Crorepati! Become one multiple times over; Turn your Rs 1,560 into Rs 1 crore, Rs 5,000 into into Rs 3 crore!
Who doesn’t want to have a lavish life with no worries of spending money on things she/he desires. It is mostly hard work and very few people manage to crack the question of ‘How to become a crorepati?’ In fact, for those who are really hungry for success, it is not that hard. Yes, you can turn Rs 5,000 into into Rs 3 crore, albeit in a few years. How? Make compound interest work in your favour. Literally, compound interest will make you a crorepati! The power of compounding can let your few thousands to grow in millions in a few years. Smart investment and patience combo can make you sit on a huge stack of money.
Compound Interest facilitates double benefit to an investor, as it fetches interest on the amount invested, says Fincart’s founder and MD Tanveer Alam. The formula ensures that the investor gets interest on not only the principal amount but also on the interest.
How to turn Rs 5,000 into into Rs 3 crore?
There is no doubt that compounding returns actually add to the investment manifold – year after year.
The process involves turning to a Systematic Investment Plan (SIP) of Rs 5,000 every month. When finally added up, this amount turns into Rs 3 crore! The period taken? 30 years.
But the important part is patience, which actually makes money grow. Anyone who is looking to accumulate a huge amount with small savings, he has to go for a long term investment. Now, this will help you gain more from the compounding money you are getting.
Maximum profit will flow to the early birds – the earlier they start investing, the better its is, as it allows you to earn more in less time!
Money-Wise At Young Age
1. At the age of 25 years: The one who is starting at the age of 25, would be able to make her or his fund turn into Rs 1 crore by the age of 60 years. And this can be started with an investment of Rs 1,560.
2. At the age of 35 years: A 35 year old person will have to begin with a monthly SIP of Rs 8,000 to reach the same goal.
3. At the age of 45 years: A 45-year-old will have to invest Rs 30,000 per month to gather the same amount of funds.
If investor wants to double the money every 5 years, she/he needs to begin a monthly SIPs of Rs 5,000. With an average 12% annual returns on the investments, the amount will be doubled every 5 years. Having said that the earlier you start the better, know that it is never too late to start saving and investing.