How to become Crorepati in 5 years with solid planning?

How become Crorepati 1 year, 5 years, 15 years and 20 yearsHow to become Crorepati in 5 years with solid planning?

Last week, I have indicated that I have become Crorepati in 5 years. While it was not that simple journey moving from 0 to Rs 5 Crores, I have learnt lot of lessons during this time frame. Many people think how to become Crorepati in 1 year. Some people think how to become Crorepati in 15 years or 20 years. I am moderate risk taking investor. What if I have been a high risk investor? May be I would have achieved this target in 3-4 years itself. What are the various strategies I have adopted on how to become Crorepati in 5 years. What exactly I have done to ensure that I meet my target of Crorepati in 5 years. In this article, I would provide solid tips on how to become Crorepati in 5 years in India with solid financial planning?

Also Read: Top and Best Investment Plans to invest in 2016 in India

Why I created a goal of 1 Crore?

goals list - how to become crorepati in 5 yearsI earn a handsome salary. I lived in a joint family with little savings. I came out of joint family to lead my independent life in 2010. Life has taught many experiences for me in last 5 years. I wanted to create second income as I do not want to depend on my salary income. In this process, I took a pen and paper and started writing the goals what I wanted to achieve. There were several goals I wanted to achieve which includes becoming Crorepati in 5 years, buying a car for Rs 10+ lakhs, earning multiple sources of income, foreign trips etc., Everyday I used to write about these goals without referring previous day list of goals. Every day my priority of goals used to change. Some of the goals like buying a high cost car have vanished and not even appeared later. Some of my goals like foreign trips were completely forgotten by me. I felt, these were not my real goals, hence these were vanished.

How I created 1 Crore goal?

smart goals - how to become crorepati in 5 yearsGoals should be always SMART. Simple, Measurable, Achievable, Relevant and Time bound. So here is what I created my goal.

  • Earn Rs 1 Crore in 5 years.
  • Goal is defined in simple manner.
  • It can be measurable i.e. 1 Crore net worth,
  • This is achievable. If I want to earn 1,000 Crores in 5 years, that may be an impossible task, but earning 1 Crore was achievable task.
  • It is relevant. Means, I can do it which would be useful for my future financial status.
  • It is time bound. I should achieve in 5 years.

Don’t create goals like, “I want to earn good money” or “I want to earn 1 Crore” or “I want to earn money in 5 years”. You cannot measure them as they are not smart goals and not achievable.

Also Read: How a daily wage earner become Crorepati?

Planning on how to become Crorepati in 5 years

My next step in financial planning was how to achieve 1 Crores in 5 years. I do not have plan when I created this goal. But every day it rolled up in to my mind. I created this goal few months before 2010 was ending. My goal was to become Crorepati by Dec-2015. Every day I used to put that question to me. How to become Crorepati by Dec-2015? I used to ask this question several times in a day to myself. Finally, I found only 3 main basic mantras that can help in achieving my goal.

3 Mantra on how to become Crorepati in 5 years

It is very simple, but difficult to prepare a deep-dive plan. I prepared a 3 mantra formula to become Crorepati.

1) Increase your income

2) Reduce your expenses

3) Invest your money wisely

Now don’t stare at me. Everyone knows these tips. But you should go deep into this 3 mantra formula.

1) Increase your income

increase income - how to become crorepatiI still remember one of my discussions with ex-manager, Mr.Kalyan Chakri who is currently in MNC at Bangalore. When you want to increase savings, don’t ask your family to cut-down costs; rather try to increase your income. Cutting down costs may not be possible always. But increasing your income is always possible. Here are few tips on increasing income.

  • Work smartly at your work place – This is a simple tip, but it can increase your salary income.
  • Create multiple sources of income. You can work on the areas you are passionate about. I have created this blog and earning second income which gives me anywhere between Rs 10,000 to Rs 30,000 per month. There could be fluctuations in such secondary income, but it could add to your overall income when you see for a year.
  • Try generating income through rents. If you already have a plot or house property, constructing a house or a floor can add a source of income.
  • Do something over weekend. If you are free on weekend, you can generate income by working as a real estate agent etc., One of my friend started this and earning Rs 20,000 to Rs 50,000 per month by working few hours in a weekend.
  • The list goes on. Don’t wait for my tips here. You can add several multiple sources of income which you can generate in your leisure time on how to become Crorepati in 5 years.  

2) Reduce your expenses

cut expenses-how to become crorepati in 1 yearWhat I meant hear is not to cut down your regular expenses. You can optimize your household expenses in a wisely manner.

  • I don’t use a credit card where there are annual maintenance charges or which comes with some charge.
  • I never pay interest on my credit card. I hate it.
  • Whenever our family wanted to buy clothes, I asked them to first clean their wardrobe. This way we are sure that we are not overspending.
  • Try online shopping. I do frequent purchases on Amazon, Flipcart, Snap deal and save more than 20% on shopping.
  • Use discount offers effectively. Last week, we wanted to buy Pizza and Domino’s were offering 1+1 offer. It may take few mts to research, but it would save good amount of money.
  • My car is locked during weekend for short distances. I walk such short distances and keep my body fit. I almost save 10% of my fuel.
  • I plan my travels ahead of time and save more than 20% travel costs.
  • I purchase medicines in Apollo/Hereto Pharmacy outlets where I get 10% to 15% discounts.
  • I go out with family for dinner every fortnight, we go for long distances by car etc., At the same time, I do monitor my expenses and would be within my budget. There are more than 20 ways which helped to reduce expenses and becoming Crorepati in 5 years.

3) Invest your money wisely

How wisely you are investing your money? Though I am moderate risk taker, I slowly shifted to high risk taker. Here are few tips I followed and grown my money.

Aggressive Investments in Mutual Funds

mutual funds- become crorepati in 15 yearsInvest in large cap, mid-cap and balanced mutual funds to diversify your portfolio. I invested in several mutual funds starting from ICICI focused blue chip fund, Birla SL Frontline equity fund, HDFC Mid-cap opps fund, Franklin India smaller companies fund, HDFC Balanced fund, ICICI Balanced fund etc., I went aggressively on sector based mutual funds like Reliance Pharma, SBI Pharma, UTI travel and logistics etc., These have provided solid returns in the last 5 years. You can invest in top SIP mutual funds for 2016 in India to get superior returns.

Investment in IPO’s gave more than 35%

Though I have not invested in all IPO’s, my recommended IPO’s gave 35% returns. None of the other investment options gave such high returns. Hence I feel, an investor should continuously invest in Best IPO’s. You can refer my articles on IPO’s which would be posted as soon as we hear on SEBI website.

Invest in stocks – I earned 30% in one month

stocks-crorepati ideas 10 yearsInvestments in stocks are high risk. However I adopted a few strategies which gave me more than 30% returns in 1 month. While I may need to pay tax on short term capital gains on it, I feel one could adopt the strategies like, Range bound stocks, Potential Stocks etc., which I indicated in my early article.

Invest wisely in best tax saving options

While you want to save income tax, invest wisely so that you can save tax as well as grow your money. Here are few save tax-become crorepati in 1 year, 5 years, 10 years and 20 yearswise tips while you are planning to save income tax.

  • Invest in PPF. It would give 8.7% interest + returns are tax free. If you and your spouse can invest Rs 1.5 Lakhs per annum totaling to Rs 3 Lakhs per annum, in 15 years, it would fetch you Rs 94 Lakhs tax free returns.
  • Invest in ELSS Tax Saving Mutual funds. Lock-in period is 3 years and if you can invest for 5 to 8 years, you can get 12% to 15% annualized returns.
  • Invest in NPS which can give additional Rs 50K income tax benefit. Investments in NPS can give anywhere between 10% to 14% returns.
  • Add your contribution to Voluntary Provident Fund which gives you tax benefit + PF interest of approx 8.5%. This is a safe investment bet.
  • You can refer my article about 10 best ways to save income tax.

Don’t keep your money idle in SB Account

You would get only 4% interest on money in SB account. Don’t keep money idle. I have a friend who has few lakhs of rupees which keeps lying in SB account. When I was discussing with him, I asked him to login to his bank account and create an online FD which took < 2 minutes. How many of us would like to spend those 2 minutes where we can earn good amount of interest on our idle money? If you need money in short term, try investing in best liquid mutual funds. If you want money for even shorter time, you can try BSE overnight money fund where you can earn money when you are sleeping.

Aslo Read: 6 Best Strategies reveleased by Crorepati

Don’t overspend when investing or while taking insurance

What I meant here don’t spend much money while you are investing. If you are investing in mutual funds, you can try investing in direct plans of mutual fund schemes. You can save transaction charges as well as commission on agents. If it is difficult to invest in direct plans, invest through brokers where there is zero low brokerage. You can try fundsindia or fundsupermart who charge zero transaction charges to invest in mutual funds.

If you are going for insurance plans or term plans, you can invest directly instead of depending on agents. This way you can save commissions.

Readers, these are my few tips and strategies which I adopted to become Crorepati in 5 years. Now my next goal is to create one more Crore in next 3 years. Wish me all the best.

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How to become Crorepati in 5 years


  • Narendra Ajay

    Hello suresh sir

    I have not any money sir.but i want to become a crorepati.plz help me sir.

    Plz help me sir i want sucess sir plz do any about me sir……

  • Konda Rama Rao

    Suresh sir, I am going to retire in Dec'16.I may get Rs 85 lacs.How to invest this retirement fund  wisely? My monthly expenditure is Rs 30,000 and have to continue SIP for Rs 30,000 pm for 5 years.I have to pay Rs 1,60,000 as insurance premium for three more years.

    Kindly give me guidance.Awaiting your reply please.

    • shrawan tiwari

      Well ,Sir you can get Jeevan Akshay plan for lifetime monthly income ,you can invest in LIC jeevan Akshay plan Aprox 50,75000 once at the age of 30 to 85 years & get Life time over 38875 in 60 year retirement

      • Konda Rama Rao

        Sir, What will happen to Principal amount of Rs 50,75,000 ? Details may please be furnished.
        I request Suresh Sir to look into the case and advise.

  • Anand Aggarwal

    Well idea is mine and appreciated.
    But nowhere you have mentioned how much and what percentage of funds to be allocated in which area.
    And everyone may not have handsome salary and it would be appreciated more if you quantify (measure) that salary figure vis a vis expenses.

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