Step 3: Create That Surplus

On a scorching summer day, a crow flew from place to place, desperately searching for water. Its beak was dry, and the heat made the quest even harder. Just when the crow was about to give up, it spotted a pot near a garden. It flew down, peered inside, and saw a small amount of water at the bottom, but it was too low for the crow to reach.

Determined not to give up, the crow thought of a plan. It started picking up small pebbles and dropping them into the pot, one by one. With each pebble, the water rose just a little bit higher. The crow kept going patiently, knowing that its efforts would eventually pay off. Finally, after many pebbles, the water rose to the brim. The crow drank eagerly, its thirst finally quenched.

You will need the doggedness of the crow, dropping each “saving pebble” persistently to savor the satisfaction of dipping into a ₹10 crore corpus one day. Let’s carry forward the insights from Step 2, where you charted the path to your ₹10 crore target by identifying your financial “distance to destination.” It’s time to fuel that journey by building surpluses. Just as the crow lifted the water to drink, you must steadily build and invest growing surpluses with near-robotic regularity. But how do you actually build these surpluses—the difference between your earnings and expenses?

In the same way that the crow had a simple goal but a complex task, your journey to ₹10 crore requires a focus on creating steady, expanding savings. This means a disciplined approach to budgeting, mindful spending, and ultimately, driving your income upward to allow for even greater saving and investing. Here’s how you can make your savings grow effectively:

Think of savings as a commitment rather than a leftover. Instead of saving whatever’s left after spending, flip the script: save first, then spend the remainder. This mindset shift is essential to achieving substantial financial goals.

“Do not save what is left after spending; instead, spend what is left after saving.” — Warren Buffett

You’ve already calculated how much you need to save in Step 2. Now, pick your target years and commit to that saving target. It might feel challenging, especially with mandatory expenses. But here’s where a well-structured budget comes into play.

Budgeting is the key to finding that surplus without sacrificing essential needs. Create a “Cash Flow” sheet in your ₹10 crore workbook (from Step 1 – 5 Steps to Building ₹10 Crore), listing all your income streams on one side and all expenses on the other. Track your cash flow for 6 to 12 months to gain a true picture of where your money goes.

Next, classify expenses into four categories:

Just like the persistent crow in the story, it takes determination to eliminate unnecessary expenses and redirect those savings. Imagine each rupee saved as a drop of water in a pot that will eventually overflow into your ₹10 crore goal.

Reflection Prompt: Take a moment to ask, Are there any expenses I can reduce or eliminate to put more toward my goals? Small shifts in priorities today can make a big impact tomorrow.

Maximizing income is not just about saving more; it’s also about being strategic with your career. Many people excel in the early stages of their careers, but then plateau as they lose focus or divert their attention to unrelated pursuits. However, the years when you’re well-established in your field can be the most lucrative ones if you stay sharp and committed to growth. Think of it as “investing in yourself,” an investment that could yield returns not just now but for decades to come. You need to –

Creating surplus may require adjustments and dedication, but each effort brings you one step closer to ₹10 crore. In the next step, we’ll look at how to secure this wealth against life’s unexpected turns. Stay focused, disciplined, and keep building!