Investments is one of the best methods to create wealth for our life. Planned investments will help you become financially independent. An action plan that incorporates small investments on a continuous basis can eventually give you what is referred to as the “snowball effect”.

In the Indian context, a few years ago, the indicator of wealth used to be “lakhpati” or Rs.100,000. That amount is today considered small. So let us look at making you a millionaire or Rs.10,00,000. You should be able to reach your goal of having a million rupees by the end of the 10th year from the day you start your investments. To accomplish this feat, you must implement a best investment plan, stay patient, disciplined and diligent.

Why Does It Take So Long?

You might be wondering why you have to look at such small amounts. Why can’t I become a multi-millionaire in a few years? To do that, you have to either rob a bank, or have a competency that meets market demands exactly. In addition, you need to be extremely lucky. Remember, less than 2% of the world’s population become millionaires. They work extremely hard, take enormous risks, and have skills you and I do not have.

Entrepreneurs are known to work 20 hours a day, have no family life, and many end up with poor health. Strangely, by the time they have the money to enjoy, they may not have the health to have that enjoyment. Secondly entrepreneurship means enormous responsibilities. If you are the kind of person who is ready for all that, you should be reading this article.

For every successful millionaire we hear about, there are 100’s of failures we never even hear about. If you take risks, and commit your life to hardship, yes, you can make some money. But there is no guarantee. The method we have suggested is guaranteed to make you a millionaire in 10 years, with literally zero risks.

The guide Sosaley technologies shows below will assist you get started in making small but smart investments and will show you the power of compounding and will show how you too can become a millionaire.

What we are going to show now is very simple and easy to follow long term investment plan.

  • Save Rs.2500 per month to begin with and invest the amount in Liquid Funds or a Recurring Deposit (RD).
  • In the second year, increase your monthly savings by 15% to Rs.2,900 per month. If you are a good worker, this will most probably be covered by a salary hike. In the end, you are not losing anything from your own pocket.
  • From the third year onwards, increase your savings by 15% for every year.
  • From the third year, start investing into equity or debt fund. For most of us who don’t want to take risks, debt funds are better as it has lower risks, provides safety for your capital, and returns that are better that FD.

Let us now see how your investment will grow.

RD Investments Debt Investments
Year Monthly Savings Annual Savings Return Amount Investment Amount Return Amount
1 2500 30,000 31,310  
2 2,900 34,800 36,320 31,310 34,911
3 3,400 40,800 42,582 71,231 79,422
4 4,000 48,000 50,097 1,22,004 1,36,035
5 4,600 55,200 57,611 1,86,132 2,07,537
6 5,300 63,600 66,378 2,65,148 2,95,640
7 6,100 73,200 76,397 3,62,018 4,03,650
8 7,100 85,200 88,922 4,80,047 5,35,252
9 8,200 98,400 1,02,698 6,24,174 6,95,954
10 9,500 1,14,400 1,18,980 7,98,652 8,90,497
  10,09,477 11,25,567

In the above illustration, you have saved close to 8,00,000 and added 3,25,000 to your wealth. Assuming that Debt Fund returns are in the 10-13% range, the above calculations has a return percentage of roughly 11.50%. Remember that markets may tend to fluctuate and you will see ups and downs in returns.

If your salary goes up by 20% and more, you could increase savings by an equivalent amount. You will reach your goal faster. If you are ready to stick to the period of 10 years, you will end up having a larger kitty with the help of the best and systematic investment plan.

After you have become a millionaire, just keep saving 20-25% of your income every year and invest that savings in a combination of debt and equity funds. If you are ready to take a few risks, you could try a ratio of 70% on Debt Funds and 30% on Equity Funds.

In Equity Funds, you have to follow Warren Buffett’s investment strategy – “Do not put all your eggs in one basket”. This concept is the main key to investing safely in equity funds. Your focus should be on getting a large diversified portfolio. In other words, spread your funds over many different stocks. If you buy stocks of different companies across multiple industries, your risk can be reduced. This is an excellent option for amateur investors who are looking for answer to “how to invest in mutual funds? and which are the best investment options?”

Little Things Make A Big Difference

If you start with small investments and adopt this simple financial plan, it will make a big impact to your financial wealth. So, take your first step today towards becoming a millionaire.

About Sosaley

Sosaley Technologies is a growing company leading in the development of firmware, embedded systems, and other automation hardware and software. Sosaley is led by industry veterans who have pioneered software development in India, and have worked with companies such as Juniper Networks, Citibank, and many other Fortune 500 companies.

Sosaley is working with leading companies in India and elsewhere in multiple domains. Click here to read more about Sosaley Technologies.