Leaving a stable job to pursue a startup or passion project is never easy. The first few months often test both confidence and finances. But with patience, learning, and steady effort, early challenges can turn into meaningful milestones and pave the way for long-term growth.
I quit my corporate job last year to start homestays in Rajasthan, motivated by a love for travel and a desire to build something of my own. The initial months were challenging — inconsistent income, self-doubt, and financial stress were constant companions. Gradually, though, things began to improve. This month, I earned ₹2.18 lakh from Airbnb alone, with total income crossing ₹2.5 lakh — nearly double my previous salary of ₹1.3 lakh.
It’s been a slow, learning-intensive journey supported by savings and persistence. I’m sharing this milestone and seeking advice on how best to reinvest and diversify my growing income to ensure long-term financial security.
Expert Advice from Anooj Mehta, Vice President, Partner Success at 1 Finance
“Congratulations on turning your passion into a thriving business. Success in any entrepreneurial journey comes from persistence, adaptability, and the willingness to learn through uncertainty. Once the initial struggle gives way to steady income, the focus should shift from survival to strengthening your financial foundation.
Here’s how to reinvest and secure your future:
1. Protect Yourself and Your Family
- Emergency fund: Keep at least one year’s worth of personal expenses in a savings account, fixed deposit, or arbitrage mutual fund. This provides stability if income slows or unexpected costs arise.
- Health insurance: Get a family floater policy of at least ₹15 lakh, since you no longer have corporate coverage.
- Term insurance: Protect your family with 1–2 Cr cover, depending on liabilities and spouse’s income.
2. Protect Your Business
- Business emergency fund: Maintain six months of operational expenses for your homestay, covering salaries, bills, and repairs. This is especially helpful during off-season periods or dips in bookings.
3. Plan for Business Growth
- Allocate funds regularly for upgrades or improvements that will help scale your venture when the timing is right.
4. Invest Surplus Money Wisely
- Keep investments simple until your income stabilizes. Mutual funds such as Nifty 50 index funds or flexi-cap funds are reliable options.
- Avoid locking money mainly for tax savings at this stage — flexibility is key when income fluctuates.
5. Stay on Top of Taxes
- Review which tax regime suits you as a self-employed professional.
- If your homestay earns over ₹20 lakh annually, register for GST and hire a good CA to manage returns and TDS.
Simple, diversified investments like index funds help build wealth gradually without unnecessary complexity. Equally important is staying disciplined with taxes and compliance to avoid future disruptions.
Ultimately, long-term security comes from balancing ambition with financial prudence. By putting the right systems in place early, any promising venture can grow into a stable, scalable, and future-ready source of income.
