ATM :: How to make your first million before 30

by Sanjiv Singhal |


Recently, a friend of mine called me – her voice brimming with excitement. She was only a lakh short of 10 Lakhs in her Scripbox account. She started investing very recently and could not get over the fact that in a fairly short time, she was able to accumulate that amount.

The word millionaire does have a nice ring to it. In the Indian context the big indicator of wealth used to be ‘lakhpati’ but with inflation eating away at the value of our earnings, a million or 10 lakhs is now a good goal to aim for.

But, for a lot of young earners starting out on their first job, it seems impossible to have that much money. This article will show you how you too can be a millionaire. All you need is a simple, easy to follow plan.

Let’s say you are a 22 year old making Rs 25,000 a month, and you can save Rs 5000 to begin with.

Here’s your plan:

Year 1: Save Rs 5000 per month and invest in liquid funds or a recurring deposit. We recommend a debt fund because it has no TDS.

Year 2: Increase your savings by 10% to 5500 per month (We’re sure you’ll get a salary hike!) and invest it in liquid funds.

Year 3-8: Again increase your savings by 10% every year but now start investing it into tax saving equity funds. So Rs 6100 in year 3, Rs 6700 in year 4 and so on.

By the time you are thirty, you can expect to have more than Rs 10 lakhs!


*Equity growth is illustrative. It will never grow at a steady pace as shown. Markets tend to fluctuate and you will see large ups and downs.

On your way to becoming a millionaire, you would also have achieved the following 2 things:

1. By the end of year 2, you would have created an emergency fund of Rs 1.35 lakhs or approx. 4 times your salary. This is why we don’t recommend starting with equity in the first year itself.

2. You would not have needed to worry about tax saving investments every year.

Most important, you would have contributed only about Rs 7 lakhs to get to that 10 lakhs wealth. The rest would have come from earnings on your investments.

Tip: if your salary goes up by 20%, you should increase savings also by that amount – you will get to your goal faster.

What if you can only save half this amount?

The amazing part is that it won’t take you twice the number of years to get there. In only 3 more years (when you’re 33), you can get to your million!

And of course if you save more, you get there faster.

What after the first million?

Just keep saving 20-25% of your income each year in a combination of debt and equity funds and you shouldn’t have to worry about a thing. You could also adopt this simple financial plan. (refer link at bottom)

So, no more excuses. Take your first step towards your first million today.

Note: We’ve assume 8% return on your debt fund investments and 14% on equity funds. The historical returns for equity are higher but assuming a lower return is good for planning as the rates of return are not fixed.

Source :

Leave a Comment / Feedback / Say a good word!

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s