How to become CROREPATI guaranteed :)

Crorepati!!!!! Wow J

It has been always an aspiration of all of us to become a man of crore…

You can become crorepati by

·                     Win a Lottery  (not guaranteed)

·                     Marry a super Rich Girl  (cool technique but girl may ditch you before marriage    

            AnytimeJ)

·                     Inherit from your parents or from any other relative  (guaranteed)

·                     Buy a quality share and sit tight  (not guaranteed)

·                     Join Politics (Very difficult because competitive field, So not guaranteed)

·                     Become a Criminal  (Not guaranteed , if you will be encountered by police before

            Becoming Crorepati J)                

·                     Try to get selected for KBC hosted by Mr . Amitab Bachan (Not guaranteed)

I will tell you a way to become crorepati which is 100 % safe and guaranteed and legal too J

But you need to be disciplined in your approach and have patience….for this …

How many of you are aware of PPF?

For additional info you can refer 

Click here 

And you can extend the tenure in blocks of five years after maturity.

Budget 2014 Update: The maximum limit for investing in PPF Account has been increased from Rs. 1 Lakh to Rs. 1.5 Lakh. Accordingly, the maximum tax deduction allowed under Section 80C has also been increased from Rs. 1 Lakh to Rs. 1.5 Lakh. The PPF Interest Rate remains the same i.e. 8.7% p.a. Minimum you need to invest Rs. 500 per year.

Can we start our mathematical calculation on this now J ????

Suppose you will plan to invest Rs. 12500/- per month (Before 5^th of that month so that you can get the interest for that month also)

So you have just started your job and started investing in PPF ….. And you are 25 years of old. This year is 2014 ..

You make this a habit and rule till you became 48 years of old ……This is 2037.

Total principal you have invested towards PPF in these 23 years of duration is equals to

(RS.12, 500/month * 12 month * 23 years ) Rs 34, 50, 000/- (Thirty Four Lakh and Fifty Thousand)

Could you please tell me what would be the amount you will be having at the end of 2037-38 financial year.

Just Imagine ………………

Yes Boss You are now crore pati . The amount you have in your PPF account is :-

 Rs 11,015,924.99 (1 crore 10 lac and 16 thousand) J you will be amazed to know you do not need to pay a single paisa tax on this J

Suppose you are married couple and both are in job and saving in PPF separately in two separate PPF account then the net return would be Rs 22,031,849.98 (2 crore 20 lac and 32 thousand) J you will be amazed to know you do not need to pay a single paisa tax on this J

This amount will definitely solve your retirement purpose as well as any other expenses at that time.

(NOTE: if you want to deposit 1.5 lakh before 5^th of April every year at a time, then the return would be more than above J )

If your tax comes into 10% tax slab –

By yearly putting 1.5lakh in PPF you will be saving additional Rs 15, 000/- per year as a part of 80C tax saving. What's more, if the investor claims tax benefits under Section 80C, his effective return will be close to 14.84% from PPF.

If your tax comes into 20% tax slab –

By yearly putting 1.5lakh in PPF you will be saving additional Rs 30, 000/- per year as a part of 80C tax saving. What's more, if the investor claims tax benefits under Section 80C, his effective return will be close to 24.84% from PPF.

Benefits of PPF:

1.    You can claim in 80C for tax saving.

2.    The maturity amount is always income tax free.

3.    Experts say PPF is the best option for conservative investors. At least to some extent you will be able to beat inflation when comparing to bank FD (if the tax implications will be considered)

Now I will explain you how are you able to accumulate 1 Croe by investing 1/3^rd of 1crore

Just look at the below calculation and see how are you accumulating wealth -

Year	Year Deposits	Year Interest	Total Deposits	Total Interest	Balance
1	150,000.00	7,260.11	150,000.00	7,260.11	157,260.11
2	150,000.00	21,500.70	300,000.00	28,760.81	328,760.81
3	150,000.00	37,030.83	450,000.00	65,791.64	515,791.64
4	150,000.00	53,967.29	600,000.00	119,758.93	719,758.93
5	150,000.00	72,437.41	750,000.00	192,196.34	942,196.34
6	150,000.00	92,580.08	900,000.00	284,776.42	1,184,776.42
7	150,000.00	114,546.77	1,050,000.00	399,323.19	1,449,323.19
8	150,000.00	138,502.62	1,200,000.00	537,825.81	1,737,825.81
9	150,000.00	164,627.79	1,350,000.00	702,453.61	2,052,453.61
10	150,000.00	193,118.71	1,500,000.00	895,572.31	2,395,572.31
11	150,000.00	224,189.60	1,650,000.00	1,119,761.91	2,769,761.91
12	150,000.00	258,074.09	1,800,000.00	1,377,835.99	3,177,835.99
13	150,000.00	295,026.97	1,950,000.00	1,672,862.97	3,622,862.97
14	150,000.00	335,326.10	2,100,000.00	2,008,189.06	4,108,189.06
15	150,000.00	379,274.48	2,250,000.00	2,387,463.55	4,637,463.55
16	150,000.00	427,202.59	2,400,000.00	2,814,666.14	5,214,666.14
17	150,000.00	479,470.79	2,550,000.00	3,294,136.93	5,844,136.93
18	150,000.00	536,472.11	2,700,000.00	3,830,609.04	6,530,609.04
19	150,000.00	598,635.14	2,850,000.00	4,429,244.18	7,279,244.18
20	150,000.00	666,427.31	3,000,000.00	5,095,671.48	8,095,671.48
21	150,000.00	740,358.35	3,150,000.00	5,836,029.83	8,986,029.83
22	150,000.00	820,984.16	3,300,000.00	6,657,013.99	9,957,013.99
23	150,000.00	908,911.00	3,450,000.00	7,565,924.99	11,015,924.99

 And the graphs as below :

23rd Year is your celebration year :)

 

Interest earned is more than 75.5 lac with just invest of 34.5 lac :) 

 You can observe one thing during the end of the tenure the interest is increasing exponentially .This is the beauty of compounding......

Really Einstein was true in his words as far as compound interest concerned -------------------------------------------------------------------------------------->

So Dear Friends what do you say????

Do you have a PPF account …. J

what are you waiting for? Go out there and become CROREPATI!!!

:-)