Making money is always seems hard. It may be, but when it comes to building long term wealth we can build it by investing small amounts from our monthly income and taking the advantage of compounding.

Today I’m gonna tell you how you can be in the richest 1% of the world population. You might be wondering is this some kind of joke, people work hard all their lives and still, they can not fight out money problems.

Don’t worry all your doubts will get cleared in a few minutes. Let’s begin.

Have you heard of the stock market? probably yes

Do you invest in it? probably no

Stock markets are the greatest investment class rather than any other investment, be it gold, bonds, fixed deposits, real estate. but we park our money only on these options.

Commodity | Amount Invested In 1979 | Value in 2019(approx) | CAGR(compounded annual growth rate) |
---|---|---|---|

Gold | 100 | 3500 | 9% |

Bonds | 100 | 4500 | 10% |

Real Estate | 100 | -(no exact data available) | - |

Stock Market(Sensex) | 100 | 39,000 | 17%(including dividends) |

If you want to read about what is stock market and how does it work you can read here.

stock market Index(Sensex and nifty) gives us a return of around 15 to 17%.

And if you are ready to put in some hard work and find some good companies to invest. then your return can go up to 24 to 25 %.

Now comes the question but how to make 100 crores??

Suppose your age is 25 and you have an investible surplus of 10 lakh rupees. If you invest 10 lakh rupees in the stock market and be able to generate a return of 24 to 25 % in 30 years these 10 lakhs will become 100 crores!!

Don’t believe me. Just do the math and see 10 lakh rupees compounded for 30 years become 100 crores.

year | Amount |
---|---|

In first year | 10,00,000 |

After 3 years | 20,00,000 |

After 6 Years | 40,00,000 |

After 9 Years | 80,00,000 |

After 12 Years | 1,60,00,000 |

After 15 Years | 3,20,00,000 |

After 18 Years | 6,40,00,000 |

After 21 Years | 12,50,00,000 |

After 24 Years | 25,00,00,000 |

After 27 Years | 50,00,00,000 |

After 30 Years | 1,00,00,00,000 |

Now your next question is the value of money must have gone down after 30 years. Prices of all the things have raised due to inflation. yes you’re right but then also these 100 crore value 30 years later is also near 16 crore rupees

and that is sufficient enough to put you in the top 1% of the world’s richest people.

## But I Don’t have 10 lakh to Invest, Nor I have the Knowledge about Stock Market? What Should I Do?

No Worries I am gonna also share a way of how to make an investible surplus of 10 lakh

## How To Develop A Investible Surplus Of 10 Lakhs?

Suppose you are an 18 or 19-year-old guy.

You are probably in your college days.

Ask yourself a question how much time do you waste in your whole day just surfing through the internet, watching random videos on youtube, checking your insta feed, etc.

Invest this time in learning some new skills from where you can earn some money and not depending upon your parents always.

Put in some effort and develop some skills.

You can do some freelancing work, just join Mcdonalds or Dominoes in your holidays you’ll get around 10000 rupees.

you can start a Youtube channel,

You can teach someone junior then you in your locality.

I have listed so many options by which you can earn and there are many more. It all depends on you.

Okay so now we know you can earn some money. It’s time to invest it now.

You can invest in stocks but I would not recommend investing directly in stocks without gaining a deep knowledge of it.

So what’s the other option?

Sensex and nifty. I have explained them here.

You have to do SIP(systematic investment plan).

Assuming a return of 16% on nifty.

7000 Rupees invested every month for 7 years gives you near 11 lakhs.

At the age of 25 by just investing 7000 a month you can develop an Investible surplus of 11 lakhs.

If you can make this amount by this age, you can secure your future. Then there is no need to save money again thinking about your future. Compounding will do its wonders on its own

you can spend your money as you want, you can go on a vacation, you can buy your favorite car, maybe a foreign trip. just not thinking about savings anymore.

And in these years you can develop knowledge of the stock market by reading books doing some small courses on it.

Now you are 25 years old. What have you got?

An investible surplus of 10 lakh rupees, Knowledge to invest in the stock market. You are good to go to be in the top 1% wealthiest population of the world.

Is It That Easy?

No, it’s not that easy. It takes discipline to invest your money. Patience and perseverance are the two most important part of investing. You have to get out of your comfort zone to do something great.

The first step you can take is to open a demat account.