So you want Rs. 10 crores when you are in your 50s and contemplating starting your own business? Do you think this is possible without hitting a jackpot or marrying someone very rich? Really? Or do you think this is a pipe dream?

Well it is possible, and it is easy to do it.

Let us say you are a 24 year old in your first job and earning Rs. 8L as your CTC. You should be able to save say Rs. 8000 a month. So go and start your SIP in an equity fund (ELSS will help you in your taxation too!). Assuming that you put Rs. 96000 in an ELSS you will have only Rs. 54000 for your PPF…and this further reduced by your Provident fund. So put a small amount in PPF also.

Start another SIP in a large cap fund like Hdfc Top 200 or in a value fund like Icici Prudential Discovery. This should be a Rs. 2000 SIP with an annual increase of Rs. 1000 per year. This auto increase is a brilliant way to increase your investing without too much of thought process.

When I say you require some discipline, I mean postpone your current consumption to a later date. That is all. When you accumulate money so that it can be consumed at a later date, the money adds money to itself!! So at a later date when you need money you can dip into this lovely kitty that you are building. Of course keeping it untouched and leaving the process as it is will accumulate a greater amount.

The march to a Rs. 100 million starts by paying yourself first ( and then spending the money that is left. Yes it requires some discipline, but the rewards are awesome. Now comes the patience part. In the long run it is the tortoise which wins – I have done many articles on this title (at least 3) so if you go to the blog and search you will find them (here is one

In case you are wondering what is the purpose of being rich when you grow old, let me assure you that Rs. 10 crores will NOT MAKE YOU RICH – remember it is about 35 years away if you start now!!

Ok you have invested now how do you make sure that you do not lose it to the government (tax), your bank relationship manager (he loves action), or some fraud? Simple you go and increase your knowledge. And knowledge is increased by reading old classic books on investing. Once you have the base you start visiting websites, etc. and increase your knowledge. I have a list of books to read and you can find it easily.

Again some discipline – just do not borrow. Buy a car with your own money. When you buy a house make sure that you have at least 50% of the cost of the house. This will keep your loan small. Continue your investing through thick and thin. Insure yourself well, and make sure that you have medical insurance and an emergency fund so that you are not compelled to pull out equity when you are in trouble.

I deal with old people so hey 24 year old please do not ask me “what is the point in saving/investing in our youth – we have no clue how long we live?”.

Simple. Out of the many people whom I meet a few may say “I wish I had more fun in my youth” – but the vast, vast majority says “I wish I had started investing early and invested in equities….”.




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  1. How about taking an example of someone not in upper middle/ rich category? Not all people (actually a very small portion of total crowd) can start with salary of 8 lacs per annum, at the age of 24. And above that many have to support family, own educational loan, own marriage etc after the age of 24

  2. If a person cannot save / invest AT ALL there is nothing in the wealth creation space. Othewise adjust the figures accordingly. Most of the Btechs / Mtechs start on a salary of about Rs. 6 lakhs and CAs start on about 7-8L pm. The better ones do even better

  3. @Lalit

    Be careful, you may enrage the author and spawn off another post saying you are a “low class fellow” jealous of the 24yr old earning 8L p.a LOL

    To answer your very realistic Q,

    the key is paying yourself first @10% of your pay and increasing that by 10% every year. the amount can be even 1k when you start off and ramp up as situation improves.

    Philosophy behind this post is well described in the book “wealthy barber”. Request you to refer that for more details.

  4. @Lalit – may be for first 5 years it will be difficult to save, all the money will go on personal expenses, sending money home, rent and outing with friends.
    It doesn’t matter how much a person’s salary is, his expenses will also adjust accordingly..!! Even a fresher out of college making 10 Lakhs will not find it easy to save any money, since he will like to adjust his expenses depending on how much salary gets credited each month!!

  5. Subra, i was about to ask the same question when i realized everybody before me have asked it in the comments.

    Only a small % of BTechs earn so much Subra. 10% probably. There are a lot of BTechs in my current company who earn just 8k per month. CAs are a different matter though. You got bulls eye there. But how many actually clear their finals every year? 8000?

    The sad fact is, a lot of people dont earn enough to invest in different types finacial instruments.

  6. You have mentioned large cap funds like HDFC Top 200, can you please suggest some ELSS Funds? Also if someone wants to go for an emergency fund how should one evaluate it/how to consider?

  7. Priyesh this is just an example and I like those funds, please realize that on the net this will remain permanently. At various points of time people like different funds (I am old fashioned) so giving examples is difficult. However I personally have invested in Hdfc tax saver, Icici Prudential tax plan and Templeton tax plan….all 3 are elss funds.

  8. Hello sir.
    Thanks for the article.
    Can you give some examples of ELSS as well which you feel are good.
    I get confused with the crisil ratings and moneycontrol ratings.

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