REACHING THE CROREPATI CLUB WITH JUST RS.30,000/- SALARY, A REALISTIC GUIDE

Many people dream of joining the coveted CROREPATI CLUB,  but with a salary of Rs 30,000 per month, it can seem like a distant goal. However, with a strategic plan, consistent effort, and smart investing, this dream can be a reality. Let's delve into a practical plan with a step-by-step guide.

## 1. Start with a Manageable Investment

Set a Realistic Savings Target

Rather than aiming for an arbitrary amount, calculate how much you can comfortably save each month. Allocate 15-20% of your monthly salary for investment. For a Rs 30,000 salary, this translates to Rs 4,500 to Rs 6,000 per month. Remember, consistency matters more than the initial amount.

 

## 2. Harness the Power of SIPs (Systematic Investment Plans)

 

Systematic Investment Plans (SIPs) are a powerful tool for both saving and creating wealth. By investing a fixed amount regularly in a mutual fund, you benefit from rupee-cost averaging, which allows you to acquire more units when the market is low and fewer units when the market is high. This strategy helps to smooth out market fluctuations over time. 📈💰

Consider investing in equity mutual funds for the potential of higher long-term returns, which typically exceed those of fixed-income instruments. Think of SIPs as your financial garden 🌱, where small, regular investments can yield significant returns over time. If you invest in an equity mutual fund with an expected annual return of 12%, here’s how your money can grow: 💰

 

Invest Rs 4,500 per month

  - At a 12% annual return, it will take about 27 years (324 months) to save Rs 1 crore.

Invest Rs 6,000 per month

  - You’ll reach Rs 1 crore in around 24 years (302 months).

Invest Rs 7,500 per month

  - Achieve the goal in about 22 years (283 months).

Invest Rs 9,000 per month

  - Accumulate Rs 1 crore in approximately 20 years (260 months).

 

## 3. Speed Up Your Savings with a Step-Up SIP/Top-Up Sip 

To achieve your goal faster, consider a Step-Up SIP. This involves gradually increasing your SIP amount annually, ideally in line with your expected salary increments. Step-Up SIP helps you reach your financial goals faster and without hassle. 🚀
Let's explore how it works:

Start with Rs 4,500 per month

  - Increase your SIP amount by 5% every year.

  - After the first year, invest Rs 4,725 per month; the following year, Rs 4,961, and so on.

  - With this method, you can save Rs 1 crore in about 24 years (290 months).

- **Increase by 10% each year

  - Begin with Rs 4,500 per month and raise it by 10% annually.

  - You’ll reach Rs 1 crore in less than 22 years (265 months).

 

## 4. Detailed Step-Up SIP Scenarios

 

Let’s see how different starting amounts and step-up rates can help you save Rs 1 crore:

 

Starting with Rs 6,000/month

  - **5% increase/year:** Save Rs 1 crore in about 23 years (276 months).

  - **10% increase/year:** Reach Rs 1 crore in around 20 years (252 months).

 

Starting with Rs 7,500/month

  - **5% increase/year:** Achieve Rs 1 crore in about 21 years (252 months).

  - **10% increase/year:** Save Rs 1 crore in less than 19 years (230 months).

 

Starting with Rs 9,000/month

  - **5% increase/year:** Accumulate Rs 1 crore in approximately 20 years (240 months).

  - **10% increase/year:** Reach Rs 1 crore in about 18 years (216 months).

 

## Discipline: The Key to Success

The Discipline Reminder

Remember, discipline is your secret weapon. Avoid dipping into your investment for impulsive expenses. Stay committed, even when the stock market fluctuates. Consistency pays off in the long run.

Here are some tips to stay disciplined:

 

1. **Automate Your Investments:** Set up automatic transfers to your SIP account every month so that you don’t have to remember to invest manually.

2. **Avoid Unnecessary Withdrawals:** Resist the temptation to dip into your investment for non-essential expenses. Treat this money as untouchable.

3. **Review Annually:** Check your investment progress annually and adjust your SIP amount according to your salary increase and financial goals.

4. **Stay Consistent:** Even when markets are down, continue your SIPs. The principle of rupee cost averaging will benefit you in the long run.

 

## Key Takeaways

 

1. **Start Small and Steady:** Begin with an amount you can manage without financial strain.

2. **Increase Annually:** As your salary grows, gradually increase your investment to accelerate your savings.

3. **Stay Disciplined:** Maintain a consistent investment habit and avoid withdrawing your funds unnecessarily.

 

Like all things, step-up sip too has some challenges.

Income Growth Assumptions: Step-Up SIPs assume a steady increase in income year-on-year. However, there may be years when your income doesn’t increase as expected or expenses rise significantly, leaving less money for investing.

Changing Life Circumstances: Life events such as the birth of a child, job loss, or other unforeseen circumstances can impact your ability to maintain increasing investments. It’s essential to adjust your investment plan according to your financial situation.

 

 

## Conclusion

 

Remember, even small beginnings can lead to significant results when compounded over time. Achieving Rs 1 crore on a Rs 30,000 monthly salary is realistic with a disciplined and structured approach. Start small, increase your investments over time, and remain patient. Just like nurturing a plant into a tree 🌱, your financial growth requires time and care. Begin today, stay committed, and watch your wealth flourish. 🌟

ALSO CHECK OUT THIS VIDEO

 

Start taking the first step today and witness your wealth grow as you work towards achieving the status of a crorepati 

 

 

 

## Disclaimer

 Remember, investing in mutual funds carries risks, and past performance is not indicative of future results. Always consult with a financial advisor before making any investment decisions.

 

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich

Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

SHOULD YOU INVEST IN HDFC MANUFACTURING FUND NFO ?

HDFC has come out with an  NFO namely HDFC MANUFACTURING FUND. 

Getting many calls on whether to invest or not. 

Here's my take : 

Investors should exercise caution before investing heavily in Manufacturing Funds, which offer exposure to a potentially profitable sector. This is because it is a Thematic fund, and its performance can vary significantly. The HDFC Manufacturing Fund is new fund and thus has no track record, which makes it a less prudent choice for conservative and first-time investors.

Instead, consider allocating a portion of your diversified portfolio to a reputable Multi-Cap or Flexi Cap fund. These funds offer a more diversified approach, investing in companies of all sizes and sectors. This diversification helps in mitigating risks and enhancing the probability of long-term gains.

🤔 "What should you do?"

Do not look at the immediate past returns & invest in a Sector or a Thematic Mutual Fund. Past performance is not an indicator of future returns, and this is especially relevant for sector and thematic investing 

Consider the following examples:

(a) If in 2016 you invested in Pharma looking at the 2015 performance, you would have been disappointed in 2016 & 2017

(b) Similarly, had you invested in IT in 2014 looking at the 2013 performance, the sector did do anything great for the next 4 years

(c) Look at investing in Metals in 2018 looking at the 16 & 17 performance, 18 & 19 would have disappointed you.

In sector investing, be a value investor & not a growth investor.

Some sectors always do better than others, but investors should not base their investment strategy on these tactical calls. 

The standard advice to investors remains the same: Stick to your plan, choosing schemes aligned with your goals and risk tolerance.

Thematic funds come with their own risk

A timely entry in – and exit from – thematic funds is important. That’s why retail investors are better off with diversified Funds

Thematic funds should not be your first investments, only risk takers as well as those who understand these sectors well enough, should invest in them.

**Benefits of Multi-Cap and Flexi Cap Funds:**

* **Diversification:** Multi-Cap and Flexi Cap funds invest across a wide range of sectors and companies, reducing the impact of any one sector or company on the fund's performance.

* **Growth Potential:** These funds have the potential to capture growth opportunities across the entire market, as they are not limited to specific sectors or company sizes.

* **Flexibility:** Flexi Cap funds have the added flexibility to adjust their asset allocation based on market conditions, potentially enhancing returns.

* **Proven Track Records:** Many Multi-Cap and Flexi Cap funds have proven track records of performance, providing investors with confidence in their ability to deliver consistent returns.

By investing in a reputable Multi-Cap or Flexi Cap fund with a strong track record, investors can increase their chances of achieving their financial goals while reducing the risks associated with investing in new funds with no track record.

**Conclusion:**

Given the lack of track record of the HDFC Manufacturing Fund's future performance and the potential risk attached to Sector and Thematic funds, investors are definitely better off considering Multi-Cap or Flexi Cap funds. These funds offer a more diversified and proven approach to investing, increasing the likelihood of meeting your Financial Goals with reduced risks. 

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich

Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

All the best,
Regards,
Srikanth Matrubai

AMFI REGISTERED MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

AVOID THESE MISTAKES FOR MASSIVE WEALTH CREATION

Mutual funds can be a powerful tool for building wealth, but navigating the investment landscape requires avoiding some common pitfalls that tend to derail your Wealth Creation Journey. Let’s explore and identify these mistakes so that we can avoid them and create Massive Wealth for ourselves.

 

1. INVESTING WITHOUT A GOAL:
Investing without a Goal is like Driving on the road without a destination in mind.
This only leads to aimless Wandering. Isn’t it?
In the same way, every investment of yours should have a specific target. Divide your financial goals into specific short-term terms like Visiting Char Dham, medium-term goals like buying a Car, and long-term goals like Child Marriage or Buying a Dream House.

 Be it saving for a Dream Home, Annual School Fees, ensuring a comfortable retirement, etc.
When you know the goals, will help you stay focussed and avoid getting distracted by volatile news or flashy investments that keep popping up.

 

2. CHASING FANCY RETURNS :

Many investors get allured by GET RICH schemes and fancy returns risking their principal itself leading to unnecessary risk-taking and investing in assets that do not align with one's needs, Give Priority to your financial goals  rather than instant profits. Do not get sucked into Greed.  Never take decision in excitement.

Slow and steady growth is a sure shot way to Financial Success, not chasing flashy, fleeting get-rich-quick schemes.

 

3. TIMING THE MARKET:
Imagine trying to predict when the weather will change—it's pretty tough, right? Well, predicting the ups and downs of the stock market is exactly similar but even riskier!
Stock Markets keep finding excuses to keep falling every now and then.

Panic Selling only ensures wealth shifts from Weak Hands to Strong Hands

Stick to your Asset Allocation

Stick to your Long-Term Goals, then  WEALTH WILL STICK TO YOU!!

The way you respond to events in markets can either nurture your wealth or destroy it. It's important to stay calm,  let your investments ride through the volatile ups and downs and avoid making any snap decisions or making too many changes. Patience and a steady approach are the keys to super success.

 

It takes character to sit there and do nothing.  I didn’t get to where I am by going after mediocre opportunities.

      ─ Charlie Munger

 

4. NO DIVERSIFICATION:   
Don't put all your eggs in one basket!
Follow the principle of Asset Allocation and invest across assets like Equity, Gold, Debt, Real Estate, etc.  Diversification across asset classes like equity, gold, debt, and real estate helps mitigate risk and maximize returns. A balanced approach cushions against market swings and ensures smoother wealth accumulation over time.

A Good Asset Allocation will help you beat Inflation consistently.

ASSET ALLOCATION IS THE MOST SIGNIFICANT FACTOR THAT CONTRIBUTES TO YOUR OVERALL RETURNS.

 

5. NO FILL IT-SHUT IT-FORGET IT:
Review your financial plan regularly to make sure it meets your changing needs.

A Review is a good way to know whether we are on the right track. Even the best of plans can go awry due to unforeseen and unavoidable changes in life and circumstances.

A review and a route change are a must in such a case. Portfolio Reviews are absolutely necessary, but changes are not!!

Say a change of job, childbirth, a death in the family, tax law change, or even a change of place of work could lead significant impact on the financial priorities. A review will help in accessing your progress and identify areas where improvements are needed.

 

6. NOT TOPPING UP INVESTMENTS:

Regularly topping up your investments reinforces your commitment to your financial goals and capitalizes on compounding returns.
Yes...Expenses have risen and will continue to rise. But what about your investments? Don't let them fall behind.

Every year income goes up. Every year expenses go up. So why not the Investments and Savings?

SIP top-up automatically increases your monthly contribution as your income grows, accelerating your wealth creation. It's an autopilot for your future success. Every extra rupee you invest now makes a HUGE difference thanks to compounding. Don't miss out on this powerful tool to reach your financial dreams faste & quicker! #DontRetireRich

 

PLEASE NOTE:
Do not start your investment journey without having a Adequate Life Insurance Coverage, Health Insurance coverage and at least 3 months of Emergency Fund back up.

Steering clear of these common mistakes can supercharge your mutual fund journey. Picture it like plotting a road trip: set goals, focus on the long haul, and stick to your plan. Stay disciplined, spread your bets, and keep expectations grounded. Don't forget to give your portfolio a check-up now and then. Remember, investing's a journey, not a sprint—so buckle up, stay savvy, and enjoy the ride to financial success!

Regards & wishing you Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich
Qualified Personal Finance Professional

AMFI Registered Mutual Fund Distributor

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 

join my TELEGRAM channel

WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/