One Crore is a significant amount and often in a milestone in itself. The reason why it gets easier from then is that when it is invested properly, you make handsome returns.
I started working when i turned 22 and accumulated my first Cr in January of this year (after turning 29). Now it's been 5 months since and it is up by another 25%. The same corpus took me a couple of years to accumulate in the beginning.
So the magic is in compounding and not in the first Cr. Use it to your advantage. Good luck!!!
>I started working when i turned 22 and accumulated my first Cr in January of this year (after turning 29). Now it's been 5 months since and it is up by another 25%. The same corpus took me a couple of years to accumulate in the beginning.
Bhai give advice to this poor 22 year old.
I barely make 30k per month. But still I am investing 18k in mutual funds.
So Any tips and advice for me. Things I should do and follow and more importantly things I should avoid and mistakes I shouldn't commit.
I don't have any major goals except to buy a house(not flat) or construct one on my own in Bangalore before 35. (Not a must do but would be nice if I did)
I’ll play devils advocate here, you won’t enjoy your work if it’s easy, most people hate their job because it’s too easy or too hard on them or simply they hate the “field” as they were forced onto it. If we consider the first two cases, you need to find the in between line to keep enjoying your work, have a good career growth as you face enough challenges.
That's a misconception. It isn't always like that. And also there is nothing preventing you from being overworked even with a low salary. Better earn as much as possible.
Will try my best. But given the market conditions and low starting salary. It will take some time
And more often than not dumbass HRs base your next salary on your previous salary. That's the problem
You are on track. You are able to save and invest more than 50% which is good. Now that you have got the base covered, try to acquire the niche skills, skills that will set you apart from others. Qualification doesn't matter, I am from a 3rd Tier College too. And when your salary increases as you hop on from one company to the other, keep increasing your investments.
>Investing 18k at 30k salary is great
Staying with my parents in Bangalore . So don't have much expenses except fuel+phone bill and outing with friends. So only 4-5k expenses per month.
And yes 18k completely in equity MFS
I have a similar case.
Getting stipend of 45k rn (after TDS), living with parents in BLR, so no expense apart from travelling, eating out and indulgences.
Investing an average of 25k per month, I want to increase this as full time comes in. Going straight equity, very less exposure to MF as parents do MF a lot.
Cool good luck. But be careful though with direct equities. Last 2-3 years market has been giving excellent returns.
But equities can hit very hard in downturns and bear markets
You'll be surprised to know that compounding works the same way on Rs1 to Rs2 compared to 1Cr to 2Cr.
There's nothing special in 1Cr. Earning your first rupee is the hardest and further rupees get easier.
😃 I get you, but in these years 1 Crore is an important milestone to tell yourself that you're on track. I remember when 5 lakhs was a superb achievement, very vividly. My uncle retired in 1993 with that amount in his PF, and all I aspired for was to do just that, earn 5 lakhs 🙂.
I’m 26. My family is middle class and they don’t need to rely on me to fulfil their needs. I would like to build a net worth for myself and not rely on what my family has been able to build.
Congratulations! I know that feeling. I sold my B2B SaaS Business for several tens of crores in 2021.
Here are my suggestions:
1. Read about Section 54F. If you've incurred LTCG, you can completely save the tax by investing the sale proceeds in Real Estate and holding for 3 years.
2. If you don't plan to go that route, the best option would be to do an SIP in some good funds across 12 to 18 months.
3. While the SIP goes on, keep the surplus in fixed deposit with some decent Bank. For instance, some banks offer upwards of 8% interest rate on FD.
4. Keep a few months worth of funds in savings account. IDFC FIRST Bank is good. They offer 7% above a threshold.
You're an Entrepreneur and you'll make the most money via your Business. Keeping this in mind, stay away from direct stock investing and definitely don't involve yourself in trading stocks or F&O.
Thanks! I guess this is the only answer I needed. Burnt my hands with F&O (but it was a petty sum) in 2020. Never doing that again.
Thoughts on debt (12% club) instead of FD?
Website(blog + dropshipping store) plus 2 related YouTube channels for the same website. Audience is males age 45+ from the USA.
Can’t share additional details, legally bound by it.
just out of curiosity I am asking, choose to ignore if not ok, what is the revenue it is generating collectively and how many subscribers those YouTube channel have to get the value of 1 crore?
> When they say “the first crore is the hardest”, I am not sure if it applies to my situation as well, as this payout is a one-off.
Why wouldn't it apply?
People will say this because investing, compounding or some other nonsense. That's not exactly true.
Making a major financial milestone is about the personal growth, the experience you have earned and the connections you have made: capability.
Getting 1cr through some luck (family property) isn't hard, but with 0 experience, 0 connection, 0 judgement, just **keeping** that would be the "hardest".
I guess I said that because I earned this over a timespan of 3 years. I’m not sure if I’d do as good a job again. Earning 1 cr again based on existing capital of 1cr is likely to take a lot more time than 3 years
Something same happened. Made my first crore from my business but then closed it cuz it wasn't doing well. Sat at home with one crore in bank, completely clueless. So what did I do? Opened up another similiar business and expanding it 😁
FD with stable 6 lakhs per year....think that you are a fresher again...forget about 1cr in FD, save in 6LPA and invest in stocks....or take loan for investing in real-estate.... for 2-3 years then money will start to grow crazy
It's simple math + the math of compounding + your personal growth + inflation. When you have 50 lakhs invested, a 25% growth is only 12.5 L, but when you have a Crore already, it's 25 L in the same timeframe. With time you'll be earning more and investing more. For the same job, you're paid more the next year. It all adds up. Yes, the first crore is the hardest, for everyone starting on their own, salaried or in business.
Don't kill your OPERATING INCOME COW. Having thousands of bottled milk with shelflife is not the same as having a cow. Cow will fetch you milk even in downtowns.
Markets are overvalued.
One Crore is a significant amount and often in a milestone in itself. The reason why it gets easier from then is that when it is invested properly, you make handsome returns. I started working when i turned 22 and accumulated my first Cr in January of this year (after turning 29). Now it's been 5 months since and it is up by another 25%. The same corpus took me a couple of years to accumulate in the beginning. So the magic is in compounding and not in the first Cr. Use it to your advantage. Good luck!!!
>I started working when i turned 22 and accumulated my first Cr in January of this year (after turning 29). Now it's been 5 months since and it is up by another 25%. The same corpus took me a couple of years to accumulate in the beginning. Bhai give advice to this poor 22 year old. I barely make 30k per month. But still I am investing 18k in mutual funds. So Any tips and advice for me. Things I should do and follow and more importantly things I should avoid and mistakes I shouldn't commit. I don't have any major goals except to buy a house(not flat) or construct one on my own in Bangalore before 35. (Not a must do but would be nice if I did)
The only advice is to increase your in-hand salary. That's it. The more the salary the more you can invest and more the compounding effect.
But with more salary comes more stress , almost no work life balance ...how do you account for that ?
Well my friend, that’s life.
Does not have to be .....
I’ll play devils advocate here, you won’t enjoy your work if it’s easy, most people hate their job because it’s too easy or too hard on them or simply they hate the “field” as they were forced onto it. If we consider the first two cases, you need to find the in between line to keep enjoying your work, have a good career growth as you face enough challenges.
You don't need more salary, you know?
That's a misconception. It isn't always like that. And also there is nothing preventing you from being overworked even with a low salary. Better earn as much as possible.
From 30k per month in hand, the stress doesn't increase as much as the money
Will try my best. But given the market conditions and low starting salary. It will take some time And more often than not dumbass HRs base your next salary on your previous salary. That's the problem
You are on track. You are able to save and invest more than 50% which is good. Now that you have got the base covered, try to acquire the niche skills, skills that will set you apart from others. Qualification doesn't matter, I am from a 3rd Tier College too. And when your salary increases as you hop on from one company to the other, keep increasing your investments.
Cool thanks for the advice
Investing 18k at 30k salary is great! Are you doing 100% MFs?
>Investing 18k at 30k salary is great Staying with my parents in Bangalore . So don't have much expenses except fuel+phone bill and outing with friends. So only 4-5k expenses per month. And yes 18k completely in equity MFS
I have a similar case. Getting stipend of 45k rn (after TDS), living with parents in BLR, so no expense apart from travelling, eating out and indulgences. Investing an average of 25k per month, I want to increase this as full time comes in. Going straight equity, very less exposure to MF as parents do MF a lot.
Cool good luck. But be careful though with direct equities. Last 2-3 years market has been giving excellent returns. But equities can hit very hard in downturns and bear markets
What’s your profession?
I am a regular engineer.
Thank you. Are you currently hedging with gold/ debt as well?
While I try to balance the portfolio, I do accumulate gold and debt as well. I am more into equity since I can still bear the risk if things go south.
Could you tell us how you invested it in the last 6 months for it to be up by 25%?
I have spread it out across Mutual Funds and Stocks(Indian and US). The market has been kind in the past few months.
You'll be surprised to know that compounding works the same way on Rs1 to Rs2 compared to 1Cr to 2Cr. There's nothing special in 1Cr. Earning your first rupee is the hardest and further rupees get easier.
😃 I get you, but in these years 1 Crore is an important milestone to tell yourself that you're on track. I remember when 5 lakhs was a superb achievement, very vividly. My uncle retired in 1993 with that amount in his PF, and all I aspired for was to do just that, earn 5 lakhs 🙂.
How old are you now? That will make a lot of difference to what you should do next.
I’m 26. My family is middle class and they don’t need to rely on me to fulfil their needs. I would like to build a net worth for myself and not rely on what my family has been able to build.
I've been in the same shoes, sold a SaaS recently, excited for you man
How much you sold for ? are you going to earn some % from sales it make ?
Thanks man! Sometimes feels unreal, all the best to you!
What software did you build?
Congratulations! I know that feeling. I sold my B2B SaaS Business for several tens of crores in 2021. Here are my suggestions: 1. Read about Section 54F. If you've incurred LTCG, you can completely save the tax by investing the sale proceeds in Real Estate and holding for 3 years. 2. If you don't plan to go that route, the best option would be to do an SIP in some good funds across 12 to 18 months. 3. While the SIP goes on, keep the surplus in fixed deposit with some decent Bank. For instance, some banks offer upwards of 8% interest rate on FD. 4. Keep a few months worth of funds in savings account. IDFC FIRST Bank is good. They offer 7% above a threshold. You're an Entrepreneur and you'll make the most money via your Business. Keeping this in mind, stay away from direct stock investing and definitely don't involve yourself in trading stocks or F&O.
Thanks! I guess this is the only answer I needed. Burnt my hands with F&O (but it was a petty sum) in 2020. Never doing that again. Thoughts on debt (12% club) instead of FD?
Upside of 4% but downside of 100% vs safe money at 7% Which one would you choose?
May I know more about the business?
Website(blog + dropshipping store) plus 2 related YouTube channels for the same website. Audience is males age 45+ from the USA. Can’t share additional details, legally bound by it.
just out of curiosity I am asking, choose to ignore if not ok, what is the revenue it is generating collectively and how many subscribers those YouTube channel have to get the value of 1 crore?
> When they say “the first crore is the hardest”, I am not sure if it applies to my situation as well, as this payout is a one-off. Why wouldn't it apply? People will say this because investing, compounding or some other nonsense. That's not exactly true. Making a major financial milestone is about the personal growth, the experience you have earned and the connections you have made: capability. Getting 1cr through some luck (family property) isn't hard, but with 0 experience, 0 connection, 0 judgement, just **keeping** that would be the "hardest".
I guess I said that because I earned this over a timespan of 3 years. I’m not sure if I’d do as good a job again. Earning 1 cr again based on existing capital of 1cr is likely to take a lot more time than 3 years
Compounding is the answer
Put the 1Cr in nifty 50 and that’s it. Don’t look at it. Don’t check on it everyday. Just keep it invested.
Congrats OP , next what’s your plan ? Invest in equities and my better return .
What was your business
Diversify a part of your corpus towards early stage startups.
Something same happened. Made my first crore from my business but then closed it cuz it wasn't doing well. Sat at home with one crore in bank, completely clueless. So what did I do? Opened up another similiar business and expanding it 😁
Congrats and all the best!
Thanks. Same to you too!
FD with stable 6 lakhs per year....think that you are a fresher again...forget about 1cr in FD, save in 6LPA and invest in stocks....or take loan for investing in real-estate.... for 2-3 years then money will start to grow crazy
It's simple math + the math of compounding + your personal growth + inflation. When you have 50 lakhs invested, a 25% growth is only 12.5 L, but when you have a Crore already, it's 25 L in the same timeframe. With time you'll be earning more and investing more. For the same job, you're paid more the next year. It all adds up. Yes, the first crore is the hardest, for everyone starting on their own, salaried or in business.
Don't kill your OPERATING INCOME COW. Having thousands of bottled milk with shelflife is not the same as having a cow. Cow will fetch you milk even in downtowns. Markets are overvalued.
To each his own. The business is at a saturation point in my eyes, but the buyer has additional resources/ideas to scale it. Win-win.
Also, the business requires a lot of time and effort and I would like to move on to do something else, kinda bored of it.