The path to a 200k annual pay (on an hourly basis)

I am a dual discipline PE in Electrical and Chemical engineering (degree in ChE and minor in EE/mathematics). I used to work in oil and gas making like 140k a year and got caught in a mass layoff. Some substitute teaching and odd stints with telco companies and contractors and I'm at like 85k a year.

What is the path to 200k a year, is that pretty much unheard of in our stagflation economy or is it reasonably doable? I live in Anchorage AK and pretty much anything happening (house repairs, etc) is an astronomical amount of money, even just materials. I am looking to do some contracting on nights and weekends as well. Is there a good resource for remote contract jobs I can do at my own pace and distance?

I was set up to have my investments working for me so I could just do what I wanted like get an advanced degree in mathematics and maybe study magnetohydrodynamics and wakefield accelerators but the economic situation in America is becoming untenable, basically if a window breaks in our house we have to get a second job.

How is everyone else doing this? Does it feel like engineering is a hobby and you have to do other things to build wealth so you can do engineering/science?

rppearso said:

What is the path to 200k a year... ...or is it reasonably doable?

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For engineering? Yes, it's doable, but that's on the far right side of the salary curve. No engineer should expect to get there 10 years after school.
You typically need to move into a management track and have a lot of experience.
There are a few sub-disciplines and areas where its more common. Generally you are looking at defense contractors, some national labs, and of course the big companies in Silicon Valley. The former two will require a lot of experience. The latter is just being that good, and some luck.
It's more likely in some disciplines that others: nuclear, petro, some computer engineers, and to a lesser extent systems engineers/logistics come to mind.

rppearso said:

I used to work in oil and gas making like 140k a year and got caught in a mass layoff.

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That is the nature of petroleum sector. Feast or famine. Aerospace is similar.

rppearso said:

Does it feel like engineering is a hobby and you have to do other things to build wealth so you can do engineering/science?

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No. Engineering is my career. I live comfortably.

Business makes money, engineering is typically an employed skill and will always be capped based on market demand. Have you considered opening an LLC and marketing your skills and experience under a business name/license? A simple webpage could offer a central location to display your experience, skills and offerings along with a contact number/email. In a remote setting you could create passive income with employees closer to the work, perhaps other independent contractors who work under your business. They key of course is to gain exposure. Marketing is a key skill, and networking is often the best bet to get started. Cold calling industry contacts may be your best bet to get things off and running. These folks understand your skills and may have the inside on available needs. Perhaps some of the contract stints you are into will work business to business contracts.

Other benefits could include write offs of expenses, such as portions of your home you use for business, helping save money. There is far more to it than I am offering in this quick post but given your situation it may benefit you. Operating a business is a skill, and it if you considered going in that direction, I would advise learning some basics in accounting, understanding contract terms and conditions, insurance requirements, etc. You may have a solid understating of these items already but if not, a dual PE in chemical and electrical most likely has the capabilities to pick up on this skill with a bit of research.

Good post. Mark.

Started a construction engineering business. Rule of thumb for my type of work is an employee should bring 3 times their salary into the company. If you go on your own and are ok with dealing with negotiating, finding clients, etc. You can easily triple what your salary would have been after 3 years of grinding, getting repeat clients, etc. Advice would be saving enough to live for 6 months without receiving an income and expect to spend at least 10k to start if clients require insurance, software, etc.

If you can get past the starting pay to play stress barrier, the world starts opening up for you.

Joe2,
Great info regarding the start up phase. I have been working on developing my own scope of business but have not made the leap just yet. I would really be interested in hearing details or recommendations about how you gained customers/sold your service. Any tips in that regard? How did you gain your first client?

Thanks,
DC

DC, easiest place to start is being cheaper than your competitors. For me, that was going to architect’s (mechanical here) and asking for advice and then I’d keep showing up (to get lunch with them/etc). They eventually hire me at the rate they said was a little below industry standard or what they thought was fair (sometimes 10% low, sometimes 60% low).

You then have to take a step back and see what jobs you make money on (I then figured out the jobs I did a good job for and was detailed actually meant I was in the black, not green). You cut the black and slightly red clients out and actually work with the teams you enjoy AND make money working with.

Now I generally don’t work with architects.. enjoy and make more money working for clients directly.. But I wouldn’t know that if I didn’t work too cheap/etc for those first 3 years. Year 6 now.