The New Year is here and so is the time to make resolutions! It’s a different matter that most resolutions tend to be short-lived and rarely last more than a few days. However the ritual of making resolutions is something most of us do indulge in. We have a recommendation for a resolution for you – start working towards becoming a crorepati.

Although you are likely to be tempted to brush aside our recommendation or crack a sarcastic remark, we would like to assure you that we are very serious about the recommendation. Also to put your concerns to rest, we are not advocating any of the following,

1. Buy a lottery ticket
    

2. Place bets on the forthcoming India – Pakistan cricket series (which, by the way, is illegal!)
    

3. Participate in a television game show
    

4. Wait for a well-heeled relative to kick the bucket!

Perhaps it’s the halo surrounding the word crorepati which acts as a deterrent. A crore (10 million) in monetary terms is often perceived as the pinnacle of affluence. But for the smart investor, the crore is simply a starting point. Any financial planner worth his salt will vouch for the fact that setting objectives is the first step in the planning process. And becoming a crorepati can be that - just an objective. The table below will help substantiate the same.

How much you need to invest every month to become a crorepati?

		5 years	10 years	15 years
Rate of return	12%	124,469	45,059	21,211
	15%	115,834	38,446	16,414
	17%	110,442	34,595	13,806

(Rate of return is for illustrative purpose only)

When your target of becoming a crorepati is broken down into the investment tenure and the returns expected on investments, the objective does lose some if its impregnability. As can be seen from the table above, if you have a 15-Yr time frame and can earn a return of 17% pa, you need to invest Rs 13,806 every month. What you should do is arrive at a tenure-return combination that is feasible for you.
 

• Click here for Personalfn’s crorepati calculator
   

  Having computed the investment amount, now the key lies in ensuring that your investments stay on track and earn the desired returns. This is where the services of an expert investment advisor/financial advisor will come into play.

  Remember that even the batsman who scores a century starts his innings with a naught on the scoreboard. If he can do it, so can you!

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