Speaking at the NDTV Yuva 2025 summit titled The Voice of the Generation, investment banker and financial advisor Sarthak Ahuja explained how young Indians can realistically plan for financial freedom as early as 40.
Ahuja explained in detail how youngsters can utilise a formula called "15:15:15" to maximise their wealth creation in a relatively short period of time and move closer to retirement.
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“There is a simple rule of thumb called the 15:15:15 rule. It says if you save and invest Rs 15,000 every month for the next 15 years and it gives you a 15% return per annum, you'll end up with about Rs 1 crore by the end of that 15-year period,” Ahuja explained.
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The investment banker and entrepreneur added that while a figure of Rs 1 crore may sound substantial, investors can utilise the power of compounding and increase the overall investment amount.
"Can you imagine if that number of Rs 15,000 keeps increasing every year as you get upskilled? As you earn more, that number can actually be very close to your retirement amount,” he said.
Sarthak Ahuja's Retirement Formula
While Rs 1 crore might not be enough to retire early, Ahuja claimed that incrementing investments, coupled with a longer time horizon, could eventually lead to substantial savings.
Talking about how much is required to retire early, Ahuja added, "I have a simple formula. A person needs $1 million in India, $2 million in the UAE, $3 million for the US and $4 million for anywhere else in the world."
A figure of $1 million roughly translates to Rs 8.8 crore, which Sarthak believes can be achieved with a steady increment in investments and more time in the market. "Time in the market is more important than timing in the market," he said.
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