2-States author, Chetan Bhagat, is one of the very few success stories of Indian fiction authors who have ‘made it big.’ Known for his romantic dramas, he has authored best-selling books like ‘Half Girlfriend’, ‘3 Mistakes of My Life’, among others. With his new book ’12 Years: My Messed-up Love Story,’ out now, his conversation with Kushal Lodha, a finance podcaster, got rather candid.
Speaking to the chartered accountant, the millionaire author revealed that the highest bonus he had ever gotten, before becoming an author, was nearly $1 million. Now, after being a successful author with two movie deals in his kitty, he can proudly say he earns in that ballpark figure. However, his journey as a writer to match the income of an investment banking job was not an easy one.
‘God’s given a huge bonus to me’
It is common knowledge that Bhagat completed his Master’s in Business Administration (MBA) from the prestigious IIM Ahmedabad. Soon after placements, he took up a finance job in Hong Kong, with his dream of becoming an author in the backseat, he told Lodha. As the conversation moved forward, he revealed, “The company closed in 4-5 months…I had one Happy Meal a day.”
Hellbent on making it in the field, after 27 rigorous rounds of interviews, he finally landed a job at Goldman Sachs. “I published my first book while still at Goldman Sachs,” Bhagat revealed. His first book, however, was not born in a day. He shared that it took several publishers, across 2 years, to approve and publish the manuscript, and it wasn’t even “in his wildest dreams” to become a household name.
Replying to Lodha’s question, Chetan Bhagat revealed that he had received a $1 million bonus from the firm. Considering this as ‘God’s huge bonus,’ he finally decided to quit.
How much was Chetan Bhagat earning?
Priced at Rs 95, his debut book, ‘Five Point Someone’, earned him 10% royalty at the time. Pointing at the grim reality of book sales in India, Chetan Bhagat revealed that even international authors struggle to sell 50,000 copies annually. Similarly, in his case, he was earning nearly Rs 9 per copy and “comparing this with an investment banking salary – this is nothing,” the best-selling author scoffed.
Where does Chetan Bhagat earn his money today?
Apart from his book, where he earns 15% royalties at the maximum, Bhagat revealed that a large portion of his income comes from investing in equity. Having a strong background in the same, Bhagat shared, “I give motivational talks – that makes money,” and even revealed that sometimes social media is a source of income too.
With a background in investment banking, Bhagat even revealed that he preferred investing in stocks more than mutual funds. Breaking down the Warren Buffett way, he coined it as the ‘shut up and wait’ method, where he warns against chasing trends, especially when it comes to investing in stocks. Lodha, probing into the highest amount of money Bhagat has ever earned, the best-selling author shared that it was in the million-dollar figure.
Apart from social media and motivational talks, movie rights also played a huge role in his income, including his real estate investments and equity.
