And when it wakes me I feel like I slept for ten seconds. But this crappy itinerary was my idea. Because I was so excited to go in and out in one day and not have to stay in a hotel. Read more

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