How to become Crorepati in 5 years with solid planning?
In 2016, I have indicated that I have become Crorepati after 5 years. While it was not that simple journey moving from 0 to Rs 1 Crore, 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?
I 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?
Goals 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
I 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
What 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
Invest 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
Investments 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 
wise 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.
If you enjoyed this article, share it with your friends and colleagues through Face book and Twitter.
Suresh
How to become Crorepati in 5 years
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It was surely inspiration for youngsters like us. Thanks for guiding.
Thank you Swati
It was wonderful experience for me to read your blog. I am in class 12 , preparing for NDA examination . I will earn approx 2 LAKHS in near future through my job . How I can multiply my income to crores coz my dream is to buy Lamborghini ♥️ (My dream from childhood to now ) .
Good to hear about your dream. There is no simple answer. Expenses should be income minus savings. Invest whatever you can in high risk investment options (since at your age you can take risk). Create multiple source of income. Its not that simple, at the same time, it can be achieved, if you can define goal and work towards that
Hi Suresh,
It was inspiring and motivating.
It would be great if you could reveal how much money you invested on monthly basis to generate 1 crore?
Thanks,
Varun
Hello Varun, Unfortunately I have captured this during my journey. I increased earnings, maximized the savings and invested whatever I saved.
Valuable information Sir ..Thanks for sharing
Very interesting and I am finding your article like my story except 1cr goal. I have sold one property for 7o lakh and want to invest to generate better returns as this money was locked since last 5 years without giving much returns except 15k month of rental income. Kindly advise how best it can be invested
I have 100000 where i invest for high earning back
Hi,
I am retired and want monthly 75,000 for my home expenses, how much corpus I need and where to invest. I also want the corpus to grow as well to meet up with inflations.
Reasonable, practical,possible way of being a cr pati. Worth giving a serious thought.
thank rk bhat
I your post,i have some of money, where need to invest it?please give me an idea
Sbi blue chip fund
Very good suggestion
I have 2 lakhs rupees but I don’t know where invest it.
Very good
I have an 4 lakh amount
Suggest me where I invest this amount
My master plan of lic new jeevan anand I am creating a 8crore estate by just investing 495rs per day in lic by means of various term ranging from 15to35years along with investing in ppf for continuous 35 years will get 4 crores by just investing 410rs per day my income is 3300 per day from which I have just investing 900 Rs means 30% and creating 8 crores now multiply it by 4 the amount will go above 30 crores divide it by 30 years result is 1 crore per year
Thank you for great Article Sir. I wanted to ask you how much amount you used to invest in month plz tell me the approximate figure so that it will help me and other to plan accordigly.
Good eye opener Article. Consistency is the Key.
Thanks
Good Article.Invest early in age can also be one point.
i agree yogesh.
Thanks for idea.
Hi.
My salary is 25000 / month.
I m sole earner for my family of 3,including me.
Pls guide me to earn 1 crore.
Hi. This is Satya.
Participate in KBC
Mr.Suresh,
As I'm much satisfied for an eloborate write up of yours . since i'm new to mutual fund investments , ur article has provided me a confidence and immense interest , about Money making behaviour . plz. Guide me further in availing the best strategies in mutual fund investments.
Hoping ur best advices and guidance throughout
Warm Regards
Karthik
Thanks Karthik. You can read my articles about mutual funds and star investing in them.
Very helpful information
I have 20 lakhs to invest and i need 30000 /- Rs regular income per month also.So please suggest me how can i smartly invest these 20 lakhs
Hi Jai Kumar,
Kindly contact me
Sir my goal to achieve 50 lakh in 10 years by investing 15000 per month.so please give me a good suggestion to where I invest.if your answer is sip so tell me name of company.
Thank you
Is it possible for a 25-27 year old person to earn a corpus of 50 coroes at the time of his retirment at 60 ? considering that he will invest agressively in equities, disist from investing in gold, does not invest in property at least in his early days of work.
We all make one crucial mistake in financial planing is we do not understand the role and importance of compounding. We do not make money make money. If this simple truth could be understood, it is possible to earn 50 crores from equity investing without taking undue risk.
your great bro i like your article very simple laungue tks lot
I have started a blog b4 1 week..
I want to ask how can be my blog shown on top,when some on search about that topic?
please give me details which type of business i do became a crorepati in ten years.
How to become caorerpati in 5years (in Hindi)
Hi suresh garu,
This is useful article, thank you for useful information. But 5yrs is more time.
I have an opportunity to earn 7cr's with in 5yrs.
100%—7CR's
50%—3.5Cr's
10%—70lakhs
Worst case atleast 5%—35lakhs. Hope you understand we will do 50% of work gives us 3.5Cr's.
Good to hear that Suresh. Share your idea, we can discuss further on this
Really Sir, Very useful article for Crorepati……………Best of luck for your next 3 year target.
thank you Kamlesh
where is the idea to become crorepati in 5 years.
tel me some solid ideas to becom crorepati within 5years.
my monthly salary is 50000. i want to becom croepati within 5years..is it possible
Sir, the article is very nice but dnt u think that this is only for those who are already having lakhs of rupees in therir pockets. If you have any plan to start with zero and become crorepati in 5 yr then it will be more appriciated.
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……
Nice article
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.
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
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.
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.
Great tips…lot to learn..eye opener
Decent idea
Thank Tarif. IF you like our article, share it on your FB or Twitter
nice artice
nice article everyone should follow to increase income.
but to become crorerpati for long term or for generation where i dont have to work i should i have financial freedom n time freedom too i have a plan if any one intrested can contact me.
I also want to become finacially free in less time please give me additional ideas
What kind of plan u have please share
I want to make my own beans clothes factory what should I do?
Wish you all the very best and happy new investing & prosperous new year 2016 Suresh garu. Wish me also the best.
Regards,
Prashanth
Thank you Prashant. May be with all my readers request, I should earn few more Crores 🙂
Hi Suresh,
Wanted to know how much did you start off investing during your this 5 year window. Sure you gradually increased your portfolio amount. May we also know the percentage increase on your original portfolio, year on year..
Thanks,
Ulhas.
Dear Sir,
Your planning was fantastic but we are zero in stocks related.
We do business of transportation from 5 years but last one year it come to minimal business due to clients cut down in their production planning. We have commitment of around 70K per month towards education hence can you guide us to meet our requirements. Our plans are to go for immovable property but legally not happening and not giving right advise by lawyers due to litigation or family or free lands etc. Can you guide us please
Thanking you.
wow! Great ideas…this post is very important for me….thanks for share it…..
Superb Article..! Thank you so much for sharing such valuable information..!
What an idea sirjee!!! Must read n must follow for a person who wants to become Crorepati..keep writing..
Hello Sir,
I am looking for an advise for fix return every 4 months.
I need to pay approx. 50,000 fee for my daughter, what kind of investment & how much I should do to get 50,000 returns every 4 months.
Thank you in advance.
Regards,
Santosh
This is gr8 post. Surely I will follow..
Hallo
Mr.Suresh can u help me also to suggest me invest 10-20lac
Dear sir I’m NRI.. NRE FD or Debt fund, STP to equity, SIP which is best?
Congratulations Sureshji !!
Gr8 thanks for advise
You achieved your goal, good planning
I want to git a BMW car for my daughter wedding ( she is 7 years old now ) …can you please suggest me some tips….
sure. Pls wait for my article next week
Dear Sir I am NRI.. Kindly advise NRE FD (tax free) or Debt fund, STP to equity, SIP which is best for short term and long term?
Since you are NRE, you invest both in NRE FD where interest is tax free + invest in equity funds
Congrats Suresh. Keep it up. This is really informative… I will surely use some tips from here.
Suresh,
Nice article, but to gauge any investment & return we need to know the amount invested & over what period of time. You mentioned that I save, I invest & reinvest hat does not give any clarity, I understand that you dint want to disclose your financial stature.
But your title does one thing right, just arose curiosity to the wandering investors & gets you more hits on the page so you get paid by your AdSense & Advertisers. Nice job 😉
But to the poor financially illiterate readers of your blog, you could have done better 🙁
Hax, I do not show heaven to readers of my blog. I give figures and facts. Ultimate decision by investors. IPO’s recommended by me gave 35% returns. Stocks I have been investing on good strategies gave me 35%. I know my competitors who trick to put such nasty comments with some fake names like you. Just relax. My readers know what I provide to them. Today I get 10,000 readers every day. Many made lakhs of rupees with the knowledge I share. Yes, I do make money with Adsense. This was my first statement in my “contact us”. I created this blog for money. I earn money through advertising. This is not a hidden secret
Hi
Can you please guide me about how to invest in BSE Overnight Mutual Fund?I have some money lying idle that i May need to use at any time but I would like it to generate something more than 4 percent in the SB account
Would be posting an article on coming weeks on this subject
Very nice. Hints given by you are excellent. Thanks a lot .
Good Job Mr Suresh…nice info…
Great Suresh
Dear Suresh,
As you says though all these strategies were well known by us but some way it was not applied in our life carrier and sure your article definitely motivated not only me hope others like me also. Actually I have also the same aim to become a Crorepathy but not put any time bound since I am in Private (now within 5 years after your article)but surely achieve this with the help of your Blog.
s. ravi chandiran
I agree Ravi. You should take commitment and think that you can achieve, then it is not an impossible task
You said that your are earning upto 30,000 from this blog. Is that all through adsense or you are using some other monetization on the blog.
I also want to start a niche website related to photography and just want to understand what income is practically possible.
It is through Adsense and other advertising avenues where advertisers would approach me very often.
How to become karodpati in five year.pls guide me.
Very enlightening… thank you Mr. Suresh for sharing valuable advice.
congrats and your article helps me a lot
SURESH EXCELLENT
would you please advise how do you earn Rs 30000 from this blog
I earn through Google Adsense + advertisers approach me regularly and advertise.
Great read Suresh good insights
Congrats… I wish you to become a millionaire soon…. You due a party…. Regards, Priya
Thank you for refrshing the idea of arnungs,savings and wise way of investing- Varadarasan
Very informative and good article sir.. Thank you.
Nice article but few things are missing like your principle amount and allocation of amount to different investment product.
Difficult to say Farhan. I save, I invest, I re-invest
Hi Suresh,
Can we increase PPF monthly investment? Currently my PPF is 5000 per month. I want to increase it.
Thanks,
Rama.
You can invest Rs 12,500 per month for 12 months totalling to Rs 1.5 Lakhs
Good article !!
Good read and all best suresh
Thanku so much sir
This is one of the best articles Suresh great job I like the simplicity and methodical approach and practical one too 🙂 thx
Great article.. Dear sir I have Rs. 20 Lakhs and can save at least Rs. 75000 per month from salary.. planning for financial independence on 2020 means settled down at natural and peaceful environment with family.. I am moderate risk taker.. seeking advice from you for wise investment plan and constant monthly income from 2020..
You can following these 2 tips 1) Invest part of your Rs 20 Lakhs in Bank FD and part in short term debt funds. You can can do STP to equity funds for 10-12 months 2) Start SIP in large cap, mid-cap and balanced funds indicated by you in my top sip funds of 2016
all the best sir and thanks for always guiding us .
Hi Suresh,
Congrats and thanks for the article. The post is very impressive.
By reading the article it looks to be an achievable target for everyone. However what we want to know is how much amount is needed for each the three mantra? I.e 1. How much income needed? 2. How much expense needs to be reduced? 3. How much has to be invested to achieve this goal?
Can you also write an article on IPO. I have zero knowledge on it. If there is already an article pls point me to that.
Thanks.
Uday, it is difficult to tell about what is investd. I saved, I invested, I re-invested. Regd IPO, I would post an article in coming weeks
Thanks for sharing with us about zero to crorpathi, but if you illustarate with actual figure than it will be more useful.
Good Luck sirjee
Thank you for your article and all the very best sir.
Hi Suresh,
You have written a nice article and the points you mentioned are realistic to implement.
For sure this article will help me to revamp my planning.
Happy to hear that you achieved your goal and wishing you all the best for your next goal.
Thanks,
Ashok
all the best, i like your way of thinking…..