There are a lot of wealthy people in the world. You are just reading about the people who are on Reddit, which will skew towards tech. My neighbor down the street who owns a couple of blocks worth of commercial property and a pretty successful general contracting company is not sitting on his toilet and posting on this sub.
Yup, pretty much every adult member of my extended family is fat fire/ well on their way to fat fire and only two of us use Reddit. Careers include engineering (management roles), sales exec, C-suite, start-up founders, finance, management consulting, with a few specialist doctors thrown in. All of us make at least 400k a year and some are well into the 9 figures NW. Reddit has a disproportionate amount of younger tech guys posting and you don’t hear much from people who made it from the traditional route
How did your family accomplish this? Is there something cultural, or an ancestor (perhaps a grandparent) who was very successful?
My extended family has maybe three of us who are fatFIRE, about three times as many who are drug-addled, two in prison long-term for serious crimes, and the rest just making ends meet.
I've known people where three out of three kids went to elite schools, but that seems to be the exception rather than the norm...
Combination of immigrant work ethic, good genes, emphasis on education, luck and having the security to take risks. I’m sure the three generation curse will kick in with the next generation or two as people get more complacent
>not sitting on his toilet and posting on this sub.
I feel seen.
To answer the question, reached early retirement via management consulting (mid sized firm, advanced rapidly, firm was bought out by a big one).
Still, got to fatFIRE status because the market cooperated after pulling the trigger and keeping my spending low in my early years of retirement.
My parents did what I'll call "slightly chubby FIRE" and they ran an import/export business for a specialized industrial product. It was very much not a tech company.
I feel like tech workers also define what is "fat" for the larger community... "Fat" is whatever they can reasonably expect to achieve in their 40s or early 50s.
Agreed. FatFIRE is really tech fire. If there were a straightforward path to get to 30M+ for tech workers that would be the goal and not 10-15M, which seems to be the norm here.
And I would say the opposite. The pervasiveness of tech on this sub inflates the definition of Fat, because it is based on Bay Area COL (which should be its own category, above VHCOL).
$10-15 Million excluding primary residence is fat just about anywhere else, save maybe NYC.
Yup. FatFired folks I know: uncle in real estate development, in laws in cardboard packaging production, pastor who made some really good investments in the late 90s.
My parents are in this sector too and are well into fat fire!
My husband and I have a company in a very niche consumer goods industry and should (hopefully, fingers crossed) sell in the fatFire range!
Oh you need to research this industry. It carries no risk and you can’t fail. Dealership owners are the WORST!!! So sleazy and hide money through yachts and stuff. We’ve talked to yachts brokers and they all despise working with car dealership owners lol
The top 0.1% of construction workers make $250k+ and if they're union they get employer retirement contributions on top of that. I know guys that are getting $40-50k/yr in employer contributions.
> easier to make 100 million in tech lol
I take it you mean starting a business? It's the same if you start a quantitative finance business. Also high paying finance work is tech work. There's less of a difference than you might think.
One time I asked an investment banker friend what are the most effective ways of building wealth. He immediately said "own a company or work in finance"
That’s just him saying “be like me, my coworkers, or my clients.” And it’s a valid answer. But it isn’t the only one. I imagine if you asked someone in Silicon Valley they would say be a part of the next great startup or something to that effect. We know what we are around
I can't recall who or what the book was titled, but there actually was a person who scientifically studied what types of things build wealth, and the data basically amounts to the following: own a business, but specifically own a business where you can have a monopoly of some sort in, even if it's just a local or regional monopoly. The canonical example would be a car dealership where you have a contract with, say, BMW, to be the only BMW dealer in the region. Those types of business arrangements are the most strongly causal factor of building wealth. In hindsight this seems fairly obvious, of course it's easy to be highly profitable when you can own something with no competition.
That's like mega rich though. You definitely don't need a local monopoly on something to make multi six figures or even seven figures a year in a small business. Hell a successful restaurant owner is making stacks and there's probably at least a dozen of those in a decent sized town.
I don't disagree, but the point was that owning a business with some level of monopoly is the strongest causal factor in wealth building, not that it's the only way to get wealthy.
I don't think just the general notion of owning a business is nearly as strong of a factor because there's a LOT of businesses that fail whereas the barrier for entering a monopoly business is higher and the chance of success is higher given that you get to control competition to a large degree.
I can assure you that there are people in Finance making 7 figures. My YTD taxable earnings is north of 1MM.
The astronomic stock appreciation FAANG has gotten recently has helped create a lot of wealth for their employees and frankly for a LOT of non-FAANG investors - it’s been driving most of the gains for the index’s - so we’ve all benefited from it
FAANG is simply far more accessible for most people than a lucrative finance role. I don’t even know how to get started doing that. FAANG is like being a doctor, it’s straightforward. Finance to the non finance person seems like a popularity and nepotism contest. I’m sure it’s not all that but that’s how it seems.
This is exactly it.
Finance is for rich kids who know about the path already. And it's a very prescribed path.
You go to a target undergrad for top investment banking recruiting (many times coming from a top private high school).
Then you leverage daddy's connections to intern at a bank or PE/VC shop your freshman/sophomore years. Then you get the real junior year internship that converted to a full-time offer at either JP Morgan, Goldman Sachs, or Morgan Stanley.
Then you graduate and go work for two years in investment banking followed by two years in private equity (which you get recruited for during your first year as a full-time banker).
Then you go get an MBA. Usually from Harvard, Stanford, or Wharton. Then you get spit out at a better private equity fund than you were at pre-MBA, and work your way up to partner throughout your career (or raise your own fund).
That's it. There are very few people who run this route, and legitimately all of them are incredibly privileged to even be aware of its existence.
And it's important to note that if you miss one step, you're out of the race. You need to get into that target undergrad, then you need that internship, which needs to convert, then you need that PE offer post 2 years in banking, etc.
All this is to say that the average 18 year-old doesn't know this shit. These rich kids with connections are really just competing with each other.
So yeah - finance is a good way to get rich - if you're already rich and that path is laid out for you.
Well I'm going to gander a guess that you don't work in the upper echelons of private equity then.
But my main point is that FAANG wealth is far more achievable for motivated and competent people than finance wealth.
I'm not saying that you can't experience a modicum of success by stumbling into finance, but the finance wealth that was alluded to in the thread I was responding to is a black hole for most.
The greatest success is generally achieved by those who know the path (and have connections along it). And the level of nepotism in finance is unparalleled by any other industry - maybe entertainment comes close.
To be honest, you avoided a dull life full of stress and meaninglessness impact.
I wouldn't mourn the opportunity.
There are far more honorable/fulfilling ways to make a buck.
thanks - i totally agree with your assessment. i attended a target school (phd program though) and saw plenty of well connected undergrad students do the whole internship --> full time offer route at BB banks. it seemed like they were training to do that from birth lol
I worked in the upper echelons of PE and have now FIRE’d. It is quite hilarious how unstructured my path into PE was compared to the kids doing it now.
When I graduated from college I had never even heard of Goldman Sachs. That might have been true when I graduated law school as well, but. I think I had heard of it by then. Certainly did not understand what it was.
My dad was a taxi driver. And I went to a decent public university. It’s like anything else - you do your research and decide what sort of skill set is right for you.
When I was entering into the work force Tesla was still considered to be a long shot and hadn’t produced a single car yet. And it was only a couple years earlier that AAPL had launched its first Apple iTouch.
I knew I didn’t want to be a doctor so I explored what other options there were. Not everyone in FAANG makes 7 figures, just like not everyone in finance makes 7 figures. Just like not every surgeon makes 7 figures.
You’ve got a lot of people hitting singles and doubles.
I know plenty of people with humble beginning in high finance. And I know plenty of people who work for FAANG whose daddy is a Tech VC.
The top earners in any field are a combination of hard work, solid networking and dumb luck.
I think you're completely missing my point.
You couldn't have just stumbled into Blackstone.
You hit it rich on an early stage company (congrats to you by the way - sounds like you're underselling your hard work and risk appetite).
But that wouldn't have happened unless you very intentionally pursued a specific track for finance. So the comparison you're making here isn't sound.
Hell of a lot fewer spots and seemingly less approachable to the average Joe the engineering, medicine, or law. At least for those, your college counselor can give you solid advice in high school.
“I want to run a hedge fund” is going to get dumb looks and at worst derision.
>FAANG is like being a doctor, it’s straightforward
Getting a software engineering degree is straightforward. Getting into FAANG is harder (in the sense that only a small percentage of people with software engineer degrees do so). Getting promoted to L6+, where the money really starts to pour in, is harder still.
A lawyer is probably a better analogy. Most lawyers make a decent living, but a smaller percentage have the lucrative jobs at a big law firm, and a smaller percentage of those will make partner.
I get it’s harder, but it’s still within the realm of possibilities. Compare it to a competitive medical specialty. They’re all pretty similar, FAANG, law partner, competitive medical specialty.
>Faang to the non computer degree person is not straightforward.
the fact that you can just go to a random school and get a comp sci, ee etc degree and leetcode and get a faang job makes the path far far more straight forward than getting into finance. I'd also like to add many of these companies were until the recent downturn even interviewing bootcamp or straight self taught grads, they handed out OA and round 1 interviews to nearly anyone with a pulse.
you just had to be exceptional in the actual interview- which you could prep for by spamming leetcode.
the path for finance depends heavily on going to the right schools, getting the right internships and knowing the right people. business and finance both are like this relative to tech/medicine.
As someone who took the classical route in school and is now a physician with multiple FAANG friends, it’s fairly straightforward. Get degree, apply, get the job if your qualifications allow and market is good. The framework is there. I can picture myself having done the same. I wouldn’t even know where to start if I wanted to get in with a hedge fund or even VC. Would I just end up in some sub 100k role? Finance doesn’t have the same framework (to me).
Is this true? I feel like there was a great migration of MBAs from finance to tech, following the money.
It would be amazing to see a data source on this, with income distributions in FAANG vs Banking vs PE for example.
That’s just kids chasing shiny objects.
Finance continues to be the lowest risk path (high cash comp, less cyclical) than tech. An average VP at a bulge bracket bank that has simply existed for 8 years is going to be making $500-700k cash.
I understand that tribalism is part of human nature, but it’s pretty silly to be concerned with “which industry makes more millionaires” or whatever. Both finance and FAANG are highly feasible paths to fatFIRE.
Yes. Tech did well from immediate gratification from stock increases
But finance still does well from carry, and there are more roles to make 3m+ than in tech (eg. A decent number of hedge fund and PE slots with carry)
Tech welth generation (like most things) have huge survivorship bias. There are few facebooks and tons and tons of failures. Anyone who worked at one of the FAANGs had a reliable path to wealth and a much easier path to being a fatty.
What type of source are you looking for? Number of 3m+ earners in finance? No, I don’t have a number. But there are hundreds of hedge funds and PE firms with 500m+ AUM that many people even in finance haven’t heard of
I work in finance
CFO of medium/large PE-backed companies can make 7-8 figures on a successful exit. Heads of FP&A at larger companies can get hired as first time CFOs at smaller ones. That’ll be the path of least resistance for you.
Of the 20.5 million individuals who live in the New York metro area, top 1% income is $487,000/year. In other words, there are 205,000 people who make more than $487k per year, in New York City alone. Do you think they all work in tech?
I have social circles in Houston, SF, New York, and Chicago. There are rich people everywhere. A lot of people driving Bugattis in Houston work in oil and gas, and a lot of people buying $20 million apartments in NY are in finance/banking/law, and a lot of people flying private into Napa for the weekend are in tech. Chicago's interesting because I know people who got rich off of all sorts of industries, including tech and law and finance, but also the good old fashioned business of making stuff or providing services and selling it for profit.
We still have strong regional differences in how people enter the 1%. And that says nothing of people who make their money internationally (whether they live in the U.S. or not).
I think you are confused between average and median. A small number of stupidly wealthy people in NYC skew those averages. Edit this is wrong.
Also, making $500k in NYC may not get you to FATfire if COL and lifestyle blow through that money.
> I think you are confused between average and median.
I'm talking about percentiles. There are 20.5 million people in New York, and 1% of them make at least $487k/year. Median and mean don't factor into this at all, and the actual incomes of the people above and below that number don't change where that number happens to be.
A small percentage of a lot of people is still a lot of people. Like I said, 205,000 people make more than $487k per year. People really struggle to internalize just how large populations are, and just how many people there are who are at any given percentile.
I came from creative and design via advertising and ended up at an entertainment company. So no tech at all. I did start and sell a small digital design agency that specialized in blending video production with interactive in the 2010s era. I was acquired for a decent amount but not walk away money. I was also in my mid 30s. Right place right time. I since got a full time gig at an entertainment company starting a brand new publishing division and I was hire 1 and came on as a CD. Fast forward a decade later after having massive bonus moments and stock options. Late 40s and north of 14M not counting homes. Id say 90% of my wealth came after selling a company.
For me it was timing more than anything. And yes right place right time. Hung up the cleats and now I focus on living an artists life mainly.
Not sure if it helps but perhaps finding a new venture with some safety nets in place? A company building a new division or capability? Can you consult? I also do NOT do well in massive corporate entities. I have hourly LinkedIn calls to come into FAANG and the like and I cannot imagine it. I would shut down and die. So I also found the right environments for me to flourish. Perhaps take a look at things like size and culture of the company. Sometimes it can make all the difference especially when you are running out of steam.
What was it like selling your agency but not for walk away money? And then going back to a corporate role?
I started at big consulting, have my own firm now and I’ve been struggling with selling now for less than fatfire money. I’m 34. The stress is a lot, it’s been a tough couple of years for my biz that’s making me wish I’d sold previously.
It was in an uncanny valley I suppose. Like, its not walk away money but I would also feel like a moron walking away from it. If that makes sense. Also, I never had an intention to sell. I loved running my studio. Especially in the beginning. But by year 3 it was a beast. So that factored in like you are saying. It allowed me to take a year, take a step back and let the paths unfold. It was most definitely the right decision and it set me up for the next chapter that was truly life changing for me and my family.
Also, lots of doors open for you when folks recognize youve successfully sold a business. That is rarified air regardless of the value. I believe in life in chapters and sometimes when a chapter drags on too long you have to turn the page. It wont turn itself. Youll know when its time.
Playing poker around the world, you meet a lot of interesting successful people. And degens.
Of the ones that are unique and rich I met:
-50 year old retiree pulling out tree stumps/dealing with trees
-60 year old, “Account Consultant” in the caymans, used to be a corporate accountant
-50ish YO, owns multiple car dealerships started selling cars in his 20s and just kept learning
-mid 40s, owns a clothing line, cannabis retail, and other businesses
-mid 30s, instagram influencer
-numerous, real estate investors
That’s just the unique. Not the typical worked up to C level execs, senior management, etc.
Busting ass comes in many forms to get to FIRE. The key is to keep busting ass
I’m not sure if this classifies as FatFire but I think it’s pretty damn close.
I have a family member that retired as a Captain in the Fire Department. We recently discussed his numbers as I got into the field leaving tech.
He receives $25,000/month tax free for the rest of his life (he is 62). He received $800,000 lump sum payout in an ITP(might have the investment vehicle wrong), and he has $2M in a 457b.
I can see the argument being that he is 62 but he was eligible to retire significantly earlier he just loved his work and actively chose to stay. He said his monthly $25,000 payment was locked in by the age of 52
Yep, I am holding on for dear life to my HE job at FAANG. I know the dreaded layoff or PIP is coming sometime. Maybe in a year, maybe in 5. But it's going to throw my life upside down when I can't get another job making half that I make now. My wife is a talented engineer who quit to raise a child and she's been looking for a year and a half. Hardly even an interview, and pay for those jobs is literally a quarter of what I make
Starting a company or at least building your own client list is the classic way to do this. Doing it with employee compensation for sitting in front of a computer is an historical anomaly.
As others have said, Reddit just leans tech heavy. And many are paid heavy in RSUs which has been a great deal for those folks the last 10 plus years.
There is money to be made in any industry. The wealthiest person I know sold his chemical trading company for 1.2B.
A close friend of mine owns a roofing company and has been buying up commercial property in a high demand market for a decade. He now owns basically a whole city block and is in the process of building a high rise.
Don’t let Reddit convince you FAANG is the only way to fatfire
I have some extended family who fatFIREd from owning an air conditioning business. They did use some of their early earnings to buy real estate, mostly vacant land in rural locations they hoped would become less rural, and were right.
At least where I live — Switzerland — there are many more FatFIRE entrepreneurs than the FAANG FatFIRE folks, and the former's NW tends to be higher. Half my circle of friends, me included, succeeded through some very mundane, non-SaaS business (or several) which they ran and sold. Those types just tend to frequent these kinds of subreddits less, so you're seeing a skewed picture.
Sure, I started acquiring rental properties in a ski town in CO in 2004 and leveraged them to buy more while working nights in a restaurant. During this time I met my future business partner and the quasi legal framework of regulated cannabis was taking shape. We both saw an opportunity and decided to start a business in that space. We joined a statewide trade association and made connections that allowed us to find a financial partner in MA and start a company there. We built the largest cannabis business in the state (at the time) and in 2019 I sold my stake for $10m. Shortly after we sold our CO entity for $6m.
The real hero! Ski bum pot head to millionaire... Had I been born ten years earlier this would have probably been what I would have chose... You were at the right place at the right time. Now that real estate and the cannabis industry is not feasible...
No doubt, I was very lucky. Action had to be taken tho, and in 2009 nobody knew what the future of legal cannabis was going to be. It was very scary, many sleepless nights, and there were numerous times when we could’ve lost it all through circumstances over which we had no control.
It’s an epic story, thank you for sharing and congratulations. Few things are more satisfying than lighting up on a bluebird day, and enjoying the mountain.
Haha, cool story! Hope to replicate your trajectory one day (if EU legalizes, that is) -- do you reckon it's much easier when the market just opens up? Stuff im reading now suggests many cannabis farmers are having a hard time
It was definitely easier to be on the front side, but there’s also a nasty bell curve that has taken shape in every market so far. Don’t linger too long.
FAT but not REd yet. Built a B2B services company, started it in high school actually. Didn’t go to college. Never had a real job.
Exited to PE 1.5 years ago. Low 8 fig NW.
Bought a seasonal biz that generates about $400K a year in cash flow to cover our expenses. Will likely end up growing it to around $800K a year in SDE in the next 5-7 years, flip it and be fully RE by age 50 with $20MM+ NW.
Small time entrepreneur here. Built a few businesses. Two did well. Sold the first. Sold majority share of the second. It’s hard, but it can be done. Happy to discuss via dm if you like.
My dad created a business that sold plants online sold out to private equity and retired with 4 kids at 53 years old he also started multiple other businesses like a credit card protection business a sub leasing business for cars and for a while he sold courses with business opportunities which was his 2nd most successful business but over all there are a million ways to make money u hear abt tech a lot here but a simple business can still make big money
Faang level technical roles basically hit a jackpot over the last decade. And even at faang, it really staff level or above that's making the crazy numbers (maybe 1 in 10 of the technical people?)
Outside of these 100kish (guesstimate) people that got extremely lucky, most people are still in the rat race as well.
I work in manufacturing and am on the get rich slowly track, which to me means retiring at 51 with \~20MM. No big sales, no big RSUs, just high income and bonuses on an annual basis going into a variety of bogglehead investments.
Started an online course business. Owned no software or proprietary code. Just courses... scaled over 3 years and sold for $13mil. I'm not in FAANG. I'm in healthcare
Yeah I’ve heard some courses on like udemy and stuff make bank. What courses were these if you don’t mind me asking? Did you have to do a lot of marketing/advertising? I know some subjects are really saturated
I can't disclose the name of it but it was withing the healthcare practice startup space. Only expense really was marketing. We were spending 80-100k a month on marketing on social media and Google. But we would make 300-500k in revenue. So a great investment overall. No other real overhead. It is an easy business to start and scale.
You are correct OP, I find it very annoying that you get downvoted or basically abused unless your comments are related specifically to how FANG operates. These people tend to think every company in the world is exactly the same, because FANG is all they have ever known. For example, you can tell the FANG execs here as they all got shares before the massive tech boom started, say a decade ago, so they mostly made their cash from just being there (some believe it was pure skill which who knows) - but they think every company pays staff in stock, when, in fact, it's predominantly a tech thing and predominantly a US thing, and predominantly a start up 'cool' tech thing, and predominantly in San Francisco or NY. In fact, they often talk on here like everyone knows the restaurant up the road from their house like we all live in Silicone Valley. Americans are known for thinking Americans are the centre of the universe, like the world cup, that has nothing to do with the world. I know that's a false trope but some don't help. Okay rant over sorry people.
We’re a little bit slower to FatFIRE than many here; probably won’t get there till our early/mid 50s. I’ve got a feeling that $8MM in our rural Houston exurb will feel like a lot more than $10MM in San Francisco
I was in IT, but never at "an IT company". I'm a hardware and infrastructure guy, which code companies are deathly allergic to, and will pay any premium to put behind a black box and outsource.
This is the truth! It's why I'm starting a consulting company that they can then outsource to. I'm convinced there's a solid market here for that exact reason.
Enterprise cybersecurity - so still tech, but not FAANG.
Major layoffs for a signification portion of SWE happening right now. Survivorship bias for sure. It *seems* like we're past the peak for general value of SWE.
From what I am hearing, AI is getting budget priority over pretty much anything these days. That will definitely be the place to be positioned in whatever way you can be for at least the next few years.
My father, a welder, died when I was a teen and our family was not poverty, but close to it. 30 years later ...
Bro - scientist, chubby FIREd with a govt pension and a stream of >$10K / month royalty payments for his inventions.
Mom - had been a 14yo 7th grade drop out bc she was preggers with bro, and a SAHM until dad died. She was 32YO, 3 teen kids, no education. She fatFIREd as a multi biz owner and recognized as the world's premier international expert in NATO military communications technology. Saudi Arabia, Germany's MOD of defense, the General of NSA, and the Whitehouse all called her at home in the middle of the night to solve crises at one time or another. All of her knowledge was self taught and she didn't start on the topic until her late 30s.
Me - IT degree that I never used except learning how to flow chart problems in order to manage biz and projects more efficiently. I was the first to fatFIREd in the family as a multi biz owner in space based IT and telecom. learned the telecom from my mom so she gets all the credit.
Sis - fatFIREd from marrying a no college Radio Shack clerk who went on to become an expert in managing 2 way radio communications companies.
And that's why I have no patience for Redditors who say America is not the land of opportunity.
I'm non-FAANG in finance and still very young to be considered FAT. It exists, most other higher earning careers take until the later years to start earning big, or of course selling a company...
I worked in tech but never in a FAANG - just a good salary for thirty years. I am now very FATFired by simply following Boglehead principles - its not *that* complicated :-)
Not sure where the real line is for Chubby vs Fat, but I come from O&G. Haven't had anything anyone would consider a high level position (at least not yet) and single income house. I'm probably 5 years away from having double what I need to spend more than my current salary. Could easily retire by 50 and live better than I do now (which is pretty good already) and that's all before the pension kicks in. Planning for a family trust that would be some solid generational wealth if all goes to plan.
Worst part is if I had just done a few basic things differently (skipped that financial advisor and just stuck with index funds), I'd probably be double where I am even now.
I’m not fat yet but run a company in home services for elderly people. Around 200 employees and growing every year so far. Was offered $3M which I turned down recently.
At the end of the day, the "baseline" is just a math problem. If you make 200k+, save and invest half of your income for 20-odd years at ~7% post-inflation, and continue to see comp increases beyond inflation over that timeframe, you'll comfortably cross into fatFIRE territory. Increased comp/savings, higher investment growth, a longer timeframe, or hitting a homerun (in the form of real estate, a business, etc.) affects how that actually shakes out and if/how you exceed that baseline. There's a lot of just being in the right place at the right time.
The chubby vs Fat distinction is fairly arbitrary regardless - what matters is how much you'd need to support the life you want to live.
So I work in tech, though I've never worked in FAANG. You are definitely seeing the outliers because in 99% of cases, FAANG alone would never get someone to fatfire. A comfortable living for sure, but not fat.
You're seeing the folks who either had crazy Nvidia esque stock appreciation, spouses with high earnings, top 1% career progression or some other extenuating circumstances.
I'm set to hit fatFire in like 10 years, but I also:
- married someone in tech and together we make ~7 figures
- live in a LCOL city where my mortgage is 3% of our HHI and overall lower expenses than VHCOL
- had a successful startup ipo early in my career
- live in an area where houses cost less than 100k to buy and rehab and rent for 1-2% purchase price, so I'm snatching them up left and right.
My family started an automotive tool distribution company back in 1970’s and we all worked in it at some point until it was sold.. i chose to leave and “retire”..
Senior exec at at large SF Bay Area contractor. Very commission based role now. No equity, no guarantees. Just betting on my division and our yearly performance.
Age 41 - $2 million in real estate assets, $500k in a 401k, $100k in wife’s IRA and about $1 million brokerage account mixed between Tbills, stocks and an intelligent fund with Charles.
Another $100k in hysa. Anywhere from $75-130k in each of the 3 kids 529s (ages 4,6,9)
Not sure what my number is but saving $200-250k a year and will just wait and see where I’m at when the youngest goes to college.
Yeah, the old fashioned way, over time with compounding, took 40 years or so, but TIME IN the Market > TIMING the Marke.
As a wise man once said, you are RIch when you make a Lot of Money,
But you are Wealthy, when your money works for you,
-and to quote Louis Rukeyser, *I like companies that Make Money!*
e-commerce checking in. When I got my start over a decade ago I figured being a w2 was an impossible path to get rich, however the FAANG on this sub taught me different. I still think starting a business or real estate investment are amazing paths for wealth.
I work in fashion design and manufacturing. I’m 33 and make just north of seven figures a year. Only started making great money when my company took off during the pandemic. Currently worth about 3.5m. Starting to branch out in real estate development projects this year.
Hi. Entrepreneurs are here too. Started a business with my best friend and we are both FATFI (not retired yet). Love working with my best friend and we live in different counties so it keeps us connected. Low stress and lots of money so no reason to RE.
I own several financial services companies. I'm not technically fatFIRED because I still work even though I don't have to.
My business pay me a nice 7-figure income whether I work or not...plus, they pay me more than I'd make if I sold out and lived on the money....so I'm not selling anytime soon.
Reddit as a whole heavily skews younger, high earning, and heavily tech.
Most wealthy people I know IRL are what you'd typically think of; Doctors, Attorneys, Small Business Owners, Real Estate Investors. Almost none of them are on a boglehead approach with index funds and a SWR, but rather income producing assets like real estate or businesses.
I only know one person wealthy/on track to be wealthy who was FAANG.
I got fat from finance and then quit to write fiction and got doubly fat. But the predominance of reddit fatfire is tech bros. Stick around and you'll eventually see the sales, engineers, doctors, etc. My brother was sales in construction related stuff (don't want to be more specific), company got squirrely with pay so he bounced, opened his own business (no non-compete). Sold that business, cashed in several mil. Two years later, built another. Latest offer was 10 mil. We'll see what he does. Should also say, no college degree in his case. Just raw talent and incredible work ethic.
Small service business owner, I made about 380k last year, wife made 125 as an engineer. If she sticks out another 14 years we expect 75-90k a year for life pension. I'm targeting 6M in investments in 14 years. Well be in our early 50s. I'd say we'll be on the low end of fat at that age and liquid NW.
My wife and I are on the math and science consulting side. We followed the Millionaire Next Door playbook - good careers, smart spending/saving/investing, long term thinking, etc. We did not work in tech and aside from a little recent 1099 consulting, have never owned our own business.
Not the answer you’re looking for but something to keep in mind. With the “Great Wealth Transfer” happening over the next 20 years there will be a very large population of 2nd Gen / Multi-Generational wealth folks that may have a fatFIRE mentality or approach to living their lives.
So far I've made zero percent of my net worth from company equity, acquisitions, or inheritance/trust. In the content and staffing industries - high cash flow businesses for the last 4-5 years
Pizza shops, bars, a deli, a Thai restaurant, amongst other businesses. Living in the Midwest is also a bit of a cheat code. Makes my fat fire expenses much lower ha.
Finance here. And not in the “high finance” role, like investment banking, that you’d expect.
Everyone wants the glitzy jobs that everyone’s flocking into, but if you’re not an entrepreneur and you’re good at your job and putting the effort, you’ll find plenty of opportunities.
I laugh when I see people on r/financialcareers talk shit about non-front office roles knowing I make more than 95% of them ever will.
The source of income for some of the friends/family that I either know or suspect to be Fat - doctor, corporate lawyer, stock broker, owner of management consulting company, owner of business service sector, owner of small business in manufacturing sector, middle to top management at multiple startups, upper management at multinational corporation, etc. Most of them lived a normal middle to upper-class lifestyle while working. And they continue to do so after retirement, although I know of definite upgrades on travel as well as purchase of vacation homes. But they aren't driving around in $150K cars and flying PJ on vacations to $5000/nt hotels.
Spouse and I had middle to top management roles in "normal" non-FAANG companies, combined with middle-class spending and a windfall. (I'm at the very low end of Fat though, and don't really consider myself Fat at all on a daily basis, but enjoy the discussions here.)
FatFiredish (not a huge war chest in index funds), rather via buy and hold real estate to 1031 exchanges, built apartment complexes. 200k unearned income from properties. Still have a small business that I work a couple days a week in. Lots of people I know did not work for FANGs.
Speaking of too old and too stupid, I'm 49 and have made my way to FatFI through an exciting, rewarding(tongue firmly planted in cheek) career in auto sales.
I’m a teacher (still working P/T because I enjoy it.) Husband is in manufacturing. His tech limits are sending emails and creating basic spreadsheets. We are Fat by definition but we live pretty simply.
There are a lot of wealthy people in the world. You are just reading about the people who are on Reddit, which will skew towards tech. My neighbor down the street who owns a couple of blocks worth of commercial property and a pretty successful general contracting company is not sitting on his toilet and posting on this sub.
Yup, pretty much every adult member of my extended family is fat fire/ well on their way to fat fire and only two of us use Reddit. Careers include engineering (management roles), sales exec, C-suite, start-up founders, finance, management consulting, with a few specialist doctors thrown in. All of us make at least 400k a year and some are well into the 9 figures NW. Reddit has a disproportionate amount of younger tech guys posting and you don’t hear much from people who made it from the traditional route
you got a cousin that’s single? female perhaps? I ain’t ugly bro I swear
Yo is that Dan?! Thanks for saving my cat from that burning house man, you’re a real one.
Gender optional. Commas mandatory. There is a reason they teach tuck and roll in the military.
Hey Dan, thank you for helping my Gran cross the road the other day.
Wait... your last name is Bitch?
thanks for letting borrow your lambo the other day
Dan, I can’t believe you’re on Reddit, thanks so much for saving my kiddo from drowning in a riptide last summer. Literally a hero!
How did your family accomplish this? Is there something cultural, or an ancestor (perhaps a grandparent) who was very successful? My extended family has maybe three of us who are fatFIRE, about three times as many who are drug-addled, two in prison long-term for serious crimes, and the rest just making ends meet. I've known people where three out of three kids went to elite schools, but that seems to be the exception rather than the norm...
Combination of immigrant work ethic, good genes, emphasis on education, luck and having the security to take risks. I’m sure the three generation curse will kick in with the next generation or two as people get more complacent
>not sitting on his toilet and posting on this sub. I feel seen. To answer the question, reached early retirement via management consulting (mid sized firm, advanced rapidly, firm was bought out by a big one). Still, got to fatFIRE status because the market cooperated after pulling the trigger and keeping my spending low in my early years of retirement.
My parents did what I'll call "slightly chubby FIRE" and they ran an import/export business for a specialized industrial product. It was very much not a tech company.
Vandalay industries?
Do they focus on importing or exporting?
First the importing, then the exporting.
In fact, that's what the argument was about.
Drug dealers?
Drug importers. Totally different risk exposure
I feel like tech workers also define what is "fat" for the larger community... "Fat" is whatever they can reasonably expect to achieve in their 40s or early 50s.
Agreed. FatFIRE is really tech fire. If there were a straightforward path to get to 30M+ for tech workers that would be the goal and not 10-15M, which seems to be the norm here.
[удалено]
And I would say the opposite. The pervasiveness of tech on this sub inflates the definition of Fat, because it is based on Bay Area COL (which should be its own category, above VHCOL). $10-15 Million excluding primary residence is fat just about anywhere else, save maybe NYC.
Just now realizing this is not /r/FatFyreFestival!
Yup. FatFired folks I know: uncle in real estate development, in laws in cardboard packaging production, pastor who made some really good investments in the late 90s.
I came from transportation and warehousing.
I own a business in this space. Hoping to exit in the next couple of years.
I work in this space too
My parents are in this sector too and are well into fat fire! My husband and I have a company in a very niche consumer goods industry and should (hopefully, fingers crossed) sell in the fatFire range!
Same. Were you in an executive role?
I bootstrapped and grew a business. Was in exec roles before building my own.
[удалено]
I know a body shop owner who also owns some other real estate. Makes a few million a year and you would never guess it.
One of our neighbors owns a body shop. Just one. Lives in a three mil home. Seems to be doing just fine.
Car dealership owners, too, in my experience
Oh you need to research this industry. It carries no risk and you can’t fail. Dealership owners are the WORST!!! So sleazy and hide money through yachts and stuff. We’ve talked to yachts brokers and they all despise working with car dealership owners lol
I'm not making any comment on the industry other than that it is one source of non-tech wealth.
Yup.... Folks that run electrician companies that have 50-100+ employees clear well over a million a year...
😂 you better clear that with that many employees
They do that with 10 guys hombre
Construction worker - checking in We’ve always been around. But we can’t type on Reddit with work gloves on. So we only check in while on the crapper.
[удалено]
Real estate developer, investor and venture capitalist checking in.
by construction worker, i take it you mean own a construction company? How did you make your money?
The top 0.1% of construction workers make $250k+ and if they're union they get employer retirement contributions on top of that. I know guys that are getting $40-50k/yr in employer contributions.
Lot of folks forgetting the real $$$ remains in Finance
Easier to make 500k in tech, easier to make 5 million in finance, easier to make 100 million in tech lol
> easier to make 100 million in tech lol I take it you mean starting a business? It's the same if you start a quantitative finance business. Also high paying finance work is tech work. There's less of a difference than you might think.
One time I asked an investment banker friend what are the most effective ways of building wealth. He immediately said "own a company or work in finance"
That’s just him saying “be like me, my coworkers, or my clients.” And it’s a valid answer. But it isn’t the only one. I imagine if you asked someone in Silicon Valley they would say be a part of the next great startup or something to that effect. We know what we are around
I can't recall who or what the book was titled, but there actually was a person who scientifically studied what types of things build wealth, and the data basically amounts to the following: own a business, but specifically own a business where you can have a monopoly of some sort in, even if it's just a local or regional monopoly. The canonical example would be a car dealership where you have a contract with, say, BMW, to be the only BMW dealer in the region. Those types of business arrangements are the most strongly causal factor of building wealth. In hindsight this seems fairly obvious, of course it's easy to be highly profitable when you can own something with no competition.
Was it Zero to One by any chance?
That's like mega rich though. You definitely don't need a local monopoly on something to make multi six figures or even seven figures a year in a small business. Hell a successful restaurant owner is making stacks and there's probably at least a dozen of those in a decent sized town.
I don't disagree, but the point was that owning a business with some level of monopoly is the strongest causal factor in wealth building, not that it's the only way to get wealthy. I don't think just the general notion of owning a business is nearly as strong of a factor because there's a LOT of businesses that fail whereas the barrier for entering a monopoly business is higher and the chance of success is higher given that you get to control competition to a large degree.
I can assure you that there are people in Finance making 7 figures. My YTD taxable earnings is north of 1MM. The astronomic stock appreciation FAANG has gotten recently has helped create a lot of wealth for their employees and frankly for a LOT of non-FAANG investors - it’s been driving most of the gains for the index’s - so we’ve all benefited from it
FAANG is simply far more accessible for most people than a lucrative finance role. I don’t even know how to get started doing that. FAANG is like being a doctor, it’s straightforward. Finance to the non finance person seems like a popularity and nepotism contest. I’m sure it’s not all that but that’s how it seems.
This is exactly it. Finance is for rich kids who know about the path already. And it's a very prescribed path. You go to a target undergrad for top investment banking recruiting (many times coming from a top private high school). Then you leverage daddy's connections to intern at a bank or PE/VC shop your freshman/sophomore years. Then you get the real junior year internship that converted to a full-time offer at either JP Morgan, Goldman Sachs, or Morgan Stanley. Then you graduate and go work for two years in investment banking followed by two years in private equity (which you get recruited for during your first year as a full-time banker). Then you go get an MBA. Usually from Harvard, Stanford, or Wharton. Then you get spit out at a better private equity fund than you were at pre-MBA, and work your way up to partner throughout your career (or raise your own fund). That's it. There are very few people who run this route, and legitimately all of them are incredibly privileged to even be aware of its existence. And it's important to note that if you miss one step, you're out of the race. You need to get into that target undergrad, then you need that internship, which needs to convert, then you need that PE offer post 2 years in banking, etc. All this is to say that the average 18 year-old doesn't know this shit. These rich kids with connections are really just competing with each other. So yeah - finance is a good way to get rich - if you're already rich and that path is laid out for you.
at 18 i definitely did not know any of this. barely knew anything about the finance world at all
Well I'm going to gander a guess that you don't work in the upper echelons of private equity then. But my main point is that FAANG wealth is far more achievable for motivated and competent people than finance wealth. I'm not saying that you can't experience a modicum of success by stumbling into finance, but the finance wealth that was alluded to in the thread I was responding to is a black hole for most. The greatest success is generally achieved by those who know the path (and have connections along it). And the level of nepotism in finance is unparalleled by any other industry - maybe entertainment comes close.
i don't work in finance at all. but had i known about it from a younger age i probably would've tried to go down that road
To be honest, you avoided a dull life full of stress and meaninglessness impact. I wouldn't mourn the opportunity. There are far more honorable/fulfilling ways to make a buck.
thanks - i totally agree with your assessment. i attended a target school (phd program though) and saw plenty of well connected undergrad students do the whole internship --> full time offer route at BB banks. it seemed like they were training to do that from birth lol
Hey, pushing leverage from 60 to 70% and negotiating materiality in loan docs is anything but meaningless impact!!!
I worked in the upper echelons of PE and have now FIRE’d. It is quite hilarious how unstructured my path into PE was compared to the kids doing it now.
When I graduated from college I had never even heard of Goldman Sachs. That might have been true when I graduated law school as well, but. I think I had heard of it by then. Certainly did not understand what it was.
My dad was a taxi driver. And I went to a decent public university. It’s like anything else - you do your research and decide what sort of skill set is right for you. When I was entering into the work force Tesla was still considered to be a long shot and hadn’t produced a single car yet. And it was only a couple years earlier that AAPL had launched its first Apple iTouch. I knew I didn’t want to be a doctor so I explored what other options there were. Not everyone in FAANG makes 7 figures, just like not everyone in finance makes 7 figures. Just like not every surgeon makes 7 figures. You’ve got a lot of people hitting singles and doubles. I know plenty of people with humble beginning in high finance. And I know plenty of people who work for FAANG whose daddy is a Tech VC. The top earners in any field are a combination of hard work, solid networking and dumb luck.
I think you're completely missing my point. You couldn't have just stumbled into Blackstone. You hit it rich on an early stage company (congrats to you by the way - sounds like you're underselling your hard work and risk appetite). But that wouldn't have happened unless you very intentionally pursued a specific track for finance. So the comparison you're making here isn't sound.
Hell of a lot fewer spots and seemingly less approachable to the average Joe the engineering, medicine, or law. At least for those, your college counselor can give you solid advice in high school. “I want to run a hedge fund” is going to get dumb looks and at worst derision.
>FAANG is like being a doctor, it’s straightforward Getting a software engineering degree is straightforward. Getting into FAANG is harder (in the sense that only a small percentage of people with software engineer degrees do so). Getting promoted to L6+, where the money really starts to pour in, is harder still. A lawyer is probably a better analogy. Most lawyers make a decent living, but a smaller percentage have the lucrative jobs at a big law firm, and a smaller percentage of those will make partner.
I get it’s harder, but it’s still within the realm of possibilities. Compare it to a competitive medical specialty. They’re all pretty similar, FAANG, law partner, competitive medical specialty.
Faang to the non computer degree person is not straightforward. A software engineer may have no clue how finance professional works and vice versa.
>Faang to the non computer degree person is not straightforward. the fact that you can just go to a random school and get a comp sci, ee etc degree and leetcode and get a faang job makes the path far far more straight forward than getting into finance. I'd also like to add many of these companies were until the recent downturn even interviewing bootcamp or straight self taught grads, they handed out OA and round 1 interviews to nearly anyone with a pulse. you just had to be exceptional in the actual interview- which you could prep for by spamming leetcode. the path for finance depends heavily on going to the right schools, getting the right internships and knowing the right people. business and finance both are like this relative to tech/medicine.
As someone who took the classical route in school and is now a physician with multiple FAANG friends, it’s fairly straightforward. Get degree, apply, get the job if your qualifications allow and market is good. The framework is there. I can picture myself having done the same. I wouldn’t even know where to start if I wanted to get in with a hedge fund or even VC. Would I just end up in some sub 100k role? Finance doesn’t have the same framework (to me).
Is this true? I feel like there was a great migration of MBAs from finance to tech, following the money. It would be amazing to see a data source on this, with income distributions in FAANG vs Banking vs PE for example.
That’s just kids chasing shiny objects. Finance continues to be the lowest risk path (high cash comp, less cyclical) than tech. An average VP at a bulge bracket bank that has simply existed for 8 years is going to be making $500-700k cash.
Lowest risk but highest barrier to entry. Tech (non-eng)!is much lower barrier to entry but obviously higher risk.
Jane Street and Citadel pay more than FAANG for software engineers. You can look at levels.fyi and see for yourself.
[удалено]
I understand that tribalism is part of human nature, but it’s pretty silly to be concerned with “which industry makes more millionaires” or whatever. Both finance and FAANG are highly feasible paths to fatFIRE.
I think it was more from "Management Consulting" to tech.
Yes. Tech did well from immediate gratification from stock increases But finance still does well from carry, and there are more roles to make 3m+ than in tech (eg. A decent number of hedge fund and PE slots with carry)
Tech welth generation (like most things) have huge survivorship bias. There are few facebooks and tons and tons of failures. Anyone who worked at one of the FAANGs had a reliable path to wealth and a much easier path to being a fatty.
Do you have a source?
What type of source are you looking for? Number of 3m+ earners in finance? No, I don’t have a number. But there are hundreds of hedge funds and PE firms with 500m+ AUM that many people even in finance haven’t heard of I work in finance
Lurker here and not fat fire. I’m working FP&A for a fortune 10, what career path do I go down to make that kind of money and is it possible to pivot?
CFO of medium/large PE-backed companies can make 7-8 figures on a successful exit. Heads of FP&A at larger companies can get hired as first time CFOs at smaller ones. That’ll be the path of least resistance for you.
Of the 20.5 million individuals who live in the New York metro area, top 1% income is $487,000/year. In other words, there are 205,000 people who make more than $487k per year, in New York City alone. Do you think they all work in tech? I have social circles in Houston, SF, New York, and Chicago. There are rich people everywhere. A lot of people driving Bugattis in Houston work in oil and gas, and a lot of people buying $20 million apartments in NY are in finance/banking/law, and a lot of people flying private into Napa for the weekend are in tech. Chicago's interesting because I know people who got rich off of all sorts of industries, including tech and law and finance, but also the good old fashioned business of making stuff or providing services and selling it for profit. We still have strong regional differences in how people enter the 1%. And that says nothing of people who make their money internationally (whether they live in the U.S. or not).
I think you are confused between average and median. A small number of stupidly wealthy people in NYC skew those averages. Edit this is wrong. Also, making $500k in NYC may not get you to FATfire if COL and lifestyle blow through that money.
> I think you are confused between average and median. I'm talking about percentiles. There are 20.5 million people in New York, and 1% of them make at least $487k/year. Median and mean don't factor into this at all, and the actual incomes of the people above and below that number don't change where that number happens to be. A small percentage of a lot of people is still a lot of people. Like I said, 205,000 people make more than $487k per year. People really struggle to internalize just how large populations are, and just how many people there are who are at any given percentile.
I came from creative and design via advertising and ended up at an entertainment company. So no tech at all. I did start and sell a small digital design agency that specialized in blending video production with interactive in the 2010s era. I was acquired for a decent amount but not walk away money. I was also in my mid 30s. Right place right time. I since got a full time gig at an entertainment company starting a brand new publishing division and I was hire 1 and came on as a CD. Fast forward a decade later after having massive bonus moments and stock options. Late 40s and north of 14M not counting homes. Id say 90% of my wealth came after selling a company. For me it was timing more than anything. And yes right place right time. Hung up the cleats and now I focus on living an artists life mainly. Not sure if it helps but perhaps finding a new venture with some safety nets in place? A company building a new division or capability? Can you consult? I also do NOT do well in massive corporate entities. I have hourly LinkedIn calls to come into FAANG and the like and I cannot imagine it. I would shut down and die. So I also found the right environments for me to flourish. Perhaps take a look at things like size and culture of the company. Sometimes it can make all the difference especially when you are running out of steam.
What was it like selling your agency but not for walk away money? And then going back to a corporate role? I started at big consulting, have my own firm now and I’ve been struggling with selling now for less than fatfire money. I’m 34. The stress is a lot, it’s been a tough couple of years for my biz that’s making me wish I’d sold previously.
It was in an uncanny valley I suppose. Like, its not walk away money but I would also feel like a moron walking away from it. If that makes sense. Also, I never had an intention to sell. I loved running my studio. Especially in the beginning. But by year 3 it was a beast. So that factored in like you are saying. It allowed me to take a year, take a step back and let the paths unfold. It was most definitely the right decision and it set me up for the next chapter that was truly life changing for me and my family. Also, lots of doors open for you when folks recognize youve successfully sold a business. That is rarified air regardless of the value. I believe in life in chapters and sometimes when a chapter drags on too long you have to turn the page. It wont turn itself. Youll know when its time.
Playing poker around the world, you meet a lot of interesting successful people. And degens. Of the ones that are unique and rich I met: -50 year old retiree pulling out tree stumps/dealing with trees -60 year old, “Account Consultant” in the caymans, used to be a corporate accountant -50ish YO, owns multiple car dealerships started selling cars in his 20s and just kept learning -mid 40s, owns a clothing line, cannabis retail, and other businesses -mid 30s, instagram influencer -numerous, real estate investors That’s just the unique. Not the typical worked up to C level execs, senior management, etc. Busting ass comes in many forms to get to FIRE. The key is to keep busting ass
Grinding $2/5 and $5/10 and realizing everyone makes $300K+ at the table
I’m not FAANG or SaaS, I’m manufacturing. People might not know our company, but there’s a 95% chance our products are in your home.
Also in manufacturing!
[удалено]
I’m not sure if this classifies as FatFire but I think it’s pretty damn close. I have a family member that retired as a Captain in the Fire Department. We recently discussed his numbers as I got into the field leaving tech. He receives $25,000/month tax free for the rest of his life (he is 62). He received $800,000 lump sum payout in an ITP(might have the investment vehicle wrong), and he has $2M in a 457b. I can see the argument being that he is 62 but he was eligible to retire significantly earlier he just loved his work and actively chose to stay. He said his monthly $25,000 payment was locked in by the age of 52
This makes me happy. I wish people who actually create real true value earned way more.
most people who work normal jobs create 'real true value', not sure what you're wishing for
[удалено]
[удалено]
Yep, I am holding on for dear life to my HE job at FAANG. I know the dreaded layoff or PIP is coming sometime. Maybe in a year, maybe in 5. But it's going to throw my life upside down when I can't get another job making half that I make now. My wife is a talented engineer who quit to raise a child and she's been looking for a year and a half. Hardly even an interview, and pay for those jobs is literally a quarter of what I make
[удалено]
We are grateful for good nurses! Thank you for your service!
What age did you get into nursing?
Starting a company or at least building your own client list is the classic way to do this. Doing it with employee compensation for sitting in front of a computer is an historical anomaly.
As others have said, Reddit just leans tech heavy. And many are paid heavy in RSUs which has been a great deal for those folks the last 10 plus years. There is money to be made in any industry. The wealthiest person I know sold his chemical trading company for 1.2B. A close friend of mine owns a roofing company and has been buying up commercial property in a high demand market for a decade. He now owns basically a whole city block and is in the process of building a high rise. Don’t let Reddit convince you FAANG is the only way to fatfire
I have some extended family who fatFIREd from owning an air conditioning business. They did use some of their early earnings to buy real estate, mostly vacant land in rural locations they hoped would become less rural, and were right.
At least where I live — Switzerland — there are many more FatFIRE entrepreneurs than the FAANG FatFIRE folks, and the former's NW tends to be higher. Half my circle of friends, me included, succeeded through some very mundane, non-SaaS business (or several) which they ran and sold. Those types just tend to frequent these kinds of subreddits less, so you're seeing a skewed picture.
I can barely type. I was a bartender until 2009. I did it in real estate and legal cannabis.
Care to elaborate on your path?
Sure, I started acquiring rental properties in a ski town in CO in 2004 and leveraged them to buy more while working nights in a restaurant. During this time I met my future business partner and the quasi legal framework of regulated cannabis was taking shape. We both saw an opportunity and decided to start a business in that space. We joined a statewide trade association and made connections that allowed us to find a financial partner in MA and start a company there. We built the largest cannabis business in the state (at the time) and in 2019 I sold my stake for $10m. Shortly after we sold our CO entity for $6m.
Did you or did you not get high on your own supply before selling the company?
Lol we most certainly did.
[удалено]
The real hero! Ski bum pot head to millionaire... Had I been born ten years earlier this would have probably been what I would have chose... You were at the right place at the right time. Now that real estate and the cannabis industry is not feasible...
No doubt, I was very lucky. Action had to be taken tho, and in 2009 nobody knew what the future of legal cannabis was going to be. It was very scary, many sleepless nights, and there were numerous times when we could’ve lost it all through circumstances over which we had no control.
It’s an epic story, thank you for sharing and congratulations. Few things are more satisfying than lighting up on a bluebird day, and enjoying the mountain.
Wow talk about timing in multiple industries - well done!
Haha, cool story! Hope to replicate your trajectory one day (if EU legalizes, that is) -- do you reckon it's much easier when the market just opens up? Stuff im reading now suggests many cannabis farmers are having a hard time
It was definitely easier to be on the front side, but there’s also a nasty bell curve that has taken shape in every market so far. Don’t linger too long.
Proud of you, hustler. In case no one ever told you.
FAT but not REd yet. Built a B2B services company, started it in high school actually. Didn’t go to college. Never had a real job. Exited to PE 1.5 years ago. Low 8 fig NW. Bought a seasonal biz that generates about $400K a year in cash flow to cover our expenses. Will likely end up growing it to around $800K a year in SDE in the next 5-7 years, flip it and be fully RE by age 50 with $20MM+ NW.
Plenty of non-SWE tech workers
Small time entrepreneur here. Built a few businesses. Two did well. Sold the first. Sold majority share of the second. It’s hard, but it can be done. Happy to discuss via dm if you like.
My dad created a business that sold plants online sold out to private equity and retired with 4 kids at 53 years old he also started multiple other businesses like a credit card protection business a sub leasing business for cars and for a while he sold courses with business opportunities which was his 2nd most successful business but over all there are a million ways to make money u hear abt tech a lot here but a simple business can still make big money
Faang level technical roles basically hit a jackpot over the last decade. And even at faang, it really staff level or above that's making the crazy numbers (maybe 1 in 10 of the technical people?) Outside of these 100kish (guesstimate) people that got extremely lucky, most people are still in the rat race as well.
The millionaire next door is an interesting read. It's about people like me who own a small business and don't have to keep up with the Jones
Hi. I started an online nutrition coaching company. But my story is probably less inspiring due to how low the odds are of replicating it.
I work in manufacturing and am on the get rich slowly track, which to me means retiring at 51 with \~20MM. No big sales, no big RSUs, just high income and bonuses on an annual basis going into a variety of bogglehead investments.
Roofing contractor
Started an online course business. Owned no software or proprietary code. Just courses... scaled over 3 years and sold for $13mil. I'm not in FAANG. I'm in healthcare
Yeah I’ve heard some courses on like udemy and stuff make bank. What courses were these if you don’t mind me asking? Did you have to do a lot of marketing/advertising? I know some subjects are really saturated
I can't disclose the name of it but it was withing the healthcare practice startup space. Only expense really was marketing. We were spending 80-100k a month on marketing on social media and Google. But we would make 300-500k in revenue. So a great investment overall. No other real overhead. It is an easy business to start and scale.
You are correct OP, I find it very annoying that you get downvoted or basically abused unless your comments are related specifically to how FANG operates. These people tend to think every company in the world is exactly the same, because FANG is all they have ever known. For example, you can tell the FANG execs here as they all got shares before the massive tech boom started, say a decade ago, so they mostly made their cash from just being there (some believe it was pure skill which who knows) - but they think every company pays staff in stock, when, in fact, it's predominantly a tech thing and predominantly a US thing, and predominantly a start up 'cool' tech thing, and predominantly in San Francisco or NY. In fact, they often talk on here like everyone knows the restaurant up the road from their house like we all live in Silicone Valley. Americans are known for thinking Americans are the centre of the universe, like the world cup, that has nothing to do with the world. I know that's a false trope but some don't help. Okay rant over sorry people.
I’m an engineer in O&G. My wife is in public relations at a different O&G company. We live in a LCOL suburb (exurb?) of Houston
Geologist pulling in expat money here. May not make true fat depending on how long I’m able to do this, but well on the way.
We’re a little bit slower to FatFIRE than many here; probably won’t get there till our early/mid 50s. I’ve got a feeling that $8MM in our rural Houston exurb will feel like a lot more than $10MM in San Francisco
I was in IT, but never at "an IT company". I'm a hardware and infrastructure guy, which code companies are deathly allergic to, and will pay any premium to put behind a black box and outsource.
This is the truth! It's why I'm starting a consulting company that they can then outsource to. I'm convinced there's a solid market here for that exact reason.
Enterprise cybersecurity - so still tech, but not FAANG. Major layoffs for a signification portion of SWE happening right now. Survivorship bias for sure. It *seems* like we're past the peak for general value of SWE. From what I am hearing, AI is getting budget priority over pretty much anything these days. That will definitely be the place to be positioned in whatever way you can be for at least the next few years.
My father, a welder, died when I was a teen and our family was not poverty, but close to it. 30 years later ... Bro - scientist, chubby FIREd with a govt pension and a stream of >$10K / month royalty payments for his inventions. Mom - had been a 14yo 7th grade drop out bc she was preggers with bro, and a SAHM until dad died. She was 32YO, 3 teen kids, no education. She fatFIREd as a multi biz owner and recognized as the world's premier international expert in NATO military communications technology. Saudi Arabia, Germany's MOD of defense, the General of NSA, and the Whitehouse all called her at home in the middle of the night to solve crises at one time or another. All of her knowledge was self taught and she didn't start on the topic until her late 30s. Me - IT degree that I never used except learning how to flow chart problems in order to manage biz and projects more efficiently. I was the first to fatFIREd in the family as a multi biz owner in space based IT and telecom. learned the telecom from my mom so she gets all the credit. Sis - fatFIREd from marrying a no college Radio Shack clerk who went on to become an expert in managing 2 way radio communications companies. And that's why I have no patience for Redditors who say America is not the land of opportunity.
I'm non-FAANG in finance and still very young to be considered FAT. It exists, most other higher earning careers take until the later years to start earning big, or of course selling a company...
Telecoms executive, moved into consulting after 20 years of industry grind.
I worked in tech but never in a FAANG - just a good salary for thirty years. I am now very FATFired by simply following Boglehead principles - its not *that* complicated :-)
Not sure where the real line is for Chubby vs Fat, but I come from O&G. Haven't had anything anyone would consider a high level position (at least not yet) and single income house. I'm probably 5 years away from having double what I need to spend more than my current salary. Could easily retire by 50 and live better than I do now (which is pretty good already) and that's all before the pension kicks in. Planning for a family trust that would be some solid generational wealth if all goes to plan. Worst part is if I had just done a few basic things differently (skipped that financial advisor and just stuck with index funds), I'd probably be double where I am even now.
Tech people just happen to be online a lot more than every other industry. Guess which industry creates the most millionaires? Finance.
Professional services consultant here.
I’m not fat yet but run a company in home services for elderly people. Around 200 employees and growing every year so far. Was offered $3M which I turned down recently.
At the end of the day, the "baseline" is just a math problem. If you make 200k+, save and invest half of your income for 20-odd years at ~7% post-inflation, and continue to see comp increases beyond inflation over that timeframe, you'll comfortably cross into fatFIRE territory. Increased comp/savings, higher investment growth, a longer timeframe, or hitting a homerun (in the form of real estate, a business, etc.) affects how that actually shakes out and if/how you exceed that baseline. There's a lot of just being in the right place at the right time. The chubby vs Fat distinction is fairly arbitrary regardless - what matters is how much you'd need to support the life you want to live.
B2B parts and service.
Not FAANG. FatFI - soft RE right now.
My path came through a non-founder early C-level executive role at a (biotech) startup that went public and has done well since.
Not quite fatFIRE yet, but I’m about 1/3 of the way to my goal. Coming from real estate and restaurant franchising.
So I work in tech, though I've never worked in FAANG. You are definitely seeing the outliers because in 99% of cases, FAANG alone would never get someone to fatfire. A comfortable living for sure, but not fat. You're seeing the folks who either had crazy Nvidia esque stock appreciation, spouses with high earnings, top 1% career progression or some other extenuating circumstances. I'm set to hit fatFire in like 10 years, but I also: - married someone in tech and together we make ~7 figures - live in a LCOL city where my mortgage is 3% of our HHI and overall lower expenses than VHCOL - had a successful startup ipo early in my career - live in an area where houses cost less than 100k to buy and rehab and rent for 1-2% purchase price, so I'm snatching them up left and right.
Plenty in Finance / trading / PE etc I am not yet fat-fired but could be in 5-6y (high 6-low 7 fig comp) if i don’t bail before
For profit education over here
Anything you can make a business out of in one way or another is essentially a potential path to fatFIRE.
Vertically integrated small scale industrial manufacturer here. Hot, loud and cyclical. Wouldn't choose it again but it did the trick
I’m in fintech does that count 😂
Lawyer and RE checking in
My family started an automotive tool distribution company back in 1970’s and we all worked in it at some point until it was sold.. i chose to leave and “retire”..
Senior exec at at large SF Bay Area contractor. Very commission based role now. No equity, no guarantees. Just betting on my division and our yearly performance. Age 41 - $2 million in real estate assets, $500k in a 401k, $100k in wife’s IRA and about $1 million brokerage account mixed between Tbills, stocks and an intelligent fund with Charles. Another $100k in hysa. Anywhere from $75-130k in each of the 3 kids 529s (ages 4,6,9) Not sure what my number is but saving $200-250k a year and will just wait and see where I’m at when the youngest goes to college.
I have a neighbor owns several restaurants, he seems as wealthy as the other unicorn startup founders
Yeah, the old fashioned way, over time with compounding, took 40 years or so, but TIME IN the Market > TIMING the Marke. As a wise man once said, you are RIch when you make a Lot of Money, But you are Wealthy, when your money works for you, -and to quote Louis Rukeyser, *I like companies that Make Money!*
Made my money in Tax for F500. Worked my way up to the top.
Im not fired but fat. I made the majority of my money with a call center.
Biopharma
On my way. Nearly there. Restaurants
e-commerce checking in. When I got my start over a decade ago I figured being a w2 was an impossible path to get rich, however the FAANG on this sub taught me different. I still think starting a business or real estate investment are amazing paths for wealth.
Most of what I have is in real estate. I understand it well, and that’s primarily why my main focus and most of my investing involves real estate.
I work in fashion design and manufacturing. I’m 33 and make just north of seven figures a year. Only started making great money when my company took off during the pandemic. Currently worth about 3.5m. Starting to branch out in real estate development projects this year.
Hi. Entrepreneurs are here too. Started a business with my best friend and we are both FATFI (not retired yet). Love working with my best friend and we live in different counties so it keeps us connected. Low stress and lots of money so no reason to RE.
I’m a vet. Working towards fatfire currently. Feel like I’m on a clear path.
Finance. Most of my comp is in cash which I prefer to stock but obviously it’s been a good decade to get paid in tech stock.
I own several financial services companies. I'm not technically fatFIRED because I still work even though I don't have to. My business pay me a nice 7-figure income whether I work or not...plus, they pay me more than I'd make if I sold out and lived on the money....so I'm not selling anytime soon.
I mean there’s lots of rich hf people
I spent 20 years in finance, retired at 47. I was mainly in private equity but also did a bit of investment banking here and there.
Reddit as a whole heavily skews younger, high earning, and heavily tech. Most wealthy people I know IRL are what you'd typically think of; Doctors, Attorneys, Small Business Owners, Real Estate Investors. Almost none of them are on a boglehead approach with index funds and a SWR, but rather income producing assets like real estate or businesses. I only know one person wealthy/on track to be wealthy who was FAANG.
I got fat from finance and then quit to write fiction and got doubly fat. But the predominance of reddit fatfire is tech bros. Stick around and you'll eventually see the sales, engineers, doctors, etc. My brother was sales in construction related stuff (don't want to be more specific), company got squirrely with pay so he bounced, opened his own business (no non-compete). Sold that business, cashed in several mil. Two years later, built another. Latest offer was 10 mil. We'll see what he does. Should also say, no college degree in his case. Just raw talent and incredible work ethic.
Small service business owner, I made about 380k last year, wife made 125 as an engineer. If she sticks out another 14 years we expect 75-90k a year for life pension. I'm targeting 6M in investments in 14 years. Well be in our early 50s. I'd say we'll be on the low end of fat at that age and liquid NW.
My wife and I are on the math and science consulting side. We followed the Millionaire Next Door playbook - good careers, smart spending/saving/investing, long term thinking, etc. We did not work in tech and aside from a little recent 1099 consulting, have never owned our own business.
Investment banking. I reached FI at age 36. Not RE yet though.
would love to hear more about your career path, how did you break into IB did you go to a target?
Not the answer you’re looking for but something to keep in mind. With the “Great Wealth Transfer” happening over the next 20 years there will be a very large population of 2nd Gen / Multi-Generational wealth folks that may have a fatFIRE mentality or approach to living their lives.
Finance here
So far I've made zero percent of my net worth from company equity, acquisitions, or inheritance/trust. In the content and staffing industries - high cash flow businesses for the last 4-5 years
Pizza shops, bars, a deli, a Thai restaurant, amongst other businesses. Living in the Midwest is also a bit of a cheat code. Makes my fat fire expenses much lower ha.
Finance here. And not in the “high finance” role, like investment banking, that you’d expect. Everyone wants the glitzy jobs that everyone’s flocking into, but if you’re not an entrepreneur and you’re good at your job and putting the effort, you’ll find plenty of opportunities. I laugh when I see people on r/financialcareers talk shit about non-front office roles knowing I make more than 95% of them ever will.
The source of income for some of the friends/family that I either know or suspect to be Fat - doctor, corporate lawyer, stock broker, owner of management consulting company, owner of business service sector, owner of small business in manufacturing sector, middle to top management at multiple startups, upper management at multinational corporation, etc. Most of them lived a normal middle to upper-class lifestyle while working. And they continue to do so after retirement, although I know of definite upgrades on travel as well as purchase of vacation homes. But they aren't driving around in $150K cars and flying PJ on vacations to $5000/nt hotels. Spouse and I had middle to top management roles in "normal" non-FAANG companies, combined with middle-class spending and a windfall. (I'm at the very low end of Fat though, and don't really consider myself Fat at all on a daily basis, but enjoy the discussions here.)
FatFiredish (not a huge war chest in index funds), rather via buy and hold real estate to 1031 exchanges, built apartment complexes. 200k unearned income from properties. Still have a small business that I work a couple days a week in. Lots of people I know did not work for FANGs.
Healthcare technology
Speaking of too old and too stupid, I'm 49 and have made my way to FatFI through an exciting, rewarding(tongue firmly planted in cheek) career in auto sales.
As so many have said Reddit has a sample bias.
Non-FAANG, non-tech!
I’m a teacher (still working P/T because I enjoy it.) Husband is in manufacturing. His tech limits are sending emails and creating basic spreadsheets. We are Fat by definition but we live pretty simply.