For anyone dreaming of reaching the milestone of a crore before retirement, the journey may be more achievable than it appears. According to a strategy shared by chartered accountant Nitin Kaushik on X, the secret lies not in extraordinary earnings, but in disciplined saving and investing. With a consistent monthly contribution of just Rs 20,000, the middle-class investor can potentially accumulate substantial wealth over time.
The Power of Compounding
Kaushik emphasized that creating wealth is less about sudden windfalls and more about steady, long-term effort. Many individuals start with enthusiasm but abandon their investment plans within the first three months, frustrated by modest results. However, the real transformation begins after the initial phase, when compounding quietly starts working in the background. By the sixth month, patterns become more predictable, and investments begin to show measurable growth.
How Numbers Play Out
To demonstrate the impact, he illustrated a scenario with a systematic investment plan (SIP) of Rs 20,000 per month, growing at an annual rate of 12 percent. In the early stages, the progress seems underwhelming—after six months, the accumulated amount is around Rs 1.25 lakh, which appears small when compared to the effort put in. Yet, with continued discipline, the figures begin to rise impressively. After a decade of consistent investing, the portfolio could grow close to Rs 46 lakh. Extending the commitment to two decades multiplies the results significantly, potentially crossing Rs 1.5 crore.
Short-Term Pain, Long-Term Gain
The lesson drawn from this example is clear: wealth-building requires patience in the short term and persistence in the long run. The first half-year is a true test of endurance, where progress feels slow and doubts creep in. But those who persevere are rewarded later, as compounding magnifies their contributions into substantial assets.
Ultimately, the formula is straightforward—regular investments, time, and trust in the process. What begins as a modest monthly saving has the power to transform into life-changing wealth by retirement, proving that financial prosperity is not about luck but about discipline sustained over years.
The Power of Compounding
Kaushik emphasized that creating wealth is less about sudden windfalls and more about steady, long-term effort. Many individuals start with enthusiasm but abandon their investment plans within the first three months, frustrated by modest results. However, the real transformation begins after the initial phase, when compounding quietly starts working in the background. By the sixth month, patterns become more predictable, and investments begin to show measurable growth.
How Numbers Play Out
To demonstrate the impact, he illustrated a scenario with a systematic investment plan (SIP) of Rs 20,000 per month, growing at an annual rate of 12 percent. In the early stages, the progress seems underwhelming—after six months, the accumulated amount is around Rs 1.25 lakh, which appears small when compared to the effort put in. Yet, with continued discipline, the figures begin to rise impressively. After a decade of consistent investing, the portfolio could grow close to Rs 46 lakh. Extending the commitment to two decades multiplies the results significantly, potentially crossing Rs 1.5 crore.
Short-Term Pain, Long-Term Gain
The lesson drawn from this example is clear: wealth-building requires patience in the short term and persistence in the long run. The first half-year is a true test of endurance, where progress feels slow and doubts creep in. But those who persevere are rewarded later, as compounding magnifies their contributions into substantial assets.
Ultimately, the formula is straightforward—regular investments, time, and trust in the process. What begins as a modest monthly saving has the power to transform into life-changing wealth by retirement, proving that financial prosperity is not about luck but about discipline sustained over years.
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