Ten Commandments of Wealth Creation
01) Start Early, Start SIPs — Compound interest is akin to a tiny snowball gaining momentum as it rolls downhill – the farther it goes, the more it grows. At the age of 25, if you start investing ₹10,000 monthly, increasing the investment amount by 20 per cent yearly and assuming a long-term return at 12 per cent per annum, you will retire at 60 with a corpus of ₹91.96 crore. If the same exercise is started at the age of 40, you will retire with just ₹4.8 crore! As Albert Einstein famously remarked, “Compound interest is the eighth wonder of the world. He who understands it earns it and he who doesn’t pays it.”
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