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Being a software dev, what is the fastest and safest way to financial freedom?

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Being a software dev, what is the fastest and safest way to financial freedom?

#1
Hope you are all doing well in these hard times. I was diagnosed with Lymphoma cancer few months ago. I'm a young married man (just turned 30) with no prior health issues (I don't smoke neither drink) so the news was very hard to hear.

Thanks to god and the help of doctors and chemotherapy, I'm now in complete remission but stays under control (cancer still may be back anytime).

At the moment I'm still in sick leave and I don't plan to go back to my regular 9-5 corp job. Actually I don't want to for many personal reasons.

I would like to achieve a financial freedom and I'm looking for advices!

- I do front and back-end development for more than 7 years but I'm also good at ui design (with sketch) and seo - I don't have a portfolio - I don't have clients

What should I do right now?

Toptal seems to be good but I heard that the screening process is very hard. Is there similar platforms?

Thank you!

Re: Being a software dev, what is the fastest and safest way to financial freedom?

#5
The fastest way involves a ton of luck. Start your own company, or become an early employee of a startup with stock options. Hope the company executes well and earns tons of revenue, or gets bought out. This is not the safest.

The safest way is boring as heck. Spend less than you earn. A lot less.

Take that extra money and invest it in non-risky stocks. You should be able to get 5% return per year at a minimum. I prefer dividend reinvestment plans because that way I get more stocks each quarter, along with the shares increasing in price.

You could also look at buying real estate and renting it out, as that traditionally increases in value. However being a landlord can be tough, and it's not always guaranteed to result in an increase in value.

Re: Being a software dev, what is the fastest and safest way to financial freedom?

#6

If your goal is financial independence, and not just "get rich", then put as much energy into simplifying your life and having a small personal "run rate" as you do into your income.

This :) Financial independence is not really about the amount of money you make, but the amount you spend. It sounds corny, but there are plenty of people with every kind of income who'd have to find a new place to live if their income was halved in a few months.. On the flipside, there are also plenty of people who could manage just fine with half of what they earned. My upkeep is about 15% of my salary, and I'm not highly paid.

Alternatively, become stupid-rich before quitting your job, but, that's statistically not going to happen, and you're actually less in control of that than you'd think.. Plenty of people work real hard to achieve that and their hard work only gets them to average, while others just happen to be at the right place at the right time.

Re: Being a software dev, what is the fastest and safest way to financial freedom?

#8
post #5

The fastest way involves a ton of luck. Start your own company, or become an early employee of a startup with stock options. Hope the company executes well and earns tons of revenue, or gets bought out. This is not the safest. The safest way is boring as heck. Spend less than you earn. A lot less. Take that extra money and invest it in non-risky stocks. You should be able to get 5% return per year at a minimum. I pre…

I love this comment because it relates to me. I've had multiple older men: my father, my grandfather, and a few "guiding male role models" who have steered me the way of real estate and while I can see the value in it, it bores me, terrifies me, and excites me at the same time. I have no passion for it. I don't have any desire to fix what other people break or attempt to collect rent every month. It sounds great when you have good tenants, but it takes a lot of years of mistakes and lessons to get to be a good landlord with good paying tenants.

Instead, I focus on virtual real estate: the SaaS market, which makes it easier to collect rent and leads me to your point of starting a business: find something people need and sell it. Make sure you save for Uncle Sam and the companies who help you along the way, and you can definitely build something from there.

Starting with other companies definitely takes a bit of patience and learning to work together and having the same goals. Everything starts off with a simple idea and it only takes chemistry to make it mean something. So its possible and there are plenty of websites to help those two people meet.

As for your suggestion with stocks, I do the same thing with stocks but I am a bit of a risk taker because I still have about 30 more years of work -- 15 if I am lucky. Depending on your age, you should certainly be willing to take risks, while creating a safety net for yourself.

If you're single and a developer, making upwards of 5 digits to 6 digits a year, then you really have no worries, and you should consult a financial advisor to let you know when you can genuinely retire if you don't change your life -- or help you figure out a few things if you do.

If you're married, you can still make it work, but you'll have to sit everyone down and explain to her that sacrifices may need to be made. It's not about cash-stuffing or putting away that extra $100 instead of taking everyone out to the movies. It's more about being more frugal, less wasteful.

As for the fastest and safest way of getting rich? Build something everyone wants. A service, a tool, a package, anything... and make the world realize they didn't know they needed this in their life. We all didn't know we needed Netflix or Disney+... but during the qurantine, our lives are far more entertaining than sitting there in your house in 1919, fearing anyone that sneezed. Oh, and Dominoe's Pizza. You don't actually need it, but you just ordered it.

Re: Being a software dev, what is the fastest and safest way to financial freedom?

#9
Hi,

First, glad your cancer is under control. Take care. Your health is really important. The happiness in your family is also really important. I would like to mention also that the years you will have now are unique, especially if you have children. Enjoy it as much as possible, that time never comes back.

On the other hand, the focus on getting financial freedom seems weird to me. Similarly to being a reality TV star, I think the chances to succeed are quite low, and it may even not be a path to happiness. Struggle is a big part of the pleasures of life, remove the struggle, and you are missing something.

I think you should focus more on having a nice life, with a nice way to earn enough money. If you keep your skills relevant (which you should anyways), you will generally find a job until retirement, and if you do not like your job, you can easily change. So you should not sacrifice your life now to edge a non-existing risk.

Now, if you have a huge passion and want to work a crazy amount to make that a success, you should for sure go for it. But this is a different story with a different objective, and, maybe, if you are succesfull, as a side-effect, you will get financial independence.

Re: Being a software dev, what is the fastest and safest way to financial freedom?

#10
Your regular 9-5 corp job is probably the safest way to financial freedom.

At least in the short term. It's turbulent out there right now to try to find a new job or start your own thing.

Freelancing is hard, really hard, it's possible but tough to transition to.

Checkout the podcast, StartupsForTheRestOfUs.com, start in the archives, episode 1 and follow Rob's story.

It's definitely a lot of work upfront and luck to do your own thing. But the podcast is good and might give you some inspiration.

I would plan on returning to your 9-5, at least till the pandemic runs it's course, I'm expecting that to take 12 to 18 months minimum. Stable income, health ins.

Up your life insurance, make sure it isn't tied to your employment, part of what you're looking for might be peace of mind that your family is taken care of.

Focus on your health. My friend early in college was diagnosed with stage IV cancer, she got in to St. Judes, was cured and is still doing well today.

Your own thing can introduce stress, but if your wife works you can probably balance that.

What should you do right now?

Focus on getting back to your 9-5, but also build an audience, teach what you know, if you provide value there is a huge opportunity to sell info products to developers if you can distill your valuable knowledge out to an audience.

https://www.indiehackers.com/podcast/098-adam-wathan-of-refa...

Good luck my friend.

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