3 MONEY MISTAKES TO AVOID IF YOU ARE IN THE HOSPITALITY SECTOR!

As a Director in a 5-star hotel, you dedicate your heart and soul to crafting unforgettable experiences for your guests.

Every detail of their stay—from impeccable service to luxurious comforts—is a testament to your commitment and passion.

But what about your finances?

Are you happy with it?

Here are three common money mistakes to avoid if you work in the hospitality sector:

1. Don’t Mix Investments with Insurance

Imagine a wicketkeeper trying to excel as a bowler—a rare and impractical feat, isn’t it? Similarly, expecting insurance to create wealth is next to impossible.

Insurance is designed to protect, not to grow your money.

So, purchase a term insurance plan—it’s affordable and offers pure protection.

By treating insurance as a safety net rather than a growth tool, you can focus on building real wealth through targeted investments.

2. Avoid Bad Real Estate Investments

The hospitality industry often requires you to change roles and cities frequently.

Owning multiple properties might seem like a smart idea, but managing them can turn into a logistical nightmare.

Think about it: Who will handle tenant coordination, property taxes, building society issues, and maintenance when you’re constantly on the move?

Moreover, real estate is not as liquid as other investments, making it a poor choice for retirement planning.

And by the time you retire, you might want to live in a newer, more modern home—not the one you invested in decades ago.

3. Don’t Ignore Tax Planning

Tax planning is an often-overlooked aspect of financial management, especially in the hospitality industry where work hours are long and demanding.

Many hoteliers miss out on tax-efficient investment opportunities, resulting in unnecessary financial strain.

Make sure you invest in Corporate NPS, mutual funds.. also look at creating an HUF.

Your work revolves around creating memorable experiences for guests.

Now it’s time to create a memorable legacy for yourself and your family. By avoiding these common financial pitfalls, you can ensure that your hard-earned money works for you, even when you’re ready to hang up your coat.

Your guests leave with cherished memories; let your financial decisions create a legacy that brings lasting peace of mind.

Start today, and build a future as exceptional as the experiences you curate daily.

By the way, what do you think?

Share your views with me!

Warm Regards,

Mohit Beriwala

CFA, FRM