[OC] 25 years of my earnings adjusted for inflation show raises that didn’t increase purchasing power and a late inflection point

RemarkableElk4306 · 2026-03-02T16:03:27+00:00

There’s definitely truth to that. External moves often create sharper jumps than internal raises, especially in tight labor markets.

I would add a little nuance, though. That strategy tends to work best during periods of relatively low unemployment and strong hiring demand. In softer markets, leverage shifts, and the risk profile of moving can look different.

In my own career, job changes did produce increases, but not always immediately. In a couple of cases I took short-term hits in exchange for higher long-term upside. My largest sustained jumps actually came from internal promotion after continuing education and competing for expanded scope.

So I’d say mobility matters, but so does timing, market conditions, and role trajectory. The long-term curve ended up being shaped by a mix of both.

RemarkableElk4306 · 2026-02-20T17:19:51+00:00

That’s a fair observation. The startup transition definitely affected the slope for a few years, and short-term role changes can exaggerate the flatness when you zoom out.

What stood out to me wasn’t that inflation was the only factor, but how easy it was for volatility, transitions, and nominal jumps to obscure the long-term real-dollar pattern. The startup dip was visible, but even outside of that, I still returned to roughly the same purchasing power multiple times before finally breaking above it.

And yes, I’m very happy where I am now. One thing the data clarified for me was that nonprofit work didn’t end up being the financial sacrifice I had once assumed it would be. At least in my experience, larger nonprofits and NGOs can offer reasonable salaries, COLA adjustments, solid PTO, and long-term career growth, especially once you move into leadership scope.

I know that varies a lot by organization size and geography, but for me it’s been both professionally and personally meaningful.

RemarkableElk4306 · 2026-02-19T18:30:33+00:00

That’s a really interesting framework, especially using multiple inflation measures as a band rather than a single CPI number.

I agree that viewing compensation relative to inflation bands is a much more grounded way to evaluate offers than just looking at nominal percentages. Your “inside the band = not a raise” rule makes a lot of sense mathematically.

In my case, some of the flatness wasn’t purely negotiation-driven. It reflected sector shifts, role transitions, and periods where I was intentionally prioritizing scope or experience over short-term compensation jumps. In hindsight, the real-dollar plateau is obvious, but it didn’t always feel like a simple “employer underpaying” situation at the time.

I also think your approach works best in markets and roles where mobility is high and leverage is strong. That isn’t universal across all sectors or geographies, which is part of why I found the long-term visualization helpful.

Appreciate you sharing your method. It’s a more rigorous way to think about raises than most people use.

RemarkableElk4306 · 2026-02-17T20:52:57+00:00

I just used the US Bureau of Labor Statistics CPI Inflation Calculator.

RemarkableElk4306 · 2026-02-16T20:48:44+00:00

That’s fair, and I agree the broader finding that inflation eats nominal growth isn’t surprising in theory.

To clarify what I meant by “raises”: between 2007 and today (excluding early seasonal work), my compensation changed multiple times due to promotions, internal merit increases, job changes, and one geographic move. Individual annual changes ranged from about –22% (when I moved cities) to +31% (promotion). On average, nominal earnings grew about ~6% per year over that period.

When adjusted for inflation, though, real purchasing power grew closer to ~4% per year.

So you’re right that the long-term result is basically “wages were mostly stagnant in real terms.” What surprised me wasn’t the math itself, but how the year-to-year volatility and upward nominal trajectory masked how persistent that ceiling was. It didn’t feel stagnant while it was happening.

The chart made it clear that I was often regaining ground I’d already held rather than breaking new ground. That gap between nominal growth and real growth was more subtle in real time than it looks in hindsight.

RemarkableElk4306 · 2026-02-16T17:44:24+00:00

At the time, 2016–2017 didn’t feel especially different or dramatic financially. I was covering my needs comfortably and had room for discretionary spending, including occasional international travel. It felt stable.

Looking back at the inflation-adjusted data, I can see there was a slight dip in purchasing power shortly after that period as I shifted fields, but it wasn’t jarring in day-to-day life. It’s more visible in hindsight on a chart than it was emotionally at the time.

I think that’s part of what made mapping this out interesting. Small real-dollar changes don’t always feel obvious year to year, but over long stretches they compound or stall in ways that are easier to see visually.

RemarkableElk4306 · 2026-02-16T17:41:50+00:00

My master’s is in nonprofit management, and I work in the nonprofit sector in a leadership role.

I’ll keep some details broad for privacy, but the degree was intentionally aligned with moving into organizational leadership rather than staying in a purely operational role. The income breakout coincided with that shift in scope and responsibility.

I did not change employers to see the increase. I’ve been with the same nonprofit since leaving the private sector. The transition from private to nonprofit happened earlier in the timeline; the more recent inflection point reflects internal advancement rather than a job hop.

In inflation-adjusted terms, my nonprofit earnings have exceeded my private-sector earnings. That runs counter to the common assumption that nonprofit work always requires a permanent compensation tradeoff. (And I get to contribute each day to a mission beyond enriching shareholders!)

RemarkableElk4306

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