Realistic Path To ₹1 Crore In 10 Years

Everyone wants to be rich, but few are willing to put in the efforts.


This post is for those who want to get rich slowly, but surely and build wealth that can last generations. I won’t be promising anything like those “gurus” who sell their courses to people who want to get rich is 6 months.


With that in mind, what I’m going to share you are just steps, and it is you who needs to put in the efforts. But, I can say that if you follow these steps, you’ll get to that number of ₹1 crore within a decade.


Understand What Matters More

When it comes to building your portfolio, most people think that your returns matter more (income blog link). But, if you’re starting from scratch and want to reach ₹1 crore within a decade, how much you invest will matters more than how quickly can you grow your money.


To increase your investment amount, you need to have a high savings rate. Now there is a common misconception that only the people with a high income will have a high savings rate. Yes, income matters, but your expenses also matter. And using the steps outlined in this post, you’ll be able to focus on both.


Now that you have understood that to reach ₹1 crore in a decade, your investment returns don’t as much, I want you to remember this line for the next decade:


Don’t depend on the stock market if you want to make money from the stock market.


Focusing On Your Job

If you want to increase your savings rate, the best thing you can do is increase your income. What better way to increase income than getting better at your current job. This is the simplest thing you can do.


If you’re an above average graduate, you would be having an annual starting of ₹6 lakh. Now, if we look at any middle class family, a monthly expense would be around ₹30,000. Just to be conservative, let’s round this off to ₹4 lakh annually. This leaves you with ₹2 lakh worth of annual savings.


If you’re working in a private company, you would be easily getting a 10% annual hike. I’m also assumming that you’ll be switching you job in the 4th and the 7th year with a hike of 25% (which is still conservative).


Now the question is how are you going to achieve this. Over the first couple of years of your job, you have to learn everything about your industry — what skills do you need at higher position, what the company needs etc. Almost all of your free time will go here. Cut down your weekend parties for now. It will also help you in keeping your expenses low.


Here are the calculations for the 10 years.



The inflation of expenses is taken as 7%. All the amount that you’ve invested goes straight to index funds at 12%. Notice how the income bumps up 25% in the 4th and the 7th year. That is how you reach ₹1 crore (almost) at the end of 10 years.


What If Your Income Is Less?

Let’s say you don’t like the work in your industry. Or, your income is lower. In this case, you either have to move to an industry where you like working (which will move you to the above scenario), or, you will not focus much on your job and use your free time to build a business.


Business is something that pays you during your sleep. The value of your business would be a lot more than your job. You can sell your business, but you can’t sell your job. Your business is at least worth 5 times the profits you generate from it. (A P/E multiple of 5 is highly conservative)


As you wouldn’t be focusing much on your 9-5, you would be spending 50-55 hours per week at best. Add 7 hours of sleep and 4 hours for chores and travel daily, you are still left with 35+ hours in a week. That is like having time for another job. Use this time to build your business.


Now, you might be asking what business should I start? First learn the principles. Naval Ravikant’s thread will help you here:




Also listen to the podcast where Naval explains the thread in detail. After that you’ll get an idea of what business you can start working on. Break down what you will be needing for this business. Learn whatever skills you need for your business. The First 20 Hours will help you in learning skills quickly. Don’t be afraid to buy courses if needed, but be cautious of fraudulent courses.


To be conservative, let’s say it takes 3 years (way too conservative!) for you to start generating income from your business. Also, during this time, you’ll be saving both your time and money by not spending on parties or unnecessary expenses like addictions, or lifestyle purchases.


Even after extensive research, if you still don’t have any business in mind, don’t worry. You can pick up copywriting. This way you’ll get better at selling online. You can affiliate for other people’s good quality products and earn your commission from the same. These three books should help you get started:


If you still aren’t that interested by this, then you could start freelancing. You could take up what you have been doing in your job, and offer that as a freelancer. As a beginner, it is easily possible to earn $20/hr for a freelancer. This might not be a huge amount in US or Europe, but is a decent amount for a person living in India who would be spending in ₹.


Let’s see how you can reach your target of ₹1 crore within a decade. A fresher can easily get ₹4 lakh annually from their first job, and let’s take the expenses to be ₹3 lakh as you need to save a lot on your expenses during the initial years. As you would be focusing only on your side business of freelancing, your job salary won’t grow as much. Let’s take to be this in line with inflation of 7%.


The income from business is taken to be ₹0 for the first two years and ₹2 lakh annually in the third year which is very much possible if you’re set up your the base during the first two years. You can reach to $1000/mo within the next 4 years (year 7) which is around ₹9 lakh annually. This is quite conservative in both cases — freelancing and business.


Let’s assume that you’ll maintain this till the end of 10th year — which, again is quite possible. This is how the growth looks like.



You might say that this is a difficult feat to achieve. Well, most people underestimate what they can do in 10 years. And this is pretty much within anyone’s reach if one is able to show focus and discipline, specially in the first couple of years where you develop your skills.


Now, you might say ₹1 crore wouldn’t be worth as much after 10 years as it is today. Yes, inflation might decrease the worth of ₹1 crore, but that shouldn’t matter. The reason is that the hard part is now done, now your portfolio has reached at such a stage where compounding should take care of it. This means that even if you don’t add a single rupee to your portfolio (which is highly unlikely), your portfolio will roughly add ₹12 lakh annually on average (provided the index grows at 12%).


For someone who started at 25, would now be 35 years old — still a long way for your portfolio to compound. And even if you look at the 10th year, your portfolio would easily be at 15-20 times your annual expenses. Growing to 25-30 times should be possible within the next 5 years.


Closing Thoughts

You see, the target of ₹1 crore is pretty much achievable within a decade — even if you start with a low income. Having a high income might help, but isn’t necessary. But with low income, you need to put in the efforts to build a side income and that would be a significant part of your income in a decade.


Once you’ve got your first crore, getting the next one will be easier due to compounding. So, go out there and put all the efforts you can to get your first crore. After that, you can ease off a little.


Till next time.



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