

Ask HN: How much money should you have saved before you start a startup? - adamzerner

Here&#x27;s what I&#x27;m currently thinking:<p>You need money for two things:<p>1) Living expenses while you work on your startup, taking into account the possibility of revenue and raising money.<p>2) Runway for you to live off of if you fail and need to find a job.<p>Runway for startup:<p>- Optimal: 2 years of living expenses (LE)<p>- Realistic: 6 months LE<p>- Risky: 3 months LE<p>Time to find a job (obviously this depends on your skills and industry, but let&#x27;s assume that you&#x27;re a reasonably skilled software developer):<p>- Safe: 6 months LE<p>- Realistic: 2 months LE<p>- Risky: 1 month LE<p>Thoughts on this?<p>Also, I have a separate question - what is common practice amongst people who start startups? How much do they save up before doing so? Note that this is a different question (SHOULD vs. DO).
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WalterSear
I wouldn't say 6+2 months of living expenses is 'realistic'. I would term that
'wishful thinking'.

And a 3 month 'risky' living expenses for a start up is what I would call "I'm
vastly underestimating what I got myself into."

The founders at my current job have been working at this for 4+ years. We just
received series A funding. Any expectations of an IPO or other exit are at
least another 3+ years from now, and that's also a 'wishful thinking' number.

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adamzerner
As for startup living expenses, I meant that as taking into account the
possibility of revenue and fundraising. I'll edit the question to clarify.

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WalterSear
If you already have angel funding in place, then certainly take that into
account. Otherwise, IMHO, I still think your runway timing is suicidally
optimistic, particularly if this is your first 'go' at this.

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leesalminen
I kept my day job and worked furiously at night / on weekends.

Meditation to help prevent burnout.

I wouldn't recommend doing it forever - perhaps just through MVP.

If you have kids/wife this may not work.

