We have already discussed the formula, and you are convinced to start but before that we need to discuss a very important hook, which will keep you interested in your SIP and your mission to become a CROREPATI
First sit down with a paper and pencil and write down your goals example: my son marriage, my son education for becoming a Doctor/MBA/Engineer/CA, my daughter studies or marriage, my retirement, my car, my vacation with family, or my dream destination, property, or my bucket list ambition, everything on a sheet of paper.
Now that the list is ready, mark it with the time zone next 2 years, next 5yrs and next 10 to 20 years then let us priority which are mandatory and cannot be forgotten like marriage of children, children’s education and some expenses that are for status and life style which can be planned when we have excess funds like luxurious car or trip abroad.
Now the approximate expenses required for each of these goals is to be worked out. Once this list is ready, next try to find out the real expense that you will incur, further add the inflation cost over the years, next the cost increase due to life-style changes and status change.
Now that everything is ready let us call or find a good financial advisor.
Call your advisor show him the exact goal list made by you, take his help to draw out the exact finance corpus, you shall require to meet your financial goals, add to that inflation, and also life style changes due to your status change. We have to get the exact amount to tide over all our goals and have surplus. Your Corpus should be more by at least 20% to cover up for unforeseen expenses.
Now it is very simple apply the formuls of 15*15*15 we have to invest Rs 15000 per month for 15 years and get a return of 15% per annum you will reach 92 Lakh if your target is only 50L for wedding save at least 8000 per month and you will reach your target in 15 years and a little more if it goes to 20 years. Now this saving has to be in the name of your daughter or son and not to be touched by you and the money is to be used only for that goal also every month the SIP has to be deposited if due to any circumstance you miss out it has to be very soon added by a direct purchase.
