Now let’s say that I woke up to investing at the age of 35. I’ve resolved to invest the same amount as Abhay (Rs. 10K per year). I am determined and each year until the age of 65 (for a total of 30 years) I saved and invested this amount without any withdrawals.

If we both had exactly the same rate of return, who do you think will have more wealth at the age of 65?

This answer surprises most people. When I saw the calculation I was blown away. Abhay wins hands down. In fact, he has 3x more of what I would have at age 65, even though I saved for 30 years while he saved only for 10 years!!

Try your own calculation in this excel sheet

We often do not realize that by allowing our money to follow two simple principles, we will enjoy “The Right to Prosperity”, a term coined by one of Scripbox’s founders. Abhay is just one among many of our happy customers. They all follow these principles and are running 10 years ahead of me. But inspired to start now, I’m hoping to be 10 years ahead of many others.

What are these principles?

  1. Early bird gets the worm, never under-estimate the power of compounding. Your early investments matters the most in determining where you will end up.
  2. Understand inflation and beat it. Always. In India, it’s at 8% every year. Many instruments such as Fixed Deposits are taxed at around 30%, so your net return is 6%. Since the net return is less than inflation, you will end up saving less than what your needs are i.e.: prices will always grow faster than your savings.

So.. Here’s the answer to being “Abhay”. Start now!