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
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 5th 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
5th 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 1/3rd 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 :) |
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 -------------------------------------------------------------------------------------->
Do you have a PPF
account …. J
what are you waiting for? Go out there and become CROREPATI!!!
:-)
Nice explanation for a common man to become a CROREPATI without taking RISK
ReplyDeleteThank you so much Sonu :)
DeleteI was so fed up of not having enough money every month, that I gave the spell man a call, he gave me so much advise and small spells to do myself, that soon I did have money coming in, there was never a huge lottery win, but I did have and still do have small wins on scratch cards, bingo and I did have an inheritance that I wasn't expecting, it was all down to Dr Obodo.for help contact templeofanswer@hotmail . co . uk or call + 234 8155 425481
ReplyDeleteJennifer - Lancs