How He Retired With 5 CRORES in Chennai?
Summary
TLDRThe video script narrates the inspiring financial journey of a man from humble beginnings in Chennai, India. Starting with a meager salary at age 15, he eventually earns in lakhs, achieving financial independence by 41. His story emphasizes the importance of passive income, prudent investments in real estate, gold, and mutual funds. He shares valuable advice on avoiding unnecessary debt, especially home loans, and the significance of investing early and consistently for a secure future. The narrative also touches on the simplicity of his lifestyle, despite his wealth, and the joy of spending quality time with family.
Takeaways
- πΌ The interviewee started earning at the age of 15 and faced financial struggles early in life.
- π‘ He made significant passive income investments in real estate and gold, which now provide him with a monthly income of 1 lakh 40,000.
- π His portfolio is diversified with 10% in real estate, 20% in bonds, 30% in direct equity, and the rest in gold.
- π° He emphasizes the importance of investing early and aggressively, especially when one has a longer financial runway.
- π¦ He made a critical financial mistake by taking a home loan, which he advises against, suggesting that it's better to invest in equity or bonds.
- π He bought land and houses in Chennai, focusing on long-term value rather than immediate financial gain.
- π His financial knowledge evolved from reading books and following financial experts like Robert Kiyosaki and Peter Lynch.
- π« He advises against taking on excessive debt, especially through home loans, which can hinder financial freedom.
- π‘ He shares a personal story of paying off a significant loan within months by diverting funds that would have gone towards EMIs.
- ποΈ He values quality time with family over work and has chosen to retire early to focus on family life.
Q & A
At what age did the individual start earning?
-The individual started earning at the age of 15.
What was the individual's initial daily earning?
-Initially, the individual earned 10 Rupees daily.
What was the individual's biggest financial mistake according to the transcript?
-The individual's biggest financial mistake was taking a home loan early on.
How much is the individual's current passive income?
-The individual's current passive income is 1 lakh 40,000 Rupees.
What was the individual's first job and how much did it pay?
-The individual's first job was at a mechanic shop in Tiruchirappalli, where they earned 300 Rupees or 270 Rupees per month.
What was the turning point that led the individual to further their education?
-The turning point was when the owner of the workshop suggested the individual should study and offered to fund their education.
What was the individual's salary when they first started working in the Middle East?
-The individual's salary when they first started working in the Middle East was 1,200 AED, which was around 15,000 Rupees.
When did the individual start focusing on saving and investing?
-The individual started focusing on saving and investing in 2011 after getting married and having children.
What was the individual's strategy for investing in gold?
-The individual's strategy for investing in gold was to buy physical gold and invest monthly, aiming to accumulate at least 2,000 grams for their daughters.
What is the individual's portfolio distribution among different assets?
-The individual's portfolio is distributed as follows: real estate (10%), bonds (20%), direct equity (30%), and gold (remaining percentage not specified).
What advice does the individual give to someone starting their financial journey at a young age?
-The individual advises against taking on large loans, especially for non-essentials, and emphasizes the importance of investing in equity and bonds for long-term growth.
Outlines
πΌ Early Struggles and Career Beginnings
The individual started earning at the age of 15, with a daily wage that was not substantial. Despite earning one lakh, they were unaware of savings and investment. They moved to Chennai and explored land investments, taking a loan. Their biggest regret was taking a home loan early on. The person, now 41 and retired in Chennai, has a passive income of 1.4 lakhs per month. They were born in 1983, lost their father at a young age, and faced financial struggles. They worked in a mechanic shop at 15, earning a meager daily wage. A shop owner encouraged them to study, and they pursued a diploma in mechanical engineering. They then worked as a contract employee in Chennai, earning a salary that was a significant increase from their previous job. They were content with their life and work, despite the lack of financial knowledge.
π International Work Experience and Financial Growth
The person's salary increased over time as they worked in various countries. They worked in Saudi Arabia, earning 1.5 lakhs, and then in Iraq, earning 4,500 USD. They had no knowledge of savings or investment, and their focus was on sending money home through Western Union. They lived frugally as their accommodation and food were provided by the company. In 2011, after getting married and having children, they began to think about financial stability and started investing in gold and real estate. They bought land in Chennai and a house, taking loans but eventually paying them off quickly. They also invested in mutual funds and direct equity, focusing on quality stocks and bonds for a stable income.
π‘ Real Estate Investments and Financial Learning
The individual purchased land andζΏδΊ§ in Chennai, focusing on long-term value rather than immediate gains. They faced a dilemma when considering selling their property due to marriage but ultimately decided against it. They learned about financial matters through online research and reading books like 'Rich Dad Poor Dad' by Robert Kiyosaki. This led to a shift in their mindset about investments and the importance of having a long investment runway. They started investing heavily in mutual funds and direct equity, focusing on quality stocks. Their portfolio grew to five crores, with a diversified allocation across real estate, bonds, and direct equity. They also emphasized the importance of an emergency fund and living within their means.
π° Financial Wisdom and Advice for Young Investors
The person shared their financial journey, emphasizing the importance of investing early and aggressively, especially when one has a longer runway. They advised against taking on excessive debt, such as home loans, and suggested investing in equity and bonds for better returns. They also shared their personal spending habits, which were frugal and focused on necessities. They owned a bike instead of a car and rarely went to shopping malls or movies. They encouraged young investors to start early, invest wisely, and live within their means. The individual now enjoys a comfortable life with their family, having retired at 41, and is focused on spending quality time with their loved ones.
Mindmap
Keywords
π‘Passive Income
π‘Investment
π‘Real Estate
π‘Financial Independence
π‘Demat Account
π‘Gold Investment
π‘Mutual Funds
π‘Stock Market
π‘Loan
π‘Asset Allocation
π‘Financial Literacy
Highlights
The individual started earning at the age of 50 and emphasized the importance of not spending beyond one's means.
With a daily earning of 10 Rupees, the individual managed to save and invest wisely.
The biggest mistake mentioned was taking a home loan early on, which should be avoided.
The interviewee, now retired at 41, has a passive income of 1 lakh 40,000 Rupees.
Born in 1983, the individual faced hardships early in life, including losing a father and struggling financially.
At the age of 15, the individual was encouraged to study further by a workshop owner.
Started working at a mechanic shop at a young age, earning a minimal daily wage.
The individual's first significant salary increase came when they moved to Chennai for a job at R Braks.
Learned about job opportunities through reading newspapers, leading to a job in a different company with a higher salary.
Moved to work in Iraq and UAE, significantly increasing income to around 4,500 USD and later 6,500 USD.
In 2011, after marriage and having children, the individual started focusing on saving and investing.
Invested in physical gold as a long-term savings strategy for daughters' future.
Bought land in Chennai in 2013 and 2014, and a house in 2016, focusing on real estate as an investment.
Paid off a housing loan in a short period, realizing the importance of being debt-free.
Started investing in mutual funds in 2017 after gaining knowledge from various financial resources.
Allocated investments across different assets: real estate, bonds, direct equity, and gold.
Currently, the individual's portfolio is worth five crores, with a diversified investment strategy.
Emphasizes the importance of having emergency funds and a sustainable monthly income from investments.
Advises against taking on excessive loans, especially for non-essential items, and the value of investing in quality assets.
Shares a simple lifestyle with minimal expenses, focusing on quality time with family over material possessions.
Transcripts
I started earning in age of
50 there if you are getting one lakh
you'll never spend the money because I
reached the at the bottom how much is
your portfolio 5 cres you are earning 10
Rupees daily how much were you saving
expenses that time don't ask me about
saving nothing I don't know about
savings
investment I went to see some lands in
Chennai Pas in the loan if you somebody
ask what is your biggest mistake that is
a mistake you don't even think one
should take home loan early get
out welcome V thank you thank you for
coming here very inspiring story you
have right but let's just start with
like how old are you what do you do
where are you from currently now it is
41 located presently I'm in Chennai
having a quality spend time with a
quality you retired kind I am retired
because I made a money passively it
comes on my accounts now I don't want to
work and what is your passive income
today look like 1 lakh 140,000 it's come
S I would love to know what was your
childhood like what was the family like
bought up in TR so 1983 I born 88 I lost
my father so my mother and three kids we
are in the road and there was no
extended family support no there was
only one person he is my godfather Tata
I mean Tata means Tamil and grandfather
up to 10th anyhow she managed after 10th
he said there is no way to go to school
go this is a mechanic shop in TR that is
a biggest one you joined there how are
you 15 this is8 15 1997 it is foolish to
call it a salary but like what or was it
that is a good salary I want to
say it's not even a monthly salary it's
daily kind of don't go someday you no
no so monthly 300 rupes or 270 rupees
something one and a half year I was
there but I enjoy a lot if you want to
ask me to go again yes I want to then
one day there is a l called mini that
owner always used to see me
so one day I was carrying
the I said sir 15 you should study man
back to study please m s he is the owner
of that Workshop he called him you send
him for school then I was
sad then they said
okay in mechanic engineering I don't
have money my mom will not accept then
he said we will fund up so all together
we
collected joed in diplom mechanically
Eng there is a company called R braks in
Chennai so I went to their R braks over
there as a contract employee around 900
rupees salary for me three times hike I
was skying flying 900 rupees are a very
good great job I'm the only one diploma
mechanic all others are from MCH bch G
they talking
something they're talking technically
tech one day we were in the room so
everybody looking the wedness day
opportunity papers Hindu paper then I
asked they said hey you want to work in
this company only what you are thinking
you don't want to jump okay how you see
that that is opportunity you see that
that is a m lady I asked what is mail
lady I will open the mail lady for you
he said still I using that only one mail
lady because of him there I seen one job
in sarja job everybody saying sure you
will get a call you apply this there my
turn around it is started salary details
it is around 1,200 AED so 15,000 15,000
but still
15 again I am flying how much were you
saving expenses CH there is a Western
Union send the money to home that's it
because food and facility accommodation
everything company provided oh so this
15,000 rupees plus yes s company Tax
zero and how much was that 15,000 was
getting saved that time don't ask me
about saving nothing I don't know about
savings investment zero knowledge so you
had no knowledge no idea you're just
saying I
have Year 2007 correct you were getting
15,000 rupees correct how did that
increase salary increase after I was
there one and a half years in sja okay
after one and a half years I went to
gatar gatar it is 6,000 dams damam it is
around 55 to 60,000 55 to 60,000 cor
correct so about 3X 3X and then ku ku
oil company they are around 625 KD which
is about 1.5 LH yeah yes exactly then
Iraq I went to Iraq that is around 4,500
USD there around I was 2 3 years then
UAE I went in 2019 till date 6,500 us
when did you come to this concept of
saving investment 200 11 I was married
2012 kids are there started so they are
missing started to missing so I want to
break
this how to do that did you ask anyone
did you do online search whom did you
there is no Financial there is no even I
don't know about demant account you know
first time my bank account was UTA Bank
you remember that is the name of access
bank now account
open I will open for you account I said
get out why you are talking nonsense you
thought he's selling you something Miss
selling you something if you somebody
ask what is your biggest mistake that is
a mistake actually he is a angel that is
how knowledge I don't know D account I
don't know about fincial
matter I invested in Gold Middle East
went there after four five years I
started only buying gold and ch ch land
maybe I am wrong buying the gold
physically but I want to make it my two
daughters at least 2,000 2,000 G that is
my target I went to the jewelry she he
said sir you can invest monthly 10,000 G
month 12th month we will do that and
when you buy the physical gold 0
percentage of making charge 0 percentage
in vages it is around 16% 16% who will
give nobody one year I tested that one
very nice 16 percentage I got without
vages and broking and something then the
second year I went to 20,000 now 19 pay
50,000 21 1 lakh monthly monthly
2022 one and half lakh 2023 2 lakh per
month when I receiving the go the
jewelry man said sir 7 L financially
well educated people if somebody CA from
ask me you wrong that's okay that wrong
but I did a savings in my physical gold
physical gold that is a real money when
when did you buy the first land
2013
L second land 2014 4.5 lakhs
2016 6.2 lakhs that is a land then
200 16 uh we bought a house Chennai the
first house I bought it but loan when we
we are crossing in the bike I have a
bike Royal Enfield my wife said uh our
bank is crossing let have a discussion I
went to bank manager I said sir how are
you sir what is the balance how how much
it is there pending
and
lakh 7 lakhs it is in interest 2 lakhs
for Capital me and wife was 30 seconds
we freezed then I came outside the bank
I said we should stop this I open the
mobile I see there is a two accounts one
is Loan account one is savings account
in the loan account the next month I
start at 5 lakhs then I got a call from
manager I was
inq yes yes very good
sir six month I called her I called him
sir how much is still balance sir 1,500
balance
told me sir do you know you saved around
23
LS I was very proud then next in TR I
bought a flat again the same again 6
month I gone for loan 8 month again loan
gone second house so this is how got
real estate yeah what are the prices
L more
than the four lak one is about four you
can put 5 laks 5 this third one six 6
point now it is maybe seven what is the
value of the flat the value of the flat
when I bought it is around 42 presently
it's going around 71
so increase and you're fine with it
don't you think I should sell everything
this and just get into
stock if I selling the real estate see
feel like I am unsecure I feel like
because I came from that part and when
did you start in mutual funds 2017 I
seen started reading Mr P website free
fin call from Chennai something talking
about inv let's
[Music]
see I understand about what is mutual
fund okay what is demat account why
investment is required how to make a
money and Peter S Peter Lynch and for
psychology of money that started to read
gradually 201819 I am a big fan of Rach
ran 2018 still I remember 2019 that time
there's no million even is not reach the
million there from I am following loved
it then I turned into Robert kosaki
books Rich Dad Poor Dad then I
understand Oho this is how we we should
not leave this this is a great time we
need to invest I started means K I
started I
mean I started entirely 100% who will do
100% maybe some books are somewhere in
the podcast I seen that the runway once
you have a 20 years you are starting
invest in the age of 50 the runway is
long after 30 35 Runway is very low
Runway but you need to take off if you
need to take off that RPM engine RPM you
need to High I mean invest in if you
have one lakh in salary 80% you need to
invest with the age of 20 just 20% is
enough but age of 40 you need to invest
90% or else the runway you cannot take
off the flight will come down surely I
said my wife Coming 5 year don't ask
anything I'll will make you rich but
just as a humble how we are now looking
expenditure
expend she agreed she said why you want
to ask you invest no problem my salary
is there I will manage she allowed me to
invest in that case I'm very lucky so
that now I'm in flying I'm in safe pilot
everything is safe then after that
everything in mutual fund no no no
direct Equity but nifty50 and midap not
in small cap not in of P never only good
quality stocks I started how much is
your portfolio and how much in different
asset five crores per percentage wi uh
the real estate uh it is maybe 10 per
Bond 20% direct Equity 30 per and the
gold remaining no FD
remove but where is your emergency
fundings how did youde this number is
enough you could always have stayed six
more months one more year yes I'm
receiving call from Saudi I'm receiving
call from Vietnam I receiving many
Island G because my profile is hot
they're calling me
but I don't want to my daughter saying
that whenever I'm going for leaving the
country they are crying whenever they
are sleeping I will move and the next
morning he will say sorry dear sorry
sorry sorry sorry sorry sorry I'll beg
so this life I want to stop it m but
family quality of time now age of 41 at
least I want to enjoy with my family so
I started in bond investment that
purpose of monthly income you are
earning 10 Rupees daily to let's say
four five lak rupees a month right how
has money relationship evolved there are
many people studying in college earning
starting in age of 23 24 I started
earning in age of 15 because of Mommy I
understand she's very very poor she
struggl to make a three of a kid to grow
up that stage to bring up you are
getting like one lak two lak never you
will not
spend because I reached the at the
bottom
if you are getting one lakh you'll never
spend the money because I seen the worst
part 35 to 40,000 it's enough for us
what is that split of 35,000 we are not
in rental first of all we are living in
our own house grocery milk gas I don't
have a car you don't have a car no I
don't have a car I have only bike uh if
you ask me what is your L time for
shopping mall 2 years 2 years so
shopping mall we will not go there when
we'll go for D and Pongal he'll go for
new dresses yearly one time new dresses
that's it movies movies
last month so every six month we'll go
for movie don't your daughters tell you
we want to go out sure she will say
that's that case I bring her in the
beach again zero cost only you need to
put a petrol how did you get your bike
bullet yeah see again I am not a person
for are spending one shot 175,000 I
don't my friend Circle many of them I
made them many people to Middle East
entry I don't have a bike I don't have
anything so they said no no no no you
need to have one thing they all together
they give a bike and what are your
advice for someone starting very young I
went to see some lands in Chennai
everybody saying sir Pas in the loan I
want to sell it I'm talking about 99%
yellow
I asked him why you take a Lo area
become grow up so I bought it but Emi
sir I going to marry now I want to sell
it now once you fall in the excavation
you cannot come out nobody will not
rescue you will not come back you don't
even think one should take home loan
early you can go for loan no problem but
I
mean you canot should not spread they're
paying Emi of 30 30,000 35,000 put it in
equity you put it in bond now 10,000
bonds are came now if you're 30,000
rupees you invested in it 600 rupees 700
Rupees at least 300 rupees interest will
come so step by step you need to go what
is your most expensive buy there is a
one mobile one Android I bought it or
uh
[Music]
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