A Financial Breakdown: Unpacking 13 Income Streams as a Software Engineer

As a full-time software engineer and part-time content creator, I've effectively developed more than 12+ income sources. In this article, I'm providing a complete breakdown with financial transparency of how I generate my income and what I do. I hope you can derive some value from this article and appreciate this level of transparency. With that being said, let's get started right away.

Pillar 1: Software Engineering Compensation

In my 9-to-5 software engineering job at a Silicon Valley-based company, my compensation is broken up into three major components.

1. Base Salary

First is the base salary, which is deposited into my bank account every two weeks. The average base salary for an entry-level software engineer in the US is close to $118,000, but this can vary significantly depending on the company and location. Working for a Silicon Valley, California-based company, this number is typically higher, in the range of $120,000 to $170,000. Additionally, completing a Master's in Computer Science provided a boost, as it can lead to a 10% to 15% pay increase on average.

2. Stock Compensation (RSUs and ESPP)

The second component is stock compensation, and this is where things get quite interesting. For example, a new engineer at a major tech company might receive a grant of $100,000 in Restricted Stock Units (RSUs) over four years. This means they would receive $25,000 worth of company stock annually for four years.

While this sounds amazing, it's a bit bittersweet. On one hand, RSUs can be wonderful. If the company's stock performs phenomenally, that initial $100,000 grant could grow to $200,000, $300,000, or even $400,000. For instance, a significant percentage of engineers at top-performing tech companies have become millionaires due to their stock's incredible growth.

On the flip side, RSUs can be seen as a way to handcuff software engineers to their jobs. Since it typically requires four years to receive the full payout, employees are incentivized to stay for the entire duration to avoid sacrificing a lot of compensation. Some companies have specific vesting schedules. For example, a schedule might look like this:

• Year 1: 5%
• Year 2: 15%
• Year 3: 40%
• Year 4: 40%

This structure means you must stay until at least the third year to receive a significant portion of the compensation. This allows companies to potentially pay slightly less than the market rate, knowing employees are motivated to stay for the larger payout at the end.

Another part of stock compensation is the Employee Stock Purchase Plan (ESPP). This allows employees to allocate 10% to 15% of their base salary toward purchasing company stock at a discount, often up to 15%. Imagine an annual salary of $100,000, with $15,000 allocated to the ESPP. If the stock price is $100, you might get it at a discounted price of $85. This would allow you to purchase shares worth more than your investment, resulting in an instant potential profit. You can't sell immediately for obvious reasons, but generally, if the company is performing well, it's a reliable way to generate profit.

3. Performance Bonuses

The third income source within software engineering compensation is bonuses, and there are numerous types. The most common is the annual bonus. For instance, with a $100,000 salary, you might have a target bonus of 10%. It's a 'target' because it isn't guaranteed. This is often because it's tied to a couple of factors: half might be based on company performance and the other half on individual performance.

So, part of your bonus depends on the company's success—profitability, customer acquisition, and other financial metrics. The other part depends on your performance as an engineer: meeting goals, exceeding expectations, and ensuring quality product delivery. For example, if the company performs exceptionally well and an individual is ranked among the top engineers, a target 10% bonus could end up being closer to 13% or 14%.

Other types of bonuses include relocation bonuses. When first starting, one might receive a bonus of several thousand dollars to relocate. Companies offer various forms of relocation assistance. Some provide a moving team, while others might offer a real estate agent to help find a new property. There are also spot bonuses. If a colleague does exceptional work, they might be eligible for a bonus of $1,000 to $2,000 as an award for their contributions.

Overall, from a software engineering job, one can earn between $250,000 and $300,000. This range exists because the total income fluctuates based on bonus performance, stock value, and other general factors.

Pillar 2: Content Creation & Digital Presence

Now, let's get into an interesting discussion. As a content creator, I have a presence on several platforms with a combined following of about 700,000, which thankfully generates a good income. Let's take a look.

4. Ad Revenue

The fourth income source is AdSense from online publications. This is the revenue generated from ads that appear alongside the content. Having been on this platform for about four years, getting paid required meeting certain thresholds, such as 1,000 subscribers and 4,000 watch hours. This took nearly nine months of consistent work, publishing multiple long-form articles per week. Once those milestones were met, the first day generated $1.39. The first week brought in a few extra dollars, and the first month totaled $22.67.

That was back in 2021 with only 1,000 subscribers. Over time, the platform grew to around 40,000 subscribers, with articles averaging 30,000 to 50,000 views. This now generates a decent $700 to $1,000 per month.

5. Short-Form Content Funds

The fifth income source is creator funds from short-form content platforms. At the time of writing, with around 165,000 followers on one such platform, the qualification is typically hitting 10,000 followers and 100,000 views, which is a bit easier than the requirements for long-form content. It's much easier to go viral on these platforms. Once monetized, I was making $2 per 1,000 views, which is quite high considering the potential reach. In fact, from one piece of content that took only 20 minutes to create, I received 3.3 million views and made over $1,000. That month, the total earnings from that platform were nearly $6,300.

However, it sounded too good to be true, and it was. As I continued to post and my reach expanded to a wider, international audience, including countries with less purchasing power, the revenue per thousand views started to decline. It started at $2 per 1,000 views but eventually dropped to as low as 50 cents per 1,000 views. Consequently, millions of views would generate only a few hundred dollars instead of thousands. While still a grateful position to be in, as a business owner who needs to pay for services like editing and equipment, this income stream proved to be an unreliable monetization strategy. This led to a shift in focus toward other platforms.

6. Platform-Specific Bonus Programs

The sixth source of income is platform-specific bonus programs. These are often invite-only, and the selection criteria aren't always clear. With over 440,000 followers on one platform, I thankfully earn between $800 and $1,200 per month through such a program.

7. Brand Sponsorships

The seventh income source, and where the real money often is for creators, is sponsorships. Depending on follower count, reach, engagement, and general appeal, brands will offer payment to create content promoting a product or service. I've had the opportunity to work with companies like AWS, ServiceNow, and IBM, generating over six figures in revenue in 2024 from sponsorships alone. This is mind-boggling, considering the content is often short promotional clips. Beyond that, this has led to opportunities like being flown out to tech conferences and campuses to interview C-level executives, global AI leads, and data scientists. I'm excited to continue growing this for future opportunities.

8. Affiliate Marketing

The eighth income source is affiliate marketing, which is similar to a sponsorship but not identical. I partner with platforms that I believe in and that have helped many people. For instance, I work with a platform that teaches coding in a basic, bite-sized manner. While their core product is free, if users decide to purchase premium features, using a specific discount code supports my work and allows me to continue providing free, valuable content—a win-win-win situation.

9. Digital Products

The ninth source of income is a singular digital product: a course designed to help individuals land their first tech job. It offers resume reviews, advice, and preparation for technical and behavioral interviews—essentially everything needed to secure a first software engineering internship or entry-level position. Interestingly, this product has never been directly advertised to avoid appearing like a sellout. It was simply linked in article descriptions, and surprisingly, people have purchased it. Not only that, but some have shared in person how useful it was for them, which is incredibly rewarding.

10. Miscellaneous Services

The tenth source of income is what can be called miscellaneous services. Many content creators enter the space with a business on the back end, using their content to attract an audience and funnel them toward their services. While I don't have a full-fledged business, I have started offering resume reviews and consultations due to sheer demand, which generates some income.

11. Speaking Engagements

The eleventh source of income is speaking engagements. Gratefully, I have had the opportunity to speak at many places over the last year, including universities like Stanford, UC Berkeley, and Georgia Tech, and in various cities such as Dallas, Chicago, Boston, New York, Toronto, Los Angeles, and San Francisco. As my platforms grow, the goal is to expand this area and hopefully earn more in the process.

Pillar 3: Investing for the Future

The next overall section of my income, and something I believe everyone should consider, is investing.

12. Index Fund Investing

The twelfth source of income is index fund investing. As I am not a savvy investor who tracks individual stocks, I systematically invest a portion of my paycheck each week into index funds. This provides a small stake in top-performing companies like Apple, Amazon, and Google. Some of the traditional index funds you may know of are the S&P 500 and the Dow Jones.

Due to personal religious principles, I cannot invest in all companies, particularly those dealing with prohibited items. Therefore, I invest in specific index funds that align with these principles, tracking major indices like the S&P 500 and the Dow but containing only compliant stocks. Thankfully, this has yielded a sizable return over the last couple of years.

13. Angel Investing

The thirteenth income source, a more recent endeavor, is Angel Investing. This is a way for an average person to invest smaller amounts, like $1,000 to $5,000, into early-stage startups with the hope that they will grow significantly, leading to a substantial payout. I recently joined an angel investing group. This group has a team of venture capitalists who vet proposals from startups seeking investment. They perform due diligence, listen to pitches, and once they decide to invest, they inform the group members of the opportunity. This is a great opportunity to see new, innovative projects, invest money, and expand my professional network, which is particularly important at this stage of my career.

That's about all I have for this article. I truly hope you enjoyed it and derived some value from this breakdown.