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My Path to Financial Independence as a Software Engineer

software.rajivprab.com

111–120 of 583 posts

Re: My Path to Financial Independence as a Software Engineer

#111

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

"financially independent" doesn't necessarily mean you stop working, it's just that you have the flexibility to chose what to work on and who to work for.

Re: My Path to Financial Independence as a Software Engineer

#112
625k a year. On my budget i could save a million in about 2.5 years on that income. Pretty mind blowing.

Good for him. He got a good hand but he also clearly played it very well.

Adults whining that other adults make amounts of money that they dont like is cringe worthy

Re: My Path to Financial Independence as a Software Engineer

#113

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

> But what do you do with the rest of your life?

I spend virtually all of my free time and energy on side projects, and my list of side projects grows faster than I can take them on. When I retire, I’ll have no shortage of things to spend my time on.

Re: My Path to Financial Independence as a Software Engineer

#114

Earlier quoted context omitted.

You then end up paying London rent… You won’t be able to afford to rent a luxury London flat on 100K or even 150K but a 2 bed in any decent area is £2-2.5K council tax and utilities would be another £200 p/m easily. You are probably better off making £80K in Manchester as a senior dev than £100-110K in London. Newcastle has also a decent tech ecosystem tho it is very much focused around Sage.

Maybe. We own our flat in Zone 1 (Soho, 48k down payment, 12k closing costs) after 5 years saving, mortgage is 2.29% ~ 1900 a month. Save about 2500 a month. The one thing I will say is that the "single tax" certainly exists in London, and I find my situation affordable because I have no kids, and my partner brings in an other £35k or so. If we wanted a 3 bedroom or something, forget about it. That's when it becomes…

What flat did you buy in Soho for 480K assuming that it was a 10% deposit, or a better question would be when…

Re: My Path to Financial Independence as a Software Engineer

#115

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

1) If that money isn't going to be needed, why continue to accumulate it?

2) Why would a job be necessary to have something to challenge/strive for?

Re: My Path to Financial Independence as a Software Engineer

#116

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

It only makes sense if youve got something else you want to do. Id venture almost none of the FIRE crowd end up sitting in front of a tv eating microwave dinners for 60 years because they retired. I mean maybe thats what some people want and more power to them but thats not what FIRE is about

Re: My Path to Financial Independence as a Software Engineer

#117

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

"financially independent" doesn't necessarily mean you stop working, it's just that you have the flexibility to chose what to work on and who to work for.

Yeah for me it's just peace of mind not worrying if I don't have a job or how long it takes me to get another one. I too strive for the idea of investing a lot/getting percentage back. I will always tinker on something.

Also I want to sleep/wake whenever.

Also variations can take lean/fat fire.

Re: My Path to Financial Independence as a Software Engineer

#118
post #20

To have 1 MM USD/EUR at the end of your thirties given an average 4 % yearly return on investment, you need to save around 4.000 USD/EUR per month starting at age 25. In Europe, if you earn around 100k EUR per year your free income will be around 5.000-6.000 EUR per month. Saving 4.000 EUR / month is doable with that but you'll have to live very frugally, not traveling much and you better not start a family unless yo…

I'd say the HN crowd is more likely to be in that top quintile than not

More likely than the general population, sure, but I’m not sure about “more likely than not”.

Re: My Path to Financial Independence as a Software Engineer

#119

> Disclaimer: I acknowledge that I’ve been very privileged, especially in the educational opportunities I’ve had. This might sound reasonable from a US-centric perspective, but to me it reads like utter nonsense. The main privilege here is access to the US labor market and tax policy. There are no stories like this one where I live (in Sweden). Absolutely none.

With the effective marginal tax rate at 67% for regular income in Sweden, excluding VAT and other point taxes, the only real possible method is to start a company.

Re: My Path to Financial Independence as a Software Engineer

#120
This is very similar to my story. I moved to America from Ireland in 2007 after graduating with a degree in cs. I did a year in grad school before working in tech in the Bay Area for more than a decade, including at two companies from FAANG. I also ran a consulting business and for the last 3 years worked at Coinbase.

I don’t consider myself in anyway special. I know many people from Europe who went down this path.

The sad reality is that in Europe software engineers don’t get paid very well relative to the value they create. It’s a lot better today in my home country Ireland than it was a decade or so ago but salaries and opportunities are still nowhere near as good as in the USA.

Unless you are very lucky, if you want to make a lot of money and work with the top people in your profession, you will have to move. This will likely involve risk and personal sacrifice. If I was to distill this guys journey into a high level formula it would be as follows:

1) Pick a fast growing industry you are interested in. 2) Move to the area which pays you the most and where the most opportunities are. 3) work with top people and adapt your career based on what you see them do. 4) live reasonably, save and invest.

I see a lot of people from Europe in the comments saying this is unrealistic or that it would be hard to replicate this success doing the same thing today. I disagree.

While the specifics of the plan might be different for todays 20 year olds. I.e specialize in cryptocurrency or machine learning or fintech. The overall approach is still valid, it just involves a lot of sacrifices and risks you may not be willing to take.

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