Many people especially youth want to retire soon. They want to prepare such a big fund with a few years of hard work that the rest of their life is cut into fun. They can go to visit the place of their choice whenever they want. You can eat food in the restaurant of your choice and roam in the car of your choice. However, it is not easy to do so. On Redit, a user has told how he made his net worth from Rs 1 crore to 2 crore in just 1.5 years.
It took 9 years to prepare a fund of 1 crore
Aman (name changed) has explained this in detail on the social media platform. Aman is an IT professional, who is just 33 years old. He first prepared a fund of 1 crore in September 2023. He told that it took him 9 years. However, it took him only 1.5 years to double this money. He said that this is amazing of compounding and equity heavy approach. Now Aman is the owner of Rs 2 crore.
Surprise to invest money in different assets
These 2 crore rupees are in different assets. The highest 60 lakh rupees are in shares. 46 lakh rupees are in mutual funds. 42 lakh rupees are in shares of American companies, RSU and Isops. Apart from this, 26 lakh rupees are in EPF and NPS. 23 lakh are in savings. 13 lakh rupees are in gold and 7 lakh rupees are in bonds. Aman adopted the Agressive Investment Strategy. He invested 60 % of his salary in mutual funds, shares, smallcases, American stocks and NPS every month after tax.
Target of 20 crore funds by the age of 42
His higher investment in mutual funds was in index and flexi cap fund. Together they made some investment in Thimatic and Contra Scheme. Aman’s focus is on preparing a fund of 10 crores by the age of 45 years. For this, he has set a target to prepare funds up to 20 crores by the age of 42. His priority is also to start some business for his children’s education and wife. If everything goes well, he wants to retire till the age of 40, after which the pressure in his life will remain less.
Separate the budget for expenses on essential works
Aman still spends Rs 1.2 lakh on essential works every month. These include home fare, school fees, grossies, car petrol and other things. He believes that it is best to invest on improving career. His salary package in 2014 was Rs 3.25 lakh per month. It reached Rs 95 lakh per month in 2024. He told that more growth in income has happened in the last few years.
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These things will have to be taken care of
This example of peace clears some things. First, if you want to retire soon, start investing soon. You have to invest in your career to increase your skill. Your savings rate should be very high. Aman’s savings rate was 60 percent. This means that he used to put 60 percent of his income in savings. In later years, the value compounding of his investment in shares increased considerably. Finally it is important to keep in mind that retirement does not mean to stop working completely. This means only get rid of stress jobs.