How He Retired With 5 CRORES in Chennai?

Summary

The 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

• 💼 The interviewee started earning at the age of 15 and faced financial struggles early in life.
• 🏡 He made significant passive income investments in real estate and gold, which now provide him with a monthly income of 1 lakh 40,000.
• 📈 His portfolio is diversified with 10% in real estate, 20% in bonds, 30% in direct equity, and the rest in gold.
• 💰 He emphasizes the importance of investing early and aggressively, especially when one has a longer financial runway.
• 🏦 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.
• 🌆 He bought land and houses in Chennai, focusing on long-term value rather than immediate financial gain.
• 📚 His financial knowledge evolved from reading books and following financial experts like Robert Kiyosaki and Peter Lynch.
• 🚫 He advises against taking on excessive debt, especially through home loans, which can hinder financial freedom.
• 💡 He shares a personal story of paying off a significant loan within months by diverting funds that would have gone towards EMIs.
• 🏞️ 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

00:00

💼 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.

05:02

🌐 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.

10:06

🏡 Real Estate Investments and Financial Learning

The individual purchased land and房产 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.

15:07

💰 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.

Keywords

💡Passive Income

Passive income refers to earnings derived from a rental property, dividends, interest, or other sources that require little to no effort on the part of the recipient to maintain. In the video, the individual has achieved a passive income of 1 lakh 40,000 rupees per month, which allows him to retire and not have to work. This income is a result of his investments in real estate and other assets, and it is central to the video's theme of financial independence.

💡Investment

Investment in the context of the video pertains to the act of putting money into financial instruments, real estate, or other assets with the expectation of generating an income or profit. The individual in the video started investing in gold, real estate, and later in mutual funds and direct equity, which contributed to his financial growth and eventual passive income.

💡Real Estate

Real estate in the video refers to the individual's investment in land and properties. He bought land in Chennai and a house, which appreciated in value over time. Real estate is a significant part of his portfolio and a source of his wealth, illustrating the potential of property as an investment for long-term financial security.

💡Financial Independence

Financial independence is the state of having enough financial resources to cover all living expenses without having to work actively for a living. The video's protagonist achieved this by building a portfolio that generates passive income, allowing him to retire at 41 and spend quality time with his family.

💡Demat Account

A demat account is a type of investment account in India that allows investors to hold and trade securities in electronic or dematerialized form. In the video, the individual mentions that he initially did not know about demat accounts, which are essential for investing in the stock market. His eventual understanding and use of demat accounts played a role in his investment journey.

💡Gold Investment

Gold investment is a form of saving and investment that involves buying gold in various forms, such as coins, bars, or jewelry. The individual in the video started investing in physical gold as a way to save and later diversified by investing in gold through a structured monthly plan with a jeweler, aiming to accumulate gold for his daughters.

💡Mutual Funds

Mutual funds are investment vehicles made up of a pool of funds collected from many investors for investing in securities like stocks, bonds, and money market instruments. The video's subject started investing in mutual funds after gaining financial knowledge, which contributed to his diversified investment portfolio and passive income.

💡Stock Market

The stock market is a place where shares of publicly traded companies are issued and traded. The individual in the video eventually ventured into investing directly in the stock market, focusing on high-quality stocks and indices like Nifty50, which helped in building his portfolio and achieving financial success.

💡Loan

A loan in the video refers to the financial product provided by banks or financial institutions that allows individuals to borrow money with the obligation to repay it with interest. The individual cautions against taking on too much debt, especially in the form of home loans, which can hinder one's financial journey and limit investment opportunities.

💡Asset Allocation

Asset allocation is the process of distributing investments across different asset classes to manage risk and maximize returns. The video's subject has a diversified portfolio with investments in real estate, bonds, direct equity, and gold, which demonstrates a strategic approach to asset allocation for financial stability and growth.

💡Financial Literacy

Financial literacy refers to the knowledge and understanding of financial concepts and how to effectively manage personal finances. The individual in the video emphasizes the importance of financial literacy, as his journey from financial ignorance to actively managing investments and achieving financial independence is a testament to the power of gaining financial knowledge.

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]

20,000 thank you for watching and

supporting our Channel if you like the

stories we tell here's your chance to be

a part of it if you or anybody you know

has an interesting Financial journey to

share then please fill the form in the

pin comment below and we'll get in touch

with you