Most people I speak to even after working for 30 years are not able to save enough money to retire.
On an average even if you save Rs 15000 a month of your earning and invested in fixed deposits that money would be roughly 200 lakhs in 30 years. This would still be enough for you to retire.
If you invested that money in equity markets it will be roughly 1000 lakhs. You would become a millionaire.
Now if you save Rs 30000 a month for 15 years, it would be 200 lakhs if you invested in equity markets. This may still be enough for you to retire.
Now if you saved 30,000 a month for 30 years you would get to 450 lakhs investing your money in fixed deposits. This number will become 2100 lakhs if you invest in equity markets for 30 years. You would be a multi millionaire.
The interesting part of this math is:
1. It does not depend how much you earn but how much you save. Which is why people earning 200,000 a month may not be able to save 15,000 a month but a person earning half that money could save that much money every month. Now it does become tough to save money as your salary decreases but it does not become easier for most people to save more as their earning increases, since they start spending more as well. 2. It all depends on how long you save & invest consistently. This is where most people make mistakes. If you stop investing the money stops growing. 3. It also depends on where you invest the money. Money in fixed deposits & bank accounts yield the least return and is taxable. 4. It will also depend on how much money you need to retire. For Someone a corpus of 100 lacs may be enough to retire but for someone even a corpus of 450 lacs may not be enough to retire.
Given all of this a person may be able to retire in 15 years saving 15000 a month. But there be someone who saves 30000 a month and works for 30 years and still may not have enough money to retire
What about you?
I’m now totally bankrupt not saved enough for me and family all invested on brother and sister’s - and a huge fraud by youngest brother presently he is enjoying and my elder sister they both looted me like anything and saves for their future and I'm on road today no shelter no food no clothes only struggler to survive
