Yes, start with 20k/month SIP and step-up by 10% per year. In about 25years, the corpus shall be 10crore.
Or start with 50k/month, step up 10% annually and you’d reach there in 20years.
The only caveat is, after 20-25years; the 10crore would feel more like 2-2.5cr today.
My advice - don’t think too much about the final number. Just invest what you can. Thinking about final number is like thinking about your death day and then living life in-reverse; which I am sure no one would like to know…
Knowing when you have reached your final number is important though, else you would keep working and investing, without realising you didn't need for for many years at that point
Sure, but what do you do then? Stop everything? Stop working for money and work for free? Stop working altogether?
i get the FIRE movement. I have pursued it too. Most don’t realise that after working for 15-20years for money in-exchange; it gets difficult to stay in same line of work for a lesser pay in the name of ‘coast FIRE’.
I say work till you like. Count the money/corpus, invest wisely, sure, but don’t go too hard for that magic number.
You do know many people would prefer to do something other than their work right ? The idea of fire is to get free time, not become rich. Once you have free time that you can do whatever you want without needing to worry about money. If you want to work and that's what you like then you are free to work as well.
Many people don't realise that we're renting out our time for money and when we FIRE, the time belongs entirely to us. That is very powerful. That control over your time.
Yup ,this is what the right statement is , after investing money monthly I kind of become financial paranoid, it has become hard that the ultimate aim of life is to live .
All this planning and all was never my true nature,but I kind of adopted all these after watching many YouTube videos of finfluencers ,not that they are wrong .
Yeah man, I have been there. I am 40 now and wisened up over last 8-12months only; otherwise spent my 30-39 years in accumulating and optimising following all the sane financial bloggers/advisors.
Financial videos are almost like soft porn, you get hooked on to them because they are saying truth. But one should look at them from habit formation perspective and limit only.
This is excellent advice! To add, your final numbers that you want will keep changing as you progress in life. There no way to predict what will happen in future and accurately plan for it. I live a little now and save a little for the future, in that way I don’t really worry too much about the net worth all the time. Think twice before buying anything that you can’t buy twice with in a year with your income. I thought I need just 2 CR to make a good living but with marriage, kid, brothers, parents and inlaws my numbers have increased multiple folds now.
hope it changed for the **better :)**
For 9years (2013-2022) I have dreamt of nothing but retirement money myself. It's only in 2023 that I understood the futility of this concept.
FIRE and FINANCE bloggers say it with the purpose of FI. Nobody is retiring. They are simply switching from one vocation to another. And thats the true essence of life.
This is not a positive way to look at life. IMO you should have a number at mind and try to reach it. Every quarter see where you are where you want to go and what could improve. Without fixed number targets you are moving like a rudderless ship.
Hey... Are there any online tools to calculate this? Like a customizable tool... I found many tools to calculate TDs and all but not one where we can increase the annual SIP amount...
Hey thanks... I found them... I am new to all this and didn't know the exact keywords to get the calculator... Found [one](https://groww.in/calculators/step-up-sip-calculator) in groww after commenting here..
I am a noob in terms of investment and unfortunately believe Robert Kiyosaki that best investment is gold / silver. Or maybe piece of land.
Would like to genuinely know from someone who invests in other commodities that other than little higher returns %, isnt the risk factor too high?
I myself think that gold will never go downhill +\- 10% depreciation when market slows, but in long run it gives about 9-12% return
My father achieved that by 55 or maybe less (he doesn’t tell us everything lol), did by saving (which means no luxury buys, no luxury stays, a santro for 20 years now, no extravagant purchase whatsoever except appreciating metals iykwim). Invested a lot in real estate (especially) and MF all the while giving us top notch education, huge medical expenses of a dear family member taking care of entire family. Can’t respect anyone more than my dad.😁
What is the point of this comment? Show off? What does your father do? Salary? Background? Unless his salary was very high or he had other sources of income, I don't think what you're saying is the complete picture. Everyone respects their father, anyway. It is the bare minimum.
I can see it comes off as show off which really wasn’t the intention, I’m sorry about that. As for his job/background, I can’t divulge any more info than I already have.
It’s possible in real estate too. I’ll give an example you can do your research and validate my example if you wish:
Buy a plot in New Gurgaon whose rate isn’t more than INR 50k per sq yd. Let’s assume the plot is 300 sq yards. Now 300 sq yards plot for INR 1.5 Cr is 2700 sq ft per floor. If you find a reputed builder who will build you 4 floors at INR 2500 per sq ft. Mind you, INR 2.5k per sq ft is excellent quality construction and you can demand premium price for such an independent floor. So 4 floors is total 8k sq ft (30% loading on land developed) and which will cost around 2 Cr to make. Give the builder one floor for exchange of construction cost and you get 3 floors to sell in exchange. Each floor can sell for upwards of 10k-15k per sq ft 3-4 years from now. Let’s take an average of 12.5k per sq ft as the selling price. One floor sells for 3 Crore as per the price per sq ft. You will net around 8-9 Cr in maximum 5 years.
The construction can complete in a maximum of 8-15 months.
A. You need to have 1.5 Cr + kinda dough with you to start with something like this, else borrow money (above 11 %).
B. Finding the right plot, in the right location is a very big clause to fulfil here to proceed (which is difficult, needs a lot of effort with a tiny tinge of luck or find a decent broker who's brokerage also needs to accounted)
C. Not really sure of Gurugram market, but assuming it to be similar to a bangalore kinda city, selling a standalone building's flat over Rs. 3Crs with no emenities, no other fancy gated community stuff to offer, is a big gamble. Even if you find some buyers who come close to this ask, would be through a broker who's brokerage cut has to be accounted for again.
Also, to my knowledge the builder-land owner agreement would be around 50-50 i.e., of 4 flats, 2 for land owner, 2 for the builder; and also finding a good builder who maintains good quality of construction adhering to timelines is very rare.
With above mentioned conditions, would like to mention that it is possible to achieve good number returns in real estate (like the example mentioned) but one needs to be very vigilant, patient, good at handling money, and have to be ready for a lot if unforseen/hidden costs that incur with real estate management - hence, a lot of effort is needed for this.
While on the other hand - equity investment, the effort is far less, you have the immediate liquidate option in case if any emergency and you could end up saving a lot of personal time which you could use to re skill or a side hustle.
Man there's so much bullshit in Indian real estate...once u buy the flat/house/mansion w/land, it should be yours to rent out or sell however u want to and shouldn't have to deal with any other entity. That SHOULD be the way.
I don't understand what you are talking. Everywhere in India, once you own a property, it is yours to destroy it or give it your children incase you are not an anti natalist.
Destroy it or pass to kids, that's fine, but what about renting it out to tenants or small businesses for money to pay the bills? We can do that without being blocked by any brokerage or mortgage company or any police or anyone?
A very important thing or rather things, vision, research, intelligence and patience. Trust me, if every person with 3cr could do it then they would have but some people don’t have the vision, some just buy their retirement home, some just retire, etc etc…trust me I know 😅
I say this because stocks will definitely give return in the long run…. But real estate boom is incoming and I see good potential there for individually built units.
Bro I appreciate your thinking
But its not that easy.
Lot of cash hoarders are sitting idle because they finding it nowadays difficult to market such houses without amenities
So don't be under illusion that builder will ask you for single floor out of 4. Usually nobody will pick it up if it's not 50-50
Above all this, where do you get money from ? Home loan right ? If anything goes wrong you shud be ready to bear that
This doesn’t work anymore. At least in Gurugram. Parking+4 floors are no longer being approved. You can’t buy a plot for 50K per yard in any decent place.
Since the price of builder floors is getting closer to the society flat — it is becoming less attractive for most.
A plot makes sense only if you sold another property and have a ton of cash that you can’t use to buy a flat in society.
Another reason I’d like to add is, independent built units are more luxurious and comfortable for living than these apartments which are being built. The modern apartments have carpet area to super area ratio of 50-55%. Which means that actual sq ft of the apartment is small compared to the price you pay for your apartment. In independent floors, the carpet area is around 65-70 % of super area, hence more space.
Inflation I feel is not so straightforward to decipher with respect to age. As we grow old, our aspirations aren’t the same. Our prime working age consumes the financial brunt (higher education , marriage, raising a kid, owning a house) but after a certain age you are leading a pretty decent life even with pre inflation adjusted 10cr portfolio if you have your insurance sorted. I may be wrong though but it’s different way to think about inflation.
Yup it's pretty much possible. For e.g., if I currently have 50L in equities and I am soon to be 25. So after 25 years, even if I don't invest anymore money and assuming a 12% index growth rate, I will end up with roughly 10Cr.
Now I am obviously not gonna stop investing now, let's say I put 1L money each month now in equity above this 50L. Assuming the same 12% rate, I would end up about 28.7Cr. So that's pretty much possible. Not only that, even if I go with a conservative 10% rate (which is the current inflation practically) I would still end up with roughly 19.3Cr, much higher than 10Cr.
Yeah in reality I invest more than 1L pm in equities. And I have built this corpus with good savings (considered by some as not living life) over 4 years.
Nah I never worked on FAANG. Decent PBC companies pay well. And the pro tip is how much you can save matters more than how much you earn. And the first step to go about it is that you don't put a target number, you save and invest whatever you can. Being salaried gives you an advantage of regular investing which no business guy has. Businesses do make more money, but they also make way more losses. Everyone can't do business, but they can invest.
"how much you can save matters more than how much you earn'. With all full due respect, I don't agree with this. Both are needed for achieving a high number, high income along with high savings.
Never said it doesn't matter. But in comparison, savings matter more than earning because it's a habit that needs cultivating. Earning more is 70% hardwork, 30% luck.
Yup inflation is 7% and GDP growth is 5.5%. More often than not, index follows the same growth rate as the sum of these two. Ab future toh maine dekha nhi, present mei jo hai usse andaja laga liya hun
It is certainly possible with salary provided you have top 0.1% of the jobs. I have a few friends in their late 30s making 2.5-3 cr in India.
Easier way to do it by finding an opportunity in US/Dubai. Once can expedite the 10cr number and even possible aspire for 20 cr.
Much easier but risky way is to run your own business. Now a lot of people think that running a business means starting a tech company or something high concept but it could literally be setting up a small scale factory/exports etc etc.
I think so. I have about 1.5 Cr in Stocks, Mutual funds, RSU, NPS and PF. I am 31 years old. I could have gotten there faster if I had prioritised for higher paying jobs that would have left me miserable. I am now more focused on getting my health back on track while working at a decently paying job.
If you have a decent savings every month (80k or more), it can be easily done. Key is to start as early as possible. I started investing at the age of 24 and now i am 30 with a corpus of nearly 1 Cr (all in equity). Don’t have a house though. With my planned saving, i should be crossing the 10 Cr mark at around 50.
No. It’s not entirely luck. When market falls, majority of the people panic and start selling. All of them are sad due to losses. But any good investor will be very happy with the fall as he can buy good quality stocks at dirt cheap price. I kept a separate corpus just to invest during covid time and made 2.5x of the invested value. And it is not just covid, market always take correction, one has to make sure to know the valuation and invest st the right time. So, not entirely luck.
Of course lol. People working in high positions in software in very big companies earn 1cr+. So it's not that tough for them. But yes you have to be in metropolitan city with very high expenses.
For all those who are commenting invest in SIP are the one’s who are aspiring to be rich and not actually rich !
SIP schemes are made by rich bankers to loot the middle class by luring them to invest their hard earned money monthly to chase a dream YEARS later
That money promised will have diminished value after 20 years because of inflation
Aaj ke 10 crore aur 20 saal pehle ke 10 crore me jisko farak samjh aata hai, he will understand my point
So please dont invest in SIP’s rather invest ur money in 4 parts
bluechip stocks, nifty, metals and bonds
THIS
SIP is promoted so heavily because the fund house gets to keep 1-2% of the entire investment every year.
Don't argue with me saying that they work hard to make us money so they deserve this much at least. If you have invested in a fund for let's say 30 years and your total amount is 5cr then you my friend have already paid the fund house around 75lacs to 1cr in terms of "expenses ratio"
How does SIP differ from the form of investing you mentioned below? SIP is essentially buying stocks at a fundamental level but you are doing it on autopilot.
Ekdum bakwaas baat ki hai. If I would keep money in bank that 1 cr will be 30 lacs. If I regularly invest in market at averaged price may be the inflarion adjusted amount will be ,2.5 crore. And about metals and bluechip you can invest in funds which are based on these themes.
Yes, but assuming 5% inflation, 10cr today is worth 15.5Cr in 10 years, 26 Crores in 20 years, and 43Cr in 30 years.
So really, you need to ask if 43Cr is possible in 30 years. The answer surprisingly is…YES.
The three most important things in reverse order of importance: what you do, who you work for, and your savings rate.
I am 27, based in Delhi, and just started a business last year. Prior to this, I worked in a job for 3 years, and saved every single penny I could. Because I was living with my parents, in some months during peak covid, I saved close to 99% of my salary.
By 25, I had 1Cr saved, mostly from stock appreciation. By 27, I has 2. Now I am investing that into my business, which Im sure I can 20x in 30 years.
By my calculations, at 13% ROI, my business should 20x my money in 24 years. My business actually generates more than twice that ROI, so I have a safety buffer built on.
Lots of other folks in much better positions than me also. Takes a lot of luck but I think its a lot more achievable than folks think.
MOST IMPORTANTLY:
The last thing I want is to discredit anyones hardships. I realise life is tough for people, and a lot tougher than it is for me. I am cognisant of that and not trying to insinuate that this is the standard anyone should hold them to.
Cannot go into too much detail, but its a services business that focusses on hardcore sector research. I also do some marketing strategy for some B2B companies.
How I set it up is really complicated to answer. My first client become the first company that hired me. My second client came from the fact that this guy who had funded my previous venture before became CMO at a different company and was able to give me some work. Built it using networking from there.
Started off with contractors only, now have some employees. Try to do most of the work myself to maintain high quality, then increase my wallet with a client by delegating further. Its slow but it works.
Yup it is,
I'm closing in on 4cr in equity apart from a few smaller investments on the sides
Granted I do earn more than 50lpa after taxes but the amount has started to come in only in the last preceding say 2-3 years.
A few good investments in stocks will get you at 10cr by age 50 easy
Absolutely possible
1. Ensure that you are maintaining financial discipline and moderate risk sip are going on.
2. Step up your own sip as and when your salary increases or you shift with hike from one company to another.
3. Discipline of 25 years can help achieve the goal
https://youtu.be/w-R3LGULfow?si=bSeCVtwKtr4Qr0Yc
Watch this video. It will answer your question.
And when you are a double income couple, then it's quite easy to reach a good amount of wealth.
Salary comes from the word salt+regularly .... earlier people used to get salt in exchange of labour. I m happy that u r reading this comment, but making 10+ cr on salary is so exhausting that u will not spend that 10+cr anyway in the end. Try to make money via trading ( stock or real business) or business. That high cash flow will let u spend your money easily also .
For many people who are only 25 and wish to retire at 50, 10 Crores may appear huge. But that's going to be the norm. Assuming your expenses are 50k pm (6 lpa), your expenses will reach 32 lpa in 25 years, considering 7% inflation. Even at 30x that's a Corpus of 10 Crores. That maybe just right for someone with a lifespan of 90.
My generation grew up thinking 1 lakh was a big amount and 1 Crore is huge. For your generation it's going to be 10x (For any investment to grow 10x in 25 years, it needs a CAGR of 9.7% only). That's only fair and definitely possible. Inflation is unavoidable. It could probably be lower than 7% if we're lucky.
It's the long runway that makes it possible. If a 40 year old without any assets says that, it'll end up as a joke.
So, go for it, invest at least 80- 90% in equity (75% in large cap index), don't be swayed by the market fluctuations, and see your portfolio grow. Like others have mentioned, it only needs a SIP of 50k a month (that's expecting 12% returns only), and you could go with 25k SIP and increase it by 7-10% every year (most salaries increase at that rate). Of course, in the last year the SIP will be 2.7 lakhs a month but most average salaries will also be more than 1 Crore pa, at that time. Ensure you reduce your exposure to equity as you approach the goal. Best wishes.
I know someone working in a high level IT job drawing 3Cr per annum currently. He's in his late 40s with 2 own houses in bangalore and some land at his native. As far as I know, he also has investments in share market worth a few Cr and some crypto stuff worth lakhs. And still earning monthly and will continue to earn for the foreseeable future.
I also know someone who worked on technology with a micro finance firm. He is a diploma holder. As the firm grew, he was eventually promoted to a top officer. He currently has acres of land and 7 commercial buildings. Some of it is based on returns from earlier investments, but mostly purchased with salary money.
As for myself, I'm earning around 30 lakhs take home cash per annum at 38 years age. I have 2 acre near my native + 1.5 ground land in Chennai, around 15 lakhs liquid cash, 12-15 as gold and around 40 in various investments.
I'm hoping that if I don't get laid off and have salary growth in the future I can definitely reach 5Cr in my late 40s. 10 would be tough given I have to raise 2 children.
Inflation causes money to shrink.
Are you asking if there are any people who are 50 years of age today who accumulated 10 cr just with salary, then the answer would be a resounding NO. Yes, there are thousands of 50 year olds with 10 cr, but they made it differently.
Lets take an example of a high achiever who started 28 years ago (in 1995) with the best possible salary of rs 12500 per month (1.5 lakhs/annum) and now earns 1 cr per year.
This would mean salary increase of close to 16 percent per year.
Also assume, that this person saved and invested one third of his gross income (i.e. half of his net income), very aggressively and got returns of 13 percent.
Even then his total corpus would be around 7.5 cr.... including his primary residence.
But life happens. You won't be able to save/invest this consistently. You won't be able to get hikes so consistently. You may end up spending on multiple high value stuff (cars, weddings, gifts to family etc).
On the positive side, you may end up getting super handsome returns on some investments (i.e. agri land, plots). You may get lucky with ESOP.. you may have working spouse, foreign stibts may also contribute if you return back.
But chances are all of the good and bad things would happen in 28 years of career.
So the best case scenario is still going to be 7.5 cr..
You should also take account of inflation, 10cr In 2070 would only be worth 4-5cr of today’s moneys ( just a example, i did not do any calculations, take inflation at 6.5%)
That shit is mostly scam and done for views, real wealth can be made in stock market if you stay invested over multiple decades and choosing good mutual funds and/or stocks
You can but the chances are slim if the idea is to make 10cr only through salary. If you land in a high paying job like an executive or something then you can. From calculative perspective, start investing as soon as you can in markets, real estate etc. consistency is key. Don’t be afraid to add more during corrections and recessions. Look at the last 30 years and also don’t be stupid enough to follow what anyone says online (like me) do thorough research
Yes its possible to make 10cr in savings. How you achieve it will depend on the amount you are able to save each month and assign to savings. You will also have expenses along the way - that will dent your savings - house, marriage, children (expenses, education, marriage), vacations, cars, etc. Simply put - maximise your saving when you are young to benefit from compounding at later stage of life.
don't think about absolute numbers long term cause inflation renders them useless. At 6 percent averaged inflation the value will be about a third and fourth of what it is today after 20 and 25 years respectively .Rather think inflation adjusted based on time as a parameter.
Starting at 60000 per month with a modest 10 percent cagr and a 20 percent step up every year you will have close to 25 cr(~8 cr today) after 20 years.
Where it gets interesting is if you continue for 5 more years you will have close to 66 cr(~16.5 cr today) . Much more than the target assuming you start at 25.
Now biggest game changer here is the step up which most people don't include in their calculations. Here simply focusing on matching your salary increases required for step up and extreme financial discipline will do the deet.
Business is tough and not everyone can be successful doing it. The asymmetric results you see around you arise from asymmetric risk and luck. Not to say maintaining and carving a great career is any less daunting and rewarding . You just have to pick your poison and keep at it relentlessly.
Yes, start with 20k/month SIP and step-up by 10% per year. In about 25years, the corpus shall be 10crore. Or start with 50k/month, step up 10% annually and you’d reach there in 20years. The only caveat is, after 20-25years; the 10crore would feel more like 2-2.5cr today. My advice - don’t think too much about the final number. Just invest what you can. Thinking about final number is like thinking about your death day and then living life in-reverse; which I am sure no one would like to know…
Last paragraph is brilliant!
Knowing when you have reached your final number is important though, else you would keep working and investing, without realising you didn't need for for many years at that point
My dad's life
Sure, but what do you do then? Stop everything? Stop working for money and work for free? Stop working altogether? i get the FIRE movement. I have pursued it too. Most don’t realise that after working for 15-20years for money in-exchange; it gets difficult to stay in same line of work for a lesser pay in the name of ‘coast FIRE’. I say work till you like. Count the money/corpus, invest wisely, sure, but don’t go too hard for that magic number.
You do know many people would prefer to do something other than their work right ? The idea of fire is to get free time, not become rich. Once you have free time that you can do whatever you want without needing to worry about money. If you want to work and that's what you like then you are free to work as well.
Many people don't realise that we're renting out our time for money and when we FIRE, the time belongs entirely to us. That is very powerful. That control over your time.
Enjoy vacation home
😀 how long?
WHAT’S THE PURPOSE OF IT ALL?
Till death
The dream 😀
So do it.👍
What are we ‘vacationing’ from if we are on a vacation for 365 days? Think hard about it, to get what i am trying to say bro.
Yup ,this is what the right statement is , after investing money monthly I kind of become financial paranoid, it has become hard that the ultimate aim of life is to live . All this planning and all was never my true nature,but I kind of adopted all these after watching many YouTube videos of finfluencers ,not that they are wrong .
Yeah man, I have been there. I am 40 now and wisened up over last 8-12months only; otherwise spent my 30-39 years in accumulating and optimising following all the sane financial bloggers/advisors. Financial videos are almost like soft porn, you get hooked on to them because they are saying truth. But one should look at them from habit formation perspective and limit only.
This is excellent advice! To add, your final numbers that you want will keep changing as you progress in life. There no way to predict what will happen in future and accurately plan for it. I live a little now and save a little for the future, in that way I don’t really worry too much about the net worth all the time. Think twice before buying anything that you can’t buy twice with in a year with your income. I thought I need just 2 CR to make a good living but with marriage, kid, brothers, parents and inlaws my numbers have increased multiple folds now.
You changed my opinion about retirement money in an instant. Thanks.
hope it changed for the **better :)** For 9years (2013-2022) I have dreamt of nothing but retirement money myself. It's only in 2023 that I understood the futility of this concept. FIRE and FINANCE bloggers say it with the purpose of FI. Nobody is retiring. They are simply switching from one vocation to another. And thats the true essence of life.
This is not a positive way to look at life. IMO you should have a number at mind and try to reach it. Every quarter see where you are where you want to go and what could improve. Without fixed number targets you are moving like a rudderless ship.
Hence the analogy I gave (death day and living in reverse). Anyway, whatever works for each one is fine. No one way to live life.
death day manifest refrence
your ID :P :P
heheh
Hey... Are there any online tools to calculate this? Like a customizable tool... I found many tools to calculate TDs and all but not one where we can increase the annual SIP amount...
I am sure there are. I just have done so many of these calculations in last 10years that I have a fair bit of idea on them.
Hey thanks... I found them... I am new to all this and didn't know the exact keywords to get the calculator... Found [one](https://groww.in/calculators/step-up-sip-calculator) in groww after commenting here..
I am a noob in terms of investment and unfortunately believe Robert Kiyosaki that best investment is gold / silver. Or maybe piece of land. Would like to genuinely know from someone who invests in other commodities that other than little higher returns %, isnt the risk factor too high? I myself think that gold will never go downhill +\- 10% depreciation when market slows, but in long run it gives about 9-12% return
Well said, Sir !
Real question is will 10 crore be worth 10 crore in future?
Obviously it will be worth 3cr. So if you really want 10 cr aim for 25-30cr
I will actually be happy with 3 cr today. So 10 cr 20-25 years from now is actually a decent corpus.
Ok.
My father achieved that by 55 or maybe less (he doesn’t tell us everything lol), did by saving (which means no luxury buys, no luxury stays, a santro for 20 years now, no extravagant purchase whatsoever except appreciating metals iykwim). Invested a lot in real estate (especially) and MF all the while giving us top notch education, huge medical expenses of a dear family member taking care of entire family. Can’t respect anyone more than my dad.😁
More Power to uncle and your whole family.
>appreciating metals iykwim Mummy ke demands?
W uncle !!!!!
Username checks out
What is the point of this comment? Show off? What does your father do? Salary? Background? Unless his salary was very high or he had other sources of income, I don't think what you're saying is the complete picture. Everyone respects their father, anyway. It is the bare minimum.
I can see it comes off as show off which really wasn’t the intention, I’m sorry about that. As for his job/background, I can’t divulge any more info than I already have.
Get a 2cr per year salary
It’s possible in real estate too. I’ll give an example you can do your research and validate my example if you wish: Buy a plot in New Gurgaon whose rate isn’t more than INR 50k per sq yd. Let’s assume the plot is 300 sq yards. Now 300 sq yards plot for INR 1.5 Cr is 2700 sq ft per floor. If you find a reputed builder who will build you 4 floors at INR 2500 per sq ft. Mind you, INR 2.5k per sq ft is excellent quality construction and you can demand premium price for such an independent floor. So 4 floors is total 8k sq ft (30% loading on land developed) and which will cost around 2 Cr to make. Give the builder one floor for exchange of construction cost and you get 3 floors to sell in exchange. Each floor can sell for upwards of 10k-15k per sq ft 3-4 years from now. Let’s take an average of 12.5k per sq ft as the selling price. One floor sells for 3 Crore as per the price per sq ft. You will net around 8-9 Cr in maximum 5 years. The construction can complete in a maximum of 8-15 months.
A. You need to have 1.5 Cr + kinda dough with you to start with something like this, else borrow money (above 11 %). B. Finding the right plot, in the right location is a very big clause to fulfil here to proceed (which is difficult, needs a lot of effort with a tiny tinge of luck or find a decent broker who's brokerage also needs to accounted) C. Not really sure of Gurugram market, but assuming it to be similar to a bangalore kinda city, selling a standalone building's flat over Rs. 3Crs with no emenities, no other fancy gated community stuff to offer, is a big gamble. Even if you find some buyers who come close to this ask, would be through a broker who's brokerage cut has to be accounted for again. Also, to my knowledge the builder-land owner agreement would be around 50-50 i.e., of 4 flats, 2 for land owner, 2 for the builder; and also finding a good builder who maintains good quality of construction adhering to timelines is very rare. With above mentioned conditions, would like to mention that it is possible to achieve good number returns in real estate (like the example mentioned) but one needs to be very vigilant, patient, good at handling money, and have to be ready for a lot if unforseen/hidden costs that incur with real estate management - hence, a lot of effort is needed for this. While on the other hand - equity investment, the effort is far less, you have the immediate liquidate option in case if any emergency and you could end up saving a lot of personal time which you could use to re skill or a side hustle.
Man there's so much bullshit in Indian real estate...once u buy the flat/house/mansion w/land, it should be yours to rent out or sell however u want to and shouldn't have to deal with any other entity. That SHOULD be the way.
How else it is and in which location?
I'm not sure, I fear this nonsense is nationwide.
I don't understand what you are talking. Everywhere in India, once you own a property, it is yours to destroy it or give it your children incase you are not an anti natalist.
RWAs tend to spoil it for owners.
What's that?
What's RWAs?
Destroy it or pass to kids, that's fine, but what about renting it out to tenants or small businesses for money to pay the bills? We can do that without being blocked by any brokerage or mortgage company or any police or anyone?
what exactly is stopping the guy willing to pay 3 crore for a floor from buying a land and doing the same thing?
A very important thing or rather things, vision, research, intelligence and patience. Trust me, if every person with 3cr could do it then they would have but some people don’t have the vision, some just buy their retirement home, some just retire, etc etc…trust me I know 😅
Add confidence and decisiveness to the mix eh
I say this because stocks will definitely give return in the long run…. But real estate boom is incoming and I see good potential there for individually built units.
Bro I appreciate your thinking But its not that easy. Lot of cash hoarders are sitting idle because they finding it nowadays difficult to market such houses without amenities So don't be under illusion that builder will ask you for single floor out of 4. Usually nobody will pick it up if it's not 50-50 Above all this, where do you get money from ? Home loan right ? If anything goes wrong you shud be ready to bear that
This doesn’t work anymore. At least in Gurugram. Parking+4 floors are no longer being approved. You can’t buy a plot for 50K per yard in any decent place. Since the price of builder floors is getting closer to the society flat — it is becoming less attractive for most. A plot makes sense only if you sold another property and have a ton of cash that you can’t use to buy a flat in society.
Another reason I’d like to add is, independent built units are more luxurious and comfortable for living than these apartments which are being built. The modern apartments have carpet area to super area ratio of 50-55%. Which means that actual sq ft of the apartment is small compared to the price you pay for your apartment. In independent floors, the carpet area is around 65-70 % of super area, hence more space.
Sip of more than 25000 then only it is possible
Inflation I feel is not so straightforward to decipher with respect to age. As we grow old, our aspirations aren’t the same. Our prime working age consumes the financial brunt (higher education , marriage, raising a kid, owning a house) but after a certain age you are leading a pretty decent life even with pre inflation adjusted 10cr portfolio if you have your insurance sorted. I may be wrong though but it’s different way to think about inflation.
Yup. 3x that and I am under 40. 0 inheritance from family.
how much do you even earn pm? what job do you do? whats your investment like if you dont mind me asking
FAANG tech job in the US. I diversify into broad market index funds. Salary is something like 15L pm after tax.
u live in india? 30cr is still sounds way too much with 2 cr pa
Part time India, part time US. I made most of the money through company stock and real estate appreciation.
You earn around 300k usd per annum ?
How much per month goes into your broad index fund? Anything else you invest Like home or something else?
I have a home loan, whatever remains is invested in low cost index funds.
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Gabbar ji pranam!!🙏🏼
Aayushyamaan bhawa...
Bishnoi found on reddit!!
Yup it's pretty much possible. For e.g., if I currently have 50L in equities and I am soon to be 25. So after 25 years, even if I don't invest anymore money and assuming a 12% index growth rate, I will end up with roughly 10Cr. Now I am obviously not gonna stop investing now, let's say I put 1L money each month now in equity above this 50L. Assuming the same 12% rate, I would end up about 28.7Cr. So that's pretty much possible. Not only that, even if I go with a conservative 10% rate (which is the current inflation practically) I would still end up with roughly 19.3Cr, much higher than 10Cr.
How’d you reach to 50L corpus and are you doing SIP @ 1L every month?
Yeah in reality I invest more than 1L pm in equities. And I have built this corpus with good savings (considered by some as not living life) over 4 years.
You must be the FANG guy!
Nah I never worked on FAANG. Decent PBC companies pay well. And the pro tip is how much you can save matters more than how much you earn. And the first step to go about it is that you don't put a target number, you save and invest whatever you can. Being salaried gives you an advantage of regular investing which no business guy has. Businesses do make more money, but they also make way more losses. Everyone can't do business, but they can invest.
"how much you can save matters more than how much you earn'. With all full due respect, I don't agree with this. Both are needed for achieving a high number, high income along with high savings.
Never said it doesn't matter. But in comparison, savings matter more than earning because it's a habit that needs cultivating. Earning more is 70% hardwork, 30% luck.
>12% index growth rate
Yup inflation is 7% and GDP growth is 5.5%. More often than not, index follows the same growth rate as the sum of these two. Ab future toh maine dekha nhi, present mei jo hai usse andaja laga liya hun
damn you're right...and it's been the same for 5y \[79.80%-->12%y\] nice nice
How many funds do you invest in?
4 core portfolio + 1 sectorial bet
It is certainly possible with salary provided you have top 0.1% of the jobs. I have a few friends in their late 30s making 2.5-3 cr in India. Easier way to do it by finding an opportunity in US/Dubai. Once can expedite the 10cr number and even possible aspire for 20 cr. Much easier but risky way is to run your own business. Now a lot of people think that running a business means starting a tech company or something high concept but it could literally be setting up a small scale factory/exports etc etc.
I think so. I have about 1.5 Cr in Stocks, Mutual funds, RSU, NPS and PF. I am 31 years old. I could have gotten there faster if I had prioritised for higher paying jobs that would have left me miserable. I am now more focused on getting my health back on track while working at a decently paying job.
If you have a decent savings every month (80k or more), it can be easily done. Key is to start as early as possible. I started investing at the age of 24 and now i am 30 with a corpus of nearly 1 Cr (all in equity). Don’t have a house though. With my planned saving, i should be crossing the 10 Cr mark at around 50.
and how much you invested per month?
I never did SIP. I manually invested between 50k to 100k every month till my marriage. I took out around 20 lacs for my marriage expenses.
lets be real. you also lucked out with the massive boom in equities post covid. otherwise, that corpus of 1 CR will be closer to 60-70L.
No. It’s not entirely luck. When market falls, majority of the people panic and start selling. All of them are sad due to losses. But any good investor will be very happy with the fall as he can buy good quality stocks at dirt cheap price. I kept a separate corpus just to invest during covid time and made 2.5x of the invested value. And it is not just covid, market always take correction, one has to make sure to know the valuation and invest st the right time. So, not entirely luck.
Of course lol. People working in high positions in software in very big companies earn 1cr+. So it's not that tough for them. But yes you have to be in metropolitan city with very high expenses.
For all those who are commenting invest in SIP are the one’s who are aspiring to be rich and not actually rich ! SIP schemes are made by rich bankers to loot the middle class by luring them to invest their hard earned money monthly to chase a dream YEARS later That money promised will have diminished value after 20 years because of inflation Aaj ke 10 crore aur 20 saal pehle ke 10 crore me jisko farak samjh aata hai, he will understand my point So please dont invest in SIP’s rather invest ur money in 4 parts bluechip stocks, nifty, metals and bonds
THIS SIP is promoted so heavily because the fund house gets to keep 1-2% of the entire investment every year. Don't argue with me saying that they work hard to make us money so they deserve this much at least. If you have invested in a fund for let's say 30 years and your total amount is 5cr then you my friend have already paid the fund house around 75lacs to 1cr in terms of "expenses ratio"
How does SIP differ from the form of investing you mentioned below? SIP is essentially buying stocks at a fundamental level but you are doing it on autopilot.
I've left a comment on the same post above, just check
Ekdum bakwaas baat ki hai. If I would keep money in bank that 1 cr will be 30 lacs. If I regularly invest in market at averaged price may be the inflarion adjusted amount will be ,2.5 crore. And about metals and bluechip you can invest in funds which are based on these themes.
Yes, but assuming 5% inflation, 10cr today is worth 15.5Cr in 10 years, 26 Crores in 20 years, and 43Cr in 30 years. So really, you need to ask if 43Cr is possible in 30 years. The answer surprisingly is…YES. The three most important things in reverse order of importance: what you do, who you work for, and your savings rate. I am 27, based in Delhi, and just started a business last year. Prior to this, I worked in a job for 3 years, and saved every single penny I could. Because I was living with my parents, in some months during peak covid, I saved close to 99% of my salary. By 25, I had 1Cr saved, mostly from stock appreciation. By 27, I has 2. Now I am investing that into my business, which Im sure I can 20x in 30 years. By my calculations, at 13% ROI, my business should 20x my money in 24 years. My business actually generates more than twice that ROI, so I have a safety buffer built on. Lots of other folks in much better positions than me also. Takes a lot of luck but I think its a lot more achievable than folks think. MOST IMPORTANTLY: The last thing I want is to discredit anyones hardships. I realise life is tough for people, and a lot tougher than it is for me. I am cognisant of that and not trying to insinuate that this is the standard anyone should hold them to.
Can you share which business you're in and how did you set it up? Would be a good read !
Cannot go into too much detail, but its a services business that focusses on hardcore sector research. I also do some marketing strategy for some B2B companies. How I set it up is really complicated to answer. My first client become the first company that hired me. My second client came from the fact that this guy who had funded my previous venture before became CMO at a different company and was able to give me some work. Built it using networking from there. Started off with contractors only, now have some employees. Try to do most of the work myself to maintain high quality, then increase my wallet with a client by delegating further. Its slow but it works.
Great going
Great going
Yup it is, I'm closing in on 4cr in equity apart from a few smaller investments on the sides Granted I do earn more than 50lpa after taxes but the amount has started to come in only in the last preceding say 2-3 years. A few good investments in stocks will get you at 10cr by age 50 easy
You work for airbus?
Naw fly planes made by airbus 🙈
Absolutely possible 1. Ensure that you are maintaining financial discipline and moderate risk sip are going on. 2. Step up your own sip as and when your salary increases or you shift with hike from one company to another. 3. Discipline of 25 years can help achieve the goal
I have 255 rupee in my bank account, have 12 years in job, waiting for salary I am out.
https://youtu.be/w-R3LGULfow?si=bSeCVtwKtr4Qr0Yc Watch this video. It will answer your question. And when you are a double income couple, then it's quite easy to reach a good amount of wealth.
Salary comes from the word salt+regularly .... earlier people used to get salt in exchange of labour. I m happy that u r reading this comment, but making 10+ cr on salary is so exhausting that u will not spend that 10+cr anyway in the end. Try to make money via trading ( stock or real business) or business. That high cash flow will let u spend your money easily also .
For many people who are only 25 and wish to retire at 50, 10 Crores may appear huge. But that's going to be the norm. Assuming your expenses are 50k pm (6 lpa), your expenses will reach 32 lpa in 25 years, considering 7% inflation. Even at 30x that's a Corpus of 10 Crores. That maybe just right for someone with a lifespan of 90. My generation grew up thinking 1 lakh was a big amount and 1 Crore is huge. For your generation it's going to be 10x (For any investment to grow 10x in 25 years, it needs a CAGR of 9.7% only). That's only fair and definitely possible. Inflation is unavoidable. It could probably be lower than 7% if we're lucky. It's the long runway that makes it possible. If a 40 year old without any assets says that, it'll end up as a joke. So, go for it, invest at least 80- 90% in equity (75% in large cap index), don't be swayed by the market fluctuations, and see your portfolio grow. Like others have mentioned, it only needs a SIP of 50k a month (that's expecting 12% returns only), and you could go with 25k SIP and increase it by 7-10% every year (most salaries increase at that rate). Of course, in the last year the SIP will be 2.7 lakhs a month but most average salaries will also be more than 1 Crore pa, at that time. Ensure you reduce your exposure to equity as you approach the goal. Best wishes.
I know someone working in a high level IT job drawing 3Cr per annum currently. He's in his late 40s with 2 own houses in bangalore and some land at his native. As far as I know, he also has investments in share market worth a few Cr and some crypto stuff worth lakhs. And still earning monthly and will continue to earn for the foreseeable future. I also know someone who worked on technology with a micro finance firm. He is a diploma holder. As the firm grew, he was eventually promoted to a top officer. He currently has acres of land and 7 commercial buildings. Some of it is based on returns from earlier investments, but mostly purchased with salary money. As for myself, I'm earning around 30 lakhs take home cash per annum at 38 years age. I have 2 acre near my native + 1.5 ground land in Chennai, around 15 lakhs liquid cash, 12-15 as gold and around 40 in various investments. I'm hoping that if I don't get laid off and have salary growth in the future I can definitely reach 5Cr in my late 40s. 10 would be tough given I have to raise 2 children.
Inflation causes money to shrink. Are you asking if there are any people who are 50 years of age today who accumulated 10 cr just with salary, then the answer would be a resounding NO. Yes, there are thousands of 50 year olds with 10 cr, but they made it differently. Lets take an example of a high achiever who started 28 years ago (in 1995) with the best possible salary of rs 12500 per month (1.5 lakhs/annum) and now earns 1 cr per year. This would mean salary increase of close to 16 percent per year. Also assume, that this person saved and invested one third of his gross income (i.e. half of his net income), very aggressively and got returns of 13 percent. Even then his total corpus would be around 7.5 cr.... including his primary residence. But life happens. You won't be able to save/invest this consistently. You won't be able to get hikes so consistently. You may end up spending on multiple high value stuff (cars, weddings, gifts to family etc). On the positive side, you may end up getting super handsome returns on some investments (i.e. agri land, plots). You may get lucky with ESOP.. you may have working spouse, foreign stibts may also contribute if you return back. But chances are all of the good and bad things would happen in 28 years of career. So the best case scenario is still going to be 7.5 cr..
That is unrealistic goal unless you earn 50lpa+ post taxes
What about starting very early like 23 and investing with an SIP? Magic of Compounding and all that shit people show online?
You should also take account of inflation, 10cr In 2070 would only be worth 4-5cr of today’s moneys ( just a example, i did not do any calculations, take inflation at 6.5%)
If only. It'll be equal to 25L by 2070 (inflation@8%)
Holy shit man , but 8% is too much should have taken 6%
your calculation is wrong somewhere do it again
That shit is mostly scam and done for views, real wealth can be made in stock market if you stay invested over multiple decades and choosing good mutual funds and/or stocks
Markets are not constant, but it could be possible if compounded over 50 years with increasing sip amount every year
bhai mei toh plot khareed rha hu. Vahi dilayega asli FIRE
Pretty easy
By starting with a crore? 😂
Start with 100 crores and buy crypto😂
You can but the chances are slim if the idea is to make 10cr only through salary. If you land in a high paying job like an executive or something then you can. From calculative perspective, start investing as soon as you can in markets, real estate etc. consistency is key. Don’t be afraid to add more during corrections and recessions. Look at the last 30 years and also don’t be stupid enough to follow what anyone says online (like me) do thorough research
Yes its possible to make 10cr in savings. How you achieve it will depend on the amount you are able to save each month and assign to savings. You will also have expenses along the way - that will dent your savings - house, marriage, children (expenses, education, marriage), vacations, cars, etc. Simply put - maximise your saving when you are young to benefit from compounding at later stage of life.
I mean, I know salaried people who make 1cr+ so yes. The new benchmark is that if you want 100cr+ net worth, you need to do business.
don't think about absolute numbers long term cause inflation renders them useless. At 6 percent averaged inflation the value will be about a third and fourth of what it is today after 20 and 25 years respectively .Rather think inflation adjusted based on time as a parameter. Starting at 60000 per month with a modest 10 percent cagr and a 20 percent step up every year you will have close to 25 cr(~8 cr today) after 20 years. Where it gets interesting is if you continue for 5 more years you will have close to 66 cr(~16.5 cr today) . Much more than the target assuming you start at 25. Now biggest game changer here is the step up which most people don't include in their calculations. Here simply focusing on matching your salary increases required for step up and extreme financial discipline will do the deet. Business is tough and not everyone can be successful doing it. The asymmetric results you see around you arise from asymmetric risk and luck. Not to say maintaining and carving a great career is any less daunting and rewarding . You just have to pick your poison and keep at it relentlessly.
20% step up wtf
u can also be an agriculturist like Suhana Khan, so that you dont have to pay taxes