How He Invests To Make 10 CRORES?

Summary

This video chronicles the financial journey of an IT professional who achieved financial independence and early retirement (FIRE) by strategically saving and investing. He shares his experience of steadily increasing his income over 13 years, developing new skills, and making smart financial decisions. The discussion also highlights the importance of aligning financial goals with one's partner, managing expenses, and planning for long-term financial security. His story emphasizes the value of time with family and offers advice to others aiming for financial freedom.

Takeaways

• 💰 More than 50% of daily financial decisions are influenced by others.
• 🏠 The speaker's financial freedom number is between 8 to 10 crores, which they aim to achieve through careful planning and saving.
• 📈 The speaker's salary grew significantly from 20 lakhs to 1 crore over four years due to skill development and career advancement.
• 👨‍👩‍👧‍👦 The speaker and their wife decided on financial freedom together, focusing on saving and investment rather than increasing lifestyle expenses.
• 🛠 Hiring a financial planner helped the speaker create a clear investment plan, focusing on goals like children's education, retirement, and emergencies.
• 💸 The speaker maintained a high savings rate, investing up to 60-70% of their income, which accelerated their journey to financial independence.
• 🏦 The speaker's investment strategy is based on the time horizon, with long-term goals in equity and short-term needs in debt.
• 💼 The speaker chose to stay in India to better control expenses and maintain a simpler lifestyle, which supported their FIRE (Financial Independence, Retire Early) goals.
• 👶 The speaker emphasizes the importance of spending time with family over earning more money, finding joy in raising their children after early retirement.
• 💡 Advice to couples in their 30s: Focus on investing rather than accumulating liabilities like houses and cars, and plan your family early.

Q & A

What influenced more than 50% of the financial decisions made by the speaker on a daily basis?

More than 50% of the speaker's financial decisions were influenced by other people, including societal and familial expectations.

What was the speaker's ultimate financial goal or 'freedom number'?

The speaker's 'freedom number' was between 8 to 10 crore rupees, which he aimed to achieve to attain financial independence.

How did the speaker's salary progress from the start of his career to the point where he decided to quit his job?

The speaker's salary grew from approximately 4 to 5 lakh rupees initially, to 10 lakh rupees within a few years by changing jobs. Over time, with skill development and career progression, his salary increased from 20 lakh rupees in 2014 to 1 crore rupees by 2018, before he decided to quit his job in 2019.

What was the role of the speaker's wife in maintaining their financial discipline?

The speaker credited his wife for aligning with the family's financial goals, which helped them maintain a disciplined lifestyle and avoid unnecessary expenses.

How did the speaker initially approach saving and investing?

Initially, the speaker focused on paying off loans and did not invest much. After clearing his debts, he began investing in fixed deposits (FDs) and recurring deposits (RDs) around 2008.

What strategy did the speaker use to plan his financial future?

The speaker hired a financial planner in 2013, who helped him create a detailed financial plan by setting clear goals for the next 30 to 40 years, calculating current costs, and determining monthly investment requirements to achieve these goals.

How did the speaker manage to keep his expenses in check despite a significant increase in income?

The speaker maintained low expenses by carefully evaluating whether purchases were worth the extra workdays they would require. This mindset, supported by his wife's alignment with their goals, helped them avoid lifestyle inflation.

What was the speaker's approach to passive income and managing monthly expenses after retirement?

After retirement, the speaker relied on passive income from debt investments and dividends to cover monthly expenses, while keeping a portion of his portfolio in equity for long-term growth.

What were the speaker's reasons for not pursuing career opportunities abroad?

The speaker preferred to stay in India because he felt more in control of his expenses and financial goals, valued the availability of domestic help, and wanted to avoid the dependency on visas and foreign regulations.

What advice did the speaker give to couples in their 30s regarding financial planning?

The speaker advised couples to focus on building their careers, avoid accumulating liabilities like houses and cars, plan their families early, and learn how to invest effectively rather than merely saving.