How To Earn 1 Crore In 10 Years

 How To Earn 1 Crore In 10 Years

Triple Engines of Growth:

  • High savings (80-90% of monthly income)

  • Income growth

  • Investment growth (15% CAGR)

Milestone of Accumulating the First Crore:

  • Achieved within 7-8 years of starting the career

  • Confidence in equity markets during the COVID crash

  • Plowed more savings into equities to recover portfolio losses

Stock Investment Journey:

  • Profits from a few multi-bagger stocks

  • Few good investment decisions led to significant returns

Staying Invested for the Long Term:

  • Identifying good companies with high growth and good financials

  • Sticking with these companies unless extremely overvalued

Asset Allocation:

  • 80% equity (75% direct stocks, 5% mutual funds)

  • 6-7% bonds

  • 6% NPS

  • 4-5% small real estate investment

  • 1-2% PPF and EPF

Small Real Estate Investment:

  • Purchased a studio apartment in Solan, Himachal Pradesh

  • Used as a holiday home and also rented out through a hospitality company

Monthly Expenses:

  • Currently around 1.2 lakhs (excluding discretionary expenses)

  • Fixed expenses covered by passive income from debt instruments and high dividend yielding stocks

Financial Independence Goal:

  • Goal is to not work for money and pursue passions

  • Target of 5-8 crore for financial independence

  • Aspiration of 100 crore by age 55-60

Dual Income:

  • Dual income accelerates the journey to financial independence

Early Financial Planning:

  • Start financial planning as soon as possible

  • Be disciplined and invest in assets that beat inflation

Achieving 1 Crore:

  • Example of saving 40% of income (20,000 rupees per month) and investing in equities

  • With 15% CAGR in investments and income growth, can achieve 1 crore within 10 years