I have created the video on why wealth explodes after 10 lakh. Now it's not that wealth doesn't explode on Rs 1k, 10K or 1 Lakh, it's just that we doesn't see it's true affect when the saving is low. The thing is when you have saved Rs 1 Lakh and if you are getting 10% returns, you will only get 10K. At the same time if you have 10 lakhs, and if you get 10% returns you will get 1 Lakh in a year which is quite a good amount.
Now we know that compounding is great and it can do wonders to our wealth but the problem is people doesn't save upto 10 lakhs. Problem is everyone wants to acheive that overnight which is not possible. 10 Lakh as a whole is a big number but when we break it down it's not that big number. For example, if you save Rs 16.5K you will acheive it in 5 years whereas if you save 12K you can save in 7 years. And that's why we have to start early and keep on investing to see the real magic.
There is one 3 steps to earn 10 lakhs.
- Earn More
- Save More
- Money making more money
Now it's not possible to directly reach yo Number 3. We have to go through 1, 2 and 3. And that's why it's said that you have to create more incomr levels. You cab earn from your job, but if you create more incomr layers, then number 2 will be relatively easy. And once you save more, more money will make more money and eventually you will reach to Rs 10 Lakh. And then slowly and steadily you can reach to Rs 50 Lakh, then 1 Crore and so on. So yeah we all know that wealth explodes after 10 lakh, and now we just have to earn that 10 lakh. Please watch the video to know more.