I’ll give you the answer right away. It’s TIME.

If you’re able to save a small amount you might feel like there is no point in doing so. Especially when the rate of return is so low.

Ok firstly it doesn’t matter how much you earn, what matters is how much you pay YOURSELF. Meaning how much are you saving and investing.

Shall we quickly sneak in some math here?

Say you save 5,000 a month. Great amount! And you invest 3,000 out of it.

That’s 36,000 invested in a year.

Now you get a raise or a promotion the next year, so you bump your investing by 10%. Thats 3,300 a month, and 39,600 a year.

So end of two years you have 75,600. But remember, you have invested this. So lets consider that your investment grows at a minimum by 7%.

Thats 80,892.

Imagine this for the next ten years.

Whats that amount looking like? It would be equal to around 8,00,000! Yes I’ve done the math.

What about next 15 years? That would be 18,00,000.

20 years? 32,30,000!

And this is assuming you increase your savings only by 10% every year.

You may be increasing it at an exponential rate or your starting amount maybe insane.

Go to the SIP calculator at Groww to check out how much you can make if you invest X amount at Y rate of interest for Z years – https://groww.in/calculators/sip-calculator Example:

You can input what you plan to put every month and it throws out a number. If you want to see how much it will land up being when you increase the investment by 10%, reach out to me and we’ll do some math 🙂