Something that doesn’t get talked about enough is how much money do you need to become an Indiehacker?

Well here’s what my own finances looked like when I went all-in…

A thread 1/n

2/n

Kudos to @jrleonr for sharing a vulnerable post on IH.

Personally I don’t think $12,000 is enough financial cushion to go all-in, start an idea from scratch and get to ramen-profitability. It’s just too short of a runway.

https://t.co/WQnwqQphat
3/n

Here’s how much money I saved up over years of corporate work in order to take the plunge and go indie: $200,000

For context, I’m 40, single and had worked my way into quite senior positions by the tail end of my employment.
4/n

$200,000 was enough cushion for me to work on my own projects for years without drastically changing my lifestyle too much. In retrospect, I think I gave myself too much of a cushion. I basically played around for a year before getting really serious...
5/n

...but on the other hand, trying to stretch too small amount a money to the point where it drastically downgrades your lifestyle, affects the people you love and creates a constant atmosphere of anxiety is also counter-productive.
6/n

You can’t put a number on the “right” amount as it will depend on personal circumstances and living costs in your country etc

The answer is ambiguous: you need more than would cause you stress, and less than would trigger Parkinson’s law and make you waste time.
7/n

Going indie is not a linear experience.

You don’t just launch then grow predictably month after month.

You need time to launch, fail, pivot - where a financial cushion helps.

Then you need to commit and double down on something - where a financial ceiling helps.
8/n

If I had to define it more clearly, I think you need at least a year of *comfortable* runway to give it a proper shot.

You won’t do your best work if you are waking up in the morning worried about money from day 1.
9/n

If you don't have that, why not just wait? Do more freelance work. Join a startup and discover problems you are passionate about. Join a big boring company and save up a war chest.
10/10

Or start lower-risk. Build something small alongside your employment or freelance work. You don't have to go all-in like I did, it's just one way to get started. But if you do choose that path, I hope this thread gave you a more realistic idea of the finances needed!

More from Startups

1/ If you want to find out what is in the Y Combinator S19 batch, @Golden has compiled (using public signals) a near complete list of truly exciting companies.

If we are missing any or you want to help improve the data you can edit the topics.

https://t.co/9QGLiEPsn3


2/ Here is the direct public query if you want to check it out:

https://t.co/aqb8qYN4y9

[Note: no off the record cos are in here unless they have been publicly launched already]

3/ Also, here are 2,000+ other YC companies we have generated information

4/ We used the Golden Research Engine to generate this information, which you can find out more about here and ping me if you want a

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