How Compounding Can Make You a Crorepati

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What is Compounding?

– Compounding is earning returns on your returns. – It turns small investments into massive wealth over time.

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Start Early, Grow Big

– The earlier you start, the more time compounding works for you. – Small investments can grow into crores with time.

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Power of Patience

– Compounding works best with patience and consistency. – Let your money grow uninterrupted.

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Example of ₹5,000/Month

– Invest ₹5,000/month at 12% annual returns. – In 30 years, it grows to over ₹1.5 crores!

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Rule of 72

– Use the Rule of 72 to estimate doubling time. – Divide 72 by the annual return rate. Example: At 12%, your money doubles in 6 years!

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Reinvest Your Returns

– Reinvest returns to maximize growth. – Compounding works best when your money stays invested.

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The Impact of Time

– Time amplifies compounding. – The difference between 20 years and 30 years is HUGE!

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Avoid Early Withdrawals

– Withdrawing early breaks the compounding cycle. – Stay invested to maximize your wealth.

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Start Small, Dream Big

– Even small amounts can lead to crores. – Start today and let compounding do the magic!

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Conclusion

– Compounding is the key to becoming a crorepati. – The formula is simple: Start early, stay consistent, and be patient!

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