Earning more from your passion venture or startup? Here’s how to reinvest smartly, build long-term security

I quit my stable corporate job last year to start homestays in Rajasthan, driven by a desire to travel and build something of my own. The initial months were tough — inconsistent income, self-doubt, and financial stress. But things have gradually turned around. This month, I earned Rs 2.18 lakh from Airbnb alone, with total income crossing Rs 2.5 lakh — almost double my earlier salary of Rs 1.3 lakh. It’s been a slow, learning-heavy journey that relied on savings and persistence. Sharing this as a milestone and seeking advice on how best to reinvest or diversify my growing income for long-term financial security.

Advice by Anooj Mehta, Vice President, Partner Success at 1 Finance

Firstly, congratulations on turning your passion into a successful business. Getting to this point must have taken a lot of patience and hard work. Success in any independent or entrepreneurial journey often comes from a mix of persistence, adaptability and the willingness to learn through uncertainty. Once the initial struggle gives way to steady income, the real focus shifts from surviving to strengthening. At this stage, it becomes important to build a solid financial base — prioritising emergency funds, adequate insurance, and protection against unexpected setbacks. As income grows, setting aside money for business improvements and long-term investments ensures that progress isn’t temporary but sustainable.

Here’s how you can think about re-investing and securing your finances for the long run:

1. Protect yourself and your family first

Set aside money for emergencies. Because your income is not fixed like a salary, having at least one year’s worth of expenses in a savings account, FD, or an arbitrage mutual fund will give you stability if business slows down or an unexpected expense comes up.

Get a good family health insurance policy (family floater) of at least 15 lacs. Now that you don’t have corporate cover, this is really important.

Take a term insurance plan as well, so your family is protected if something happens to you, and you’re the main earner (1-2 Cr cover to start with, depending on spouse’s income and liabilities, if any).

2. Protect the business

Build a business emergency fund with at least six months of your regular expenses for Airbnb. This covers salaries, bills, and any repairs, especially helpful in the off season or if bookings dip for a while.

3. Plan for business growth

Set aside some money every month or quarter for upgrades or improvements that will help you scale up the business when the time feels right.

4. Invest the surplus money

Until your income is steady, keep things simple. Put spare cash into mutual funds like the Nifty 50 index and/or flexi-cap funds. No need to go overboard with lots of products; one or two good schemes are enough.

Since your income goes up and down, it’s best to avoid locking your money mainly for tax savings right now. Flexibility is key.

5. Stay on top of taxes

Check which tax regime suits you best now, as self-employed rules can be different.

If your homestay brings in over Rs 20 lakh a year, register for GST, and find a good CA to help keep things organised and file returns. Also, make sure you track any TDS (tax already deducted by booking platforms).

Simple, diversified investment options such as index funds can help build wealth gradually without adding unnecessary complexity. Equally important is staying disciplined with taxes and compliance, which prevents future disruptions. Ultimately, long-term security comes from balancing ambition with financial prudence. By putting the right systems in place early, anyone can turn a promising venture into a stable, scalable, and future-ready source of income.