in Finance, Investment

How Small Savings can make you a Double Crorepati

Small is always big!!!

  • Are you worried about your current income being less than 25000
  • Are you worried about your Retirement needs & your child education

If you are looking for a solution to the above questions, here is how you can create wealth of 2 Crore just by leaving two bad habits.

Well, We agree by cutting down small expenses wont help you earn big buck in short term but it will really improve your financial life if you plan for a longer duration.

We, in our financial life, have a lot of bad habits like

  • Drinking,
  • Smoking,
  • Over eating  junk food,
  • Wasting petrol,
  • Spending on items which give us instant happiness

Small pains taken today by cutting down on these expenses can help you create wealth in a long run. Many a times, we keep on thinking about bigger problems & tend to forget about these small problems.

Leave Smoking & become a Crorepati at Retirement

Now normally a person in India is retired at the age of 60. So, if a person is aged 35 or below, he has 25 long years to plan his finances and reap benefit at the time of retirement


Every person dream to become a Crorepati. And we think that money can be handy enough at the time of retirement. Now, how it is possible to become Crorepati?

You would be able to build a corpus of 1.20 crore by retirement if you just quit your smoking i.e Rs 40 per day & save Rs 30 per day on petrol. We don’t have a exact idea as to how much does a quality smoker spends on smoking per day. We have safely assumed it to be Rs 40 pr day. Now if you invest Rs 70 per day which we have mentioned above in equity mutual funds would help you in building a corpus size of Rs 1.20 Crores by retirement assuming the current age to be 35 or less. This is possible by assuming a rate of return of 18% per annum which Sensex & Mutual funds have delivered taking into consideration last 5 years , 10 years or infact 20 years of history. If you still don’t believe, Sensex value as on 1 Jan, 1991 was 1027 & on 1 Jan, 2001 was 3940

Forgive Junk Food & Plan out Child Eduaction & Foreign Vacation

Likewise,every person has a financial goal of his child education & his daughter marriage & a oreign vacation. And Likewise,you would be able to build a corpus of 35 Lakhs in next 18 years at the age of 48 assuming the current age being 30  if you just quit your junk food i.e Rs 75 per day which you send at the office canteen with your office friends  Now if you invest Rs 75 per day in equity mutual funds would help you in building a corpus size of Rs 36 Lakhs by next 18 years or infact another 1 Crore if you are able to hold it till retirement i.e 25 years by assuming a rate of return of 18% per annum

We haven’t mentioned anything quitting your drinking habits. So you can continue drinking & become a double Crorepati.

– This article has been provided by Mayank Gupta, an MBA in Finance. He also runs a website:

Facebook Comments


  1. hmmm…. really need to think on those lines….
    Agreed buddy….. smoking not only kills but also makes you poorer… LOL

  2. Very nice points you mentioned here, these small things which we can avoid are really important and we should think over it.
    Thanks for sharing buddy.

  3. yes….you are right sir..smoking is slow death and people are not in hurry !!!!!!!!!!!!!!!!!!

    • Hey Mayank,
      Any further tips for someone like me. I don’t take tea, coffee, carbonated drinks, smoking. Luckily, my house is only 1Km from my office so I prefer walking.
      Please suggest investment tips to get best returns.
      Manish Saxena

      • Hi Manish,
        It is nice to see you asking for a query!!!
        Now as I said, start up a SIP of Rs 200 daily or 6000 monthly, invest for 10 years & then you must stop your SIP after 10 years and let the money grow till 25 years till retirement. You wil get whopping 3.5 Crores on retirement. assuming 18% return in mutaul funds

    • Dear Mayank,

      What ever you have mentioned in your article not to do. i don’t do any of them. but still i’m not able to save even 2000k per month. as the prices of every essential things are getting hiher and higher and there is no change in income bracket…

      can you suggest anything more…

  4. I am a Private Sector Service Holder having monthly salary Rs.22000/- per month , and have tow child one son 6 year and one daughter 2 year my age now 42 .
    I am interested to invest Rs.2500/- per month in Mutual fund , kindly advice me which mutual fund is better for me .

    • @Chittaranjan
      You should divide your investment into a mix of debt and equity oriented mutual funds.
      Consider investing 1500 in any of the balanced scheme: Reliance Regular Savings Balanced, HDFC prudence, DSPBR Balanced, HDFC Balanced or HDFC Children’s Gift
      and rest 1000 in any of the diversified equity mutual fund like DSPBR Top 100 equity, Franklin India Bluechip, HDFC Equity, Templeton India Growth, HDFC Growth, IDFC Premier Equity or Reliance Regular Savings Equity.

      I would also advise you to buy a Term insurance for yourself at-least for sum assured of 30-40 lacs.

      • I think it will not be fair to straight away suggest some mutual fund names.
        Before that you need to set a target/goal (short/mid/long term) which you want to achieve through your investment.
        Without target you accumulated corpus will always be less that expected.

        Some funds may be helpful for earning a good retirement corpus where else others may be much more aggressive to overcome some short term goal like overseas vacation/purchasing a new house etc. Others may be helpful for child education/marriage plan etc.

        After setting the target you can choose the funds to go with.

  5. Hi Chitaranjan,
    Everyone has different goals in life, but broadly for a person like Chittaranjan, he would be able to build a corpus of 1.4 Crores till retirement by investing 2500 per month in equity funds assuming 18% rate of return which Sensex has given considering last 5 years, 10 years, 20 years horizon. And I think MF may perform better than the index

  6. Thanks for your valuable advice,
    nearly I must invest 1500/- per month in HDFC Top 200 MF and 1500/ per month in Reliance Regular Savings Balanced,


  7. hi pankaj,
    Actually I am giving 12000 Per month for my sister medicine , as she is suffering from Mind Tuberculosis from 2009.

    She is Divorsed.

    So kindly suggest me can i save some tax by showing this medical expenses , and if yes than how

    • @Sachin
      You can claim tax deduction for medical treatment for your dependent sister u/s 80DDB. Maximum Rs 40,000 (60,000 in case of senior citizens) would be allowed for deduction.
      Not all diseases are covered and you would need to check if your sister’s illness is covered under Govt list. You would need to get form 10I signed by a Government hospital.
      You may download form 10I here:

  8. Sir, I have only Rs 40000, where i will invest to get it doubled quickly within 1 year?

    • @Raghav
      There is no safe shortcut for quick gains.
      There is no investment in market which can provide you guaranteed returns more than 11-12% p.a.

    • Hi Raghav

      If you want to become rich quickly, you may end up on the losing side, rather than gaining. Invest in equity mutual funds which can make your money double in 4 years and 4 times in 8 years (again not guaranteed) Stay invested, you will get such return

  9. I have no knowlege about mutual fund I want to invest 2000 rs per month give some suggesition

  10. Dear Pankaj,

    I have been investing Rs. 1000 in Reliance Long term Equity fund for last 13 months. The Said investment is showing a steady declinement in performance if i compare it with my other mutual fund investment of Rs. 1000 in ICICI focused blue-chip fund. Should I continue with Reliance long term equity fund or should i switch it to any other fund.

  11. Hi Anirban,
    I would like to know more details about your risk profile and your financial goals before suggesting you funds as it is difficult to suggest otherwise.

    But if you want to stick to pure equity funds category only, then I would personally recommend HDFC Top 200 Fund (evergreen fund)

    • I want to make a savings balance for the higher studies of our unborn child whom we are expecting in another 7 months. I have invested Rs. 1000 each in reliance long term equity fund and icici prudential focussed blue chip fund and planning to invest another Rs 1000 in another fund. kindly suggest me which fund should i select and how long should i continue with these funds. How much return should i expect from the above mentioned investments.

      • @Anirban
        You should first buy a term insurance plan if not already taken.
        After that, create your portfolio for long term by mixing equity and debt based investments. You may also add gold investment but not more than 10-15% of total investment.
        For equity, you may pick one fund each from different categories like Large cap, Multi cap and Small and mid cap.
        Invest into PPF or debt based mutual funds for debt portion.

        Equity investment should be done for long term. Minimum time frame you should stay invested in equity investments is 5-8 years.

        if you make such portfolio, you can expect 12-15% returns over a longer period (8-10 years).

  12. I have a Reliance Tax relief 96 Growth and investing 1500 pm, i started 1 year back but i dont see any profits compared to other funds i hold, please suggest me if i need to hold this fund or should i change over to any other fund.

    Thank you

    • @Bilwa
      As markets have not been very good in last 1-2 years, you won’t see much profits in your folio. In equity funds, minimum investment duration should be around 3-5 years.

  13. Hi Bilwa,

    I dont think so, there is any fund by the name of Reliance Tax Relief 96. Either it is Birla Tax Relief 96 OR Reliance Tax Saver

  14. hi
    i want 1 crore in next 25 year , so pl sugest how much i have to invest and which fund to invest please sugget

    • @Sandeep
      If you invest around 8000 per month for next 25 years into equity diversified mutual funds, at expected return of 10%, you would have 1 crore after 25 years.

Comments are closed.