👉 Use code SNY500 for ₹500 cashback on your 1st transaction Sign up to Yenmo now: bit.ly/1Yenmo_SNY500 👉 Yenmo's digital LAMF process is currently available for mutual funds held in Statement of Account (SOA) format. If your mutual funds are in demat form, please connect with Yenmo's customer service team at support@yenmo.in to help you activate those offline Why setup your Loan Against Mutual Fund a/c with Yenmo? ➡ Low Interest Rate of just 10.5% p.a. ➡ FREE! No setup fees ➡ No Credit Checks ➡ 100% Digital. No physical documents or visits ➡ No Hidden Fees ➡ No Foreclosure or Prepayment Charges ➡ No Intrusive Permissions like SMS, Camera, Phone book etc. ➡ Partnered with Bajaj Finance & Tata Capital ➡ Manage Your Loan Entirely from Yenmo app
Like he said, you can tweak it as you wish. Well in finance and technology fields, switching companies can easily get you 30-50% hike in salary as well.
Feel free to rework the worksheet based on your realities and expectations. Everyone has different levels of skills, opportunities, industry, talent and circumstances. The idea behind offering a worksheet is for customization
This is best case dream like scenario. You really expect somebody at 60 to earn 2 crores per annum ? Impossible unless you have a perfect career and perfect life without any health issues or family issues.
You do realise he started from the 30s assuming 7% inflation 2 cr is just 26 lakh rupees which is very doable. Even the 16 cr corpus is just 2.2 crores.
Please make a video how much and how can one start if starts at 30, starts at 40, or even the 50s. This will help those who did not or could do it earlier for whatever reason.
Thanks for sharing your experience. Curious to know -- how do you manage your expenses knowing that your net savings (income rises at 5%, expenses at 10%) reduces each year? As in, do you plan to cut x, y, z expenses each year? Or, do you have some side income? etc.
@@shankarnathpeople carry on and increase savings in short term by cutting a bit on personal expense to move to family expenses and then switch to increase the income at a CAGR basis depending on landed hike eventually
@@PulkitTiwari Any reason why people don't opt to increase their income? Personally, after reading the comments in this video, I'm amazed at the lack of creativity and spunk in most people. It's a bit like saying -- my electricity provider can ask for a 10% rise & I have to comply. The finance minister (barring this year) can jump-up the taxes by 10%, my landlord has a 10% escalation clause, the petrol price is up 10%, the gold I buy is up 10% an year -- but I can only get my income up by just 5% The electrical provider, the finance minister, the landlord, the petrol pump, the jeweller can all increase income by 10% -- only I can't.
@@shankarnath often market conditions on a lot of jobs that were dramatically increasing their take home (and thus becoming their lucrative career paths over 30s, often increasing their salary by 10x in 10 years) have become a lot less rewarding given once in a generation changes in ecosystem around automation & AI. People thus in a post 22' era are in a long term steady job seeking mode where survival itself at that level becomes often a compulsion and risk to just be out is a lot more and not worth for the 15-30 percent hike. Happens a lot at senior management. That's what I meant
Sir pls recheck your calculations… Salary hike practically 5% or even less 3-5 %when you consider over all 35 yrs experience. Because once you reach 40L 50L salary your hike will be 1-2%.
Hello. Pls make changes per your own reality in the worksheet. I've had a very different experience with my hikes - always over 12% for 20 years except the two Covid years. Why do you think people are working so hard for a 2-3% hike?
@@mgappstech6179 Post 40 years, the thought process of a "salary hike" has to change. For example -- 1. salary hike is not take-home but it can also include ESOPs which can be a lot more than 10% 2. salary to business -- many people in 40s have the tools (experience, contacts, skills) to move from a salary to business profits. People who are good can make 2-3 times of their salary as I'm try to do & hopefully I'll get there by next year
No IT employees get that much hike every year. Getting A band each year is just impossible. It's only possible if you jump each year which is also near impossible.
Hi Shankar, Your content is very informative. But these are all generic topics. I suggest you don't waste time on these vague topics. Make something concrete. Let's analyse some sectors, or summarise a book ( and how it helped in your stock market journey with examples). There are 100s of YT channels giving this type of generic gyaan. It's like today you want to make a video, but don't have a topic, so let's make a generic video and attach a khayaali pulav waala spreadsheet. Don't do that
Hello Harsh ji, thank you! I can understand such a topic like "How much money should I have by ___ age" isn't something you are keen on. But it's something others have asked me quite a few times and my attempt here was to bring it down to a single number. E.g. if you are 40 years of age then if you annual income is x, then your portfolio value should be 3.6x .. and so on. Yes. Analyse of sectors, companies & even more research-heavy topics will be a part of my paid community. For example, just last week, we identified a metric (and tested it with data) that helps us avoid stocks that are likely to decline in value over time. Ofcourse, this requires a lot more research, time & money (Priyam is full-time into it & I'm hiring more researcher) which is also why I've started to change the shape of my UA-cam channel. Videos are smaller (12 not 16 mins), a little generic topics, some topics will not be investing at all etc. This is entirely deliberate on my part but this may not be permanent. Afterall we are doing some strong research at our end (I also run a newsletter which is read by even CEOs & fund managers), it's just that we haven't decided how much of it needs to go into the UA-cam and if yes, in what form. In this period, the feedback, some vile messages, a few unsubscribes etc. will continue, but it's a price I'm OK to pay I'm hopeful the above note explains some parts of my position. I do understand the condescending tone of your comment but please be assured -- I know what I'm doing and how everything fits together as I make my transition from a content creator to a researcher
12% return BS isnt gonna last long...India is aging and its aging super fast...in the next decade u will see sizeable chunk of IT/fin services people who started their career in 90s retiring ..that number may even double in 2040s...what it means that investment into MF and Stocks will come doen gradually as a generation keeps signing off from working age....Yes new money will come but you will see more and more redemptions increasing at a significa pace pressuring the returns...10% at max on a normalozed basis is something that should be assumed henceforth
Thanks a lot for this informative video as always!!! One request, could you please make some video for the late starters say at 40's or late 30's with minimal savings & those who don't have huge salaries( like IT) even at this age Thanks again!!!
Thanks for the suggestion. Another video may not be required. You can input the savings amount, income, expected hike etc. in this worksheet itself to get the answers. Some tweaking in the excel will be needed but anyone with a little knowledge of excel can do it
What about the un-salaried class? Those with small businesses, freelancing & other gigs, jobs in unorganized sector? We do not earn like this. After a lifetime of small time freelance work, i have 60 lakh in investments, some jewellery. And i feel i haven't done too badly. Am 57, retired and living very frugally.
Yes. I am un-salaried myself. Pls work the numbers accordingly i.e. how much profits are expected, any major expenses etc. I won't take more than an hour to rework the worksheet and come up with an acceptable estimate for oneself
Dear shankar. This is quite a wonderful video and refreshing. Can you pls tell if you mean, net income when you say income, or do you mean gross income before tax?
@ ok thanks for your reply. I saw the excel. I believe, it’s best to take ctc minus tax. Basically all the income employee gets overall including the things he or she deposits in PF etc.
@shankarnath I am a dentist, a private practitioner and 39 years old. Until now my investments have been buying properties for my clinic space and the machinery and instruments for the clinic. I own 2 commercial properties almost worth 2.5 cr on which I have debt left. All these years equity investments were really not on my mind. My portfolio is far from the 1 cr which you suggest, I am possibly almost Half way through. While I agree that the sheet should be an ideal guideline but is it really practical? Also what else can be done from now onwards until 65? Which I feel would be a practical retirement age for a dentist. Thanks
I am 37 with real estate 1.3 cr (fully paid) and another 1.5 cr invested in 20% equity marlet, 40% fixed deposits and the rest 40% in p2p lending. If i stop adding more money into investments and continue to work until 50/55 with my expenses from my salary, am i still financially sorted?? My current expenses are around 1 lac a month.
Wonderful Sir, very insightful like most of your videos🙏. Though in reality many of us in late 40s were not as enlightened in early age. Spent money in house, car and vacation, hope next gen will be more prudent. To make best use of the sheet can we add cost of Assets we bought like house, second house as passive income ? also how to start this sheet from in between, say 40 yr of age.
1. Yes, please feel free to modify the worksheet in the way it works best for you. The ideas here was to give a simple template. 2. If you are 40 years for instance, then remove all previous entries (i.e. age 20 to 39). Tweak the formula starting from age 40. Input the annual income, portfolio value, expected salary hike, portfolio return etc. and that should give you a good idea of where you stand
Thanks shankar ji and very true lines,our 20’s are the foundation for true financial success,And me unfortunately did have any interest in savings nor investments
Most welcome. You're young -- please don't make "average" your base scenario (code for saying, ignore what others are writing in the comments). I'd like to share an incident. A young man (around 26 years) did a 1:1 call with me in 2023. I learnt that he was an orphan (both parents had expired and he was an only child), he was living alone, working on freelance projects making some money from it. He was getting married in late 2024 after his bride finished her studies and he said something that I felt very sad -- "Sir, sau logon ki baarat ke liye log collect karne me mushkil aa rahi hai" In that call, I quit talking about investment and asked him to work on his income. We agreed to look at outside India projects and adding a couple of extra services. This man reconnected 5 month later to share that he stepped up his income and was earning 3 times the money from earlier -- a 200% hike :) Our foundations -- if based on our skills -- will take us far more than the average person. Pls do work on that too in addition to your investments
@@shankarnathThanks shankar ji for the inspiring words but i meant to say that in my 20’s i was a really wasting my time ,thanks for assuming that am young by the way am now 42 years old😂
Thanks for using "almost" there. Yes, our assessment of reality is a function of awareness. My circle is mostly 40-55 years (I'm myself 44) and 10% increments are pretty common. In few cases, it's 8% but the ESOP & benefits more than makes up for the missing 2%
For IT industry, most people will stop at 45 or earlier. Salary increments are in double digits only for certain percentage of people. Furthermore, normally, a lot of people understood the importance of investing during covid. So, having a lot of past savings is possible in few cases only. Request you to make a video for people who are in their 40s & probably missed the investment journey in their 30s. How should they recover from it?
There is no recovery.. the only way is to save as much as possible save enough to open a buisness.. hustle till you have a corpus.. Time in the market is important.. now that only 5 years are left there is no time for compounding nor enough money..
Glad you found it helpful. It's a skeleton structure though, please build more loops around it and definitely customize it per your realities and expectations
With no major reformist budget policies by the incumbent government and they are happy with the present growth rate, should the investors now tone down their return expectations for the long term, and look outside India maybe?
The monthly expenses in the sheet seem unrealistically high. For instance, a ₹6 lakh monthly expense at 50 seems far from reality. I can relate to the income and savings figures-in my case, they’re even higher than those in the sheet-but my expenses are just a tenth of what’s stated.
Everything can be unrealistic in this worksheet if you are assuming everyone lives the exact life as yours. Look at it this way -- your total expenses are 60k a month .. but in the society I live in, the rent itself is over 60k a month. My next door neighbour pays an EMI of 80k a month. The CEO of my agency travels to Mumbai and Bangalore every week (he's staying in hotels 10 days a month), his total expenses are 3 lakhs a month. Everyone's different!
@shankarnath Thank you, Shankar Sir, for your perspective. With their level of expenses, achieving financial independence would require a staggering ₹21 to ₹28 crore (30x to 40x their annual expenses). In contrast, someone earning a similar income but spending only ₹60K while living debt-free in an owned residence-can accumulate a sufficient retirement corpus much faster.
@ Yes, you're right. The person I referred to -- the one spending ₹3 lakhs -- now earns a profit of ₹50 lakhs a month. It's incredible given the fact that he was earning 85k/mo as salary in 2023. He's 33 now .. so is on track to cross ₹20 crores by the time he hits 40, maybe even earlier I'm not so sure about the "similar income but frugal living" format. I've seen others and I've been seeing myself for the last 2 years now -- I'm not afraid to spend for growth. And I've seen the same trait with others who are doing very well in terms of income. On the other hand, the ones I know who are "savers" are generally not the the "growers". I really can't explain it in words -- it's something one experiences
Hi Shankar, Can you make a video for someone fresh out of college who got their first job, 50k salary how do they start invest and what shoud they invest in?
Thanks for the suggestion. Won't a video like that receive exactly the same comments as we see in this video? E.g. there is so much unemployment, who will give 50k salary? .. average college fresher makes 25k of salary only? and other variants of that
Yes, it's all in the mind -- decisioning and anxiousness. Our brains often interpret a slightly differently constructed information in a totally different manner. It's the way some people say "You are good" while others say "You aren't bad". Is it the same? No.
At 32 and many financil video later, i pay more attention to folks who assume a modest average portfolio return of 10%. Kudos for doing that! I have seen finfluencers use 12-15% (some even higher) for 20 -30 year long periods which is absolutely unattainable in the long run post tax. Alos, as we age, you need to divert more funds in more secure (which are inherently less tax efficient) instruments for security and easy access.
1. Agree on return %. I generally use 12% because it will genuinely possible to cross this number in India for the next two decades. 2. Disagree on diverting more funds to secure instruments. I had explained it in a previous video
fabulous content as always.. Just one suggestion.. assuming inflation at 7% is too conservative.. segmental inflation rate right now is somewhere around 15% (weighted inflation if you consider school fees, healthcare bills, Insurance premiums & just generally any urban services ..rather except for Food and Energy, everything else inflates at 15%+).. it might hover around 12-13% on average for the next 30 years.. so that changes the equation drastically
Yes, please change the inflation rate per your realities and expectations. The reason behind offering a customizable worksheet is that people can customize it.
Hi Shankar, key takeaway for me isnt in numbers but in the ratios you presented. Savings of 1x your annual income at 30 Savings of 2x your household annual income (assuming you are married) Savings of 3x of your houshold income I think everything aside, these are pretty good benchmarks!!
Yes absolutely. The ratios are the key things here. Pls tweak the Excel worksheet per your realities though. Even a 5% change in savings rate or income etc. can make a good difference
Nice video. Though non technical, bring s lot of food for thoughts. Separately suggestion for future videos. Indian economy for next 10 years and where NIFTY 50 or NIFTY 500 could reach.
Har koi apna salary dal ke, excel sheet to bana sakta hai na Sabka skill level, opportunity, talent aur luck ko aap 30k aur 8% increment nahi rakh saktein hain
Lots of respect for you but find some of the financial assumptions, like annual salary increments, to be unrealistic for many. Especially for those who start their careers on a slower trajectory, these projections may not resonate.
The idea behind giving an excel sheet is for people to put in their own realities. I said that twice in the video, not sure why very few understood it Very sorry to know people aren't making even 12% p.a. My own experience has been very different - in 20 years of working, always received over 12% increment except the two Covid years.
Shankar bhai after this bad budget and current confusing trend of market (which will be lethal atleast for some years/months) please design a amrit video based on how to create a portfolio now from scratch for a salaried person, include please:- Stock selection Entry exit Target sl Capital allocation Rebalance process considering ltcg stcg Lets aim for atleast 20-25 % cagr for long term in this.
Hello Rohit ji. My understanding is -- many of us (incl. you) don't live our lives based on what the other 80% earns, lives or does. This exercise is expected to be a self-evaluation which is why a worksheet has been provided. Many have tried it already and I've already received a few emails seeking some advice & a few have also modified the worksheet before sending it to me. Curious to know -- was it difficult for you to understand from the video that the worksheet is editable and everyone's situation is not the same? (I said it twice or thrice in the video)
Hi Shankar, Good Video, I'm 40 working in Dubai as CFO, Salary of 2cr/year I've a portfolio of 12cr purely in stocks and 3cr in Debt and ETFs (Passionate stock market investor for past 20 years) if i move to India my Yearly expense would be 25 lakhs when is the right time to retire for me. your advice will be very much appreciated. ( As you have been there and done that) Thanks
Thanks! I have another video on "How Much Do You Need to Retire?". It requires a few more inputs than this one though. Pls customize it and do a goal seek .. it will give you the age you are looking for. I have tried it with many people and it works! ua-cam.com/video/5A_BHQBiL6I/v-deo.html
I've never received below 12% in 20 years of working except two years of Covid. If you're comfortable sharing and assuming you are a highly skilled/talented person for them -- a) why does your organization offer you a maximum of 7% salary and b) what's your motivation to stick with them?
the estimates may be true for a corporate honcho .......Unfortunately i have been a high ranking Army officer with payscales matching with a senior IAS officer in GOI ......can't even dream of such huge corpus built on salaries at 56 ......
2 crore salary folks get ESOPs. A few of my classmates are around that number (1.5 crs & more), everyone has ESOP which are worth quite a bunch. Assuming retention ESOPs every year or every 2 years, it more than makes up for the 8% hike. Question -- Do you know anyone who makes 2 cr. but doesn't have benefits such as these?
While the increment is less than 6% how this Excel is built 😂 possibly based on the 1% club who is earning a lot compared to 99% in the society. Anyways excel gives someone to put their actual income and play with the outcome
Hi sir, First I would like to thank you for your top notch content which is guiding us. I eagerly wait for your videos and newsletter. A small request,can you please a video on crypto. Your valuable insights would help us. Regards
In my 20s, I was working extremely hard, fully immersed in the startup grind, which left me with little to no savings. I also ended up nearly wrecking my credit score in the process. However, now in my 30s (at 34), I’ve turned things around-I’ve saved more than my annual income, and I’m on track with my financial goals.
Me and my wife roughly started at 5-6L after paying for our own marriage some 8 years ago. We started our financial journey around that time. Since then, we have both invested our blood and sweat in our professional growth and today, 8 years later, at age 37 - we're at 7cr in savings. 5cr invested from income earned from our jobs, rest growth from returns (really shitty returns 😂). Moral : work hard, upskill, create value.
Sir, is there a slight mistake in the formula? in Column L where Portfolio value at the end of each year is calculated, you have taken 110% of (Previous year end value + current year investment). However, current savings (mainly the second half savings) will surely not fetch 10% by the end of year. Hope that's corrected. Wonderful video and very helpful to have a long term picture 👌
Correct question- What should be your total NET WORTH at every age. (Total net worth = Monetary Value of Total assets minus Monetary value of total liabilities). Assets means house, savings, stocks, gold, silver, cars, other valuables. Liabilities means house loan, personal loan, car loan, other loans.
Sorry this video is. not resonating at all because of two things - starting salary is not that high, can't save so much and salary increments are very unrealistic! This is a best case scenario, but as we all know it, life doesn't turn out like that! :D
Very sorry to know your life is very different from my life or hundreds of people I know. But just because someone is doing better should not make that person's life unrealistic & neither yours. Our incomes & savings are a function of our circumstances and the opportunities we take. I know of people who have 100x-ed their salary in their 30s with their hardwork. If they are "unreal", then I'd like be unreal too.
This video is more of mathematically proving things. It has very less relevance to practicality. 1 lac salary at the age of 30 and consistent increment of 10/12% is not realistic.
Maybe and that's why the excel worksheet has been offered so that each person can calculate per their situation, talent, skills and expectations Take me for instance -- 1. With regards to salary at the age of 30 -- I was making 3 lakhs per month (this is way back in 2010 when the whole world was reeling in recession) 2. With regards to increment -- in my 20s, I made an increment of 19% per year. In my 30s, I made an increment of 15% per year So my excel sheet is realistic for me. And if you mellow down the numbers in the excel sheet, it will come close to your financial position.
uff...it looks like a pretty tough ask with some sort of nagging stress and mechanical life throughout..salary compounding at 10% looks difficult these days even for young people (forget the older folks after late 40s) with far more manpower supply than demand in our country...
Maybe, pls bake in your realities and expectations in the worksheet calculations. I believe some employees make 20% p.a. and some will make 0%. I based my work on my realities -- I compounded my salary at 19% in my 20s and 15% in my 30s. In my 40s, I want to do better and cross 20% p.a. (as a self-employed)
It seems the numbers are unrealistic, i am 45 years old have bank balance of 45 lakhs, because i had a commitment in 30s like house and car. But the numbers we can keep it as target by increasing savings. Salary hike is too unrealistic because as u grow the hikes will be less.
👉 Use code SNY500 for ₹500 cashback on your 1st transaction
Sign up to Yenmo now: bit.ly/1Yenmo_SNY500
👉 Yenmo's digital LAMF process is currently available for mutual funds held in Statement of Account (SOA) format. If your mutual funds are in demat form, please connect with Yenmo's customer service team at support@yenmo.in to help you activate those offline
Why setup your Loan Against Mutual Fund a/c with Yenmo?
➡ Low Interest Rate of just 10.5% p.a.
➡ FREE! No setup fees
➡ No Credit Checks
➡ 100% Digital. No physical documents or visits
➡ No Hidden Fees
➡ No Foreclosure or Prepayment Charges
➡ No Intrusive Permissions like SMS, Camera, Phone book etc.
➡ Partnered with Bajaj Finance & Tata Capital
➡ Manage Your Loan Entirely from Yenmo app
12%, 10% annual increment on salary that too consistently is slightly far fetch
Only work hrs increase not the salary
Like he said, you can tweak it as you wish. Well in finance and technology fields, switching companies can easily get you 30-50% hike in salary as well.
@@rajatsrivastava9270yes 😂
No layoff scenario and recession 😀
True... past 3 years no increment for me ...
I am 39+ and I have a net worth of just below 50L. Half of my savings goes to Debt and the rest to Equity.
If you can generate 10% interest with that 50 Lakh. At the end of 60, you have approx 4 CR. That will be more than enough, brother.
4 cr will b equal to today's 1 cr after 20 yrs.
But better than nothing bro@@Mb1983bbn
Same condition bro, You are not alone.
These days jobs till 60 is just a dream..even after 45 it difficult to be in the game.@@rupakbiswas9413
Sorry to say but these incomes values and annual salary hike are way of the charts. Please check big IT companies salary hikes for the past 5 years.
Its actually
the IT companies greed .
Their profits have gone up a lot but they don't like sharing it with employees
Feel free to rework the worksheet based on your realities and expectations. Everyone has different levels of skills, opportunities, industry, talent and circumstances. The idea behind offering a worksheet is for customization
Its not linear. Just calculated my salary hike in last 5 year on CAGR basis and it turned out to be 25%.
@ Exactly.
In my 20s, my salary grew by 19% p.a.
In my 30s, it grew by 15% p.a.
In my 40s, I'm aiming to grow it by 20% p.a.
This is best case dream like scenario. You really expect somebody at 60 to earn 2 crores per annum ? Impossible unless you have a perfect career and perfect life without any health issues or family issues.
Maybe it's a best case scenario for you -- ergo, change the specs in the worksheet reflecting your realities and expectations
You do realise he started from the 30s assuming 7% inflation 2 cr is just 26 lakh rupees which is very doable. Even the 16 cr corpus is just 2.2 crores.
Please make a video how much and how can one start if starts at 30, starts at 40, or even the 50s. This will help those who did not or could do it earlier for whatever reason.
Thanks for the suggestion
The increments don't increase much as the salary keeps going high. The hikes stay at around 5% once you reach above 25 lpa in my experience.
Thanks for sharing your experience. Curious to know -- how do you manage your expenses knowing that your net savings (income rises at 5%, expenses at 10%) reduces each year? As in, do you plan to cut x, y, z expenses each year? Or, do you have some side income? etc.
@@shankarnathpeople carry on and increase savings in short term by cutting a bit on personal expense to move to family expenses and then switch to increase the income at a CAGR basis depending on landed hike eventually
@@PulkitTiwari Any reason why people don't opt to increase their income?
Personally, after reading the comments in this video, I'm amazed at the lack of creativity and spunk in most people. It's a bit like saying -- my electricity provider can ask for a 10% rise & I have to comply. The finance minister (barring this year) can jump-up the taxes by 10%, my landlord has a 10% escalation clause, the petrol price is up 10%, the gold I buy is up 10% an year -- but I can only get my income up by just 5%
The electrical provider, the finance minister, the landlord, the petrol pump, the jeweller can all increase income by 10% -- only I can't.
@@shankarnath often market conditions on a lot of jobs that were dramatically increasing their take home (and thus becoming their lucrative career paths over 30s, often increasing their salary by 10x in 10 years) have become a lot less rewarding given once in a generation changes in ecosystem around automation & AI. People thus in a post 22' era are in a long term steady job seeking mode where survival itself at that level becomes often a compulsion and risk to just be out is a lot more and not worth for the 15-30 percent hike. Happens a lot at senior management. That's what I meant
@@PulkitTiwari Thanks, it's a lot clearer to me now
I don't think people will have 2 cr income at the age of 50 😅
Why not? Assuming you are 30 now, can you not grow your income multifold by 2045?
I know quite a few who have 2+ crore of income in their 30s or 40s. I'm myself aiming for 2+ crores of income by 50
@@shankarnath gud luck. I didn't understood the part where inflation at 7% and growth at 10%, theres always 3% rise. How can money deplete
Sir pls recheck your calculations…
Salary hike practically 5% or even less 3-5 %when you consider over all 35 yrs experience. Because once you reach 40L 50L salary your hike will be 1-2%.
Hello. Pls make changes per your own reality in the worksheet. I've had a very different experience with my hikes - always over 12% for 20 years except the two Covid years.
Why do you think people are working so hard for a 2-3% hike?
@ Initial stage I agree since salary is low. But once you reach 40L above it’s very difficult to get that kind of hike..
@@mgappstech6179 Post 40 years, the thought process of a "salary hike" has to change. For example --
1. salary hike is not take-home but it can also include ESOPs which can be a lot more than 10%
2. salary to business -- many people in 40s have the tools (experience, contacts, skills) to move from a salary to business profits. People who are good can make 2-3 times of their salary as I'm try to do & hopefully I'll get there by next year
@ how many you think like that out of 100 😀
Moral of the story, invest early!!!
Those salary increases are a dream for 90% of Indians. Only IT and finance pays that well usually.
Who told IT will give that kind of salary increases.. not possible.
No IT employees get that much hike every year. Getting A band each year is just impossible. It's only possible if you jump each year which is also near impossible.
@@mpgirish1 lol already most of my cousins and friends are in 30-70L bracket in IT and they are in their 30s.
Average IT increment rate is less than inflation,
I am guessing the hypothetical example in worksheet belongs to which sector or which company??😢
Me being 23 , have portfolio of only 60000😅 out of pocket money
It's savings but not from active income. Once you earn from active income, then your savings and investments both will increase and grow don't worry
Invest next 20 yrs
I am 32. Still don't have this much 😂. Good going bro!
@@sitanshushrestha2629I feel u bro😢
Hi Shankar,
Your content is very informative.
But these are all generic topics. I suggest you don't waste time on these vague topics. Make something concrete. Let's analyse some sectors, or summarise a book ( and how it helped in your stock market journey with examples).
There are 100s of YT channels giving this type of generic gyaan. It's like today you want to make a video, but don't have a topic, so let's make a generic video and attach a khayaali pulav waala spreadsheet. Don't do that
Hello Harsh ji, thank you! I can understand such a topic like "How much money should I have by ___ age" isn't something you are keen on. But it's something others have asked me quite a few times and my attempt here was to bring it down to a single number. E.g. if you are 40 years of age then if you annual income is x, then your portfolio value should be 3.6x .. and so on.
Yes. Analyse of sectors, companies & even more research-heavy topics will be a part of my paid community. For example, just last week, we identified a metric (and tested it with data) that helps us avoid stocks that are likely to decline in value over time. Ofcourse, this requires a lot more research, time & money (Priyam is full-time into it & I'm hiring more researcher) which is also why I've started to change the shape of my UA-cam channel. Videos are smaller (12 not 16 mins), a little generic topics, some topics will not be investing at all etc.
This is entirely deliberate on my part but this may not be permanent. Afterall we are doing some strong research at our end (I also run a newsletter which is read by even CEOs & fund managers), it's just that we haven't decided how much of it needs to go into the UA-cam and if yes, in what form. In this period, the feedback, some vile messages, a few unsubscribes etc. will continue, but it's a price I'm OK to pay
I'm hopeful the above note explains some parts of my position. I do understand the condescending tone of your comment but please be assured -- I know what I'm doing and how everything fits together as I make my transition from a content creator to a researcher
12% return BS isnt gonna last long...India is aging and its aging super fast...in the next decade u will see sizeable chunk of IT/fin services people who started their career in 90s retiring ..that number may even double in 2040s...what it means that investment into MF and Stocks will come doen gradually as a generation keeps signing off from working age....Yes new money will come but you will see more and more redemptions increasing at a significa pace pressuring the returns...10% at max on a normalozed basis is something that should be assumed henceforth
Thanks a lot for this informative video as always!!! One request, could you please make some video for the late starters say at 40's or late 30's with minimal savings & those who don't have huge salaries( like IT) even at this age Thanks again!!!
Thanks for the suggestion. Another video may not be required. You can input the savings amount, income, expected hike etc. in this worksheet itself to get the answers. Some tweaking in the excel will be needed but anyone with a little knowledge of excel can do it
Thanks a bunch for your support as always
Most welcome
What about the un-salaried class? Those with small businesses, freelancing & other gigs, jobs in unorganized sector? We do not earn like this. After a lifetime of small time freelance work, i have 60 lakh in investments, some jewellery. And i feel i haven't done too badly. Am 57, retired and living very frugally.
Yes. I am un-salaried myself. Pls work the numbers accordingly i.e. how much profits are expected, any major expenses etc. I won't take more than an hour to rework the worksheet and come up with an acceptable estimate for oneself
4:44 by age 40, individuals should aim for a portfolio 3 times of your annual income (~36 Lakh if 12 LPA)
These numbers are scaring me 😢
Dear shankar. This is quite a wonderful video and refreshing. Can you pls tell if you mean, net income when you say income, or do you mean gross income before tax?
Thank you! I didn't specify it there but I had included tax i.e. gross income when doing the calculations
@ ok thanks for your reply. I saw the excel. I believe, it’s best to take ctc minus tax. Basically all the income employee gets overall including the things he or she deposits in PF etc.
@@bharatfoodie Yes, makes sense. Pls go ahead
12% appraisal every year is unrealistic. It’s realistic only on excel
This portfolio value expectation is as of today.
But 10 years, that number will be very high due to inflation.
So just don't target these numbers. GL
Quick question
Income = pre tax or in hand?
@shankarnath I am a dentist, a private practitioner and 39 years old. Until now my investments have been buying properties for my clinic space and the machinery and instruments for the clinic. I own 2 commercial properties almost worth 2.5 cr on which I have debt left. All these years equity investments were really not on my mind. My portfolio is far from the 1 cr which you suggest, I am possibly almost Half way through. While I agree that the sheet should be an ideal guideline but is it really practical? Also what else can be done from now onwards until 65? Which I feel would be a practical retirement age for a dentist. Thanks
Thanks shankar for all the knowledge that you provide to our generation 🙂🙂❤
Most welcome! Thank you so much
I hope you are starting your small case and community tomorrow
Please give me formula about in this excel
Formulas are visible on spreadsheet which is available in the video's description. Please change the numbers per your realities and expectations
I am 37 with real estate 1.3 cr (fully paid) and another 1.5 cr invested in 20% equity marlet, 40% fixed deposits and the rest 40% in p2p lending. If i stop adding more money into investments and continue to work until 50/55 with my expenses from my salary, am i still financially sorted?? My current expenses are around 1 lac a month.
no you are doomed
@undefin-ed_ the question was asked to Shankar, not the road side dogs.
Wonderful Sir, very insightful like most of your videos🙏. Though in reality many of us in late 40s were not as enlightened in early age. Spent money in house, car and vacation, hope next gen will be more prudent. To make best use of the sheet can we add cost of Assets we bought like house, second house as passive income ? also how to start this sheet from in between, say 40 yr of age.
1. Yes, please feel free to modify the worksheet in the way it works best for you. The ideas here was to give a simple template.
2. If you are 40 years for instance, then remove all previous entries (i.e. age 20 to 39). Tweak the formula starting from age 40. Input the annual income, portfolio value, expected salary hike, portfolio return etc. and that should give you a good idea of where you stand
Thanks shankar ji and very true lines,our 20’s are the foundation for true financial success,And me unfortunately did have any interest in savings nor investments
Most welcome. You're young -- please don't make "average" your base scenario (code for saying, ignore what others are writing in the comments).
I'd like to share an incident. A young man (around 26 years) did a 1:1 call with me in 2023. I learnt that he was an orphan (both parents had expired and he was an only child), he was living alone, working on freelance projects making some money from it. He was getting married in late 2024 after his bride finished her studies and he said something that I felt very sad -- "Sir, sau logon ki baarat ke liye log collect karne me mushkil aa rahi hai"
In that call, I quit talking about investment and asked him to work on his income. We agreed to look at outside India projects and adding a couple of extra services. This man reconnected 5 month later to share that he stepped up his income and was earning 3 times the money from earlier -- a 200% hike :)
Our foundations -- if based on our skills -- will take us far more than the average person. Pls do work on that too in addition to your investments
@@shankarnathThanks shankar ji for the inspiring words but i meant to say that in my 20’s i was a really wasting my time ,thanks for assuming that am young by the way am now 42 years old😂
@ Oh :) .. in that case, pls recite this incident to a younger person near you :)
@@shankarnath😊
10% increments in 40s when u are VP or D, is almost impossible
Thanks for using "almost" there. Yes, our assessment of reality is a function of awareness. My circle is mostly 40-55 years (I'm myself 44) and 10% increments are pretty common. In few cases, it's 8% but the ESOP & benefits more than makes up for the missing 2%
For IT industry, most people will stop at 45 or earlier. Salary increments are in double digits only for certain percentage of people. Furthermore, normally, a lot of people understood the importance of investing during covid. So, having a lot of past savings is possible in few cases only. Request you to make a video for people who are in their 40s & probably missed the investment journey in their 30s. How should they recover from it?
There is no recovery.. the only way is to save as much as possible save enough to open a buisness.. hustle till you have a corpus..
Time in the market is important.. now that only 5 years are left there is no time for compounding nor enough money..
exactly the video i wanted!
Glad you found it helpful. It's a skeleton structure though, please build more loops around it and definitely customize it per your realities and expectations
Sir, please make video on rights issues , warrants and preferential issues with strategies,Thank you sir..
I do have a very good video on rights issue. Pls have a look at that, its a very important video. Thanks!
Sir, please make video on warrants and preferential issues with strategies @@shankarnath
With no major reformist budget policies by the incumbent government and they are happy with the present growth rate, should the investors now tone down their return expectations for the long term, and look outside India maybe?
The monthly expenses in the sheet seem unrealistically high. For instance, a ₹6 lakh monthly expense at 50 seems far from reality. I can relate to the income and savings figures-in my case, they’re even higher than those in the sheet-but my expenses are just a tenth of what’s stated.
Everything can be unrealistic in this worksheet if you are assuming everyone lives the exact life as yours. Look at it this way -- your total expenses are 60k a month .. but in the society I live in, the rent itself is over 60k a month. My next door neighbour pays an EMI of 80k a month. The CEO of my agency travels to Mumbai and Bangalore every week (he's staying in hotels 10 days a month), his total expenses are 3 lakhs a month. Everyone's different!
@shankarnath Thank you, Shankar Sir, for your perspective. With their level of expenses, achieving financial independence would require a staggering ₹21 to ₹28 crore (30x to 40x their annual expenses). In contrast, someone earning a similar income but spending only ₹60K while living debt-free in an owned residence-can accumulate a sufficient retirement corpus much faster.
@ Yes, you're right. The person I referred to -- the one spending ₹3 lakhs -- now earns a profit of ₹50 lakhs a month. It's incredible given the fact that he was earning 85k/mo as salary in 2023. He's 33 now .. so is on track to cross ₹20 crores by the time he hits 40, maybe even earlier
I'm not so sure about the "similar income but frugal living" format. I've seen others and I've been seeing myself for the last 2 years now -- I'm not afraid to spend for growth. And I've seen the same trait with others who are doing very well in terms of income. On the other hand, the ones I know who are "savers" are generally not the the "growers". I really can't explain it in words -- it's something one experiences
Excellent, thanks for doing this 🙏
Most welcome 🙌
Hi Shankar, Can you make a video for someone fresh out of college who got their first job, 50k salary how do they start invest and what shoud they invest in?
Thanks for the suggestion. Won't a video like that receive exactly the same comments as we see in this video? E.g. there is so much unemployment, who will give 50k salary? .. average college fresher makes 25k of salary only? and other variants of that
I am 38 and i have 60l saving including nps and pf. Short by 15l
DEAR SHANKAR
IS IT POSSIBLE TO REVISIT THE SMALL CAPS STOCKS YOU HAVE SHARED IN YOUR NEWSLETTER AFTER QUATERLY RESULTS ?
REGARDS
Yes it is, after all results have come in & earning calls done. But please be patient, this will take some time
@@shankarnath THANKS
Good to see you Shankar 🎉
Thanks!
Very nice shankar ji
Thank you!
Your mutual fund related videos helped me take decision on building my portfolio... This video gave me anxiety...
Yes, it's all in the mind -- decisioning and anxiousness. Our brains often interpret a slightly differently constructed information in a totally different manner. It's the way some people say "You are good" while others say "You aren't bad". Is it the same? No.
Banks give salary hike of 4-5% only
At 32 and many financil video later, i pay more attention to folks who assume a modest average portfolio return of 10%. Kudos for doing that! I have seen finfluencers use 12-15% (some even higher) for 20 -30 year long periods which is absolutely unattainable in the long run post tax. Alos, as we age, you need to divert more funds in more secure (which are inherently less tax efficient) instruments for security and easy access.
1. Agree on return %. I generally use 12% because it will genuinely possible to cross this number in India for the next two decades.
2. Disagree on diverting more funds to secure instruments. I had explained it in a previous video
fabulous content as always.. Just one suggestion.. assuming inflation at 7% is too conservative.. segmental inflation rate right now is somewhere around 15% (weighted inflation if you consider school fees, healthcare bills, Insurance premiums & just generally any urban services ..rather except for Food and Energy, everything else inflates at 15%+).. it might hover around 12-13% on average for the next 30 years.. so that changes the equation drastically
Yes, please change the inflation rate per your realities and expectations. The reason behind offering a customizable worksheet is that people can customize it.
Hi Shankar, key takeaway for me isnt in numbers but in the ratios you presented.
Savings of 1x your annual income at 30
Savings of 2x your household annual income (assuming you are married)
Savings of 3x of your houshold income
I think everything aside, these are pretty good benchmarks!!
Yes absolutely. The ratios are the key things here. Pls tweak the Excel worksheet per your realities though. Even a 5% change in savings rate or income etc. can make a good difference
Sir need to know which credit card is best , kindly put a detailed vedio on that
Thanks for the suggestion
Nice video. Though non technical, bring s lot of food for thoughts.
Separately suggestion for future videos. Indian economy for next 10 years and where NIFTY 50 or NIFTY 500 could reach.
Glad you liked it. Thanks for the suggestion
Does this portfolio includes NPS & PF Savings ? or plain equity and MF you are referring ? when you say 12 Lakhs savings at age of 30
Sir 30 ki age me 1lakh salary har kisi ki nhi hoti.
Plz update data and consider 30 age with 30k monthly salary with 8% annual increment
Har koi apna salary dal ke, excel sheet to bana sakta hai na
Sabka skill level, opportunity, talent aur luck ko aap 30k aur 8% increment nahi rakh saktein hain
@shankarnath thanks sir
@@TopicTrackerwithrk
जैसे हर किसी की 1 लाख नहीं होती वैसे ही हर किसी की 30000 भी नहीं होती
Lots of respect for you but find some of the financial assumptions, like annual salary increments, to be unrealistic for many. Especially for those who start their careers on a slower trajectory, these projections may not resonate.
The idea behind giving an excel sheet is for people to put in their own realities. I said that twice in the video, not sure why very few understood it
Very sorry to know people aren't making even 12% p.a. My own experience has been very different - in 20 years of working, always received over 12% increment except the two Covid years.
Shankar bhai after this bad budget and current confusing trend of market (which will be lethal atleast for some years/months) please design a amrit video based on how to create a portfolio now from scratch for a salaried person, include please:-
Stock selection
Entry exit
Target sl
Capital allocation
Rebalance process considering ltcg stcg
Lets aim for atleast 20-25 % cagr for long term in this.
Thanks for the suggestion.
@@shankarnath thanks and please proceed with this suggestion
This is your first time where I think u have no taken practical number.80% are hardly earning 6 lakh in 1 year.
Hello Rohit ji. My understanding is -- many of us (incl. you) don't live our lives based on what the other 80% earns, lives or does. This exercise is expected to be a self-evaluation which is why a worksheet has been provided. Many have tried it already and I've already received a few emails seeking some advice & a few have also modified the worksheet before sending it to me.
Curious to know -- was it difficult for you to understand from the video that the worksheet is editable and everyone's situation is not the same? (I said it twice or thrice in the video)
Hi Shankar,
Good Video,
I'm 40 working in Dubai as CFO, Salary of 2cr/year
I've a portfolio of 12cr purely in stocks and 3cr in Debt and ETFs (Passionate stock market investor for past 20 years)
if i move to India my Yearly expense would be 25 lakhs
when is the right time to retire for me.
your advice will be very much appreciated. ( As you have been there and done that)
Thanks
Thanks! I have another video on "How Much Do You Need to Retire?". It requires a few more inputs than this one though. Pls customize it and do a goal seek .. it will give you the age you are looking for. I have tried it with many people and it works! ua-cam.com/video/5A_BHQBiL6I/v-deo.html
@@shankarnath Thank you Shankar, will do that
9:25 doctors crying in the corner
5 to 7 % is max as increment. How you assume like 12%
Max???
May be average..but not max.. of you take risk and join startups you will get more most likely..if they are doing well..
I've never received below 12% in 20 years of working except two years of Covid.
If you're comfortable sharing and assuming you are a highly skilled/talented person for them -- a) why does your organization offer you a maximum of 7% salary and b) what's your motivation to stick with them?
Not even 20 at the age of 37😢
the estimates may be true for a corporate honcho .......Unfortunately i have been a high ranking Army officer with payscales matching with a senior IAS officer in GOI ......can't even dream of such huge corpus built on salaries at 56 ......
Seeing the comments, makes me feel poor 😢
Please be selective when reading comments
Salary increment is too high. No one gets 8% hike on an annual post tax salary of 2cr
2 crore salary folks get ESOPs. A few of my classmates are around that number (1.5 crs & more), everyone has ESOP which are worth quite a bunch. Assuming retention ESOPs every year or every 2 years, it more than makes up for the 8% hike.
Question -- Do you know anyone who makes 2 cr. but doesn't have benefits such as these?
I have 30 cr saved up and I need 1cr every year can I retire I am 10 years away from the full age of retirement
10% increment at 40s? Please be practical Sir
i luv the image @ 0:17
Hi
While the increment is less than 6% how this Excel is built 😂 possibly based on the 1% club who is earning a lot compared to 99% in the society. Anyways excel gives someone to put their actual income and play with the outcome
Hi sir,
First I would like to thank you for your top notch content which is guiding us. I eagerly wait for your videos and newsletter.
A small request,can you please a video on crypto. Your valuable insights would help us.
Regards
Thank you 🙌 Unfortunately, I don't understand anything on cryptocurrencies. Apologies!
In my 20s, I was working extremely hard, fully immersed in the startup grind, which left me with little to no savings. I also ended up nearly wrecking my credit score in the process. However, now in my 30s (at 34), I’ve turned things around-I’ve saved more than my annual income, and I’m on track with my financial goals.
Sar hindi please
Me and my wife roughly started at 5-6L after paying for our own marriage some 8 years ago. We started our financial journey around that time. Since then, we have both invested our blood and sweat in our professional growth and today, 8 years later, at age 37 - we're at 7cr in savings. 5cr invested from income earned from our jobs, rest growth from returns (really shitty returns 😂). Moral : work hard, upskill, create value.
One question
Is this savings rate on post tax income or pretax income?
Hi. You can use pre or post per your comfort in the Excel sheet. I have assumed it as post-tax
@ thanks
Sir, is there a slight mistake in the formula? in Column L where Portfolio value at the end of each year is calculated, you have taken 110% of (Previous year end value + current year investment). However, current savings (mainly the second half savings) will surely not fetch 10% by the end of year. Hope that's corrected. Wonderful video and very helpful to have a long term picture 👌
Hello. I'm sure there are minor mistakes, please correct them per your understanding. Thanks for letting me know though
I am 26 Year old and my earning in your chart has been referred to as someone of age 54 😅…
Sir, is this good time to accumulate Raymond Lifestyle ,as it's already less than book value
Correct question- What should be your total NET WORTH at every age. (Total net worth = Monetary Value of Total assets minus Monetary value of total liabilities). Assets means house, savings, stocks, gold, silver, cars, other valuables. Liabilities means house loan, personal loan, car loan, other loans.
Age: 23
MF portfolio: 40 Lakhs
Sorry this video is. not resonating at all because of two things - starting salary is not that high, can't save so much and salary increments are very unrealistic! This is a best case scenario, but as we all know it, life doesn't turn out like that! :D
Very sorry to know your life is very different from my life or hundreds of people I know. But just because someone is doing better should not make that person's life unrealistic & neither yours. Our incomes & savings are a function of our circumstances and the opportunities we take. I know of people who have 100x-ed their salary in their 30s with their hardwork. If they are "unreal", then I'd like be unreal too.
This video is more of mathematically proving things. It has very less relevance to practicality. 1 lac salary at the age of 30 and consistent increment of 10/12% is not realistic.
Maybe and that's why the excel worksheet has been offered so that each person can calculate per their situation, talent, skills and expectations
Take me for instance --
1. With regards to salary at the age of 30 -- I was making 3 lakhs per month (this is way back in 2010 when the whole world was reeling in recession)
2. With regards to increment -- in my 20s, I made an increment of 19% per year. In my 30s, I made an increment of 15% per year
So my excel sheet is realistic for me. And if you mellow down the numbers in the excel sheet, it will come close to your financial position.
uff...it looks like a pretty tough ask with some sort of nagging stress and mechanical life throughout..salary compounding at 10% looks difficult these days even for young people (forget the older folks after late 40s) with far more manpower supply than demand in our country...
Maybe, pls bake in your realities and expectations in the worksheet calculations. I believe some employees make 20% p.a. and some will make 0%. I based my work on my realities -- I compounded my salary at 19% in my 20s and 15% in my 30s. In my 40s, I want to do better and cross 20% p.a. (as a self-employed)
👍🏻
It seems the numbers are unrealistic, i am 45 years old have bank balance of 45 lakhs, because i had a commitment in 30s like house and car. But the numbers we can keep it as target by increasing savings. Salary hike is too unrealistic because as u grow the hikes will be less.
Really like you.. would like to meet you someday
Thank you!
At india Engineering consultants offers increment in range of 5 to 8%.
After 45 your scale is saturated no increment yet all...
Second comment 🎉
Sir make videos in hindi, it will help lots of people in our country , which are not comfortable in english❤❤
Most Indians don't know hindi.
Thanks for the suggestion
First comment