How tech makes millionaires

Most people only focus on increasing their base salary because that's what they see in their paycheck every two weeks. But one of the most underrated ways to build wealth is actually through something called an RSU. An RSU is a restricted stock unit. It's common in tech as a part of the full compensation package. You get your base salary and then you get an RSU, which is a certain amount of company stocks distributed on an investing schedule. A lot of people tend to minimize the benefit of RSUs because of the vesting schedule. You don't get all of the stocks right away and typically they're only yearly or six-month basis. But RSUs employees at companies like SpaceX have become literal millionaires. Unlike your base salary, the value of an RSU can increase over time as the company stock price increases. At some of the larger tech companies, growth can be anywhere from 5 to 10 to 15 percent per year. That means that your compensation is growing over time instead of just beating inflation like your base salary. And even if you don't want to keep the stock, you can sell it to purchase another stock, or you can just sell it and treat it like a cash bonus. So the next time you're looking at a compensation package, underestimate the value of an RSU.