45-year-old founder takes on $1M+ in debt: "It's a calculated investment in stability and growth."

Money In, Money Out is a series from the the Indie Hackers Stories Database which details how founders from around the world earn, spend, and save their money.

45-year-old Neel Bhattacharya is a first-generation Indian-Australian who is hustling to get out of the corporate grind.

She can't just quit. She has a family to feed and significant debts to pay, so she’s waiting for the right moment.

She has the runway; all she needs is the revenue. Let’s take a peek at her finances.

The struggles of an immigrant

Neel grew up in Lucknow, India, in a modest middle-class household where hard work was a way of life. Her family was very conservative when it came to money; they were focused on saving and very low-risk investments.

As a result, she knew how to save money, but struggled with what she calls, “the art of calculated risk taking”. She still struggles with it today.

Despite that struggle, though, her ambition took her to Delhi to pursue higher education, and then Australia for the opportunity of a lifetime at a big tech company.

Starting fresh in a new country was challenging enough. But it was made even more so by the fine print of the job. Unbeknownst to her, it required working around the clock to support teams in both the US and Australia.

She couldn’t quit at the time because of her work visa, so she just muscled through it and felt fortunate for the opportunity. After all, it was a good position and it allowed her to buy her first home — the first of many calculated investments.

Selling for a pittance

Dreaming of freedom from her job, Neel stumbled upon indie hacking and researched what she needed to know. When COVID hit, she seized the opportunity to create a new path for herself.

Growing up in a small town with big dreams, I always felt a bit out of place. I yearned for something more. When I stumbled into the indie hacking world, it felt like a homecoming. Here, each entrepreneur has a story of grit and determination that is similar to mine.

She launched a creative marketplace and did her best to balance it with her already-hectic job. But eventually, she sold the marketplace for “a pittance” and “continued the corporate slavery.” She blames the failure on her inability to go full time.

Four years later, she’s scratching that itch again. She says the pressure that most new immigrants feel to be responsible with every dollar, find a stable job, and create financial security is never far from my mind, but she’s ready for a little risk.

Monetizing before taking the leap

So she built Alternative AI — a comprehensive AI toolkit and directory that serves as a one-stop platform for AI developers, businesses, and enthusiasts. It provides a curated list of AI tools, resources, and services to accelerate AI projects.

After building it, she left it on its own with zero marketing and got over a thousand signups. She views this as validation.

So, with that validation and runway in place, she’s ready to dive into the business full time... just as soon as she creates a sustainable income stream. Here’s where she’s at.

• Revenue: $0

• Founder pay: “Nil. Zero. Zilch”

• Funding: Full-time job ($200k+ per year)

• Bank account: 6+ months of runway

She plans to monetize via advertising, sponsored content, consulting services, trainings, and premium listings that give AI developers enhanced visibility.

She knows she has “miles to go” but says, “Where I am today is already a testament to grit and resilience.”

Business expenses

Since Alternative AI doesn’t have any revenue, a portion of Neel’s full-time income goes into the business account every month to cover essential business costs. Luckily, those monthly costs are pretty low:

• Outsourcing: $40

• Subscriptions: $240

Neel’s development chops are limited so she works mostly in no code. When she gets stumped, she calls in an expert from Upwork to help her troubleshoot or do some development work.

As for her subscriptions, they're mostly for marketing automations. She automates a flow with Jasper for content, Canva for design, Mailpoet for email, and Fillout for forms. But she also pays for Loom, beehiiv, and SemRush.

I'm in the same boat as you, navigating the unpredictable waters of indie hacking. One thing I've found really helpful is keeping a close eye on my business finances. It's not just about making money, but also about managing it wisely to keep sailing toward our goals.

The Kakeibo budgeting method

When it comes to her personal finances, Neel likes to budget with the Goodbudget Android app. She highly recommends it for indie hackers.

It’s modeled after Kakeibo, which means “household account ledger” in Japanese. It's a method that, in her experience, "encourages mindfulness and reflection" around finances.

She says it makes budgeting fun too. But she’s also happy to ditch the budget in order to have some real fun.

Life's too short to always stick to a strict budget!

In her mind, it's “totally cool” to treat yourself to something special every now and then. For her, that treat is a daily almond latte. She notes, “Trust me that little self-indulgence that keeps your spirits up is worth it!”

Personal expenses

Here’s what she’s spending every month for herself and her family:

• Mortgage: $3,792

• Additional debt payments: $5,779

• Investments: $500

• Groceries/shopping: $1,000

• Transportation: $50

Investing in dividend stocks

Neel prioritizes financial planning and invests routinely — primarily in stocks and property. Let's start with stocks.

She doesn’t invest as much as she could — just $500/mo. This goes back to her upbringing.

People say “invest, invest, invest!” But I like to play it safe. I save as much as I can.

She prefers dividend stocks, as she likes the regular cash payout. She sees this as "playing it safe" and says they are good for long-term buy-and-hold investors like her. Here's where she invests:

• BHP Group Ltd

• National Australia Bank Ltd.

• Origin Materials Inc

• Westpac Banking Corp

These investments are currently valued at about $400k.

"Negative gearing" as leverage in real estate

Investing in property has been one of Neels biggest uplevels.

Her primary home is worth $800k. She has a mortgage of $600k on it with a 6.5% interest rate and a monthly payment of $3,792. She acknowledges that this is a significant amount of debt, but it's a "calculated investment in stability and growth."

Her rental property is valued at $1.1M and her mortgage is only $400k. That gap is thanks to a number of improvements she's made to it over the years. It has a 6.5% interest rate and a monthly payment of $2,528.

This rental property isn't just an asset — it's a revenue stream that she says contributes to her financial resilience. And it's also a master class in negative gearing.

In other words, she bought a rental property that didn’t pay enough to cover her mortgage. It’s actually a common form of financial leverage where the investor takes short-term losses, which reduce their taxes, and then makes up the losses by selling for a higher price later. As we can see, it's working out for her.

Just like with her dividend stocks, it's all about the long game.

Why it's okay to be $1.14M in debt

If you're running the numbers, that's $1M in debt.

She also has $50k in credit card debt, which she is paying off at $1.5k/mo. It has a whopping 18% interest rate. And she also has an auto loan for $90k at 6%. She's spending $1,750 per month on it.

That's a lot of debt, and she's okay with that. She says that every debt is tied to something valuable — something that is either growing in worth or generating income. Or both.

I'm okay with debt because it’s a tool I’m using strategically. It’s part of a broader plan that’s about growth, opportunity, and smart management. This debt isn’t a burden; it’s a bridge to where I want to go, a bridge I’ve built carefully and with a clear vision in mind.

And she says that, coming from a modest background, debt has played a big role in her journey. She had to be strategic with her resources and find leverage where she could.

According to Neel, you just have to be smart about it. Understand the risk. And have a solid plan to pay it off.

Take one small step at a time

If Neel could impart one thing on indie hackers, it’s this: “When you're starting, think big but start small. Focus on making money early and spending wisely. Keep it simple and build your business step by step!”

You can follow along with Neel on X or check out Alternative AI.

Please note that the above are opinions. This is meant for informational purposes only. It is not intended to be financial advice.

And if you'd like to be featured as a guest in a future interview for this series, let me know in the comments!

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