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[Table] IAmA: I am 33 years old, and a self-made millionaire. Total net worth ~$3.5m. AMA

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Date: 2013-06-10
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Questions Answers
If I want to be rich, do I need a college degree? IMHO no. You do need to find something you are good at and love doing.
I realized early on that I would never be the best at one thing (just don't have the raw talent), so I became the 500th best (on the planet) at 10 things.
That said, a college degree helps you mature quicker in your field.
Thanks for that. This is exactly what I had planned for myself. I initially didn't care how much money I made as long as I was happy doing the things I loved. Glad I am not crazy in thinking I have a chance at having a stable life by doing everything I love and being able to turn it into income. Go for it!
You do need to find something you are good at and love doing. No, you have to add hard work and a bit of luck.
Can you elaborate on this? Is being good at something and loving to do it enough? Isn't this a lot easier said for someone who loves accounting as opposed to someone who loves to paint? Someone who loves to paint has plenty of career opportunities open to them which are easier to make it at than fine artist. Eg. graphic designer.
Did anything emotional give you the boost to want to make this happen or did it just happen as you lived your life? Strangely enough, I decided to be successful while I was on ecstasy at a club watching Paul Van Dyk play. Some switch clicked in my head, and I made the decision.
Trance music and drugs are my inspiration to work hard. It isn't what I do all the time, or even often. But for that moment where the music is great, it makes it seem all worth it to me. I used to feel like this too. Now just the work is fun enough.
I do use 420 occasionally (maybe 2x month) as an NZT though. It gives me clarity and focus for up to 12 hrs.
Link to en.wikipedia.org
No kids yet? Do you help close family with $$? Just had our first child 1 month ago.
Close family are all pretty well off. Might help a sibling with graduate school. Though both of us paid our own way through our advanced degrees, so we might want them to pay their own way since it is a pretty valuable experience.
How much of a roll has luck played in your success? Interesting.
So luck has played a large part in my success. I have been in the right place/right time over and over again. Also, have been prepared when I was in the right place/right time to leverage the opportunity though.
That said, I was part of a class of 50 or so undergrads, and then 50 or so grads at a mid-tier state school studying computer science.
At least 10 of those people I have kept track of are in a similar situation after the same amount of time. That is a minimum 10% millionaire rate 6-8 years out of college.
Maybe, it was just a golden decade in silicon valley. Anyone who went to work for linkedin, google, facebook, yelp, zynga etc at the right time got pretty rich in their late 20s/early 30s.
Do you try your best to live below your means? Such as a 3 bedroom 2 bathroom ranch in a middle-class neighborhood where the average income is around 60k, drive used Toyotas, and send your kids to the local public schools? Or do you live in a 10 bedroom mansion with a Bentley and a helipad? We do live significantly below our means, but our means are generous. That said, we have both always lived quite a bit below our means.
Nowadays we live in a $1.3m house. Our area is very middle class around here, and the median sales price the past few months around here was $956k.
I drive a nice enough Audi, my wife has a compact Mercedes. Both 2013.
Our biggest luxury is international business class travel. We probably spend $15k-$25k on travel a year.
That's not really middle class :/ nearing million dollar median puts you in upper class... Touche.
But to my credit this is not even in the top 30 most expensive zip codes in a 50 mile radius.
Bay area? Yup, you got it.
"middle class" Guys, this guy is out of touch with reality. Chances are he's been well off his entire life. I did not say we are middle class. I did say our neighborhood is middle class.
Used to live there for two years! It was a nice experience, but it never felt like home! Maybe I'll go back one day! That being said, I'm glad I'm back in my home town =) and I'm glad it worked out for you!! =) It's definitely tough, alot of the people I love most have left the bay area because it is too expensive :(
Yea 900k houses it not middle class.. Link to www.huffingtonpost.com
Yet 900k is below the median home price around here.
Perhaps there is no middle class in this area any more. Or maybe the people living in those $1m homes are what passes for middle class around here.
How did you meet your wife? Met my wife through a neighbor who introduced us in my apartment elevator.
How did you get into Reddit? Reddit is pretty much the best place on the internet. The right question is why did I wait so long to get into Reddit?
What is your opinion on the NSA stuff? Anyone who has taken any graduate computer science courses already knew it was happening. I don't mind, have nothing to hide.
Have you ever shaken up a 2 liter bottle of soda and thrown it on concrete? What happened if so? Lots of minor explosions when I was a young teenager. Probably a bottle of soda with mentos is as far as a I went. Sorry, have never done said act with a 2 liter bottle of soda. Though am now considering it.
What kind of advice (money wise) can you give a teenager? Interesting question. I had no money until I was in my late 20s.
Find something you love doing and can excel at, and do that. Don't worry if everyone around you tells you that you can't.
What did you love doing and excel at? Computer science: algorithms, coding, and systems.
Then again, as you said, you became good at 10 things, rather than the best at 1. Interesting... This gentleman wanted to be the best at crowd control, so he practiced for hours, and became the best. He may never be rich, but I am sure he is very happy about his hard work paying off.
What languages? I probably have worked in 20-30 languages by now. I prefer Ruby, Javascript, and CSS.
Am now trying to use meteor as much as possible because I really like how they think about web apps.
Would you be interested in working on or investing in a gaming project or two? ;) Sorry, am fully occupied right now, and am investing in my own venture.
That said, do you have any tips on books and so on to learn some basic languages as "easy" as possible? I really like Processing - Link to processing.org
It is very playful, and is a great start for anyone.
Also, their are plenty of free tutorials and docs online, and the forums are superb. I occasionally chat there myself.
When I'm shopping for caviar, how much should I really consider the differences between Ossetra and Sevruga? Sorry, don't live that extravagant of a life. Never had an egg of caviar in my life.
You should try roe, its the cheaper version of caviar and its around $40 a pound. $40/lb is a bit rich for my taste. I am more a costco hot dog kind of guy :)
That said, I will check it out if I ever get offered it by someone else.
Love those hot dogs, they are 2nd only to Nathan's. Yes, they are so amazing. One of my favorite "treats".
Do you plan to travel anywhere? If so, where would you go and what would you do there? Travel a lot. Last two trips were Hong Kong and Jamaica. Next one is Puerto Vallarta.
Did you smoke weed in Jamaica? Nope, we stayed at an awesome small inn though, and plenty of people were. But I didn't want to take any risks.
I live in Cali, where there is the world's best 420 legally available, why risk it when I'm somewhere else?
When did you decide to become wealthy? I don't mean that as an off handed remark; I have noticed quite a bit that many wealthy persons, once they make a decision to do something, decide and focus - an almost relentless pursuit of the end result of what it is that they're aiming for. Great question. I never decided to be wealthy, but I did decide to be successful.
How did you develop a relationship with your girlfriend / wife working 100 hour weeks for 5 years? I met her when I was down to about 60 hours. She has an even more demanding career than me, so we made time for each other on the evenings and weekends.
Was she still in med school or a resident? She had already been practicing for two years.
she didn't seem a bit out of your league as a 4/12 level sysadmin? Yes and no.
Successful female doctors have very few men available in the dating pool as successful as them. She liked me because I wasn't intimidated by her success, but instead was impressed and proud of her.
In my industry, level doesn't have too much to do with compensation, but results and impact do. My comp at that point was $225k/year which is more than she made.
I am not a sysadmin personally. But I know plenty who are very high paid. $160k/yr seems the starting rate around here for a decent one.
Glassdoor says $77k. Glassdoor is decidely targeted at the average. Glassdoor says engineers should be making $80K-$120K. But this does not include the bonus of $100k a median performing engineer at Facebook or Google takes home every year. That said the bonus is half in initial equity grant and half in refresher equity grant. But the money is real. At the very top in software, pay is much higher than this even.
Link to www.glassdoor.com.
What kind of charitable contributions do you make? We have a small donor-advised fund we put money into. Not much so far, but we plan to make it a consistent habit. That fund will then go to charities we feel do alot of good in this world.
Planning to give a few $100K to my alma mater sometime in the future.
See Link to en.wikipedia.org
We have a small donor-advised fund we put money into. Not much so far, but we plan to make it a consistent habit. That fund will then go to charities we feel do alot of good in this world. This sounds great! I recommend givewell as a source to find out which charities have the greatest impact. Thanks, have been using charity navigator. But will definitely check givewell out.
What was your major? Why did you choose it? What academic tips can you give to a juniour in high school. My major was computer science. I chose it because I had been fascinated with computers since a young age, and eventually figured out that I wanted to build software.
Only one academic tip: Learn to take criticism as affection and not as an insult. When a teacher, colleague or coworker takes time to tell you how to do your work better, do not get defensive. Instead thank them, and listen to them carefully.
How modest is pretty modest? My partner and I both earn quite high salaries but dont have millions as you do. I'm of the thinking perhaps our spending is too high. Do you just not buy any indulgences? Other than travel and mortgages. We spend about $2.5k/month.
We eat at cheap restaurants, shop at Target and Costco. And almost always check on gasbuddy for the cheapest gas.
Sounds very reasonable. Do you have a point (financially) where you will be less careful with your money or has it become inbuilt forever? Dont want to know the point just if it exists. Probably inbuilt. Just keep on living within my means.
I would like to keep my annual spending to 3% of my net worth at most. So if I had $100M I may fly by private jet etc.
How often do you work? when do you work ( if you do )? I love what I do for a living so I work all the time. I am very lucky in that what I enjoy doing for fun makes me money.
My wife works several 8-12 hour shifts a week. Averaging 32 hours/week.
What do you do? Formerly: Software Engineer and Product Manager.
Now: Entrepreneur.
What is the mind set necessary to go from Software Engineer to Entrepreneur? Specifically I love solving really tough programming problems, but I don't know how I can turn that into a business. You say do what you love, but is what you love writing software, or doing the thing the software allows you to do, like organizing photos or something? I love writing software to solve applied problems. Also, when building commercial software do it as quickly as you can, don't waste time on C/C++ unless you are doing high frequency trading, or designing a file system.
What's your biggest financial regret? I wish I had saved and carefully invested more before I was 26. Would have given more flexibility in a few times where I got cornered into doing a job I hated for the money.
How would you have invested it early on? I'll be in the position to be making six figures in my low twenties and would greatly appreciate any tips on how to maintain and grow my wealth(I'm a software engineer pursuing a comp sci degree). Link to www.tweedy.com
Also, most people would consider 3.5 enough to be security for the rest of your life, how much are you willing to risk and what is 'enough"? See my other reply for an understanding of my risk tolerance.
What is one of the stupidest, most useless thing you have ever boughten? Probaby this: Link to www.amazon.com
Bought it a few months ago, and put it in a drawer. It cost $8 to return, so I kept it. The device I bought it for can easily be held in one hand without a strap.
That said, I'm convinced it is a great product, just not useful to me.
I'm a self made programmer, age 23(5 years professional experience). What I find most scary is actually starting something for myself. It looks like i'm afraid of making money. Any tips on how to proceed? I've got several ideas and plans, have some prototypes already. Save some money for a cushion first. This makes it much easier to take risk. I've seen 10s of acquaintances "start a company" and then quite a few months later when they aren't making money yet.
Just launch small projects or prototypes on the web and see what works. There is no harm at all in trying.
That said, marketing is hard. But if you write and follow up with every blogger in your area, at least one will pick up and send you some starter traffic.
Thanks for your tips and quick reply! Another great thing which helped me alot was going to local meetups of like minded people who could work with me on projects.
Yeah, I've just been to a first one in the area, however it was mostly people who want to get some sort of funding. In my opinion this is number 1 mistake any starter can make. But yeah, I'll look around for like-minded people(or partners). Thanks! Yeah, definitely launch a few small projects as soon as you can. I try and do a mini one every few months. Very few have seen any success, but I've learned lots along the way.
This is the beauty of the web. Free learning :)
I'm a university student entering my junior year; would you recommend any investing/business type books? Link to www.tweedy.com
Very inspiring! I'm in school for Comp Sci / Economics, and I struggle to stay productive and passionate. Sometimes, I worry that I spend too much time "setting myself up" to be productive. I dwell on things like caffeine consumption, sleep, exercise, workspace management, and organization. Are there any tips you have about setting yourself up to be productive? Routines you follow? Bad habits you avoid? Have you ever found yourself thinking a lot about how to best set up your work day? Sounds alot like myself five years ago. I spent alot of time dwelling on productivity.
Eventually, I learned productivity comes for free with maturity. So now I spend more time developing my EQ than on productivity enhancers.
Also, I learned productivity comes from focussing on the most important things, and sometimes letting less important things slide.
Lastly, for me, friends and family are always my priority no. 1. Though plenty of my successful friends have sacrificed both.
What's your view on socialism? What is my view on what Obama is doing? Which some people consider socialism.
I love what President Obama is doing with Obamacare, but I think it is not enough. I am proponent of a basic wage, plus healthcare and everything else someone needs to live with dignity, and a bit of luxury.
I am happy to pay more taxes if it means everyone in society around me has adequate shelter, good food to eat, and maybe even a nice lcd tv.
I don't like classical socialism. I look at these things through empirical evidence.
The largest example I know of in which socialism was applied was India from 1940 to the early 1980s. Frankly, that period of India's history sucked. 99% income taxes, centrally planned everything. The country didn't grow, and in fact average life quality went down from my point of view.
One thing I'm always curious about with rich people is what percentage of your endeavours are successful. Hmm...in my professional life working for other people I haven't taken many big risks so I've been very successful.
For example, what percentage of your job applications get interviews, and what percentage of your interviews get jobs? In my last job search, I probably sent out 150 resumes, got 8 interviews, and 2 job offers.
You mention that you have good real estate buys. What percentage of your real estate investments have been profitable? Is that percentage more or less than you expected to be profitable? You mentioned elsewhere in the thread that you have investments. What percentage of your investments successfully make you money, and how does the rate of return compare with what you expected? Two real estate investments, one doubled, one slightly underwater. So far the rate of return has been good, but it has been a bull market. I will be in a better place to comment on this in 20 years. I believe it is almost impossible to invest for short term gain unless you are doing it full time. My goal is 6-7% annualized over 30 years.
This is a bull market that we're having right now? Isn't that the one that means the economy is good? It amazes me that that can happen but the employment situation for ordinary people can still be so dire. Yes and yes.
To your point though, the employment situation for ordinary people has been gradually improving every month. Go look at the stats.
But yes, there is a disparity between corporate profits and the plight of average americans. I agree that this is not a good situation.
That's great! congratulations. It sounds like you work at one of the big tech companies you mentioned, but I understand if you can't say which one. My current gig is people and project management. I code alot in my free time.
Is your current gig web development since you enjoy ruby/meteor? Yes, often feel unsuccessful, have many friends who are much more un-succesful. Probably know 80 people close to my age with >$1m, and 30 >$10m, and maybe 2 with >$1b.
Do you ever feel...not successful? I've heard that there are quit a few young multimillionaires in the bay area. Do you ever run in circles where 3.5 million isn't much? Link to www.hospes.com
Now that you are doing well, what do you splurge on? It is the best experience I've had out of maybe 20 similarly luxurious hotels I've stayed at. The breakfast is something I remember all the time, so amazing.
Have you reached happiness ? Yes, I am a very satisfied person.
But I got here way before I had wealth. Basic meditation helped me a lot.
I'm meditating now and it's helping a lot! How often would you say you meditated? I used to actively meditate a few times a week. Now I just find myself autonomously doing it whenever I have stress or sad feelings.
Maybe if you meditated more you would have less stress / sad feelings :) Yes, agreed. Meditation is a discipline, and I find myself less disciplined lately after a decade of great focus.
But congrats on the success. I've been reading through all your comments and it's help me out a lot. I now find myself following my heart more and more, which I also now have the freedom to do.
Have you got the money invested properly (low fee, diversified index funds etc)? Depends what you mean. We use slightly more complex products than you mention, but I think we get a good bang for our buck and return/risk.
Do you make your own investments or do you have an advisemanager? Both. I invest every month, and we use an advisor for the complex stuff (hedging and options).
Do you play any sort of games? Be it video games, board games, etc... Eve online a few hours a week.
Also replaying baldur's gate right now.
I love settlers, but haven't had a chance to play for a few years.
I have part completed a Computer Science degree but had to dropout because of overall performance. However I did very well in the programming modules and have spent the last year developing an app. Unfortunately I have had a poor response from the job market, do you have any advice on how someone with the technical skills but with bad credentials can get a first job in the software industry? Link to www.hackerrank.com Amazon, Quora, facebook, microsoft, evernote all hire through these online programming challenges. Knock yourself out! Also, doing well on topcoder will attract lots of recruiters.
What's the most expensive thing you own? 2013 audi A6 full loaded. ~$67k.
Or a $1.3m house heavily mortgaged.
Why not the A8? A6 was already a huge stretch based on how I look at my finances.
What job did you do to earn your salary? Job - my wife is a surgeon, I am software engineer turned technology product manager.
What was your position with the company you did the IPO for? Position - relatively junior. 4 where 1 is college intern, 2 is new hire, and 12 is CEO.
what is your current business? Current Business - building some software I feel really needs to be built and will improve the world slightly.
I'm assuming somewhere within the field as your previous employment? I have lots of friends who are far more successful than me as entrepreneurs. Most of them worked really hard in their field for other people and learned the ropes first for 5-8 years. A few are very talented or very smart and made it quickly when they were young.
finally... any key's to success for an entrepreneur? Sorry, no personal advice here as I am relatively new entrepreneur myself. Though it does help to have a cushion saved up so you can take risks.
What type of surgeon is she? Sorry, can't answer that. Trying to stay anonymous enough so no one but close friends could identify me.
When did you start making good money? At 26 out of grad school I made $80k/year Then went up to gradually to 32 where I made $220k/year in comp.
Some of that comp was worth alot more by then because it was in RSUs of a quickly appreciating company.
Link to en.wikipedia.org
What computer you using? Specs please, I'm really into computers an I'm super fascinated on what you'd have, because if I was a millionaire I'd spend $500k on a nice ass computer and server. Spending $500k on a nice computer is a great path to quickly not being wealthy.
I have a retina macbook pro 15. Standard specs except for 512gb ssd.
Does everything I need and more.
Yeah, i suppose, i'm terrible with money, can i ask, why the macbook and not an iMac or a mackintosh? just something small because you don't need the extra umph of a complete computational beast? for mail checking? The macbook pro is much more powerful than anything I can use as a scientist. Can't imagine anything other than 3d modeling or video editing that would require more power.
How do you handle all the "friends" and relatives asking for "borrowing" some money? How can one say no and still keep the relationship? As I said above, very few people know about our wealth. So no one has asked. The only people who have some ideas are our parents, and a few equally wealthy friends.
The only time someone asked me it was an ex-gf who appeared out of the blue after several years. I told her in a straightforward way that I couldn't lend her the money.
I thought that maybe people could tell perhaps because of your guys house, car or even lifestyle. The median home price in my town is $950k. Our place is nothing out of the ordinary. In fact, it is not even in the top 50 zip codes by price within 50 miles.
Our cars are very common around here. Several of my friends have similarly nice cars. Also, amortized over a 7-year usage period the capital expense of the car only costs me about $6k/year. Of course, this only applies if you have the cash up front to buy it, and are going to maintain it well for an eventual sale.
Buying a car outright at $60k seems silly when interest rates are below 2% doesn't it? You could earn a lot more than 2% on that money over 7 years I have to assume? Yes, but in this case we were refinancing our investment property, so it is possible the credit hit was not worth it. We decided not to take the risk.
If I provide proof that i'm not spending it on hookers and coke,are you willing to send me money for food and utilities for a while until I get back on my feet?I live in a "second" world country suffering from depression and suicidal tendencies and i'm out of ideas... Sorry, no. I do give money to several charities though.
I have been out of luck several times myself. Always made it through by just holding on.
I'm a single guy working full time. 22. What is an approachable investment goal I can work for in the 1-2 years? I try and save 30% of my after tax income and invest in long term undervalued assets. I expect a 7% annualized return over a 30 year time horizon. But it is very difficult to work within a 2 year time horizon, except saving a certain amount.
Link to www.tweedy.com
That's pretty cool! Never. I'm hoping to be one of those people who works as long as physically possible.
Do you ever see yourself retiring anytime soon? Part of this is that I plan to try new things as often as possible professionally, and part of this is that I am very curious about everything.
So what do you currently do day-to-day? Starting a small business with 2 business partners. Been at it a few months, now bringing in about $1k/month. Hoping to make that number rise over the next year.
Do you know any places (sites,etc) where I can find programs to compile and run the code I write? Because whenever I write code, I never have a place to run in or to save projects to. Try Link to c9.i for web projects. It is not optimal, but is definitely better than nothing.
Thanks for the AMA.I have a couple question.I am currently 16 and LOVE computers,I have a tiny bit of experience in programming,but haven't leaped into anything yet.So,what would be you're advice for a kid wanting to be a successful(primarily in computers)?Also,since I don't have a lot of cash,would going to community college then transferring to a state college or University be a good idea? Maybe Link to processing.or Then go on to more challenging concepts and frameworks.
I personally went to community college and then went to a mid-tier state school, and it worked out fine.
Last updated: 2013-06-14 06:59 UTC
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