Manage Finances As A Full-Time Freelancer

It has been a while since I last wrote a newsletter for all of you. I made attempts to write a few last month and the month before, but due to the work schedules and back-to-back calls with most of you kept me busy!

Today, I was going through my investment portfolio (March ending na) and thought that I have come a long way in managing my own finances, and I thought, why not talk about managing the finances as a freelancer?

So, before I discuss that part, let me derail a little.

To those who have been here for a while now: Thank you, thank you for sticking with this newsletter even though you had no idea when you would get a notification about a new one! Thank you.

To those who are here for the first time: Through Viraj Bolta Hai, I talk about generic things that have motivated me or inspired me to become a better person. I try to bring my knowledge here for you all in the hope that you guys might not make similar mistakes as I did when I was at your stage.

Before we move ahead, let me share a couple of updates about my life with you all:

• I finally acquired some rare Penguin Classics, and I am so freaking happy!
• At the start of this year, I pledged to help 1000 writers here on LinkedIn, and so far, we have helped 145+ writers -- still a very long way to go!
• At CJ Digitals, we recently acquired three new clients, all through LinkedIn (I always tell you during my sessions that once you understand the inbound, everything becomes a piece of cake).
• At Satvic Foods, we have some amazing offline activities planned out for the upcoming Holi. If you guys are not following Maa on LinkedIn or our account on Instagram, what are you guys doing? Huhh!!
• At Caesar'n Joey, we sold over 300 hoodies and sweatshirts, all thanks to the content marketing that we did at the time of launch (Yayy!!).
• At CJ Motion Pictures, we are finally entering the post-production stage of my first feature as a producer! So excited for this one!

Why did I give you this update? To let you know that if you are consistent with your dreams and ideas, things will start to materialize for you, your family, and your team members.

Now, coming to today's newsletter - how to manage finances as a freelancer.

See, I am not a finance guy, and I cannot give you the right advice when it comes to managing assets or investing. That said, I can share with you the strategies that I have followed till now that have worked for me. I don't want to add a disclaimer here that investments are of market risk and all, because you know from your side how to manage your money and how to ensure you have enough to survive during the dry weeks (months).

I started earning in 2011. Yes, through writing only. And the first thing I did with the money was to:

• Buy a saree for maa.
• Buy a Raymond's suit fabric for Papa.
• Buy a Jack Daniel's Old No. 7 for Papa and me.
• Buy a Puma jogger for myself.
• Buy a book for my then-girlfriend.

It's been around 13 years to that day, and:

• Maa still has that saree.
• Papa still has that suit.
• I still have that empty JD bottle.
• That Puma jogger was stolen during one of my trips to Krabi.
• That girl still has that book! (I called her last night to confirm)

As you can see, I didn't invest it the right way -- I invested it the Viraj way. To this day, I keep spoiling my parents and myself, and that's what I intend to do tomorrow and the days beyond that. So, I am going to discuss how I invested when I got some understanding about finances and all.

1. Fixed Deposits: Yes, a big yes to them! The moment I had around 10K to invest, I opened an FD for myself. The next month, when I had another 10K to spare, I did the same. I have been making fixed deposits here and there. Since there is hardly any risk involved, I think that opening an FD was among the best investment decisions. No, that's not the best one, Viraj. The best investment decision of my life is shared at the last.
2. SIPs: All thanks to my then-girlfriend, who introduced me to some SIPs at that stage, and man, oh, man! I am so happy that I listened to her. There are several SIPs that have a locking period of three years (comes under tax-saving) and have given some amazing returns over the last decade. If you are into investment and looking to save taxes, go for such SIPs that have a locking period. A good choice for all. Again, discussing it with someone with prior knowledge of investing in SIPs is highly recommended.
3. Investment Plans: I absolutely had no idea about them when I started earning. Papa made my Demat account when I moved to Bombay, and it stayed dormant till 2016. Once I started CJ Digitals, one of my best friends, who would later handle my entire accounts, suggested that I should invest in a couple of stocks, and I am so glad I heard him! So, if you know someone whom you can trust and someone who can give you solid advice, choosing some investment plans is also very beneficial - but as you all know, this involves risk so invest accordingly.
4. Gold: It's a tradition in our family to buy some quantity of gold every year during Dhanteras festival. By 2016, I had adopted Caesar and Joey. I bought a few grams of gold under their name during Dhanteras. Since then, I have been buying a few grams every year. If you have some amount to invest, then I would highly recommend checking out the gold sovereign bond scheme -- it helps in the portfolio, and the ROI is also good if you can invest it for eight long years!
5. Gave money to Maa: See, this is by far the best investment decision that I ever made in my life. Yes, I also invested in a couple of real estate opportunities, but being a freelancer who depends on the monthly payouts in this volatile market, I cannot discuss the real estate one here. So, let me quickly share the best decision -- every month, I give 10% of my earnings to Maa! I have been doing this since 2011, and Maa has saved every bit of it; during my rough days (there were plenty in 2014,15,16), I could simply ask Maa about money, and she gave it back! No penalty - No early withdrawal charges! But with an added compounded interest!

If you are serious about freelancing and want to enjoy life, you need to learn how to manage your finances. Each month, I buy Blu-rays, Books, and Gadgets, go on trips, spoil my parents, buy expensive drinks, and always make sure that my team gets their salary on time—but at the same time, I keep a certain percentage every month for my future!

Chalta huun... I will try not to make such big delays in my newsletter! 

Until later.

Baw-Baw

-V