University entrepreneurship is like a Willy Wonka Factory of ideas. Classes, roommates, discussions, and the cafeteria all inspire new ideas. I've seen people establish a business without knowing its roots.

Chicken or egg? On my mind: I've asked university founders around the world whether the problem or solution came first.

The Problem

One African team I met started with the “instant noodles” problem in their academic ecosystem. Many of us have had money issues in college, which may have led to poor nutritional choices.

Many university students in a war-torn country ate quick noodles or pasta for dinner.

Noodles required heat, water, and preparation in the boarding house. Unreliable power from one hot plate per blue moon. What's healthier, easier, and tastier than sodium-filled instant pots?

BOOM. They were fixing that. East African kids need affordable, nutritious food.

This is a real difficulty the founders faced every day with hundreds of comrades.

This sparked their serendipitous entrepreneurial journey and became their business's cornerstone.

The Solution

I asked a UK team about their company idea. They said the solution fascinated them.

The crew was fiddling with social media algorithms. Why are some people more popular? They were studying platforms and social networks, which offered a way for them.

Solving a problem? Yes. Long nights of university research lead them to it. Is this like world hunger? Social media influencers confront this difficulty regularly.

It made me ponder something. Is there a correct response?

In my heart, yes, but in my head…maybe?

I believe you should lead with empathy and embrace the problem, not the solution. Big or small, businesses should solve problems. This should be your focus. This is especially true when building a social company with an audience in mind.

Philosophically, invention and innovation are occasionally accidental. Also not penalized. Think about bugs and the creation of Velcro, or the inception of Teflon. They tackle difficulties we overlook. The route to the problem may look different, but there is a path there.

There's no golden ticket to the Chicken-Egg debate, but I'll keep looking this summer.

After 10 years of working in scale-ups, I've embraced a few concepts for scaling Tech and Product teams.

First, cross-functionalize teams. Product Managers represent the business, Product Designers the consumer, and Engineers build.

I organize teams of 5-10 individuals, following AWS's two pizza teams guidelines, with a Product Trio guiding each.

If more individuals are needed to reach a goal, I group teams under a Product Trio.

With Engineering being the biggest group, Staff/Principal Engineers often support the Trio on cross-team technical decisions.

Product Managers, Engineering Managers, or Engineers in the team may manage projects (depending on the project or aim), but the trio is collectively responsible for the team's output and outcome.

Once the Product Trio model is created, roles, duties, team ceremonies, and cooperation models must be clarified.

Keep reporting lines by discipline. Line managers are accountable for each individual's advancement, thus it's crucial that they know the work in detail.

Cross-team collaboration becomes more important after 3 teams (15-30 people). Teams can easily diverge in how they write code, run ceremonies, and build products.

Establishing groups of people that are cross-team, but grouped by discipline and skills, sharing and agreeing on working practices becomes critical.

The “Spotify Guild” model has been where I’ve taken a lot of my inspiration from.

Last, establish a taxonomy for communication channels.

In Slack, I create one channel per team and one per guild (and one for me to have discussions with the team leads).

These are just some of the basic principles I follow to organize teams.

A book I particularly like about team types and how they interact with each other is https://teamtopologies.com/.

Internet's fantastic, right?

We've never had a better way to share our creativity.

I can now draw on my iPad and tweet or Instagram it to thousands. I may get some likes.

With such a great, free tool, you're not alone.

Millions more bright-eyed artists are sharing their work online.

The issue is getting innovative work noticed, not sharing it.

In a world where creators want attention, attention is valuable.

We build for attention.

Attention helps us establish a following, make money, get notoriety, and make a difference.

Most of us require attention to stay sane while creating wonderful things.

I know how hard it is to work hard and receive little views.

How do we receive more attention, more often, in a sea of talent?

Advertising and celebrity endorsements are options. These may work temporarily.

To attract true, organic, and long-term attention, you must create in high quality, high volume, and consistency.

Adapting Steve Martin's Be so amazing, they can't ignore you (with a mention to Dan Norris in his great book Create or Hate for the reminder)

Create a lot.

Eventually, your effort will gain traction.

Traction shows your work's influence.

Traction is when your product sells more. Traction is exponential user growth. Your work is shared more.

No matter how good your work is, it will always have minimal impact on the world.

Your work can eventually dent or puncture. Daily, people work to dent.

To achieve this tipping point, you must consistently produce exceptional work.

Expect traction after hundreds of outputs.

Dilbert creator Scott Adams says repetition persuades. If you don't stop, you can persuade practically anyone with anything.

Volume lends believability. So make more.

I worked as an illustrator for at least a year and a half without any recognition. After 150 illustrations on iStockphoto, my work started selling.

With 350 illustrations on iStock, I started getting decent client commissions.

Producing often will improve your craft and draw attention.

It's the only way to succeed. More creation means better results and greater attention.

Austin Kleon says you can improve your skill in relative anonymity before you become famous. Before obtaining traction, generate a lot and become excellent.

Most artists, even excellent ones, don't create consistently enough to get traction.

It may hurt. For makers who don't love and flow with their work, it's extremely difficult.

Your work must bring you to life.

To generate so much that others can't ignore you, decide what you'll accomplish every day (or most days).

Commit and be patient.

Prepare for zero-traction.

Anticipating this will help you persevere and create.

My online guru Grant Cardone says: Anything worth doing is worth doing every day.

Do.

I shouldn't generalize, yet this is true.

Spending is simpler than earning.

Prove me wrong, but with home debt at $145k in 2020 and individual debt at $67k, people don't have their priorities straight.

Where does this loan originate?

Under-50 Americans owed $7.86 trillion in Q4 20T. That's more than the US's 3-trillion-dollar deficit.

Here’s a breakdown:
🏡 Mortgages/Home Equity Loans = $5.28 trillion (67%)
🎓 Student Loans = $1.20 trillion (15%)
🚗 Auto Loans = $0.80 trillion (10%)
💳 Credit Cards = $0.37 trillion (5%)
🏥 Other/Medical = $0.20 trillion (3%)

Images.google.com

At least the Fed and government can explain themselves with their debt balance which includes:

-Providing stimulus packages 2x for Covid relief

-Stabilizing the economy

-Reducing inflation and unemployment

-Providing for the military, education and farmers

No American should have this much debt.

Don’t get me wrong. Debt isn’t all the same. Yes, it’s a negative number but it carries different purposes which may not be all bad.

Good debt: Use those funds in hopes of them appreciating as an investment in the future

-Student loans
-Business loan
-Mortgage, home equity loan
-Experiences

Paying cash for a home is wasteful. Just if the home is exceptionally uncommon, only 1 in a million on the market, and has an incredible bargain with numerous bidders seeking higher prices should you do so.

To impress the vendor, pay cash so they can sell it quickly. Most people can't afford most properties outright. Only 15% of U.S. homebuyers can afford their home. Zillow reports that only 37% of homes are mortgage-free.

People have clearly overreached.

Ignore appearances.

5% down can buy a 10-bedroom mansion.

Not paying in cash isn't necessarily a negative thing given property prices have increased by 30% since 2008, and throughout the epidemic, we've seen work-from-homers resort to the midwest, avoiding pricey coastal cities like NYC and San Francisco.

By no means do I think NYC is dead, nothing will replace this beautiful city that never sleeps, and now is the perfect time to rent or buy when everything is below average value for people who always wanted to come but never could. Once social distance ends, cities will recover. 24/7 sardine-packed subways prove New York isn't designed for isolation.

When buying a home, pay 20% cash and the balance with a mortgage. A mortgage must be incorporated into other costs such as maintenance, brokerage fees, property taxes, etc. If you're stuck on why a home isn't right for you, read here. A mortgage must be paid until the term date. Whether its a 10 year or 30 year fixed mortgage, depending on interest rates, especially now as the 10-year yield is inching towards 1.25%, it's better to refinance in a lower interest rate environment and pay off your debt as well since the Fed will be inching interest rates up following the 10-year eventually to stabilize the economy, but I believe that won't be until after Covid and when businesses like luxury, air travel, and tourism will get bashed.

Bad debt: I guess the contrary must be true. There is no way to profit from the loan in the future, therefore it is just money down the drain.

-Luxury goods
-Credit card debt
-Fancy junk
-Vacations, weddings, parties, etc.

Credit cards and school loans are the two largest risks to the financial security of those under 50 since banks love to compound interest to affect your credit score and make it tougher to take out more loans, not that you should with that much debt anyhow. With a low credit score and heavy debt, banks take advantage of you because you need aid to pay more for their services. Paying back debt is the challenge for most.

Choose Not Chosen

As a financial literacy advocate and blogger, I prefer not to brag, but I will now. I know what to buy and what to avoid. My parents educated me to live a frugal, minimalist stealth wealth lifestyle by choice, not because we had to.

That's the lesson.

The poorest person who shows off with bling is trying to seem rich.

Rich people know garbage is a bad investment. Investing in education is one of the best long-term investments. With information, you can do anything.

Good with money shun some items out of respect and appreciation for what they have.

Less is more.

Instead of copying the Joneses, use what you have. They may look cheerful and stylish in their 20k ft home, yet they may be as broke as OJ Simpson in his 20-bedroom mansion.

Let's look at what appears good to follow and maintain your wealth.

#1: Quality comes before quantity

Being frugal doesn't entail being cheap and cruel. Rich individuals care about relationships and treating others correctly, not impressing them. You don't have to be rich to be good with money, although most are since they don't live the fantasy lifestyle.

Underspending is appreciating what you have.

Many people believe organic food is the same as washing chemical-laden produce. Hopefully. Organic, vegan, fresh vegetables from upstate may be more expensive in the short term, but they will help you live longer and save you money in the long run.

Consider. You'll save thousands a month eating McDonalds 3x a day instead of fresh seafood, veggies, and organic fruit, but your life will be shortened. If you want to save money and die early, go ahead, but I assume we all want to break the world record for longest person living and would rather spend less. Plus, elderly people get tax breaks, medicare, pensions, 401ks, etc. You're living for free, therefore eating fast food forever is a terrible decision.

With a few longer years, you may make hundreds or millions more in the stock market, spend more time with family, and just live.

Folks, health is wealth.

Consider the future benefit, not simply the cash sign. Cheapness is useless.

Same with stuff. Don't stock your closet with fast-fashion you can't wear for years. Buying inexpensive goods that will fail tomorrow is stupid.

Investing isn't only in stocks. You're living. Consume less.

#2: If you cannot afford it twice, you cannot afford it once

I learned this from my dad in 6th grade. I've been lucky to travel, experience things, go to a great university, and conduct many experiments that others without a stable, decent lifestyle can afford.

I didn't live this way because of my parents' paycheck or financial knowledge.

Saving and choosing caused it.

I always bring cash when I shop. I ditch Apple Pay and credit cards since I can spend all I want on even if my account bounces.

Banks are nasty. When you lose it, they profit.

Cash hinders banks' profits. Carrying a big, hefty wallet with cash is lame and annoying, but it's the best method to only spend what you need. Not for vacation, but for tiny daily expenses.

Physical currency lets you know how much you have for lunch or a taxi.

It's physical, thus losing it prevents debt.

If you can't afford it, it will harm more than help.

#3: You really can purchase happiness with money.

If used correctly, yes.

Happiness and satisfaction differ.

It won't bring you fulfillment because you must work hard on your own to help others, but you can travel and meet individuals you wouldn't otherwise meet.

You can meet your future co-worker or strike a deal while waiting an hour in first class for takeoff, or you can meet renowned people at a networking brunch.

Seen a pattern here?

Your time and money are best spent on connections. Not automobiles or firearms. That’s just stuff. It doesn’t make you a better person.

Be different if you've earned less. Instead of trying to win the lotto or become an NFL star for your first big salary, network online for free.

Be resourceful. Sign up for LinkedIn, post regularly, and leave unengaged posts up because that shows power.

Consistency is beneficial.

I did that for a few months and met amazing people who helped me get jobs. Money doesn't create jobs, it creates opportunities.

Resist social media and scammers that peddle false hopes.

Choose wisely.

#4: Avoid gushing over titles and purchasing trash.

As Insider’s Hillary Hoffower reports, “Showing off wealth is no longer the way to signify having wealth. In the US particularly, the top 1% have been spending less on material goods since 2007.”

I checked my closet. No brand comes to mind. I've never worn a brand's logo and rotate 6 white shirts daily. I have my priorities and don't waste money or effort on clothing that won't fit me in a year.

Unless it's your full-time work, clothing shouldn't be part of our mornings.

Lifestyle of stealth wealth. You're so fulfilled that seeming homeless won't hurt your self-esteem.

That's self-assurance.

Extroverts aren't required.

That's irrelevant.

Showing off won't win you friends.

They'll like your personality.

#5: Time is the most valuable commodity.

Being rich doesn't entail working 24/7 M-F.

They work when they are ready to work.

Waking up at 5 a.m. won't make you a millionaire, but it will inculcate diligence and tenacity in you.

You have a busy day yet want to exercise. You can skip the workout or wake up at 4am instead of 6am to do it.

Emotion-driven lazy bums stay in bed.

Those that are accountable keep their promises because they know breaking one will destroy their week.

Since 7th grade, I've worked out at 5am for myself, not to impress others. It gives me greater energy to contribute to others, especially on weekends and holidays.

It's a habit that I have in my life.

Find something that you take seriously and makes you a better person.

As someone who is close to becoming a millionaire and has encountered them throughout my life, I can share with you a few important differences that have shaped who we are as a society based on the weekends:

-Read

-Sleep

-Best time to work with no distractions

-Eat together

-Take walks and be in nature

-Gratitude

-Major family time

-Plan out weeks

-Go grocery shopping because health = wealth

#6. Perspective is Important

Timing the markets will slow down your career. Professors preach scarcity, not abundance. Why should school teach success? They give us bad advice.

If you trust in abundance and luck by attempting and experimenting, growth will come effortlessly. Passion isn't a term that just appears. Mistakes and fresh people help. You can get money. If you don't think it's worth it, you won't.

You don’t have to be wealthy to be good at money, but most are for these reasons.  Rich is a mindset, wealth is power. Prioritize your resources. Invest in yourself, knowing the toughest part is starting.

Thanks for reading!

Learn or earn

In 2020, I started software engineering. My base wage has progressed as follows:

Amazon (2020): $112,000

Microsoft (2021): $123,000

Google (2022): $169,000

I didn't major in math, but those jumps appear more than a 7% wage increase. Here's a deeper look at the three.

The Three Categories of Compensation

Most software engineering compensation packages at IT organizations follow this format.

Minimum Salary

Base salary is pre-tax income. Most organizations give a base pay. This is paid biweekly, twice monthly, or monthly.

Recruiting Bonus

Sign-On incentives are one-time rewards to new hires. Companies need an incentive to switch. If you leave early, you must pay back the whole cost or a pro-rated amount.

Equity

Equity is complex and requires its own post. A company will promise to give you a certain amount of company stock but when you get it depends on your offer. 25% per year for 4 years, then it's gone.

If a company gives you $100,000 and distributes 25% every year for 4 years, expect $25,000 worth of company stock in your stock brokerage on your 1 year work anniversary.

Performance Bonus

Tech offers may include yearly performance bonuses. Depends on performance and funding. I've only seen 0-20%.

Engineers' overall compensation usually includes:

Base Salary + Sign-On + (Total Equity)/4 + Average Performance Bonus

Amazon: (TC: 150k)

Base Pay System

Amazon pays Seattle employees monthly on the first work day. I'd rather have my money sooner than later, even if it saves processing and pay statements.

The company upped its base pay cap from $160,000 to $350,000 to compete with other tech companies.

Performance Bonus

Amazon has no performance bonus, so you can work as little or as much as you like and get paid the same. Amazon is savvy to avoid promising benefits it can't deliver.

Sign-On Bonus

Amazon gives two two-year sign-up bonuses. First-year workers could receive $20,000 and second-year workers $15,000. It's probably to make up for the company's strange equity structure.

If you leave during the first year, you'll owe the entire money and a prorated amount for the second year bonus.

Equity

Most organizations prefer a 25%, 25%, 25%, 25% equity structure. Amazon takes a different approach with end-heavy equity:

• the first year, 5%

• 15% after one year.

• 20% then every six months

We thought it was constructed this way to keep staff longer.

Microsoft (TC: 185k)

Base Pay System

Microsoft paid biweekly.

Gainful Performance

My offer letter suggested a 0%-20% performance bonus. Everyone will be satisfied with a 10% raise at year's end.

But misleading press where the budget for the bonus is doubled can upset some employees because they won't earn double their expected bonus. Still barely 10% for 2022 average.

Sign-On Bonus

Microsoft's sign-on bonus is a one-time payout. The contract can require 2-year employment. You must negotiate 1 year. It's pro-rated, so that's fair.

Equity

Microsoft is one of those companies that has standard 25% equity structure. Except if you’re a new graduate.

In that case it’ll be

• 25% six months later

• 25% each year following that

New grads will acquire equity in 3.5 years, not 4. I'm guessing it's to keep new grads around longer.

Google (TC: 300k)

Base Pay Structure

Google pays biweekly.

Performance Bonus

Google's offer letter specifies a 15% bonus. It's wonderful there's no cap, but I might still get 0%. A little more than Microsoft’s 10% and a lot more than Amazon’s 0%.

Sign-On Bonus

Google gave a 1-year sign-up incentive. If the contract is only 1 year, I can move without any extra obligations.

Not as fantastic as Amazon's sign-up bonuses, but the remainder of the package might compensate.

Equity

We covered Amazon's tail-heavy compensation structure, so Google's front-heavy equity structure may surprise you.

Annual structure breakdown

• 33% Year 1

• 33% Year 2

• 22% Year 3

• 12% Year 4

The goal is to get them to Google and keep them there.

Final Thoughts

This post hopefully helped you understand the 3 firms' compensation arrangements.

There's always more to discuss, such as refreshers, 401k benefits, and business discounts, but I hope this shows a distinction between these 3 firms.