Financial Advice for Successful Freelancers from Emerging Nations

[writer99025]

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 🙂

[fitrigwrites4u]

People can do whatever they want with their money. BUT, that´s actually a very, very good advice that you gave. Well, it happens we have EXACTLY the same point of view and attitude on money matter 🙂

[writer99025]

Sure, but what I find is many young people in India buy things to show off, to show that they are successful to their relatives, friends and neighbors, than because they really need the things that they buy. The moment you give up the desire to impress other people and do what’s in your true long-term interest, that’s when you become free.

[fitrigwrites4u]

That´s so true: ˝The moment you give up the desire to impress other people and do what’s in your true long-term interest, that’s when you become free˝.

[misscrystal]

Very wise words. So much about spending money is about trying to impress others when you think about it, although there can be much pleasure also from car ownership. My first guess was the post was to follow the trend on fiverr to announce something impressive you did with your earnings, for recognition and a tangible example of success.
I can imagine anyone’s excitement over the new car experience and pride of achievement thanks to the opportunity fiverr gives sellers.

[fitrigwrites4u]

Speaking of trend, from what I have seen, keeping up with trends is most of the time pointless.

[esthernyambura]

But You never know. You can buy a car for courier services or other investment services…

[writer99025]

Then it would be an investment, which is good…but do you think young people buy cars for that purpose? They do it just to show off.

[writer99025]

But if you are able to pay for it, that’s still okay. The worst thing anyone can do is to buy depreciating assets on a loan…cars, TV, mobile phone, appliances etc…that makes me sick…

[misscrystal]

That’s another good point. I did that once though when I had a big income and wanted a nice car. I paid on it for four years and while it seemed like I was actually owned by that car instead of the other way around, it was not a hardship to make the monthly payment.
In USA a car is considered a necessity. It means survival.

[writer99025]

I know, but in India you don’t need a car. You probably have an idea of the traffic is like in Indian cities. More cars only add to that and make it harder for everyone. The roads remain the same and get worse while thousands of cars are added every day. There are cabs services such a Uber and Ola available, as well as buses and other means of public transport. Why buy a car? I have a car, but hardly ever use it…I just cannot drive it in Bangalore traffic. Prefer to order a cab through Uber or Ola if I have to get anywhere.

[emmaki]

But then you won’t be able to brag about your new phone/car/shiny trinket on Fiverr!

Which is the main point of those threads.

[esthernyambura]

Yes, Freelance income is not permanent.

[graphicempire]

Thanks a lot for this awesome advice, i am the one who bought a car from fiverr money 🙂

[Guest de_mocca]

I have a dream that someday I will going to buy a plane if I become success in Fiverr and I will picking-up whole Fiverr staff and the owner going to vacation together with my plane, but after I read this, I need to think again about Investation.

[onlinewhiz]

Very nice and important advice. I have just started selling on fiverr from last few months. I have a full time job but fiverr become a major earning source for me and helping me to pay the installment of my loan. When my installments will be over I have a plan to invest this extra money in some other online business. I am also thinking to become a full time freelancer in future.

[david_ff]

In the US we call it “keeping up with the Jones’”

It happens no matter what country you’re from. It’s human nature.

Most people live and learn. Whoever she is, and whatever her reason, she’ll figure life out just like the rest of us.

[fitrigwrites4u]

Reading what you wrote, ˝…she’ll figure life out just like the rest of us˝, you must be a cool dad.

[mariamughal]

Absolutely. I agree with you. I’m going to buy some bonds and gold jewelry for me

[raimi86]

"The moment you give up the desire to impress other people and do what’s in your true long-term interest, that’s when you become free"

Nice words. I agree 🙂

Thanks!

[michaelbertoni]

How much is does a solid used car cost in India? When I went to India I was surprised that you could get a full time driver of your car for $100 US a month!!! I also think that the car horn was invented for India 🙂 LOL! In Hyderabad cars were packed in with bikes, motorcycles and animals and my driver was hitting the horn every 5-10 seconds!

[mgjohn78]

I bought a dirt cheap car just a couple months ago (not for fiverr money though as nothing has actually made it all the way to my pocket), had to do some repairs to get it running but i never have to spend too much on repairs as i do all repairs myself.
For me a car is just another tool that allows me to do work further away and transport materials etc. As a painter a car is also a nice way to advertise. Thinking of doing some airbrushing on the car.
Or ill just use it for a while and sell it for a profit once the gig i got it for is completed.

[writer99025]

I have the same car that my father bought for me when I was in college 16 years ago.My mother always tells me to get rid of it and buy a fancy new car, so that she can boast about it to her friends, neighbors, ex-colleagues from her old bank and my dreadful relatives. But I don’t care about impressing other people, and don’t care what anyone thinks about me. I don’t mind buying a new car, but that means taking money out of the bank or from stocks and putting it into a car, which means giving up on a sizeable capital, say $15,000 to $20,000 and worse, giving up on the 7-8% interest I am earning on it right now. But my mom doesn’t understand that I really don’t care what others think/say about me. I live my life my way.

[writer99025]

My car cost me $17,000 when I bought it (my father bought it) 16 years ago. Car prices haven’t changed much in India since then. If I wanted to buy the same type of car again, it would cost me $20,000 - $22,000. There is not much of a difference between price of cars, electronics and other products in India and in the US. Even real estate prices are similar. A Mumbai or Bangalore real estate in a nice neighborhood costs nearly the same as a comparable property in Florida or Texas. It’s the people who are cheap. Labor costs are very low. But a section of the population makes a lot of money and prices are high because of them. 95% of the country is priced out.

[writer99025]

Talking about $100 a month, my first salary was $100 a month…it was at a call center…because of Uber, drivers today make $2000/month in Bangalore, they are much better off than the fancy office workers they carry around.