⁠Secured Your First Job? Here’s How You Can Make Your First Rs 1 Crore By The Age Of 35

Landing your first job is an exciting milestone. Along with the financial freedom and responsibilities it brings, this is also the perfect occasion to start building wealth. If you plan smartly from day one, the dream of reaching your first Rs 1 crore by the age of 35 can be achieved easily.

The biggest advantage you have right now is time, and it’s worth more than you think. If you’re 22 or 23 years old and just starting your career, you have more than a decade for your money to multiply thanks to the magic of compounding.

Let’s say you begin at the age of 22. By investing Rs 27,000 a month into equity mutual funds and earning an average of 12% a year, you could see your investment grow to over Rs 1 crore in about 13 years, right when you turn 35.

If you start a year later at 23, you’d need to set aside around Rs 32,000 a month to hit the same goal in 12 years.

The lesson is simple. If you start early, you can build a sizeable corpus even with consistent investments of lower amounts.

Here's a basic budgeting rule to help in your wealth accumulation journey:

• Keep aside 50% of your salary for necessities such as rent, groceries, transportation and utilities.

• Then keep 30% for discretionary spends like vacation, leisure activities, or gadgets.

• Finally, keep aside the remaining 20% for investments and savings.

The simplest method to remain consistent is to make savings like a bill you cannot negotiate. Create an auto-debit for SIPs and regular deposits immediately after your salary is credited to your account. That way, you only spend what remains after investing.

Fixed deposits and savings accounts are secure, but their yields frequently can't match inflation. A diversified equities portfolio, by way of index funds, blue-chip stocks, or a mix, delivers greater long-term growth. Offset this with some debt instruments to ensure stability.

Building wealth is not only about saving more, but also about earning more. Invest in skills, certifications, or courses that can lead to promotions, better-paying jobs or other sources of income. Any salary increase can propel your investment journey if you direct the extra money into your portfolio.

Credit cards are useful only if you pay the entire amount in time, but steer clear of personal loans or EMIs for discretionary spending. High-interest borrowing devours your wealth quicker than you can accumulate it.

Your first job is the best time to lay a solid financial foundation. With self-control, intelligent investments and focus on growth, you can very well achieve Rs 1 crore before the age of 35.