All it Takes to Become a Crorepati is your Salary


All it Takes to Become a Crorepati is your Salary

No matter what people say, it is not impossible to become a Crorepati with your regular income if you plan and invest correctly. The three main aspects that can make it possible are:

  • Amount of your investments

  • Rate of return

  • Time horizon of your investment

What you need to do is to be a little disciplined with your savings and then invest your funds in the right instruments to get your big returns. If you can save at least Rs. 5,000 a month or Rs. 50,000 a year, with right investments, you can become a Crorepati within 25 years.

Amount of your investments

Your returns will depend on how much you can save to invest and where you invest it. Remember, in most instruments, the higher the investments, the higher the returns. With the help of the following table, you will understand how even a small rise in your investment amount can drastically increase your returns.

Amount invested per year

with 12% rate of return

Total investment

Amount after 25 years

Rs. 25,000

Rs. 7,50,000

Rs. 73,53,000

Rs. 50,000

Rs. 15,00,000

Rs. 1,47,00,000

Rs. 1,00,000

Rs. 30,00,000

Rs. 2,94,00,000


Rate of return

The rate of return you get per year is what that determines how fast your money will grow. The higher the rate, the more money you will make after a stipulated time. Your target should be to find an investment option that will give you the highest returns. However, with higher returns come risks, hence, you need to decide how much of a risk you are willing to take. Returns on absolutely low risk investments will be much lower than risky instruments.

According to experts, asset allocation works best to maximize returns and minimize risks. Distribute your investments in high-risk investments such as stocks and commodities and low-risk investments such as bonds, gold and fixed deposits to get the best results. This way, even if one asset class suffers, the other will make up for the losses.

Time horizon of your investment

The longer your money is invested, the more it grows in value. Investing for a longer period means that your invested money will be reinvested which will add higher returns to your account. So, if you start early, you will see your money grow significantly over time.

So start early and steadily to become a Crorepati.

Click here to see how long you will take to make Rs. 1 crore out of your savings based on your age.



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