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Saving of 30 Rs a day Can make you a Crorepati

by Abhishek   ·  July 16, 2012   ·  

How to become a Crorepati ? This is a very simple question with a no specific answer,  there is no shortcut of becoming a crorepati . Crorepati’ is a dream that every Indian has. But the critical question is how to do that. There is a long but an easy way out to achieve this goal. Start investing and Start it early. Warren Buffet started investing in stocks at the age of 11 and he became the 2nd most richest person in the world. 

If you are now 20 years old , then just by saving 30 Rs a day you will be a crorepati by the age of 60 . You have to save 30 Rs daily and at the end of the month you will have 30 x 30 = 900 Rs . Invest this 900  per month regularly for the next 40 years in any diversified mutual fund through SIP(systematic investment plan ) . Now the power of compounding will work for you.

Let us understand it with an example and a set of assumptions. Assumptions are as follows:

  • Mr. X is 20 years old
  • He accumulated 30 Rs per day  monthly for 40 years
  • At the end of every month he invest the daily saving( Rs 900 appx. )  in a diversified mutual fund.
  • Mutual fund gives a return of 12.5% p.a.,
  • If Mr. X continues this process for 40 years, he will become a crorepati if all the assumptions mentioned hold good.

crorepati-calculator

This opportunity is available to even older people. However, they have to forgo some other consumption though in small quantity only. As a 30 years old person, you need to save Rs. 95 daily. As the age progresses, the savings required increases naturally. So, what do you need to achieve the target of Rs. 1 crore.? Just 30 Rs everyday.

Can it be more faster ? 

Now you must be wondering 40 years is a big time period can it be less than that ? Its defiantly going to be less than that, 12% is the average return rate if your mutual fund is good and gives you around 15% then it will take 35 years that is  5 years less.  Is it possible to make it less than 35 years ? Yes it is , if you choose the dividend reinvest option in your mutual fund investment.

how to become crorepati with savingIn dividend reinvest option whatever the divided you earn it gets reinvested, and your investment amount keep on increasing and also the returns. Depending up on the type of mutual fund you can get 2-6% dividend per annum. Dividend purely depends on the type of the mutual fund and the stocks that mutual fund is holding. I did a SIP in Birla Sun life Midcap fund and it has given 4%  average dividend in the last five years.  I have selected the dividend reinvest option because of which the investment amount is increasing every year without anything going out from my pocket. Because of the dividend reinvest option your investment amount will keep growing  and also the returns as money earns money. With this your crorepati target could be achieved in  25- 30 years. And instead diversified mutual fund if you go with small or midcap funds it could be less than 25-30 years. But remember that mid and small cap stocks have more risk. They are high risk high return kind of stocks. Your returns could be faster and better and could also be lesser.

 

23 Comments

  1. Good calculation. Earlier you start, the better it will be.

  2. Abhi

    3,20,000 will be max saving. :/

    1. Ajay kumar

      Plz tel me how to invest plz Explain

  3. yeswin seksaria

    how can is possibel plz . expl.

    1. Abhishek Shukla

      use any online compound interest calculator , enter 870 as base principle amount, annual interest rate 12%, time period 40 year, and regular monthly deposit 870 , compound interest monthly .

      1. n. rAMU

        I am intersted to invest so tel me plz how to invest and give me number that wil provide me good information

      2. manus

        Abhishek, can u please help me. I am 50 years old. I want monthly income after 10 years till I die Rs. 1 lac per month. Tell me how much I will have to invest and where to get that income please?

      3. anil chaudhary

        Kaise kare

  4. mahendra patel

    Ok but kiske pass ye account accha rhega kulwane ko 95rs per day how much money in 30 year old

  5. Satish Rajput

    I am intersted to invest so tel me plz how to invest and give me number that wil provide me good information about trading…

  6. Thanks Abhishek for sharing this wonderful article.. I am going to save Rs,50 daily from today…. keep up the good work.. cheers

  7. B P SINHA

    Sir,

    Could you please advice me few best yielding stocks which is now midcap/small cap stock but latter in couple of years…it can multiply my investment. I heard those who invested in Wipro 20 years back with few thousands is now a big crorepati.
    Please advice such stocks with confidence.
    Regards,
    B P Sinha

  8. bharat

    yaar i wannna become milloniier in one year

  9. Rafique ahmed

    sir if i will do start invest 5000/= pr month when i shall be a carorpati.pls advice m

    1. Abhishek

      It will take 22 years , with 15% annualized return

  10. suresh ghemeray

    Advice 2 b a milioner in 10 years n less period of investing rs.100 a day.

  11. Navaneethan

    well said

  12. rajinder

    How to invest money and where?? Can u plz guide or leave ur number so that we can contact you

  13. goutam saini

    Sir i m 22 year old i your plan is good and how to invest this plan ?? Can u explain me

  14. Rajendran Raman

    Sir, If i Invest 40,000 per month, can i become a Corepati in 7 years??

  15. sunil Ahirwar

    Kaha dena padega ,30 rapey
    Siiir

  16. Rajesh Saini

    Barnala sun fund

  17. Satish chavan

    Naye logo ki koi help kare plz…ham bi 5000 se invest start karna chahte he sikhna chahte he….satish chavan 9993994428 watsapp kare plz

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