Lessons I Regret not knowing as a Software Engineer in My 20s
Summary
TLDRThis video script emphasizes the importance of long-term growth over initial salary packages when choosing a career. It highlights the potential for significant wealth accumulation through equity in startups, as illustrated by an Nvidia stock example. The speaker advises viewers to prioritize joining companies with strong technical peers and mentors, to embrace risk, and to continuously learn and adapt to stay relevant in the rapidly evolving tech industry. Health and work-life balance are also stressed, as is the idea that specific knowledge and compounding expertise can lead to financial success. The script concludes by encouraging viewers to provide value and choose companies with technically strong teams for a fulfilling career.
Takeaways
- 🎓 Holding onto company stocks can lead to extraordinary outcomes, as illustrated by an example of Nvidia stocks that could be worth $100 million today.
- 💼 The initial salary package is not as important as being in the right company and having opportunities for growth and learning.
- 🔗 The perceived value of salary diminishes over time as one accumulates savings and focuses more on work-life balance, equity, and learning opportunities.
- 🚀 Taking risks early in one's career, such as joining startups, can potentially lead to significant financial rewards.
- 🤔 The importance of hindsight in career choices; what may seem like a risky bet early in one's career could turn out to be a lucrative decision.
- 🏋️♂️ Maintaining health is crucial in the software development industry, where a sedentary lifestyle can lead to health issues.
- 💡 There's no middle ground for growth in software development; one must either be growing or stagnating.
- 🌱 Exploring beyond one's comfort zone and learning new technologies is essential for growth in the industry.
- 💰 The value of compounding knowledge and skills, especially in areas that are in high demand, can lead to substantial financial gains.
- 🍀 A significant part of one's net worth can be attributed to luck, such as joining a fast-growing startup early on.
- ⏳ The best time to join a company is often early in its growth phase, but even joining later can still be beneficial, though the potential for stock appreciation may be lower.
- 💼 The importance of not just providing value to a company but also being part of a technically strong team for long-term career growth and financial success.
Q & A
What is the main point of the video regarding equity and career choices?
-The video emphasizes that holding onto equity from a company you believe in can lead to extraordinary outcomes, such as the example of an Nvidia stock that appreciated to $100 million. It suggests that the initial salary package is less important than being in the right company with opportunities for growth and learning.
Why did the speaker choose to work at Goldman Sachs instead of a tech company?
-The speaker chose Goldman Sachs over a tech company like Microsoft because of a slightly higher initial salary package. However, in hindsight, they believe joining a tech company or an early-stage startup could have been a better decision due to potential for growth and equity appreciation.
What are the 'golden handcuffs' mentioned in the video?
-The term 'golden handcuffs' refers to the situation where one might be stuck in a job due to the allure of high compensation, making it difficult to leave even if the job is not fulfilling or conducive to personal growth.
How does the video suggest that the importance of money in job choices changes over time?
-The video suggests that in the early years of one's career, the focus might be on the salary package, but after 5 to 7 years, when one has a decent nest egg, the focus shifts to other factors like work-life balance, equity, and learning opportunities.
What is the speaker's view on the importance of health in the context of a software development career?
-The speaker believes that health is crucial and can be easily neglected in a sedentary and often overworking software development career. They suggest being close to family for healthy eating and engaging in regular physical activities other than just going to the gym.
What does the speaker mean by 'you're either growing or dying as a software developer'?
-The speaker implies that in the rapidly changing field of software development, one must continuously learn and adapt to new tools and technologies. Failure to do so can lead to becoming obsolete and irrelevant in the industry.
How does the speaker define 'specific knowledge' in the context of making money?
-Specific knowledge refers to having deep expertise in a particular area that is in high demand by people with money. The speaker suggests that acquiring such knowledge and waiting for the right market conditions can lead to significant financial gains.
What role does luck play in building substantial net worth according to the video?
-Luck plays a significant role in determining net worth, as it involves factors like joining a fast-growing startup early or making the right investment decisions that cannot be predicted. However, taking calculated risks can increase the chances of luck favoring you.
Why does the speaker advise against selling equity in a company you believe in?
-The speaker advises against selling equity because the potential for stock appreciation can lead to significant wealth, as illustrated by the Nvidia example. They suggest holding onto equity unless there is a compelling personal reason to sell.
What is the speaker's perspective on joining established companies versus startups?
-The speaker suggests that while joining an established company can be lucrative, joining a startup early on can offer greater potential for stock appreciation and financial gain. However, they also caution that timing is crucial and that the best opportunities may arise when a company is still in its growth phase.
How can one ensure they are providing value in their career according to the video?
-The speaker recommends being selective about the company and team you join, aiming to work with technically strong individuals. This approach can lead to personal growth and, in turn, translate into financial gains over the long term.
Outlines
💼 The Long-Term Value of Stock Equity
The first paragraph emphasizes the potential for significant financial gain by holding onto stock equity from a company like Nvidia over a period of years. It illustrates how an initial investment can grow exponentially, turning a modest starting salary into a substantial fortune. The speaker shares personal insights about the importance of choosing the right company for long-term growth and learning opportunities, rather than focusing solely on the initial compensation package. They also discuss the transient nature of the initial salary's importance and the value of taking risks in one's career, such as joining a startup.
🚀 Embracing Risk and Continuous Learning
The second paragraph discusses the importance of taking risks and being open to learning in the ever-evolving tech industry. It suggests that software developers should not limit themselves to a single programming language or technology stack but should continuously explore new tools and languages to stay relevant. The speaker also talks about the concept of compounding knowledge and how having deep, specialized knowledge in a high-demand area can lead to financial success. Additionally, they touch upon the role of luck in financial success, especially in the context of joining startups, and the potential for significant returns on equity if the company succeeds.
💰 The Role of Luck and Long-Term Commitment
The third paragraph highlights the role of luck in financial success, particularly when it comes to equity in startups that may hyperscale. It advises against selling equity too early, as the potential for significant returns is often realized over the long term. The speaker shares personal anecdotes about the value of staying with a company and betting on its future success. They also discuss the importance of providing value to a company and the potential for a comfortable lifestyle even within large tech companies, but encourage being selective when joining a company, prioritizing technical strength and growth opportunities.
Mindmap
Keywords
💡Stocks
💡Equity
💡Technical Growth
💡Initial Package
💡Work-Life Balance
💡Health
💡Compounding Knowledge
💡Risk Taking
💡Luck
💡Specific Knowledge
💡Technical Team
Highlights
A 2013 graduate who received Nvidia stocks worth $400k over four years could be worth $100 million today, emphasizing the potential of equity in startups.
Initial salary is not as important as being in the right company with opportunities for growth and mentorship.
High initial compensation, like a large signing bonus, may not lead to significant long-term outcomes.
The importance of work-life balance and equity over cash as a deciding factor in job offers after the first 5-7 years.
The potential of joining a startup over established companies for long-term financial gains.
The difficulty in predicting which companies or industries will be successful in the future.
The importance of taking risks and exploring beyond conventional career paths for growth.
Health should be a priority, especially in sedentary jobs like software development.
The necessity of continuous learning and adaptation in the rapidly changing tech industry.
Evaluating growth as a software developer by engaging with open-source projects and expanding knowledge beyond assigned tasks.
The concept of compounding knowledge and expertise in specific areas to increase market value and earning potential.
A significant portion of net worth can be attributed to luck and timing in the market.
The value of joining startups early for potential stock appreciation and wealth creation.
The importance of not selling equity too early, especially if you believe in the company's potential for growth.
The changing landscape of companies that were once high-growth opportunities may not offer the same potential in the future.
The idea that providing value to a company is fundamental to receiving compensation, regardless of the industry.
Choosing a company with a technically strong team can lead to greater knowledge and financial growth.
Transcripts
all right here's a tweet if you
graduated in 2013 and got 400k of Nvidia
stocks wested over four years that's
100K a year pretty reasonable at least
for a US salary what would that Equity
be worth today if you held on to it can
you guess the answer is $100 million
pretty funny right um just being an
employee at a company for around 10
years and holding on to the stock that
you might have gotten as a fresh grad
can lead to such extraordinary outcome
this video is going to be about some
such money lessons that took me a few
years to understand and a lot of times
take you you know a second to just hold
back think for a second and then realize
this might be you know a better company
to join Market to Target if you look at
the next 10 years let's get right into
the video Point Number One initial
package does not matter it's the most
dumb thing to look at um I have friends
who started at 30k INR today make around
80 lakhs perom I have friends who
started at 30 LPA with me at Goldman and
today make 60 LPA does not matter where
you started what does matter a little
bit is okay you're in the right company
and you're growing technically you
should be worried if you are in a
company where you don't have solid peers
to learn from if you don't have a mentor
who's technically really good um that is
when I would be worried good initial
package or you know an i degree or a
campus placement doesn't necessarily
mean very big outcomes in the long run
Point number two everything is golden
handcuffs um if you're in a job
time job might Point number four the
initial trauma of having a package or
you know aggressively looking at numbers
how much is hitting your bank goes away
very quickly after the first 5 to 7
years of your job you have a decent bit
of a nest tag compared to your annual
salary so you don't really optimize too
much for cash if you're getting to
offers 140 150 LPA money might not be
the deciding factor it might be work
life balance it might be Equity it might
be learning curve things like these I
think it's only initially that this
happens it happened to me as well very
clearly had options from Microsoft and
Goldman and Goldman was paying a little
bit more by a little bit I mean maybe
30,000 rupees more after taxes yet I
went with Goldman K initial fancy
package in hindsight probably should
have gone for a tech company compared to
a finance company what could have been
an even better bet maybe you know an
early age startup like Razer pay that
was just it's very hard to see these
things you know back in 2018 when I
graduated you you see all of this in
hindsight the startup that felt like a
very risky bet in 2018 would have
probably made me you know much more
money compared to a Goldman job a
Microsoft job or you know any other job
and a cog in a wheel kind of a company
I'm not saying big Tech is bagged not
this is not this convers isn't going
there it's going on how it's so hard to
see these things you can only see these
things in hindsight the general learning
throughout the video is going to be at
least try to take risky bites at least
try to see what's happening on the other
side grow your horizon a bit beyond what
you know everyone else might be doing
Point number five I'll keep this one
quick health will catch up very quickly
um I've realized software development
isn't the best career option if you're
looking for uh a decent you know work
life or health life balance um the
reason is sedentary lifestyle a lot of
work a lot of times overworking
especially if you're ambitious it's very
easy to get carried away to you know do
more than one job or you know along with
your job learn a new things so you can
get that next offer in all of this it's
very easy to ignore your body um here
are a few things that have worked for me
I don't think the conventional go to the
gym and you know be very consistent with
Fitness has worked for me what has
worked for me is at least being close to
family so food is taken care of finding
some sort of of an activity some game
that you can go and play compared to you
know hitting the gym because very easy
to get bored doing that at least for you
know me personally the dldr of this
point is take care of your health this
is a very bad industry to be in uh
because we're not moving too much on a
day-to-day basis make sure you're
overcompensating all of that by taking
care of your health next Point
controversial Point um you're either
growing or dying as a software developer
there's usually no in the middle this
industry is changing very quickly there
are you know new tools that come out
every day and if you are that person can
I've learned how to write a PHP project
and deploy it on hostinger and this is
the only way I build websites very
quickly this will catch up to you and
eventually in 10 years you'll realize
the way that you're writing code no one
else's so if you feel like this is
happening with you if you feel like
you're becoming very actively
constrained to a text tack that's
probably the text tack in your company
right now start to wiggle a little bit
um start to explore other
text tax should not matter what language
you're using as long as your computer
science fundamentals are right and
you're you know exploring every other
language here and there we're talking
about a 10 year Journey from you know
your 20s to your 30s you should have
touched you know a lot of text stxs
don't be constra to a single one this
will catch up to you very quickly harat
how do I know if I'm growing or not just
look at open source projects a lot of
good code is open sourced already read
through it if you're not able to
understand it that's fine but you at
least took the step to you know go out
of your comfort zone go out of the 10
tasks that were assigned to you and look
at some code base that eventually might
become very comfortable initially every
open source code base every alien code
base is very difficult to understand if
you spend 3 4 months on it um that stack
becomes very comfortable that is what
you want to aim for you want to be very
comfortable with a bunch of stacks more
specifically you want to make sure
you're not restricted to one next Point
compounding works well both financially
but even in your learning um if you're
trying to learn a little bit of
everything most probably you're not
retaining anything versus if you're
going very deep in one language if
you're building a production system
system that's being at least used by
someone and not you know something that
you're putting on your resume there is a
good chance K that knowledge compounds
the way to make a lot of money you know
big money is by having very specific
knowledge in something that's needed by
a lot of people who have money it's as
simple as that your goal should be
acquiring a lot of specific knowledge
acquiring a lot of knowledge that's not
easily available and then waiting for
the Bulls waiting for when there is a
lot of demand of that skill in that
market and then you know making a lot of
money when that happens and retiring
this is been true for a lot of people
mostly in web 3 you know they become
very good at one thing launching a token
or creating a DEX then when the bull
comes everyone wants to launch a token
everyone wants to launch an nft and
you're charging people $20,000 a day to
do that so having specific knowledge
helps and this knowledge compounds very
quickly compared to let me create a
website and you know put it up on my
resume and have no one use it next point
a substantial part of your netw worth
eventually will be luck based um there's
no Playbook here right the people who
have been very rich usually have been
people who have joined fast growing
startups early good example might be
early Facebook employees early Uber
employees and these are things that you
cannot predict I gave an example
initially I joined Goldman versus I
should have just joined a senior's
startup that ended up becoming worth
billions of dollars and which was was
not worth a lot of money the
appreciation in stock itself would have
been more than 100 Years of my salary at
Goldman so these are things you can only
see in hindsight but more risk can lead
to more reward if you're that early
college student right now and you're
seeing that startup bet might not be the
worst bet to take every company will
give you some better minimum you know my
offer at Goldman was 1.3 lakhs the
startup offer would have been 80,000
rupees the stock appreciation can really
create a dent in your net worth I
personally couldn't have imagined okay
you know a substantial portion of my net
worth becomes nfts something that did
not even exist two years ago though
these are only things you are able to
see in hindsight um thankfully some of
these bets have worked out for me and as
I said a lot of this is luck based
there's no no one can predict a stock
going up if they could they would just
bet on it right but what is in your
control though is taking risks and I
don't mean you know extraordinary risks
leaving a job and not doing anything I
mean if there is a job that's paying a
little bit lesser but has a very solid
founder has a very solid technical team
working on a challenging problem that
might become very big in the future
might not be the worst bet to take next
Point whatever hyperscale in the past
might not hyperscale in the future the
best time to join Facebook was 2004 the
best time to join Uber was 2012 the best
time to join open was when it started
now if you join open I'm not saying it's
a bad thing I'm saying now har does that
mean joining open a right now is not a
good option no you still make a lot of
money but the company's already valued
at some 440 $50 billion a lot of its
valuation it needs to grow into wors is
if you join the company back in 2016 it
was valued at nothing this would have
been the time for you to sell some of
your stock and you know make a lot of
money well say if you join right now you
will still make a lot of money but the
stock appreciation might be something
you miss out on I gave the Nvidia
example initially and this will
generally be true okay you will join a
bunch of startups you'll gain Equity
everywhere there's one advice I can give
you um if you believe in the team don't
sell your equity almost ever um unless
you have some very big event buying a
house your marriage where you need it
other than that don't sell your Equity
the worst thing that can happen is okay
you were the early employee at Nvidia
you were the one who got 400k worth of
stocks and you sold it at 600k to buy a
house and some other Rando investor put
in 400k at the same time and made over
100 million what is the benefit of being
in the company and having so much
asymmetric knowledge okay you know we're
building gpus which might be very big in
the future if you just sell your stock
and you know not bet on the company so I
can tell you the regret of you know
leaving stock and a company hyperscaling
is a lot so keep that in mind if you're
ever thinking of selling your stock with
that let's move to the last point this
is generally about how money flows in a
market um in the end you have to provide
value to a company and they will pay you
money it's as simple as that you could
provide software development services
you could provide something else doesn't
matter um my point here is um in
software development it's easy to get
away with not providing value yet charge
the company a lot this happens a lot in
big Tech you know you can become a very
small part of a very big team and just
chug along for a few years I'm not
saying that's a bad thing that is a
great thing and and if you're you know
growing through your ranks in India or
the US you can still retire with a lot
of money um but is that something that
you really want to pursue being a cog in
the wheel and you know not really having
an on ground impact I'm not saying
people at Big Tech don't have on ground
impact I'm saying if you're aiming to be
the person
I get in and you know and I don't have
to do too much work and I get my one 2
lakh rupe salary and then you know do
other things on the site you should do
it that is also a great path that might
not be the best path to a lot of money
but that's still a great path to some
money but if you're thinking of you know
remaining an engineer being an engineer
be very choosy um on what company you're
joining and if given a choice just join
the technically strong team the
technically strong founder I think in
the long term both financially but if
not financially at least in terms of
your knowledge you will learn a lot and
eventually in career knowledge is what
translates to money with that let's end
it I'll see you guys in the next one
bye-bye finding some sort of a sport
start
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