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How To Become A Millionaire As A Software Engineer
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Feb 6, 2024
"How To Become A Millionaire As A Software Engineer" is an informative video aimed at software engineers aspiring to achieve financial success. The video likely provides valuable insights, strategies, and tips for increasing earning potential and building wealth in the software engineering profession. It may cover topics such as investing wisely, leveraging additional income streams, advancing in one's career through continuous learning and skill development, and possibly even entrepreneurship. By offering actionable advice and real-life examples of successful software engineers who have attained millionaire status, the video aims to inspire and empower viewers to pursue their financial goals within the field of software engineering.
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How to Become a Millionaire as a Software Engineer
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In this video I'm going to talk about nine ways that you could become a millionaire programmer
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is to start your own company to start a startup. Now this is gonna take a lot of work and a lot of effort
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and the payoff is gonna probably be several years down the road and it is a bit speculative because
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because you actually have to be building something that people are going to want to use
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so that you can build up your customer base and then the big payoff is going to be
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when you either sell your company to someone else or when you have an IPO
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Now there are some companies that also do really successful things with keeping the business themselves
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and becoming a really profitable business over time. But generally speaking, the pattern for startups
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is that their goal is to go down the path to be bought out in one form or another
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Obviously, this is going to require a large investment of time and also capital
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To get things going, you're gonna have to have a way to survive and live off of some existing resources
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until you get the company to the point that there is enough income coming in
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And at the same time, you're gonna be, you know, struggling, trying to get other people to come in or investors or things like that
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But definitely, for those who are successful, this is probably the way to become the wealthiest
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as a software engineer. Related to this is that you could become someone who goes and works
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for a startup that ends up being sold or goes public. There are a lot of software engineers
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who make a lot of money when this happens if the stocks are structured correctly when they higher on There are ways that owners of companies can actually take advantage of their employees and reduce the value of those stocks over time And there is also high risk
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that if the company does not sell or go public, stock options you get from a startup are effectively
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worth nothing until the company is bought. And nine times out of 10, companies do not succeed in being
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bought or sold out. So you are taking a risk here. But for those who take
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that risk, there is the possibility of a pretty good payout. You aren't going to become anywhere
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near as wealthy as the owner and the founder of a startup, but you can make a lot of money
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and there's a lot of people who have paid off their homes and had a lot of extra money left over because they were some of the early employees in some of these startups that have
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gone really big. A more steady approach to becoming a millionaire as a software engineer is to
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work your way up into a larger enterprise company that is stable, has a lot of steady growth
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offers RSUs or restricted stock units, ESPP programs, employee stock purchase programs
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and ways for you to make a lot of money, including with bonuses and good promotions and
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career advancements. And then instead of just blowing that money over time on buying all
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the nice cars and nice things and stuff, to take that money and reinvest it and grow an
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investment portfolio, these software engineers are also very wise because they recognize
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that when they've received some value, they smash the like button. And working at these companies, even as a regular software engineer, you can make a lot of
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money over time. And if you want to accelerate that, you can work your way up the individual contributor path
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to becoming a, you know, principals, staff engineers, architects, and make even more money
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and be able to achieve that sooner because the higher you get, the more RSUs you tend to
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get the, you know, higher bonuses because usually your bonuses are a percentage
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of your total salary and so to get those really high salaries you going to have to move up the individual contributor path So that is one approach is going up the individual contributor path Another approach is that when you
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a good place in your career, you can also go up and over into the management path. And there's a lot of
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upside there, a bunch of different responsibilities. And that's not going to be for everyone. But at
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these larger companies, there definitely is going to be a higher ceiling for going over to the management path
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and also there's going to be a lot more opportunities than going up the individual contributor path
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It gets really, really competitive going up to the highest levels of the individual contributor path
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And you have to have a lot of experience and be very knowledgeable about the domain of the company you're working in
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whereas there's just a lot more advancement opportunities going into the business side of things
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The next way that you can become a millionaire is by working side hustles
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Now, if you're able to live comfortably and within your means at your current job, you could take on a second job or doing contract work to grow your income and take that money and just start putting it into investments into things that generate passive income and that have a lot of growth, whether that's going to be in stocks or in real estate or a bunch of different ways to invest your money
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But in my opinion, rather than working a lot of overtime, you should be spending your time after
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your current job, either developing the skills to help you grow your income or by, you know
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doing some sort of, you know, gig to grow your income and accelerate your path to retirement
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Another way to go from being a software engineer who's just living off of their income to
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potentially becoming a millionaire and retiring quickly is to relocate. If you're living in certain places like Silicon Valley where housing and cost of living is
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ridiculously high you may have a high salary but you're gonna be spending a lot of that on
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taxes and on you know places live food everything else and if you can actually work remote and get into a position that will let you work remote and then relocate away from Silicon Valley
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once you have Silicon Valley pay. And by doing so, you will have a lot more money to put away
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into investments. The next way is to teach and to share your knowledge. You can make your own
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courses on how to do the things that you are specialized in doing and teaching and helping other people
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to develop the skills so that they can be successful in the industry. And the nice thing about building courses is that by having courses available to sell
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people can be buying those while you're at work. People can be buying those while you're asleep
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It's an extra source of income that can just keep coming in and trickling in over time
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while you stay focused on your main job. Now you're still gonna have to market this and you're gonna have to put out quality content
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or people aren't going to want to buy it. But that is definitely a way that a lot of software
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engineers have become millionaires. And for the more ruthless software engineers, you can go out and create your own cryptocurrencies
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and rip off a bunch of people and a lot of investors and make millions of dollars
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That's why there are thousands of cryptocurrencies that are popping up because there are thousands of people
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with your skill sets who are going out and ripping people off. Now that's not to say that all cryptocurrencies are bad
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but there definitely are a lot of shitty ones. And I personally don't recommend going down this path
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My preference of the thing that I'm working on right now is that I am working for
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a larger enterprise type company and trying to put away money and investments with that stability
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while also looking for opportunities to eventually generate some income on the side
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So what are your plans for becoming a millionaire as a software engineer? You should let me know in the comments below and then watch this video on how to earn passive income
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as a programmer. And I'll see you in the next one. Lakes
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I'm
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