How to reach 13 crores by just investing Rs5000\/month in Pakistan?

We think a Rs50k salary per month or Rs5000 savings per month will not take us anywhere! We are wrong!

Rs5000/month will take us to more than Rs13 crore!

Let's discuss that in detail today!

If you like to watch rather read, here is a video I made!

This is a plan for someone saving 10% for his salary and investing that amount until his retirement which in our case is assumed to be 55 years!

So a person starting at 25 years, is making a plan for his future self!

Who is it for?

Any person who is starting his job and can save, Rs5000/month!

This person is not an outlier! He is making an average salary of today after doing his MBA from an average university!

I know so many people coming to me for their wealth plan making much more than our guy! These people will make much higher than 13 crore!

If you are making more, change B7 in the calculator to see your final wealth at your retirement!

Yes, he has less money, but he has a lot of time! That's all we need!

I am assuming this person's age to be 25, making Rs50,000/month and saving 10% of it!

But this guy is savvy! He will make sure to increase his income by 10% per year, and will keep increasing his savings/investment by the same percentage i.e. 10%

All in all, a young person, starting his career, who understands that saving is important but not investing that saving is the worst decision he would make!

So he saves and invest!

Step 1: Save, Rs5000 per month and invest this into the stock market!

Why stock market only and not diversification?

This person has two assets with him today

1. Time and

2. Good earning years are ahead of him - his salary will only increase

So a person like this should only invest in stocks unless he is extremely risk-averse which he shouldn't be!

You are just starting! Good years are yet to come! We need scale and returns and as a fact we know that stock market is the best asset class in the world and in Pakistan!!

Step 2: Focus on your income and save as much as you can!

I am assuming that your income will grow at least with inflation, which is just 10%! This is too low for a person starting his career. But for this instance I am assuming just 10%.

But this person understands that while he is growing his income, he needs to increase his savings and investments by the same percentage!

Step 3: Choose one asset class which is the stock market and forget if its even there

The second part which is forgetting is more important!

I have seen so many people investing Rs500 somewhere and follow it every min!

This plan is not for his because as soon as this guy makes 5% he will sell his investment and redeem that!

This guy is playing short term game, happy with 5% returns! My people play a 30-year game like Warren Buffett!

Step 4: How to invest this money into the stock market?

Just open a mutual fund and invest in their stock funds, which are also called ⬇️

1. Stock Funds

2. Equity Funds

3. Conventional Equity Funds

4. Shariah Complaint Equity Funds

5. Shariah Compliant Stock Funds

All of them are just the same with different names!

Step 5: Opening an account with a mutual fund

I have showed how to do it in the video. But here is a detailed one to the passive investing guide in the stock market - video

Step 6: Live your life!

Mutual funds or ETFs are taking care of the money you are investing! Forget that money. Focus on two things instead

1. Spending your time to make more money from your job / business / freelancing to have more to invest so that you don't have to wait till your retirement

2. Focus on important things like your parents, your life partners, your life goals

What if I don't want to invest with mutual funds? What I want to invest direct into stocks?

Why do you want to make your life miserable? Why do you want to learn something which can be bought with a very small fee?

But if you want to, then start learning by watching many free videos on Youtube. Infact, I have a full free course to do that - link.

I would suggest that you don't pick stocks until your capital reaches Rs5mn! After that you can do it! For now, focus on what I said!