We all think that 1 crore is for those people whose father has a business or whose lottery was won. But the truth is that to make 1 crore, you neither need a big business nor any shortcut. You need only one right system. Today I will tell you the story of three friends. All three have the same salary, same age, same city. But after 20 years, one had almost 1 crore. The second had half, and the third had only EMIs.
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| 3 Friends, 3 Strategy, One Salary |
The Story of 3 Friends
The story starts from Pune. There were three friends - Aman, Neeraj and Sameer. All three were in the same college, same hostel, and lived together in the same room for 4 years. Engineering ended and in the same year, all three got a job in the same city. Salary - Rs. 40,000 per month. Age only 25 years. When the first salary came, all three partied at a small dhaba and made a bet there. After 20 years, when we are 45, let's see who will have what.
Aman's rules were simple. Brother, you get life only once. Who has seen tomorrow. Neeraj was a person who lived in fear. Since childhood, only one thing was taught at home. Save money and keep it in the bank and don't get into any risk. And Sameer? Sameer was quiet. But he used to look at numbers carefully. One day he asked, "What if money is also put to work?" Both laughed. But this same question was going to change everything in the future.
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So let's first meet Aman. Aman's life became filmy from the very first month. Salary came and first of all he took a new phone on EMI because where would he have so much money at once? Then he thought, for going to the office, a bike is needed. EMI for the bike came. Then a nice flat where friends can come on weekends. Rent 18,000, then eating out on weekends because there is stress too. Then a Goa trip because everyone on Instagram was going.
Out of 40,000, more than half was gone in the first week itself. But Aman didn't care. He used to convince himself. If I don't enjoy it now, then when will I? After 3 years, the salary increased to 70,000. Now what did Aman do? He sold the bike and bought a car. Upgraded the phone. Took an even bigger flat. Salary almost doubled, but savings remained zero.
This trap has a name - Upgrade Trap. As income increases, we increase our needs even faster than that and then it feels that we are becoming rich. While in reality, we are just becoming expensive. By the age of 40, Aman's salary had crossed 1 lakh. But one night his mother had to be taken to the hospital and he had to borrow money from his friend. A man earning 1 lakh did not even have an emergency fund of 1 lakh. Because Aman was working for money. But money was not working for Aman. He looked rich. But in reality, he was a slave to every month's salary.
Now let's come to Neeraj. Neeraj did one thing right from day one. He controlled his expenses. No EMI, no showy flat, no Goa trips. Every month out of 40,000, he kept Rs. 10,000 aside. Where? In FD and RD. Because money felt safe there. His father used to say, Son, the market is gambling, keep it in the bank, and Neeraj did the same. Year after year, without stopping, without missing, Rs. 10,000 kept getting deposited. But here there was a small problem that no one told him. Interest on FD was around 6.5% and inflation was also running around 6%. Means his money was increasing, but its purchasing power was not increasing that much. On top of that, separate tax on that interest. After 20 years of hard saving, how much money did Neeraj have? Around Rs. 50 lakhs. In appearance, this looks like a big number. But see it in today's value, that 50 lakhs is equal to only 15 lakhs. Because after 20 years, even a tea will be many times more expensive than today. Neeraj saved honestly, worked hard, and maintained discipline. Still his money just kept running behind inflation. Never could go ahead of it.
Also Read, ₹999 EMI Trap Explained In India.
Now let's come to Sameer, who did exactly what he asked at the dhaba. Sameer made a simple rule.
Pay yourself first as soon as the salary comes. At least 20 to 25% without thinking, through auto-debit. Because the money that you see in your account gets spent. The money that you don't see at all, gets saved.
Second, every year when salary increases, increase your SIP also by at least 10%. Aman used his increment to increase expenses, you use it to increase SIP. This is the difference between Upgrade Trap and Wealth Builder.
Third, keep at least 6 months of expenses as an emergency fund separately, so that if a medical emergency comes, you don't have to borrow from friends nor have to break your SIP. And one more thing, to start SIP you don't need a dream of 1 crore, just a small step of today is needed. You can start with even 5000, because in compounding, the most valuable thing is not money, that is time. The earlier you start, the less you will have to invest. If Sameer had started 5 years late, with the same 10,000, he would have had not 1 crore, but only around 50 lakhs. A delay of 5 years, loss of half the wealth.
Warren Buffett said - "Do not save what is left after spending, instead spend what is left after saving."
Also Read, How to Invest in Your 20s. Complete Step By Step.
Conclusion
Aman spent first and tried to save the rest. Neeraj saved, but did not invest in the right place. Sameer paid himself first, then put his money to work. Now stop for a second and ask yourself a question. If your salary stops right now, for how many months do you have support? And if you want a target of 1 crore today, is your money working for you or are you also buying a new upgrade every month like Aman, or are you working hard like Neeraj but not investing money in the right place? There is no wrong or right, only truth. And knowing the truth is the first step to change.
So friends, 1 crore is not a matter of luck, it is a calculation. 40 thousand salary, 10 thousand SIP, 20 years of patience, and the magic of compounding. Aman enjoyed life but mortgaged his future. Neeraj thought about the future but with fear. Sameer chose the path of wisdom. He paid himself first, then learned to live. Now the decision is yours. Who do you want to become in the next 20 years? Aman, Neeraj or Sameer? And the most important question - what will be your first step? Write in the comments - Aman, Neeraj or Sameer?
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