Preparing to become a full-time indie hacker again

Sebastian Röhl took the leap into full-time indie hacking once before, but it didn’t work out. This time, he’s armed with validation, revenue, runway, and a plan.

Let’s take a peek at his finances. 👇

The consumerism trap

💰 ”Don’t fall into the consumerism trap. More things won't make you happier.” —Sebastian

When Sebastian left university and got a job as a software developer, he didn’t upgrade to a new apartment. He didn’t buy a new car or go on fancy vacations. His expenses stayed the same.

And he says this is the secret to how he was able to save over a year's worth of runway for his app business: Don’t increase expenses as your income increases.

💰 ”When I see something that I think is cool, usually tech-related gadgets like the iPhone, I always ask myself: ‘Do I really need this?’ The answer is usually 'no' because my iPhone 14 is perfectly fine and I don't really need the iPhone 15.” —Sebastian

He says he doesn’t usually feel the need to buy things, as he’s happy with how he’s living his life. And it’s important to him to keep expenses low because he wants to build a foundation that he can rely on in the future.

💰 ”I think now is the best time to lay a good financial foundation for later phases of life.” —Sebastian

And it’s working out for him. It has allowed him to take the leap into entrepreneurship — twice.

Taking the leap (again)

In 2022, Sebastian quit his job in order to fully commit himself to his app business. When he didn’t get enough initial traction, though, he went back to his old job and kept building it as a side hustle.

If you’re wondering how he got his old job back, he quit in the right way.

💰 ”I had built good relationships with my former colleagues and bosses. They valued my skills and work ethic, and when I left, it was to pursue my own entrepreneurial venture; not to join another employer for a higher salary. This helped me leave on good terms, without any bridges burned.” —Sebastian

Fast forward a year and his apps are making enough to support his lifestyle, so he’s quitting again. He’ll be a full-time indie hacker in February.

Hard numbers

Let’s take a look at his numbers:

• HabitKit revenue: $12k total in December including lifetime deals. MRR is currently $5k.

• Liftbear and WinDiary revenue: $100/mo total

• Founder Pay: $0

• Personal savings: Undisclosed (roughly a year of runway)

• Business savings: Undisclosed

98% of Sebastian’s revenue comes from his flagship app, HabitKit. That app alone will keep him afloat when he goes full-time. And January has been a good month in particular, bringing him from $3k to $5k MRR, probably thanks to all the people who are trying to establish new habits for the new year.

His business expenses are low:

• Total: $150/mo

• RevenueCat (in-app purchases): $60/mo

• Appfigures: $40/mo

• Misc (ChatGPT, RCKit, 1Password, X Premium, etc.): $50/mo

💰 ”I pay for X Premium, because I really like the indie hacker community there. I have absolutely no idea if there is any real benefit compared to normal X users. But I'm fond of the illusion that I’m getting a competitive edge and reaching more people!” —Sebastian

It’s also worth noting that, of the $50k that he made from his apps in 2023, roughly 15% went to Apple and Google. He set the rest aside in the business account as a buffer in case things go south.

As for his personal expenses, we’ve already covered that they’re low. Super low, in fact.

• Living costs (rent, food, utilities, internet, etc.): $1000/mo

Preparing for the leap: Validation

So February is the month when he steps out of gainful employment and becomes a full-time indie hacker again. That’s not an easy thing to do after a failed first try, but he’s prepared this time.

First and foremost, he has validated his flagship app. It has significant revenue and he plans to take home a reasonable salary from it.

Preparing for the leap: Savings

He also saved up a year’s worth of runway — one of the benefits of living cheaply.

💰 ”Although my savings definitely took a hit during my first try, I still have enough left over to comfortably sustain myself for about a year without any income. This one-year runway gives me a nice buffer to either change my business strategy, explore new opportunities, or, if necessary, re-enter the job market.” —Sebastian

Preparing for the leap: Budgeting

And he’s going to reduce his expenses even further.

The main decrease will be travel — that’s the biggest expense he has that’s just for fun. In anticipation of this change, he’s planning one last hurrah with a big trip to California.

Another thing he’ll dial back is his contributions to his investment portfolio, from €1,000/mo to €500/mo.

Beyond that, he’s just going to watch his spending and stick to a budget. He sees budgeting as necessary to ensure he can continue indie hacking full-time indefinitely. Especially since some expenses will be increasing after he quits, like health insurance.

Index funds

Sebastian puts almost all of his soon-to-be-reduced investments in one place.

💰 ”I'm a big fan of index funds and a considerable chunk of my savings usually go into the Vanguard FTSE All-World.” —Sebastian

It was recommended by a popular German finance influencer, Finanzfluss, and he's grown to like it.

💰 ”I like that it's so diversified. I don’t think you can't really go wrong with it if you're looking for a passive investment. But I definitely need to diversify my stock portfolio because one index fund is probably not enough for the future, even though it covers the "whole world".” —Sebastian

He would also like to invest in a house at some point in the near future.

Freedom > funding

Sebastian says his views on funding depend a bit on his level of satisfaction with his lifestyle at any given time, as well as the success of his app business. But at present, the business is doing well and he’s content.

💰 ”I wouldn't accept VC funding at this stage. The independence that comes with bootstrapping is something I deeply value. It allows me the freedom to work on my own terms, without a boss, and it gives me the creative autonomy that I love so much.” —Sebastian

Parting words

What happens next is up to Sebastian but, with $5k MRR and a year of runway, he has set himself up to succeed. If there’s anything he can impart on new indie hackers, it’s this:

💰 ”If you have the desire to start indie hacking but you can't find the motivation or time to start a project alongside your full-time job, start saving money for a 6-month sabbatical from work. Then build your product full-time. You’ll really burn a lot of money, but it’s a great investment in your future.” —Sebastian

Check out Sebastian’s app HabitKit, his X profile, and his blog roehl.dev.

Please note that the above are opinions. This is meant for informational purposes only. It is not intended to be financial advice.

And if you'd like to be featured as a guest in a future interview for this series, let me know in the comments!