Habit stacking is one of my goals this year. I've been so focused on improving my software engineering skills, staying fit, and networking. But I realized I have completely ignored one habit: learning how money works.
Software engineering is a lucrative career but that doesn't mean we are automatically good with money.
Keeping money is a completely different skill from making money.
Because of this, I've decided to read one chapter a day from the book "The Psychology of Money" and these are the lessons I think every software engineer should hear.
hugeSalary !== beingWealthy
Staying wealthy is a skill in itself. Saving consistently and letting compounding do the work is the way to go. I know, revolutionary. But that's the point. It's boring, and it works.
"Wealth is what we don't see."
Many of us, myself included, dream of landing a FAANG-level salary. But we also have to check our lifestyle inflation. Huge salaries don't matter if you keep spending more "just because" you needed a bigger apartment, a new car, or more expensive habits.
Never Underestimate the Power of Compounding
Maybe some of you shrugged off my initial remark on compounding. Honestly, I wouldn't blame you for it. I also underestimated compounding but the more I read about it, the more I am fascinated by its power to change people's lives.
We software engineers stack skills almost every single day to keep up with the latest tech. Each day, we improve and that compounds. It's the same thing with money.
What's stopping us from applying that same mindset to our finances?
Nothing.
Freedom Is the End Goal
As I read through the book, one theme keeps lingering inside my head and that's freedom. When you have something saved, you have options.
"Controlling your time is the highest dividend money pays."
The goal is not just to be rich but to be able to use your money to save your ultimate currency: your time. Then to be able to spend it on things that matter the most is one of the most beautiful gifts of life.
I love the tech industry but I also have plans outside of it and I'm sure many of us are not planning to code through our golden years.
We're All on Different Branches
Someone you know got hired by Google at 18 years old. Someone else got promoted while you've been waiting for months. Plus many other stories that make you feel small.
But these are stories you can't control. Timing exists, luck exists, risk exists, factors you don't even have to power to change exists. These are real life scenarios and each of them happens differently for each of us.
Everyone has different circumstances.
We are all committing to our own Git branches on the main timeline. If you stop and inspect other people's branches, you'll just end up wasting time that could have been used for growing yours.
Looking at other people's finances is inviting comparison, envy, and elitism. But if we focus on our own, we'll spend less time feeling bitter and more time getting better.
Work, Work, Work
All of these will be wasted if you are inconsistent. Investing in your engineering skills while investing your money should grow together.
For this to work, you have to do the work.
Sounds easy on paper but it's definitely hard to do. There will be days when your body feels sluggish that you want to just lie down and rest. Learn to maneuver around that feeling to stay consistent.
It may not be what you'd hoped for that day, but at least you did the bare minimum. There's still progress.
Compounding skills and investments only works if you stay in the game long enough.
Some Remarks
What I love most about this book is that it didn't tell what to invest in. It taught me how to think about money. It taught me how little my knowledge is when compared to the world's history of wealth and economics.
I also believe the lessons can be applied to every level of the tech career ladder. That's why I was so excited to make it the first topic for my first solo blog post on this platform.
I am still learning and applying the lessons every day. Maybe five or ten years from now, I'll come back and read this post I wrote at 2:00 AM. I hope that by then, all the small, consistent efforts I made in my career and finances have compounded into a life I'm proud of.
Top comments (16)
I have been waiting for this post for a while lol. Great first post!
@francistrdev thank you for your support! I still got a lot to learn from your witty banners and clever hooks.
Really enjoyed this Elmar. One thing that stood out to me is that software engineers already believe in compounding, we just call it learning.
We spend years investing in skills that don't pay off immediately because we trust that they'll compound into better opportunities later. It's interesting how many of us struggle to apply that exact same mindset to money.
The point about freedom also resonated with me. I used to think the goal was simply earning more, but over time I've started realizing that the real value of money is the freedom to choose how you spend your time.
Definitely adding this book to my reading list.
@itsugo you will not regret reading it. The knowledge will be forever ingrained in you. If you read it yourself., you'll find that some of your experiences are similar to many examples in the book.
This is such a great reminder that building a career isn't just about technical skills! I've read this book too and it genuinely changed how I think about money — it's one of those rare reads that makes you realize how much of financial success is behavioral rather than mathematical.
The Git branch analogy really landed for me — comparing your own progress to someone else's timeline is genuinely just a distraction from growing your own.
The compounding parallel between skills and money is something I hadn't thought about quite so directly before, but it makes complete sense. We're already wired to think in terms of consistent daily improvement in our craft — applying that same patience to finances is really just the same mindset in a different domain.
And writing this at 2 AM for your first solo post? That energy is going to compound too. 🌸
Thank you for your kind words @gamya_m! Sometimes a reminder is all we need to keep our actions on track with our goals. Glad my perspective makes perfect sense to you!
Absolutely! 😊 Sometimes the simplest reminders hit the hardest. Really enjoyed the post — looking forward to more from you! 🌸
Thank you, I will!
This really resonated with me. We spend so much time learning new programming languages, frameworks, and system design, but very few of us invest the same effort into understanding how we think about money.
One lesson that has stayed with me is that financial success isn't always about earning the highest salary—it's often about patience, good habits, and making consistent decisions over time. That's a mindset every software engineer can benefit from, whether they're just starting out or have years of experience.
Thanks for sharing this perspective. It's a refreshing reminder that building a successful career isn't only about writing better code, but also about making wiser life decisions.
Thank you for pointing out one of my main points. It's always about keeping good habits for financial success. I'm glad the message resonated with you well.
This is a great article. The Psychology of Money was the book that pushed me to finally start investing in the stock market. It changed the way I think about money by teaching me that investing isn't just about numbers, it's also about understanding the roles of risk and luck.
After making my first investment, I couldn't stop learning. I became curious about how the market works and how I could make the most of what I have. My goal isn't to get rich overnight, but to build a future where I have the freedom to enjoy life without constantly worrying about money or whether I can afford the things that matter most.
@nen02 Rightly so! I'm glad you liked the article. I also had a little bit of experience with the stock market but now I'm currently focused on other investment endeavors. Great goals!
Such a good article, Elmar! Simple, yet packed with incredibly valuable insights. People often underestimate the power of compounding and what consistent small actions can achieve over time.
And this quote is priceless:
"Controlling your time is the highest dividend money pays."
So many people focus on money itself, but the real value lies in what it enables — freedom, flexibility, and the ability to choose how you spend your days.
@anna-freedom-in-tech I didn't know you had a DEV profile account! I will follow you back after this. Thanks for dropping by and sharing your thoughts on my little blog 💙
A good blog to start finance
faisal definitely!