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What do you need to do in your youth or how to become a rich IT person


The article is written after reading the article Copy money from your youth or a couple of statements that are easily checked in Excel .

According to my observations, a very small percentage of IT people (as well as other people) know the main principle of personal wealth (in the good sense of the word), and even less use it.

It should be noted that three years ago, I myself did not know this principle, and I even had to sell my car in order to pay debts. But I was not upset - I already knew this principle and was sure that I would be able to become rich. After all, if you act on the basis of this principle, then real wealth is only a matter of time. And I was not mistaken.
It does not matter who you are - a designer or a programmer, but I’m sure that if you follow him too, you will become rich.

Everything is very simple. To begin with, there is a widespread belief that the rich are those who have a lot of money. This is not entirely true - money is only a consequence, and not the cause of wealth. Most people who won a lot of money in the lottery lost it in the very first year. Did the money make them rich? Obviously not. Rather, it can be said that the poor man has temporarily turned into a poor man with money. So what makes a rich person rich?
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Consider an example: there are two peers: Vasya and Peter, working in the same firm and receiving the same salary. They leave work together. Vasya and Petya live with their parents. After dinner, Vasya sits at his home computer, and plays a new toy, sits in Vkontakte, Facebook and Twitter, watches a movie. Petya, having dinner, sits down at his home computer and draws a template site for sale on Template Monster / writes articles for his website or blog / develops a program for iPhone or Android (choose what you like or add your own). Sometimes Petya gets up early and deals with his project in the morning - it’s definitely better to do something fresh with a fresh mind.

Six months later, Vasya pumped his RPG hero up to the 100th level, sent 1,000 cats to VKontakte, liked 5000 priks, retweeted 10,000 tweets, watched all the seasons of Dr. Klaus and bought the car on credit. And Peter is already selling 10 templates on Template Monster / placed ads on his website / has already written the second application for iPhone / Android and sells it on the AppStore / Google Play. Let only 300 dollars per month run in - but Petya already knows how to improve his products, and how exactly you shouldn't do them. So it returns home by subway.

A year later, Vasya pumps his hero up to the 200th level, is well versed in current trends on Facebook and Facebook, follows 300 gurus, watched all the seasons of the Mega Intellectual Series, put the new subwoofer in the car and thought to take a mortgage. And Petya understood how to make, and did, a high-quality and very popular WordPress template / website with advertising / application. The income from his project has already exceeded twice his salary in permanent employment, and Peter thinks about retiring and devoting more time to his projects. And maybe move closer to the sea to do what he likes right on the beach, under a palm tree, sipping a cool watermelon shake ...

What allowed Petya to stop working “for an uncle” and quietly sunbathe on the beach, working several hours a day? What is a template site that is sold on Template Monster, a popular advertising site or a paid program in terms of finance?

This is called an " asset ." What is an asset?

Simply put, an asset is what brings money into your pocket, even if you don’t work. This is a rented apartment, this is a coffee machine that you put in the lobby of the office, this is a sales program, website, book, other information product. Of course, the asset must be managed. Once a month to receive money from tenants, not forgetting about the repairs in the apartment, the coffee machine to refill, the program to upgrade, the websites to replenish. But it requires much less time than working from morning to evening. You can hire someone after you figure it out yourself.
And what prevents Vasya from lying on the same beach with Petya? Why is Vasya terribly afraid of being fired and plans to work at the same job for at least another 10 years?

This is his " liabilities ". What is passive?

Liability is something that periodically takes money out of your pocket. This is a car that needs to be serviced, this is the apartment you live in, this is a mortgage to a bank, a debt. Liability is any thing that requires maintenance costs or simply becomes cheaper over time. Money is also a liability, because inflation eats them every day. Even by investing them in a bank, you will reduce losses to a maximum, but you are unlikely to get rich.

That is, Vasya’s cash flow scheme is as follows:

And Petit:

Not far from the office of guys, the homeless Panych is hanging around. His cash flow has not changed since the 98th, when he had to give the apartment for the debts of the "brothers". I will give his balance for an example:

Vasya will pay the loan for the car and the mortgage plus interest to the bank for years. Petya, during this time, can become a dollar millionaire simply by creating new assets and supporting old ones. Live in your pleasure, get up and go to bed whenever you want and go around the whole world. But Petya takes different cars, yachts and houses for rent - when and where they need them and not tied to one place: after all, the new year is good in Goa, and then in Krabi. Spring to Bali (the most beautiful island, but the food is tastier in Tae). And in the summer of thinking to go to America - Mexico, Cuba and Dominican Republic are already marked in Google Maps.

Peter follows the basic principle of wealth:
Accumulate assets and avoid liabilities.

Ivan Ivanovich


Not as young as Peter. He has two children and he can not break away and go live to the other end of the world. He would not like to save and save money for old age. Stability for him in the first place. He realized that creating his assets is much more profitable than investing in others. He seriously approached the matter: he consulted about the choice of a project with a successful person in this matter and chose an appropriate project for the soul. Studied competitors and thought up how to stand out among them. Made a complete TK. Tightly limited functionality to the pilot version. And he calmly set to work - you can always carve out an hour or two if you wish, without prejudice to the family and the main work, especially if you don’t “burn” it. Sometimes he deals with the project in the morning - after he brings the youngest to the kindergarten. Fortunately, the kindergarten works with 6, and his working day starts at 10. Ivan Ivanovich is calm and confident in his abilities - he already knows from his own experience that the results are obtained by systematic work for a long-term perspective.

Results



I think, to complete the picture, it is worth mentioning about bad assets and good liabilities.


A bad asset is when the cost of servicing an asset exceeds its income. For example, a rental for a coffee machine is more profit from it. In this case, it is worth looking for a place with a smaller lease or a bigger profit. Well, or completely get rid of non-core tangible assets and focus on information assets. Are we IT pros or where? By the way, any project before the conclusion on self-sufficiency is a “bad asset”. Some projects never become “good assets”. But it's not scary - having made such a project, you will still increase your main asset - experience. Experience how to do is not necessary. After all, when everything goes well, it is not always clear what exactly led to success, but when you fail, the reason is obvious, unless, of course, you shift the responsibility for the choice and failure of the project.

A good liability is when the cost of liability is lower than the return on the asset you bought. For example, you buy an apartment in a mortgage and rent it more expensive than payments to the bank and utility bills. But it’s better not to rely on such things without serious experience - you can fly very easily if, for example, rental prices decrease. You can have an unlimited number of assets, and liabilities - no more than income allows.

About the borrowed money for IT projects. I believe that a good consumer project at the first stage does not need borrowed money. That is, if I cannot bring the project to profitability with my own means, then, most likely, I will not launch it with money either. Over the course of several years of work, I developed some criteria for the projects for which I undertake, but this is the topic of a separate article, and for the time being I will repeat the main principle of a rich person:
Accumulate assets and avoid liabilities.

Everyone can become rich! Wealth and happiness to you! Build your assets and get rich!

PS For home reading: Robert Kiyosaki. Rich dad, poor dad. Cash Flow Quadrant. Investment Guide. Computer game Cash Flow 101, 202.

UPD:

Little about the author


33 years. Mostly live in Thailand, in different places. During the year, traveling around Asia. By the way, the photo was taken by me. Islet near Koh Samui.
A few years ago, he worked for his uncle and in parallel did his project. After 2 years, without fear, I was able to quit: the project has already brought more than $ 2000 per month. Six months later, together with a friend, I created my own small software company: 4 developers + tester. Developed and sold their products + very little outsourcing. Due to inexperience and the crisis in 2008, when sales in the states fell, the company had to close. We work with some former hired employees even now, but on partnership conditions. The developer receives 50% of the profits from the project. At the moment I have several profitable projects (there were not profitable ones), which bring from 3 to 15 thousand dollars a month. Developers are working on projects at a convenient time for them. I am preparing the design and specifications, doing the promotion.

Everything about what I write here is verified by my experience.
In the article I tried to present the main idea that helped and helps me personally to become richer:

Create and buy things that bring you money
and avoid things to spend money on.

This is a universal formula for success. It does not matter what assets you acquire or create: apartments or tents with shawarma, Android programs or popular sites. The main thing is that you have something that (after creation) makes money without your direct participation. Of course, as I wrote above, assets require management. Not everything works out the first time. Not all projects are “fired.” But the more you do, the more experience you get. And every time the chances of success are more and more. You begin to understand how not to do it, and what helps the project to “shoot”. You can learn this in two or three years, or maybe with a serious intention, and less.

I am pleased to answer specific questions to anyone who is ready to move in this same direction.

About mortgage


In 2007, when the entire market went uphill confidently, my partner and I bought a small apartment as an office in a mortgage - after all, “real estate is only growing in value.” At that time we rented an office, and decided that we would be better to pay this money to the bank and in 10 years we will receive an apartment in the property. Six months after the purchase (mid 2008, the crisis), we had to close the company - the profit from sales dropped significantly, and we could no longer pay wages to employees. Although on a mortgage and life with a partner, current projects brought us income for more than a year, gradually decreasing. Property prices by this time have fallen significantly and even now have not risen to that level (in dollar equivalent).
And if I now sell this apartment, then I can only fully repay the loan, although for all these almost 5 years I paid the bank more than $ 1,000 a month.

Source: https://habr.com/ru/post/152995/

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