Financial independence and financial security are very important to entrepreneurs, says Wingify’s Paras Chopra
According to Paras Chopra, Founder and President of the SaaS startup Wingify, “Wealth” and “money” are related but are two different things. He explains that if wealth means wanting things or things needed to improve life, money would mean “numbers in your bank.”
“I think real wealth is indistinguishable from a good life,” he says.
Paras reveals that his first money-making experience was when he was 12 or 13 years old when he used to create software in Visual Basic and C ++ and then make it available online.
It was the early days of the internet, and during that time someone contacted Paras to make some custom modifications to the software, and he got $ 100 for it.
“From there I felt that doing something I love, which is coding and programming, and trying to make money with that, is how I want to imagine it. my own future. So I got into startups as a result of that thought, ”he says.
Paras was inspired by reading books by Paul Graham and interviews with the founders of PayPal, Yahoo and Google. He was inspired by them after realizing how they could turn their ideas into money.
However, like any other entrepreneur, Paras also faced his fair share of challenges. He tried to get into the startup ecosystem during his college days and failed three times. He reveals that Wingify was his fourth or fifth attempt at entrepreneurship.
“I think the joy is learning what it is to be an entrepreneur, what it is to be a leader, to be a manager, and money, frankly, has always been a consequence. secondary. The reason I’m saying this is if money had been the main motivator, I imagine I would have gone ahead, and we would have raised money, but we don’t have it. made. We had more money to come and we knew what to do with it. I think it’s a measure of wealth in a personal and professional context. It’s not just the amount of money, but it’s the amount of money relative to your needs,” he says.
Founded in 2009, Wingify’s flagship product includes a website testing platform product, VWO.
Invest money as a founder
Speaking about starting a business and creating money, he explains that creating money is not a trivial thing but requires a lot of commitment, intellect and passion.
When asked about handling the money coming from Wingify, Paras explains that the first priority is always the growth of the business and always has set aside a certain amount of income to be fed back into the business.
“As an entrepreneur, you have to realize that the company you work in is the biggest contributor to your future net worth, because whatever you invest in, maybe stocks or real estate, you don’t have as much control over the appreciation of the value of these assets as you do with your own business. So Wingify is absolutely my number one factor in building wealth. That’s why it would always have priority in terms of growth, ”he said.
However, Paras also advises against going to extremes to invest in a business where you have to take out loans or go into debt to run it. He explains that financial independence and financial security are very important for entrepreneurs.
“If something is fundamentally broken and you haven’t understood the fit between the product and the market, let’s say if your customer acquisition channels aren’t profitable, throwing money at them is wasting. money. So, you have to think like an investor first and if it makes sense to invest in the business, investd, if it’s profitable, if it’s not, then you have to take care of your financial independence, ”he says.
Paras says he always made sure he had enough money not to worry psychologically about his safety.
To find out more, listen to the podcast here
02:09 – Meaning of “True Wealth” for him
05:15 – “The creation of money is obviously not a trivial matter. It requires a significant amount of commitment, intellect, passion, etc.
05:40 – Wingify: 4th attempt to try to set up a startup
06:59 – “If money was a primary motivator, I would have gone ahead and we would have raised money, but we didn’t. “
10:15 – Definition of financial wealth
13:29 – # 1 mistake when investing: real estate
15:31 – “Hunting safe assets like FD early on is a big mistake.”
18:34 – Have 70 to 80% of assets on the stock markets
22:56 – “Diversification is the only free lunch in finance.
24:02 – Advice to a 25-year-old on “spending wisely”
26:31 – “If you have to constantly work in your life to live, then you will have all kinds of restrictions. “
27:55 – ULIPs: “The more complex something seems, the more risky it is. “
31:23 – Invest in index funds
34:37 – His ideal investment: to be passive, not to speculate, and to grow faster than inflation
35:50 – Treasure to read: the annual letters of Warren Buffett
37:17 – Focus on what’s new at Wingify
39:59 – Following the principle of in-depth work