Yes, there are legal and safe ways to get rich over a period of time and have a corpus of 10 crores at retirement .
Let’s say you are a 25 yr old who earns Rs 50,000 per month after taxes. If your salary grows at 10% a year, you save 20% of your income, and your savings grow at 10% per annum, you can have a corpus of Rs 10 crores (and more ) when you retire after 35 years (See illustration below to see how your money will grow over time )
However, its not as easy as it sounds else everyone would have been a millionaire by the time they retired. The good news is that with a bit of planning, it is achievable.
So what are the key challenges:
- Saving 20% of your salary year on year
- Achieving an average annual growth of 10% per annum.
You will need to plan your expenses in such a way that you can continue to save 20% of your income every year.
Secondly, your savings need to be invested in such a way that they provide you with a return of atleast 10% per annum.
The key is to start early as the power of compounding also helps you. (A person who starts saving 5 years later ends up losing almost 2 crores )
Here is a representation of how your money can grow.