How to become a crorepati at a young age

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April 5, 2021 11:29 AM

With proper planning and constant saving, it is possible to become a crorepati by the time you retire and even at a young age.

It is wrong to assume that you can become rich only if you start earning big money. It is not what you earn, but what you spend and what you save that ultimately matters.

Everyone dreams to be a crorepati. In fact, as rich as may be possible. However, many people think that becoming one is impossible and so they don’t make any effort towards it. That is a wrong approach, however. Simply because if someone starts saving even a small amount per month in mutual funds or any other instrument which gives, say, 8-10% return, one can become a crorepati by the time one retires.

The fact is becoming wealthy requires lots of had work, self-discipline and financial planning. If you don’t plan for the future and don’t do something to meet your goals, you are unlikely to become rich. It is also wrong to assume that you can become rich only if you start earning big money. Always remember that it is not what you earn, but what you spend and what you save that ultimately matters.

So, with proper planning and constant saving, it is possible to become a crorepati by the time you retire and even at a young age. Here are some golden rules for doing it.

1. Chalk out a budget: The first step to any investment is understanding how much you earn, how much you spend, and how much you can save. Track your expenses to identify your average expenses and spending habits. Make a list of mandatory expenses like rent, commuting, food, etc., and draw up a budget. Try to stick to this budget as much as possible.

2. Plan and be consistent: Planning and execution are the two important aspects to making money. This can now be easily done with the help of a mobile app, where one can define the goals, the amount of money to be invested and how one can go about attaining the desired goals. Of course, one must make informed, well-researched decisions and invest accordingly.

3. Set up goals for life: Everyone has different financial goals in life. While saving up the first 10 million is an admirable goal, you need to figure out what other goals you need to meet while you are working towards your 10 mn. Determine long-term goals that you would like to achieve, such as buying a house, vehicle, wedding, starting your own venture, etc. and also for retirement.

“Also figure out what constitutes the 10 mn, and where it fits into your overall goals. Is it property, other assets like gold, equity investments, or a blend of several investments towards your retirement? Keep these factors in mind when you chart your goals. Keep in mind that requirements, and therefore goals, will change with time, and you need to be flexible to accommodate these changes,” says Adhil Shetty, CEO,

4. Be frugal and wise: Frugality goes a long way and helps savings, like the age old adage – ‘Money saved is money earned’. So be wise, spend where required and indulge with caution.

5. Start early, be regular: Ther earlier you start investing, the more time you give your investments to grow, allowing you to accelerate towards your goals. This is also a very realistic way of managing risk. For instance, if you invest Rs 20,000 per month in an equity SIP with returns of 15% CAGR, it would take you a little more than 13 years to accumulate Rs 1 crore. However, if you wanted to get the same returns in 10 years, then you would need a CAGR of at least 24% if you continue to save Rs 20,000 per month.

“This means you would have to take on higher risks later in order to achieve the same goals. So, your options at that point would be to invest in riskier – which is never a good idea – or to increase your monthly investments to meet the goal – which may not be always possible. So, the earlier you start, the better it would be for you,” informs Shetty.

6. Be well diversified: The younger you are, there is a larger appetite for risk (not reckless risk). This is the time to look at more avenues higher returns in the long term. Making a crore requires patience, skillfull and well-researched allocation of money across asset classes.

So, “this is the time to invest more in direct equities or through the SIP route in equity bases mutual funds (please note, one should be well guided on which fund to choose to which equity to invest in). Do not ignore the fixed deposits/ Debt Funds, tax saving plans where the money has the potential to grow due to the power of compounding. Also, don’t ignore the importance of health insurance / term insurance as these tools help take care of savings when there is an unexpected exigency,” Saurav Basu, Head-Wealth Management at Tata Capital.


Youth today, with a go-getter and aim-higher attitude, has more active working years at hand. With abundance of well-researched information available about potential market opportunities and need-gaps in almost all spheres of life, all it takes is to be methodical about identifying the right-fit opportunity and then working on solving the challenge.

Alongside, “ensuring financial discipline all through the journey is the magic mantra. The power of compounding works better with a longer tenure. Invest systematically in right kind of savings and investment plan (SIPs) as early as possible. Remember the Rule of 72! 72 upon the interest rate gives the number of years it takes for your investment to double itself. A little sum contributed periodically can go a long way to accumulate wealth in a few years. Being crorepati is not that difficult as it appears, or is it?” asks Ashish Misra, COO-Retail Banking at Fincare Small Finance Bank.

So, Stay Informed, Stay Focused, Stay Disciplined and Be Patient!

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