Friday, 29 March 2013

Sab Banenge Crorepati, if you plan and execute

Sab Banenge Crorepati (Everybody can be a multimillionaire) if we dream, plan and execute systematically. Systematically saving a constant or variable amount with a minimum threshold termed as SIP (Systematic Investment Plan) is essential. It offers the following advantages.

  • Compounding effect especially very steep in the long run.
  • Disciplined and planned attempt keeping you in the path of goals.
  • Dollar (Rupee) cost averaging especially while saving  vacillating market conditions. 
The calculation of compounding effect is shown in the spreadsheet worked out which you can see by clicking here.  You can find that as little as 6000 rupees can bludgeon into One Crore (10 Million) rupees if you systematically save for 30 years.