Ask HN: How do I go from selling my time to owning something?

[atomflunder]

With all of the tech layoffs happening right now, it sort of dawned on me that even as a software engineer I am still very much „working class“: The pay might be good, but there still seems to be a huge gap between people that sell their time, and people that make money through owning something. Not to get all too class warefare-y, but you get my drift.

If my company decides to lay me off, I‘m out of luck. If a bunch of enormously profitable tech companies decide to do layoffs seemingly only to suppress their worker‘s market value, then I‘m also out of luck. My entire wealth depends on my employer paycheck. Even with a good salary, buying an apartment in a big city here in Germany (which is where the jobs are) seems completely out of reach. Let alone accruing any other wealth beyond that. And I don’t see a significant change in that even if I were to climb the software career ladder somewhere.

It feels like as long as I am primarily and employee, I will never „make it“.

So, how do I escape this state of only selling my time?

I am buying ETFs for a few hundred € a month, and the other obvious answer seems to be starting my own business/startup, but I don’t feel experienced enough for that.

What else can I do? Any advice for accruing wealth in the short/medium/long term?

[Shinmon]

It's much harder to get laid off in Germany due to much better protection and even if you are laid off, you are eligible for unemployment benefits. So I think you are a little reactionary there right now.

Besides that, it's still an interesting question. I am currently in the process of starting a company in Germany and besides the horrible bureaucracy it's just really hard in general.

I think in tech the best way to start a company is to start a consulting (side) business in whatever you are good at. This way you can talk to companies and get paid for it. Over time you will notice that many companies have similar problems which you might be able to address with some kind of product.

The key is not to fall in love with the consulting business because that is selling time for money at the end of the day.

> but I don’t feel experienced enough for that.

This is classic imposter syndrome. I don't think anyone feels experienced enough. My background is tech as well but I have learned a shit ton of things on the business side of things and got to talk to many people.

> I am buying ETFs for a few hundred € a month,

Btw, that's a good way for long term wealth, especially for more money in retirement or a possible early retirement, but it takes time.

Short term wealth is always gambling. Starting a company almost always goes along with a significant pay cut in the beginning.

[okokwhatever]

Work hard and enjoy life. It is the best investment for me. You will be just one more person in the future without a Ferrari but at least you'll have a better experience of the process (that nobody knows when it ends).

Memento mori (https://en.wikipedia.org/wiki/Memento_mori)

[O__________O]

To be fair, risks related to being fired are significant less than risks of starting a company and the risks that are creating the layoffs apply to companies as well.

If you’re worried about the short-term losses and impact on cash flow predictability you could look into income protection insurance.

[GoldenMonkey]

Paul Graham talks about this (http://www.paulgraham.com/wealth.html). After doing the consultant grind, hiring employees. Boot strapping my own startups. For most of my career. And just having middling success.

I finally hit pay dirt by just joining a startup with VC funding. And it only took 4 years to get a payoff. My recommendation, for the best odds of success. Join an existing startup with equity.. at least 1%. You want to be an owner. A capitalist. It is vital to have equity. If you're going to work... work at a company with equity.