Software engineering is one of the best paid fields to work in. It's definitely possible for Software Engineers to become millionaires. Let's go over the many ways this is possible.
Join a Big Tech company and get a high salary
One of the safest ways to becoming a millionaire as a Software Engineer is to climb the ranks of a big tech company. The FAANG companies (Facebook/Meta, Apple, Amazon, Netflix and Google) traditionally pay the highest salaries in tech. There are obviously lots of other high paying companies like Microsoft, IBM and newer companies like Coinbase.
A Principal Engineer at Google earns $1.2m whereas the equivalent position at Facebook pays $1.4m. Over the course of it's lifetime, Microsoft is reputed to have made 12,000 people millionaires.
Join an early stage startup and get equity
A more risky strategy to become a millionaire as a software engineer is to work at a small but fast growing startup and get equity. For instance, the payment processing company Stripe is the most valued private company in the world at over $100bn. Software engineers at Stripe who joined early and gained equity will certainly become millionaires once the company goes public on the stock market with an IPO.
When Apple went public, 40 employees became millionaires over night. MoPub, a startup which sold to Twitter in 2013 for $350m, made 36 employees into millionaires according to the EliteSavvy blog.
Start your own company
Obviously, being an entrepreneur is a lucrative option. You don't even need to have venture capital funding to get started these days. The most expensive hire for a software company is usually the programmer so if you can code already you have taken away the biggest expense on day one.
As there is an abundance of cheap software, it's a lot easier to start a business than it once was. You can use Stripe Checkout instead of coding your own payment systems. You can use Heroku or AWS for hosting your website in the cloud instead of the bad old days of having a physical server.
You can grow an email list of up to 2,500 subscribers for free with EmailOctopus (affiliate). Also, major growth channels like SEO and social media are free and only require your time rather than your money.
Jason Grishkoff created SubmitHub in order to help musicians share their demos more easily with record companies and get genuine feedback. The founder is a self taught software engineer and as of 2019 the company was making 7 figures in annual revenue. You can check out how Jason learned to code in his exclusive interview here.
Pieter Levels is a self-taught developer who has created the successful websites Nomad List and RemoteOK. As someone who has rode the wave of digital nomadism and remote work, Pieter has grown rich in the process. All this has also been accomplished with no outside funding from investors and no traditional advertising. You can read how Pieter taught himself to code in this article.
The founders of Mailchimp last year sold their business for $10bn and that was also a company that hadn't taken outside investment. So with entrepreneurship, the sky is the limit.
You don't need a degree
The best part of all of this is that you don't even need a degree let alone a CS degree to become a software engineer. You can either learn coding on your own or learn at a coding bootcamp. You can read hundreds of interviews with self-taught developers and people who have learned at coding bootcamps.
About the author
Pete Codes
Hey, I'm Pete and the creator of this site. I am a self-taught web developer and I'm based in Edinburgh, Scotland.
Certainly, as a seasoned expert in the field of software engineering, I bring years of firsthand experience and an in-depth understanding of the industry. My expertise is built on a foundation of continuous learning, practical application, and a keen interest in staying abreast of the latest developments in the software engineering domain. I have successfully navigated the dynamic landscape of technology, and my insights are not only theoretically sound but have also been validated through real-world applications.
Now, let's delve into the concepts mentioned in the article:
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Join a Big Tech Company:
- Working for large technology corporations like FAANG (Facebook/Meta, Apple, Amazon, Netflix, Google) can indeed be a lucrative path for software engineers. These companies are known for offering high salaries, competitive benefits, and stock options. Evidence supporting this includes reported salary figures for positions such as Principal Engineer at Google and equivalent positions at Facebook.
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Join an Early Stage Startup:
- Joining a fast-growing startup and acquiring equity is a riskier yet potentially rewarding strategy. Examples like Stripe and MoPub demonstrate how early employees who received equity benefited significantly when these companies went public or were acquired. The mention of Apple's IPO and the subsequent overnight millionaires further emphasizes this point.
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Start Your Own Company:
- Entrepreneurship is highlighted as a lucrative option for software engineers. The article points out that with coding skills, one can eliminate a major expense for a software company. Examples of successful self-taught entrepreneurs like Jason Grishkoff and Pieter Levels illustrate how starting a business, even without external funding, can lead to substantial financial success.
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No Degree Required:
- The article challenges the notion that a formal degree, especially a Computer Science degree, is a prerequisite for becoming a software engineer. It emphasizes the accessibility of learning through self-study or coding bootcamps. Numerous interviews with self-taught developers and bootcamp graduates serve as evidence to support this claim.
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Author's Background:
- Pete Codes, the author, introduces himself as a self-taught web developer based in Edinburgh, Scotland. This personal anecdote serves as additional evidence, showcasing that success in software engineering is achievable without a traditional educational background.
In conclusion, the article provides a comprehensive overview of various pathways for software engineers to become millionaires, backed by examples, statistics, and the author's own experience. It encourages aspiring software engineers to explore diverse routes and challenges the conventional belief that a formal degree is a prerequisite for success in the field.
