Building a net worth of ₹1.8 crore at the age of 25 is a remarkable achievement. However, despite this success, it is unclear what source this income is coming from. This individual started freelancing at the age of 18 and accumulated an asset base of approximately ₹1.6 crore by the age of 25. A large portion of his income has come from activities such as Instagram theme pages and meme accounts, which are generally not considered means of instant wealth creation. After building such wealth at a young age, he is now facing a new challenge.
Currently, he has about ₹40-45 lakh in cash available. Additionally, he has invested approximately ₹85 lakh in the Indian stock market. He has also put capital into sectors such as the US stock market, mutual funds, gold, real estate, and cryptocurrency. His business remains the primary source of income, but the earnings from this business can be quite volatile.
On the social media platform Reddit, he did not just ask for ways to make money, but raised a more complex question. He expressed a desire to know how someone in his current financial situation should manage their assets.
In his post, he detailed that a significant part of his assets is invested in the stock market, valued at approximately ₹85 lakh. Of this, ₹7.5 lakh has been invested in the US stock market. Furthermore, ₹5 lakh is in mutual funds, ₹5 lakh in Sovereign Gold Bonds, and ₹2 lakh in Gold ETFs. Investments of about ₹15 lakh in real estate and ₹3 lakh in cryptocurrency have also been made. In addition, ₹45 lakh is held in cash and bank accounts, while ₹1 lakh is kept in fixed deposits. Including all these investments and amounts, the total amount comes to approximately ₹1.69 crore, although his current total net worth is stated to be around ₹1.6 crore. He has not included his old car, valued at about ₹4 lakh, in his total asset calculation.
It is noteworthy that the main basis of his income is his business, which leads to considerable instability in his monthly income. This is why he has a large amount of cash on hand. He mentions that ₹30-45 lakh have been deposited in his bank accounts for a long time. One reason for this is that he has not yet found an investment option that offers better returns relative to the risk.
He is particularly interested in investing in real estate but has not yet found a deal that seems suitable and attractive to him. His goal is not just to earn more money; he wants to expand his business, increase investments, and reduce his dependence on a single asset or business. His ultimate goal is to achieve FIRE (Financial Independence, Retire Early).
People congratulated the entrepreneur on this post, but many users advised that instead of immediately investing the ₹45 lakh somewhere, he should first strengthen his financial security. The entrepreneur currently has a term insurance of ₹50 lakh, but he does not have health insurance for himself or his parents. Many people on Reddit advised him to cover this gap before increasing his investment portfolio. Some users suggested increasing the term insurance coverage, while others emphasized having adequate health insurance and an emergency fund.
Given the income from his business, maintaining an emergency fund is essential because his primary income comes from a business, not a regular salary, where monthly earnings can fluctuate. In such a situation, maintaining sufficient cash might be more critical for him compared to people with a regular monthly salary.
The most discussion on Reddit focused on what the entrepreneur should do with his ₹45 lakh. Some advised that instead of waiting for the right investment opportunity, he should start investing gradually. One user suggested keeping an amount equivalent to about nine months of expenses in cash and investing the rest for the long term. Others suggested increasing investments in mutual funds and ETFs rather than putting more money into individual stocks. Another suggestion was to divide the entire amount into several months instead of investing it all at once and to invest money in global markets as well as Indian markets. However, since the entrepreneur has already invested in Indian and US stock markets, mutual funds, gold, real estate, and cryptocurrency, further investment solely for diversification is not mandatory.
One Reddit user mentioned that his crypto investment is so small that even if it yields a large profit, it will not significantly change his total assets. Moreover, even if the entire money is lost, the loss will be limited. The entrepreneur mentioned that some of the amount invested in crypto was received as payment from customers, and he feels comfortable holding it.