A young freelancer from India talked about buying a car on Fiverr Stories with her Fiverr money. That got me thinking. Here’s my free avuncular advice for her and others like her based on my life experiences.
Congratulations on buying the new car…but a better thing to do with your money would have been to invest in diversified mutual funds, stocks, bonds, tax-saving instruments and fixed deposits in banks, or towards the downpayment of an apartment or for the renovation of a house, or paying off debt if any.
Nobody needs to buy a car in India with services such as Ola ad Uber available. Your car won’t for last long in a great condition in our traffic and on our bad roads. Cars depreciate in value on the 2nd day of the purchase. Similarly, don’t waste the Fiverr money on buying large LED TVs, expensive smartphones, tablets and other gadgets.
Instead, you should invest in assets that grow in value, which will earn you an income for the long term. Freelance income is not permanent, you should invest in income generating assets that will eventually replace your freelance income. Keep this in mind for the future