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To lead a comfortable life and have a financially secure future, you need to exercise financial discipline and have a well-defined financial strategy. This includes saving more money, making informed investments, and cutting down on your expenses. But all these efforts would count for nothing if you do not factor in the inflation rate while planning your financial future.

Is it possible to become a Crorepati in 15 years?

The journey of becoming a ‘Crorepati’ in 15 years is not an easy one but is not impossible either. It requires a disciplined and persistent approach on your part to achieve this target.

Keeping the money idle in your bank account is not going to serve any purpose because the real value of the money is going to go down over time. Unless you plan to participate in the game show ‘Kaun Banega Crorepati’, you need to focus on wealth creation by investing in high-return yielding investments. Let the focus be on wealth creation because with time your expenses will also increase.

How to become a Crorepati in 15 years?

Let’s assume that your age is 30 years and your monthly salary is Rs. 100,000. Say, you spend almost 60% of your salary on your regular monthly expenses. This will leave you with a spare amount of Rs. 40,000. Now, assuming that you want to keep Rs. 15,000 for emergency purposes in your bank account and can spare Rs. 25,000 for investment. If you have an investment horizon of 15 years and the expected rate of returns on the investment is 10%, then by the time you are 45 years old, you will have a corpus of Rs. 1.02 crores.

Thus, it is evident from the above example that you need to invest Rs. 25,000 per month for the next 15 years to meet this goal. This time horizon might change based on the rate of returns your investment generate as well as the amount you invest. It is safe to assume that your income will increase with time and you will have more spare funds to invest. So, you can achieve this target sooner than expected as well.

How to develop a plan to become a Crorepati in 15 years?

Here are some essential points that you need to consider while developing a financial plan to make 1 crore from your investments in 15 years.

Manage your expenses: It is crucial for you to honor your present financial commitments as well as save for the future. You must, therefore, cut down on unnecessary expenses and try to save as much money as possible. Cutting down on wasteful expenses will allow you to spare more money for investment.

Take professional help: It is not possible for everyone to know everything about finances and investment. So, you must take help of a financial planner to develop a well-rounded financial plan that not only takes care of your future expectations but meets your present expenses also.

Invest in mutual funds: Mutual funds are one of the highest return yielding investment avenues that are available in the market. You need to identify the most suitable scheme(s) according to their past performance and your financial profile.

Diversify your investments: Though conservative wisdom will tell you that fixed deposit is a safe investment avenue, it is also amongst the lowest return yielding option. So, you need to diversify your investment portfolio with different instruments with variable risk factors. This will help you mitigate the risk involved and get higher returns on your investment.

Tax Saving Investments: Several investment avenues allow you to claim a deduction of up to Rs. 1.5 lakhs from your taxable income. ELSS, PPF, NPS, NSC, Tax-saving FD are some of the investment avenues that will offer you stable returns as well as reduce your tax liabilities.

Patience is the key: For your investment to generate higher returns, you need to have a long investment horizon. Wealth building requires a disciplined and focused financial approach. Getting your investments to grow is a time taking the process, and you need to exercise patience to be able to achieve your financial goals.

With a cautious financial approach and well-developed financial plan, many an investor has proved this possible. Are you game?

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