Leaving a stable job to pursue a passion project is never easy. The first few months often test both confidence and finances. But with patience, learning, and steady effort, early struggles can evolve into meaningful milestones and open doors for long-term growth.
I quit my corporate job last year to start homestays in Rajasthan, driven by a desire to travel and create something of my own. The beginning was tough — inconsistent income, self-doubt, and financial stress were constant companions. Gradually, though, things began to turn around. This month, I earned ₹2.18 lakh from Airbnb alone, and my total income crossed ₹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 or diversify my growing income to build long-term financial security.
Advice from Anooj Mehta, Vice President, Partner Success at 1 Finance
“Congratulations on turning your passion into a thriving business. Success in entrepreneurial journeys 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 surviving to strengthening your financial foundation.
Here’s a framework to reinvest and secure your future:
1. Protect Yourself and Your Family
- Emergency fund: Keep at least one year’s worth of expenses in a savings account, FD, or arbitrage mutual fund. This cushions you 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 your liabilities and spouse’s income.
2. Protect Your Business
- Business emergency fund: Maintain six months of operational expenses for your homestay — including salaries, bills, and repairs. This is especially useful during the off-season or if bookings dip.
3. Plan for Growth
- Allocate money regularly for business upgrades or improvements that can help scale your venture when the timing is right.
4. Invest the Surplus Wisely
- Keep investments simple until your income stabilizes. Consider mutual funds like Nifty 50 index or flexi-cap funds. One or two well-chosen schemes are enough.
- Avoid locking money for tax savings prematurely. Flexibility is key for fluctuating incomes.
5. Stay on Top of Taxes
- Review which tax regime suits you as a self-employed professional.
- If your homestay earns over ₹20 lakh a year, register for GST and hire a good CA to manage returns and TDS.
Simple, diversified investments such as index funds can help build wealth gradually without adding unnecessary complexity. Staying disciplined with taxes and compliance prevents future disruptions. Ultimately, long-term security comes from balancing ambition with financial prudence. By setting up the right systems early, any promising venture can become a stable, scalable, and future-ready source of income.
