My 6 Sources Of Income as a Software Engineer

Summary

This video emphasizes the importance of diversifying income streams for financial stability and stress reduction. The speaker, a senior software engineer, shares personal strategies for generating multiple income sources. These include a stable corporate job, creating online courses on platforms like Udemy, investing in ETFs for passive income, blogging on software development, and selling digital assets. The video encourages viewers to develop skills, provide value, and avoid get-rich-quick schemes for long-term financial growth.

Takeaways

• 📚 Diversifying income is crucial to avoid financial instability, especially if one's main source of income is a single job.
• 💼 Having a primary job provides stability and benefits, but it's wise to explore additional income streams for security.
• 💻 The speaker's main income comes from a corporate job as a senior software engineer, emphasizing the value of patience and persistence in career development.
• 🎓 Early struggles in coding and job applications highlight the importance of perseverance and continuous learning in professional growth.
• 💡 Active income streams can be expanded through creating and selling online courses, which also help in skill development and sharing knowledge.
• 📈 Passive income is generated through long-term investments like ETFs, with a focus on diversification and dollar-cost averaging to mitigate risks.
• 💭 Blogging serves as both a creative outlet and a source of passive income, with monetization options like affiliate links and partnerships.
• 🖥️ Digital assets, such as interview guides and software wallpapers, can be created once and sold multiple times, offering a low-maintenance income stream.
• 💰 The key to generating income is providing value, which comes from developing and honing one's skills and expertise.
• 🚫 Dismissing get-rich-quick schemes, the speaker advocates for consistent effort and daily learning as the path to long-term financial success.

Q & A

What does the saying 'not putting all your eggs in one basket' mean in terms of income generation?

It means to diversify income sources to avoid relying on a single source of income, which is wise because it reduces the risk of financial instability if that single source is lost.

Why is having only one active income stream potentially problematic?

Having only one active income stream can be problematic because if that source is lost, such as through job loss, it can lead to financial hardship, especially without savings or additional income streams.

What is the importance of having passive income streams like investing or renting out property?

Passive income streams are important because they provide additional income without requiring constant active work, which can help maintain financial stability and reduce poverty.

How did the speaker's journey to becoming a senior software engineer at a tech company begin?

The speaker's journey began with attending university for three years and applying to hundreds of positions before securing an offer, highlighting the importance of patience and persistence.

What are some benefits of working in the corporate world mentioned by the speaker?

The corporate world offers stability, a decent paycheck, benefits like health insurance, free meals, and the potential for substantial bonuses, as well as opportunities for socialization and skill development.

How does creating online courses on platforms like Udemy and Skillshare contribute to the speaker's income?

Creating online courses provides a steady, albeit not huge, income stream that acts as a safety net, allowing the speaker to have additional financial security.

What challenges did the speaker face when starting to create online courses?

The speaker initially struggled with articulating complex concepts coherently and maintaining a steady volume when recording, leading to initial courses that were not of high quality.

How does investing in ETFs like the S&P 500 ETF contribute to the speaker's passive income?

Investing in ETFs provides a passive income source with an average annual return of about 10%, contributing to long-term wealth growth despite market fluctuations.

What advice does the speaker give regarding long-term investing in the stock market?

The speaker advises to be perseverant, diversify across multiple stocks or sectors, and practice dollar-cost averaging by buying smaller amounts regularly.

How does the speaker's blog serve as both a source of income and a creative outlet?

The blog allows the speaker to write about software development topics, engage with the community, and generate modest income through monetization methods like affiliate links or partner programs.

What is the significance of creating digital assets for the speaker's income streams?

Creating digital assets, such as interview guides or wallpaper packs, provides a passive income source because once created, they can be sold repeatedly with minimal ongoing effort and no physical shipping requirements.

What is the speaker's overall message regarding generating income from various sources?

The speaker emphasizes the importance of providing value through skills, continuous learning, and patience, and warns against seeking shortcuts or get-rich-quick schemes.

Outlines

00:00

💼 Diversifying Income Streams for Financial Stability

The speaker emphasizes the importance of not relying on a single source of income, as it can lead to financial instability, especially in the event of job loss. They discuss the lack of passive income sources among the majority of the population and the risks associated with not investing, such as the devaluation of money due to inflation. The speaker shares their personal journey as a software engineer, detailing how they built a diversified income stream that includes a corporate job, online courses, and investments. They also touch on the importance of patience and perseverance in developing skills and building a financial cushion.

05:02

💻 Leveraging Technical Skills for Passive Income

The speaker elaborates on their various passive income streams, including investments in ETFs like the S&P 500, which provide a steady return over time. They also mention their blog, which serves as both a creative outlet and a source of income through affiliate marketing and partnerships. Additionally, they discuss the sale of digital assets like interview guides and wallpaper packs, which require minimal ongoing effort once created. The speaker stresses the importance of providing value through one's skills and the need for continuous learning and development. They caution against seeking quick riches and encourage a steady, hardworking approach to building income streams.

Keywords

💡Diversified Income

Diversified income refers to having multiple sources of earnings rather than relying on a single one. In the video, the speaker emphasizes the importance of not putting all your financial 'eggs in one basket' to mitigate risks such as job loss or market downturns. The speaker's own diversified income includes a corporate job, online courses, and passive investments, illustrating the concept's practical application.

💡Active Income

Active income is earned through continuous work or active participation. The video mentions the speaker's job as a senior software engineer as their primary active income source. It highlights the stability and benefits of a corporate job, contrasting it with passive income streams that do not require ongoing work to generate earnings.

💡Passive Income

Passive income is money earned with little to no effort after an initial investment of time or money. The video discusses the speaker's passive income from investments in ETFs and the sale of digital assets. This income stream provides financial security without requiring daily work, aligning with the video's theme of financial diversification.

💡ETFs (Exchange-Traded Funds)

ETFs are a type of investment fund that holds a collection of assets, such as stocks, and are traded on an exchange. In the video, the speaker mentions investing in the S&P 500 ETF (SPY) as a form of passive income. This investment strategy is part of the speaker's long-term, diversified approach to wealth building.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video warns that keeping money in the bank can lead to devaluation due to inflation, advocating for investments as a hedge against this economic phenomenon.

💡Udemy and Skillshare

Udemy and Skillshare are online learning platforms where the speaker creates and sells courses. These platforms represent a form of active income for the speaker, allowing them to monetize their expertise in software engineering while also contributing to the educational resources available to others.

💡Blogging

Blogging is the act of regularly sharing written, audio, or video content online. The speaker uses blogging as a creative outlet and a source of passive income, monetized through affiliate links and partnerships. This keyword exemplifies how sharing knowledge can be both personally rewarding and financially beneficial.

💡Digital Assets

Digital assets in the context of the video refer to intangible products like e-books, software, or digital art that can be sold online. The speaker mentions creating and selling digital assets as a form of passive income, highlighting the low overhead and scalability of digital product sales.

💡Interview Prep

Interview prep in the video refers to the speaker's creation of resources to help others prepare for job interviews in software engineering. This is an example of how the speaker leverages their professional experience to generate additional income streams through the sale of digital assets.

💡Dollar-Cost Averaging

Dollar-cost averaging is an investment strategy of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the price. The video suggests this approach for investing in ETFs, emphasizing the importance of consistency over trying to time the market.

💡Value Creation

Value creation is the process of generating something of worth or utility. The video stresses that income generation, whether active or passive, requires providing value to others. This concept is central to the speaker's approach to building multiple income streams and is a recurring theme throughout the discussion.

Highlights

The importance of not relying on a single source of income and the wisdom of diversification.

The majority of the population worldwide has only one income stream, which poses significant risks.

The lack of passive income streams contributes to the majority of the population remaining poor.

Investing is less risky than keeping money in the bank, as inflation can devalue it over time.

The speaker's journey from a beginner to a senior software engineer at a tech company.

The value of patience and perseverance in building a career and income streams.

How the speaker's daytime job helps with socialization and skill development.

The creation of online courses on Udemy and Skillshare as a second active income stream.

The initial challenges faced in creating online courses and the importance of not getting discouraged.

Investing in ETFs, particularly the S&P 500 ETF, as a significant source of passive income.

The benefits of long-term, diversified investments in the stock market.

The concept of dollar-cost averaging as a strategy for investing in stocks.

Blogging as a creative outlet and a source of passive income through affiliate links and partnerships.

Selling digital assets, such as interview guides and wallpaper packs, as a form of passive income.

The necessity of providing value through skills to generate income.

The importance of daily learning and self-improvement for long-term success.

A reminder that get-rich-quick schemes are not realistic, and the value of consistent effort.

An invitation for viewers to share their income sources and thoughts in the comments.

Transcripts

hey everyone you may have heard about

the saying to not put all your eggs in

one basket that means to be Diversified

when it comes to generating income

basically to not have all your money

come from only one place even though

this is very wise advice studies show

that most of the population worldwide do

just that they have a daytime job and

that would be it a big problem would be

that if you get laid off especially if

you don't have any savings you must

become bankrupt or even if you don't get

laid off I think you will leave much

more stressed thinking about all the

what ifs that might go wrong at any

point another worrying aspect is that

besides this only one active income

stream people also don't have any

passive income streams like investing in

the stock market or renting an apartment

they own or have a mortgage on this is

another key factor that keeps the

majority of the population poor you may

not like the risk that that comes with

investing but it is even riskier to keep

your money in the bank and let inflation

devalue them from year to year now that

we got the main reasons you should have

a diversified income stream containing

several passive sources out of the way

let me share how I as a software

engineer manag to generate these

multiple streams of income and how you

can too by replicating my Approach my

primary and biggest source of income is

unsurprisingly my corporate job I work

as a senior software engineer at a big

tech company and this is my main source

of active income the corporate world

offers stability a decent paycheck and

benefits like health insurance free

meals and even substantial bonuses if

you negotiate your offer well and please

don't think this happened overnight I

was bad at coding at first I went to

University for 3 years and appli to

hundreds of positions before finally

getting an offer now 6 years later some

Outsiders looking at me might feel like

it happened overnight well trust me it

takes time so be patient there was a

saying that you can't make a kid in one

month with nine women this day job I

have also helps me socialize and through

it I continue to develop myself both

technically and from a soft skills point

of view the second stream of active

income comes from the online courses I

created on udemy and skillshare over the

years almost four to be specific I've

developed several courses covering a

range of programming topics from

beginner guides to more advanced

subjects creating these courses took a

significant amount of upfront work but

they now provide a steady income stream

it is not huge but provides me with a

safety net that allows me to sleep

better at night if you're passionate

about teaching and have valuable

knowledge to share in a specific area

like I had in coding these online

courses can be a fantastic way to earn

extra money while also helping others

learn when creating these courses at

first I was horrendous picking my mind

and explaining complex Concepts

coherently into a mic at a high enough

steady volume was something I struggled

with a lot my first courses were pretty

bad but again that is supposed to be the

case don't get discouraged if you don't

Ace an activity on the first try the

whole process of developing yourself is

what matters and will bring you Joy now

let's talk about passive income money

that works for you while you sleep my

biggest source of passive income is

through investing in epfs especially the

S&P 500 ETF also known as spy there are

many alternatives to it so you can look

into them on your own this one tracks

the 500 biggest companies in the US but

there are others with even more

businesses or from all over the world on

average I earn about a steady 10% a year

from these Investments it's not a

get-rich quick scheme but it's a

reliable way to grow wealth over time

the stock market has its ups and downs

but by sticking with long-term

Diversified Investments like ETFs I'm

able to build a financial cushion that

pays off in the long run being

perseverant over time is the most

important aspect in long-term investing

also the majority of the investors

cannot beat this index yearly so I find

it to be the easiest most safe way to do

it the diversification notion comes

handy here as well no matter how you

choose to inv invest in my opinion two

of the most important things to keep in

mind would be number one diversify

across multiple stocks or even sectors

and number two don't bulk buy but dollar

cost average by buying smaller amounts

regularly another source of income that

also doubles as a creative Outlet is my

blog I write articles on different

software development topics or issues I

run into and fix sharing these insights

not only helps me stay engaged with the

Community but it also generates a modest

income if you enjoy writing and have a

knack for explaining technical Concepts

blogging can be a great way to earn some

extra cash you can monetize your work in

multiple ways here both through

affiliate links or the partner programs

of different platforms that pay you just

for the views you bring lastly but

definitely not least I sell various

digital assets besides my online courses

these include my software engineer

interview sh wallpaper packs and

other materials I've created while

learning and working as a software

engineer what's great about this type of

work is that once you've created a

digital product it can sell over and

over again with minimal effort on your

part you don't have to ship anything

since it's all over the web and there

are minimal processing fees depending on

whom you choose to work with this has

become a nice little stream of passive

income for me and it's incredibly

satisfying to see others benefit from

their resources I've put together if you

want to generate income one way or the

other you need to remember that there is

no getting around the fact that you need

to provide value and this value can be

provided only by a person who has the

skills to do so if you feel like you're

not there yet that's a sign you should

start working on yourself and develop in

the areas that interest you make a habit

to learn daily over time this will

compound and before you know it you will

be able to share it with the world all

while also so earning from it all the

get rich quick and easy schemes are not

real so stop trying to look for

shortcuts it's much easier if you just

start grinding and the results will show

I'd love to hear from you what are your

sources of income are you thinking of

adding more share your thoughts in the

comments below and as always if you

found this video helpful don't forget to

like And subscribe until next time keep

coding and growing your income streams

cheers