I want to thank everyone for their ideas, wisdom and comments. I've been watching and learning a lot from this thread.
I make what many would consider a really decent salary, but I'm not building -wealth-. Yes, I'm tired of software, but mostly I'm tired of needing someone to give me a job.
Lots to think about.
Thanks.
Just a side note. What you want is what my dad referred to as a "f-you" savings account, when you work in a relatively lucrative job that tends toward being the type of thing where you have to work for someone else.
IT jobs that pay well tend to be one of two things: Very good company, fairly large, that will pay top performers what they're worth... Or a startup/small business that's paying in equity. Most of the rest are in the middle of the pay bands for the same work.
If working for the former or a small place you've been smart enough to say "I don't do equity, cash is king", build a savings account that will cover at least a year of expenses or know which investments you can liquidate without tax penalties if needed.
If the stupidity gets too high, you have no qualms about walking away then. And, in day to day decisions about your job and what you'll be doing, you aren't beholden to whatever whims the occasional bad manager or other problem child in the workplace has decided they want you to do. Do what you know is right for the company, communicate why, and if they fire you, consider it for the best.
You aren't worried about eating next month, or even the whole next year.
Buying a business isn't freedom. Frugal living and a big savings account are. "F-you money" is the way to go in IT. Especially when the mergers and acquisitions start.
You'll either be seen as a straight-shooter with their head on straight, while everyone else is freaking out about "maybe being laid off", or you'll know nearly immediately that the new owners don't match your style or whatever, and have plenty of time to start feeling around for a new gig.
Having savings is always a good thing fiscally of course, but make it significant and turn it into a secret weapon available at any time to maintain your sanity. It's the only way to play the employee game.
And pay off ALL the debt first, so if you exercise the option, there aren't any monthly bills. Debt is modern slavery. Spend less, save more, be free. Call your savings account that you can't touch your "freedom account" if you have to. Convince yourself that you and your freedom are worth more than whatever trinket or thing you want to buy that you saw on TV.
When the debt is paid off and then you look at the savings account you built that would have handled a year of expenses, you realize it'll handle three.
Just my $0.00 worth of advice. Live like you make much less than you do. Be the guy with a 20 year old pickup truck who could buy the other guy's Porche with $100 bills.
Software engineering ranges from $50K-to well over $100K depending on what you're doing and where. Actively target the top of the range and live on half of it. You'll have a nice "f-you" fund in no time.
As far as "wealth" building goes, or equity investments...
Have a few friends who wanted to build equity. They invested in other people's bars and restaurants. The first bar was three twenty-something's who needed capital to renovates failed coffee shop into a bar four blocks from the baseball stadium. Location, location, location. They made enough money on that to start three restaurants.
Wasn't the exact same investors in all four businesses, different people had different ideas, but the core group that busted butt and built the first bar was always involved. Very critical to have excellent people. Way more critical than quite a few other business decisions and problems mentioned.
Also read up on the rules on angel investing and see just how flush you have to be to even legally participate. Your goal is to be significantly higher than that number if you want to invest in very risky and very lucrative stuff. Easy to get taken in that world. Lots of sharks. But for now, your goal is to even be able to play.
There's thoughts for ya from lunch hour in my 14 year old truck.
