“From the Devs”: Helpful Money Management Tips, as Told by goat292
“There’s an opportunity to become a millionaire as a Roblox developer and it’s not just for one person, it’s for tons of people and it’s increasing every day.” — Christina Shedletsky, RDC 2018
Roblox developers are building creative 3D worlds for millions of gamers-and earning money doing it. By creating development studios, using advertisements, and working with others, several developers are monetizing their games and forming successful development careers and businesses. Using DevEx, they are cashing out the Robux they earn for real-world currency and sometimes making millions of dollars.
If you have used DevEx, it may be helpful to think about how you want to invest or spend the money you earn. What people choose to do varies depending on financial situations, but there are three major things you can do with your finances.
NOTE: The information provided in this document is purely for informational purposes only. It should not be considered legal or financial/investment advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. Your use of information provided in this document is at your own risk.
Spend
First, you can choose to spend some of it right away. People spend their money on lots of things: paying bills, supporting friends and family, pursuing hobbies, donating to charity, having fun, etc.
Invest
Another option is investing in your education or developer career. Badcc, part of the developer-duo responsible for “Jailbreak,” used part of his money to pay for his undergraduate education at Duke University. Cowbear16, who published two Lua Programming books and created Roblox iOS apps, paid for part of his education at Boston College. Cowbear16 also spent a portion of his money on entrepreneurship programs that taught him critical concepts, such as financial planning, customer acquisition, idea-pitching, and people skills, which ultimately helped him start two companies.
Many of Roblox’s top developers also choose to reinvest their money into expanding their career. They market current games by paying for advertisements or decide to develop new ones. Take, for example, AlexNewtron, the creator of MeepCity. He recently paid for his mother and brother to relocate from Las Vegas to San Francisco and is pursuing his career as a developer, hiring full-time employees, contract programmers, and artists. BlockFaceBob and BlockFaceSteve, creators of Block Evolution Studios, and Sharksie and AbstractAlex, creators of Red Manta, recently moved into new offices to develop games full time. BlockFaceSteve and BlockFaceBob explain how to start and run a Roblox business here. They discuss setting business objectives, starting a company, building a brand, and the importance of teamwork.
If you choose to start a business, there are incubator and accelerator programs, including ones at Roblox HQ, that can help you grow. There are also several resources available to hire employees online.
Save
The last option is saving your money for the future, something many developers have done. Saving and investing allows you to earn significantly more over time. When you place money into a savings account, compound interest accumulates as it remains in the bank. Compound interest is calculated based on the initial amount and also on the accumulated interest on other amounts in your account. The earlier and more frequently you place money into an account, the faster the money will grow. Additionally, investing your money allows you to earn much more over time. Investment managers can take care of your finances and investments for you, significantly increasing the amount in your account.
Example:
Here’s an example of how $2,000 could grow to a million. At the age of 20, a developer might give $2,000 to their investment manager. The investment manager could invest the money to increase that amount by 6%. If the developer consistently gives 5% more to the money manager each year and the manager continues to increase the amount by 6%, the developer would have $1,013,276 by the age of 65. The developer contributed a total of $319,400 over the course of 45 years and ended up with over a million dollars. The total money the developer contributed was multiplied by 3.2! By starting to put away money early and frequently, your wealth can grow a ton.
Resources
There are several online resources that can manage your money and investments for you. Some platforms use algorithms and software to build a portfolio, a collection of investments. Investment firms offer a variety of services, including financial planning and wealth management. Automatic investment services place your money in a diverse portfolio of investments and rebalance it over time. The most important thing is that you monitor and track your money periodically to make sure you’re on the right track.
Many people may choose to do a combination of all three things, depending on their current financial situation: spend some of it immediately, use a portion for their education and career, and invest it. What you choose to do is up to you! Choosing how you want to spend your money is an important and exciting decision. It can impact your life and finances as an adult.
goat292 is currently an intern on the Education Experience team under Developer Relations. She is a full time student at Stanford University, but this summer she has focused on helping IX build tutorials that help teach Roblox developing to new developers. You can follow her via her Roblox profile here.
