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