Lessons I Regret not knowing as a Software Engineer in My 20s

Summary

This 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

00:00

💼 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.

05:01

🚀 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.

10:03

💰 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.

Keywords

💡Stocks

Stocks refer to shares in the ownership of a company. In the context of the video, the speaker discusses the potential for significant financial gain from holding onto company stocks, as illustrated by the hypothetical example of an Nvidia stock investment growing to $100 million over time. This highlights the importance of long-term investment and the potential rewards of being an early investor in a successful company.

💡Equity

Equity in a company represents ownership in the form of shares. The video emphasizes the value of equity over a high initial salary, suggesting that equity can lead to substantial wealth if the company performs well. The speaker's anecdote about Nvidia stock underscores the transformative power of equity in an employee's financial journey.

💡Technical Growth

Technical growth refers to the improvement of one's skills and knowledge in a technical field. The video stresses the importance of being in an environment that fosters technical growth, such as having strong peers and mentors. This is crucial for long-term career success and is linked to the potential for higher income and greater job satisfaction.

💡Initial Package

The initial package refers to the starting salary or compensation offered to an employee. The speaker argues that the initial package is not as important as the potential for growth and learning within a company. They provide examples of friends who started with low salaries but eventually earned much more due to their growth within the company.

💡Work-Life Balance

Work-life balance is the equilibrium between an individual's work responsibilities and personal life. The video suggests that, beyond the initial years of a career, the focus shifts from maximizing salary to achieving a better work-life balance. This concept is important for long-term well-being and job satisfaction.

💡Health

Health is a state of physical, mental, and social well-being. The speaker warns about the potential negative health impacts of a sedentary lifestyle common in software development and advises maintaining a close relationship with family and engaging in physical activities to counterbalance the lack of movement in daily work.

💡Compounding Knowledge

Compounding knowledge refers to the accumulation of expertise that grows over time, leading to increased value and proficiency. The video encourages continuous learning and exploration of various technologies rather than focusing on a single skill set. This approach can lead to greater opportunities and financial success.

💡Risk Taking

Risk taking involves venturing into uncertain situations with the potential for significant rewards. The speaker encourages taking calculated risks, such as joining a startup, which can lead to outsized financial gains if the company succeeds. They highlight that while luck plays a role, being willing to take risks can open up opportunities for greater wealth.

💡Luck

Luck is the chance occurrence of events leading to a favorable outcome. In the video, the speaker acknowledges that a portion of one's net worth can be attributed to luck, particularly in the context of early investments in fast-growing startups. They suggest that while luck is unpredictable, proactive risk-taking can increase the chances of success.

💡Specific Knowledge

Specific knowledge is detailed and specialized information or skills that are in high demand. The video emphasizes the importance of acquiring specific knowledge in a particular area, as this can lead to lucrative opportunities when there is a high market demand for that expertise. The speaker suggests that this knowledge compounds over time, leading to significant financial benefits.

💡Technical Team

A technical team consists of individuals with specialized skills in technology-related fields. The video advises joining a company with a strong technical team or founder, as this can lead to rapid learning and growth. Being part of a technically strong team can enhance one's skills and increase the potential for financial success.

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