From Equity to Exit, the Four Building Blocks to Building Wealth & Freedom in Tech

How to Use Tech Equity to Accelerate Financial Independence

Author

Christopher Nelson
June 11, 2024

Can you work for Tech Equity to Build Wealth?

How do you work for equity compensation as a wealth-building strategy and use it to get the life you want? 

Are you asking yourself that question?  

If not, you should. 

You love working in tech because you get a front-row seat to the future. Your everyday contribution can impact how we live and work.    

As tech employees, our compensation is rich; we are making more money than we ever thought.

However, these benefits come at a cost:

  • Getting sucked into a 24/7 lifestyle 

  • Work creeping into our home lives

  • No time for family or friends 

  • Poor physical health 

  • Burn out 

You cling to the idea that you can take your tech earnings, build a financial fortress, and live the life you want.     

Call it financial freedom, financial independence or whatever you want, the result is the same. 

You own your time. 

The question is how to move from the hell of the corporate grind and burnout to the promised land of owning your time. 

Some people are doing it, but not many are talking about it.

However, after in-depth research of other tech professionals and a 10-year-long self-experiment, I concluded that it is possible and has been working well under the radar for years.  

The few doing it use their 9-to-5 jobs as a tool to build a financial fortress and provide for themselves and their families.

They develop skills and use them as leverage. They've recognized that tech equity is the key to freedom.

Working for tech equity as a wealth-building strategy is their well-kept secret.

After meticulously planning and executing my exit from corporate and interviewing numerous others who've taken the same journey, I've identified four key building blocks to make it possible.

These are not mere steps or phases but interrelated building blocks crucial to reaching your exit and thriving.

Each one can be learned and mastered.

The Four Building Blocks

1. Expertise: Mastering your Craft and Talking about it

Build Expertise to Mastery to Build a Brand or Business around It.

Your expertise is the asset that grows with experience and delivers results. It appreciates over time as you build your career. It's your most valuable asset and deserves an investment plan.

Leverage your corporate role to enhance your skills. Use them to drive measurable outcomes for your company, positioning yourself as a rare and invaluable asset.

But building and growing your expertise isn't enough; you must articulate its value and offerings effectively.

No one else will do it for you. Your positioning is paramount. To be perceived as rare and valuable, you must know your story and communicate it.

Post W-2, your expertise becomes an asset to provide additional income through managing your portfolio or building equity in your venture.

Focus on building a unique skill set that can’t be duplicated or automated.

Takeaway: Your acquired skills, both within and beyond corporate settings, form the foundation of your brand, positioning you as a rare and valuable asset in your field. This allows you to command a high salary and equity to match. Invest in them. Post your 9-5 careers these skills provide opportunites to earn additional revenue and make an impact.

Find more content related:

2. Equity: Unlocking Value $$ from Your Skills

Always have skin in the game; trade your time and talent for equity.

Equity is the sole means to compound your career compensation. It transforms you from a time-for-money trader into an employee and an owner.

Always work for equity by trading or building it from the ground up.

Working for equity as an owner carries a substantial risk and may not be suitable for everyone. Alternatively, you can trade your time and talents for equity at companies that include it in their compensation plans. This is a lower-risk option that provides upside.

Why trade for equity?

Because it transforms you into an owner-employee. You receive a paycheck and have shares in your company.

As you rest, this asset continues to appreciate.

People who work for equity make an average of 35% more annually than those who don’t. Working for equity can lead to more substantial annual earnings.

Not all equity is created equal. Your goal is to trade for liquid equity in companies that are growing and increasing in value.  

If you work a 9 to 5 position, there is no reason not to work for equity.

Takeaway: Equity is the key to compounding your career compensation, helping you earn more in less time. It's a skill that, once mastered, accelerates your path to financial freedom.

Find more content related:

3. Evergreen Portfolio: Laying the Foundations of Perpetual Income

Your expertise and equity can give you freedom but won't sustain you after your career.

You need a business built well that can carry you through life and beyond.

Many tend to outsource this step, where they often falter.

Your Evergreen Portfolio centers around an investment portfolio that starts with traditional stocks, expands into private equity, and is run like a business.

You'll build and manage a team of seasoned professionals you select. Believe it or not, many skills you've honed in tech are transferable to this venture.

The ultra-wealthy hold portfolios comprising traditional assets, alternative investments, and businesses.

Their portfolios generate income to cover daily expenses and withstand financial storms.

Building your portfolio as a business outside your corporate job provides the purpose and lends purpose to your job.

Takeaway: The path out of corporate involves building a business beyond your job—your portfolio. You're the CEO, assembling a team of experts to reach your goals. Build a financial fortress for you to own your time and support future generations.

Find more content related:

4. Exit Plan: Crafting Your Next Step

Begin with the end in mind, as Stephen Covey advocates in "Seven Habits of Highly Successful People."

Planning your exit is precisely that. You must envision your future and set post-corporate goals.

Too often, people climb the corporate ladder without clarity about what comes next.

How do you envision your life after a corporate career?

With exit planning, you can navigate successfully to your desired destination. It defines the expertise to acquire, the equity to amass, and the portfolio to construct.

Your exit plan is your roadmap to the future.

Even as I've achieved financial freedom, I continue to craft my exit plan for the next phase. Every exit plan is unique and tailored to individual life and financial goals.

An exit plan is a dynamic document that fuses career and financial planning, guiding you toward your vision.

Takeaway: Your Exit Plan is the linchpin that ties the other three steps together. It's your roadmap from being a full-time employee to living your dream lifestyle. Allow it to evolve as you transition to freedom.

Find more content related:

There is a way out

You can devise a plan and acquire the skills to exit your 9-5 career and build the life you've always dreamt of.

Executing it requires intention and skill development, but rest assured, there are fellow travelers on this journey with whom you can share the ride.

By cultivating expertise, leveraging it for equity, constructing a robust evergreen portfolio, and crafting a clear exit strategy, tech professionals like you can equip themselves to transform their careers into wealth-building powerhouses.

Next time, we will delve deeper into these foundational blocks, equipping you with actionable insights to navigate the tech equity landscape.