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Definition of wealth is different for each and every person, but for a common person wealth would mean Rs 1 crore.
Photographs: carrotmadman6/Creative Commons
Recently the market has run up quite a bit and a lot of people are feeling that they have been left out from the opportunity of making money in the markets. Most market experts believe that market timing is one of the most unfruitful activities any investor can undertake. Now the question any investor would have is “How do I invest so that I don’t lose money and create wealth?”
Definition of wealth is different for each and every person, but for me wealth would mean Rs 1 crore (this will give me Rs 8 lakh per year enough to sustain my current lifestyle for next 30 years).
If I need to create Rs 1 crore, I would need to invest Rs 42.24 lakh for 10 years or Rs 17.84 lakh for 20 years.
I really don’t have that kind of money and being a salaried employee I can spare a little bit every month but not such a large lumpsum amount.
If I need to create Rs 1 crore, I would need to invest Rs 51,700 per month for 10 years or Rs 15,000 per month for 20 years.
I really don’t have that kind of money and being a salaried employee I can spare a little bit every month but not such a large lumpsum amount.
If I need to create Rs 1 crore, I would need to invest Rs 51,700 per month for 10 years or Rs 15,000 per month for 20 years.
The only way to create wealth then is to consistently invest in a SIP over long periods of time without worrying about market volatility.
Happy Investing!