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Your own money
Paying yourself, ESOPs and secondaries, de-risking, tax and investing as a founder.
165 answers From Wealth Searched most: founder salary, personal finance apps, investing apps
Wealth165 answers
Paying yourself as a founder
9
- How much should I pay myself as a founder?
- Is it a red flag to investors if I pay myself a proper salary?
- When is it okay to give myself a raise as a founder?
- Should I pay myself as salary or take dividends from my startup?
- How do I pay myself when the company genuinely can't afford a salary yet?
Keeping personal and company money apart
5
- Should I keep my personal and company money strictly separate?
- Can I put personal expenses through the company to save tax?
- How do I actually set up separate accounts and cards so company and personal money never mix?
- Is it okay to lend my own money to my startup, and how do I do it cleanly?
- What records should I keep so my personal and company finances never get tangled?
ESOPs, in plain English
13
- What is an ESOP, and how does it work?
- What actually happens when my ESOPs vest?
- Do I owe tax when I exercise my ESOPs in India?
- My ESOPs look valuable on paper. Is that real money yet?
- What happens to my ESOPs if I leave the company?
Secondaries and taking chips off the table
10
- Should I sell some of my equity in a secondary?
- How much of my stake is reasonable to sell in a secondary?
- How does a founder secondary actually happen, mechanically?
- Will selling in a secondary upset my investors?
- How is the money I get from a secondary taxed in India?
Understanding your concentration
7
- My company is doing great. Why should I worry about concentration?
- How much of my net worth in my startup should feel like too much?
- What actually happens to my family if my startup fails and it is most of our net worth?
- Are my salary, my house, and my ESOPs all riding on the same company?
- My net worth is almost all startup equity on paper. Is that real wealth or not?
Diversifying beyond your company
7
- How do I start diversifying when most of my wealth is illiquid?
- Should I sell some shares in a secondary just to build a safety net for my family?
- Where should the first money I take off the table actually go?
- How big should a founder's emergency fund be, and where should I park it?
- Should my diversified money try to beat the market, or just track it?
Index funds and SIPs
7
- Should I buy index funds or pick stocks?
- How do I actually start a SIP in India?
- My startup income is lumpy. How do I keep a SIP going?
- Should I pick a direct plan or a regular plan mutual fund?
- The market crashed and my SIP is deep in the red. Should I stop?
Direct stocks and ETFs
7
- Which app should I use to invest in Indian and US stocks?
- I run a company. Should I even try to pick stocks?
- What's the difference between an index fund and an ETF?
- Do I need to worry about insider trading rules as a startup founder?
- How much of my money should ever sit in individual stocks?
Where to park cash you cannot risk
7
- Where should I keep cash I might need in a year?
- Are fixed deposits still worth it for a founder?
- How many months of expenses should I keep as an emergency fund if I'm a founder?
- Should I keep my personal emergency fund separate from company runway?
- What is a liquid fund, and is it a good place for money I might need next month?
PPF, NPS, FDs, and debt funds
8
- Are PPF and NPS worth it for a founder?
- What is a debt fund, and when should I use one?
- How is the interest on my FDs and debt funds taxed in India?
- Are Sovereign Gold Bonds a safe way to hold part of my savings?
- Should I lock money in PPF when I might need it for the startup?
Asset allocation for a founder
8
- How should I think about asset allocation when my startup is most of my net worth?
- What's a simple portfolio a busy founder can actually maintain?
- How much of my money should be in equity versus safer assets at my age and stage?
- Should I count my startup equity as part of my portfolio when I decide how to invest my liquid money?
- How big should my emergency fund be as a founder with unpredictable income?
Capital gains on your investments
7
- How are my stock and mutual fund gains taxed in India?
- How can I legally lower the tax on my investments?
- Do I pay tax when I switch from one mutual fund to another?
- What tax do I owe when I sell a flat or land in India?
- How are my gains from US stocks or foreign shares taxed in India?
Tax on secondaries and exits
6
- What tax will I pay when I sell shares in a secondary or at exit?
- Is the tax different when I sell founder shares versus shares I got from ESOPs?
- What happens to my tax if my startup gets acquired?
- Will I still owe Indian tax if I move abroad before selling my shares?
- How am I taxed if the company buys back my shares instead of an outside buyer?
Insurance that actually matters
8
- What insurance does a founder actually need?
- How much term life cover do I actually need?
- Should I buy term insurance or a policy that also invests my money?
- How much health insurance should my family have in India?
- Can I just rely on the group health cover my startup gives the team?
Wills, nominees, and succession
7
- Do I need a will, and what about nominees?
- What happens to my money and startup equity if I die without a will in India?
- Nominee or legal heir, who actually receives my assets when I die?
- How do I make sure my startup shares and ESOPs actually reach my family?
- Do I need to register my will, or can I just write it myself?
Buy vs rent for a founder
9
- Should I buy a house while I'm building a startup?
- Does taking a home loan make sense on irregular founder income?
- My parents keep pushing me to buy a house. Should I?
- How much of my net worth is safe to tie up in a home?
- Should I buy a house right after a secondary or a big funding round?
Angel investing as a founder
8
- How do I invest in startups as an angel investor in India?
- Should I angel invest while running my own startup?
- How much should I set aside for angel investing without hurting my own startup or my family?
- How do I quickly evaluate a startup before I angel invest, when I barely have time?
- What taxes do I pay on angel investments in India when I eventually exit?
Gold, crypto, and other alternatives
6
- How much of my money should be in crypto or gold?
- Are Sovereign Gold Bonds a better way to own gold than jewellery or gold ETFs?
- How is crypto taxed in India, and does that change whether it is even worth it?
- Everyone around me is making money on crypto. Am I missing out?
- Does holding gold make sense as a hedge when my net worth is locked up in my startup?
DIY vs hiring help
7
- Do I need a wealth manager, or can I do this myself?
- How do I find a good fee-only financial planner in India?
- How much should a fee-only financial planner in India cost, and how do I know it's worth it?
- What's the difference between a distributor, an RIA, and my bank relationship manager in India?
- Can my CA also handle my investing, or is that a separate job?
Tools and platforms worth knowing
7
- Which app should I use to track my personal expenses?
- Which platform should I use to buy mutual funds without paying commission?
- What tools should I use to track and manage my money in India?
- What's the easiest way to file my taxes in India when my income is messy (salary, ESOPs, freelance, gains)?
- How do I see all my investments in one place instead of ten different apps?
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