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
Example:
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: WealthBazaar.in