Forget about the terms asset allocation, Financial Planning, Goal setting etc etc. Long term saving and power of compounding is the winner in all terms.

Say you can save Rs 40 every day for your retirement. Where do you get Rs 40 a day? Why not cut down on those cigarettes? Then, let’s see what could happen.

Let’s also make some assumptions (do allow for the fact that all may not be valid . Let’s also suppose that these are valid for the next 30 years .

Retirement Chart

Nice chunk of change, eh?! Doesn’t that make your retirement look so comfortable?

Of course, if you spend Rs 120 per day on cigarettes/beers, you probably won’t live for 30 years  

Ah, now you are saying you don’t smoke? Maybe you’re a frequent restaurant-hopper? That would easily mean Rs 2,000 per week. Keep at it for 30 years and you would have said goodbye to Rs 15 crore. Think of the holidays you could have afforded with that kind of moolah

Don’t fit into the smoker or the gastronome’s category? But you have one weakness — you love shopping. Say, you spend about Rs 10,000 per month on retail therapy.

Hmm. Over 30 years, a Rs 10,000 investment in an equity fund could fetch you Rs 17 crore. I won’t even go into what you can do with that kind of money

Most people don’t care about small numbers and wait for that big amount to come by for them to save. Funny thing is, if I tell you saving money is very simple and needs very simple methods to make large amounts of money, most people, including you would laugh at me. But it’s just so easy. Start small. Start simple. Save big!  You dont  need complicated tools such as day trading, brokerage accounts, futures and options, etc.

You can make a lot of money by just being disciplined

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