You might be wondering how KBC has turned out in our dictionary. It doesn't matter who will be a crorepati in the current era. All it matters is 'HOW' to become a crorepati. You would want to follow different strategies to be one of the millionaires/billionaires. Hurrah! You found the treasure chest of one strategy that will turn your life around! Now even you can be a crorepati where you can have a comfortable life in the future just by having ₹1,000 today.
Yes, you read that right, but before we tell you how to become a crorepati with just ₹1,000, we need to understand a few basic financial concepts and strategies that will act as the foundation for your upcoming empire.
FIRE–"Financially Independent & Retire Early" is a concept followed broadly in western countries. Youth over there don't want to be under the control of their parents after their teenage years. They believe in living independently from their own earned money, and this shows their individuality and value of money. It increases their self-confidence and creates self-security for them.
Success Mantra– All of us are from the generation where we are taught 'HOW TO MAKE 'money but not 'HOW TO SAVE' money. Most of us spend from our income and save what is left after all the expenses. We follow "Income – Expenses = Savings" However, we should be following the new mantra of Life "Income – Savings = Expenses". We should save at least 30% of our income and spend the remaining to pay our bills.
Financial Goals– The youth of today will have numerous goals they would want to come true. Most of them would be difficult to achieve, but they don't try to work towards them. It could be an iPhone gift to Dad, a family trip, helping a father at the time of building a house, or a sibling's marriage; regardless of what it is or how difficult it seems, we must start working towards it.
As the saying goes, "You don't have to be great to start, but you have to start to be great".
Power of Compounding– Warren Buffet's net worth was earned after his 65th birthday. Isn't that surprising? Buffet started investing in his early teens, and now he is one of the wealthiest people on the planet. Doesn't it feel great to be like him? absolutely, yes! Even if you have a decent job till your old age, you still won't be able to fulfil your dreams; that's when you realize that investing is very important. A legend once said, "Paisa hi paisa ko banata hai" (Money makes money); yes, it is very accurate. Such is the power of compounding.
By starting with a small amount of Rs.1000 today, you will become a Crorepati in just 10 -15 years, depending on your income and lifestyle. Don't worry about how because we have everything planned for you.
You can invest in multiple ways in terms of your risk appetite in equity markets, debt markets, money markets, and mutual funds. But you have to be very cautious with the market risks. It requires much capital to start with the equity markets, but don't worry; we have taken care of how to start your millionaire journey with us. Start investing in a Systematic Investment Plan (SIP) with as low as ₹1000 in mutual funds whose annual returns are 15% which is not a big deal to achieve because Index returns are close to 12-16%. There are mutual funds which outperform the index returns.
Always remember: Mutual Fund investments are subject to market risks; read all related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market, including the fluctuations in the interest rates.
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