Step 5: It’s Time to Grow Your Money

Once upon a time, there was a king who was deeply passionate about the game of chess. One day, feeling particularly pleased with a courtier who had solved a complex governance issue, the king offered him a reward of his choice.

The clever courtier humbly asked for rice grains, with a peculiar condition: “Place a single grain of rice on the first square of the chessboard, and for each subsequent square, double the number of grains placed on the previous one.”

The king, amused by the modest request, immediately agreed. But as his ministers started calculating the number of grains required, a startling realization dawned upon them.

By the 10th square, the grains totaled 1,023. By the 20th square, it had risen to 1,048,575. By the time they reached the 40th square, the amount had skyrocketed to over a trillion grains! And by the time they reached the 64th square, the total grains required exceeded 18 quintillion grains—enough to cover the entire planet several times over.

The king’s chessboard demonstrates the exponential power of compounding—a phenomenon that also holds the key to building your ₹10 crore corpus. Each grain (or rupee) you invest today grows and multiplies with time, creating a snowball effect. However, just like the courtier’s reward needed a systematic approach to achieve, so does your financial journey. Here’s how you can do it:

Think of savings as planting seeds—they need to go into fertile soil quickly, or they risk being eaten by birds (your spending temptations). Automating your savings ensures they are allocated efficiently before the temptation to spend arises. Here’s how to do it:

• Auto-Sweep Accounts: Set up savings accounts that automatically transfer excess funds into high-interest fixed deposits.
• Recurring Deposits: Dedicate a fixed amount each month to recurring deposits, ensuring consistent savings.
• Systematic Investment Plans (SIPs): Automate monthly contributions to mutual funds that align with your goals.

Why automate?
When money stays idle in your account, it’s easier to spend on non-essentials like eating out, vacations, or shopping. Redirecting it immediately into investment instruments eliminates this risk and keeps your wealth-building journey on track.

Your savings need to be invested wisely. Think of your investment choices as the vehicles for your financial journey. Would you take a road trip to Chennai from Delhi if you only have 8 hours? Of course not—you’d book a flight. Similarly, your ₹10 crore goal requires a mix of investments that suit your timeline and risk appetite.

Here’s a breakdown of popular investment options:

• Bank Deposits: Safe but with low returns, suited for short-term goals or emergency funds.
• Small Savings Schemes: Instruments like PPF, NSC, or MIS offer security and tax benefits, making them great for long-term stability.
• Stocks and Mutual Funds: Higher risk but with potential for substantial returns. Ideal for long-term wealth creation when used wisely.
• Real Estate: Tangible and potentially lucrative but requires significant capital and careful selection.
• Gold: A hedge against inflation but not an aggressive growth vehicle.
• Cryptocurrency: High risk, high reward—suitable for only a small portion of your portfolio.

The key is diversification. Allocating your assets across various classes ensures a balance of safety, growth, and liquidity. For a deeper dive into asset allocation, check out our detailed guide Asset Allocation: The Essential Approach to Wealth Creation

Investments, like gardens, require constant care. A good gardener removes dead leaves, adjusts plants to get better sunlight, and prunes branches to give them a healthy shape. Similarly, your portfolio needs periodic reviews to stay aligned with your goals and life changes.

Here’s how to review effectively:

• Remove Underperformers: Identify and exit investments that are consistently lagging behind.
• Rebalance Asset Allocation: As your life circumstances change—marriage, children, nearing retirement—your risk tolerance and investment needs will evolve. Reallocate accordingly.
• Adjust as You Age: Reduce equity exposure as you get closer to your ₹10 crore target or approach retirement, focusing instead on stable, income-generating investments.

Example:
Let’s say your portfolio initially had 70% in equities and 30% in debt. By the time you’re 5 years away from your goal, it may be wiser to shift to 40% equities and 60% debt to lock in gains and reduce risks.

In this step, you’re not just saving but actively growing and nurturing your wealth. You’ve automated savings to protect against impulsive spending, chosen the right investment vehicles to maximize growth, and committed to regular portfolio reviews to stay on course.

When you integrate these practices, you’re not just planning for ₹10 crore—you’re creating a system that ensures your financial success, no matter what life throws at you. Stay disciplined, be proactive, and let compounding and smart allocation do the heavy lifting.

As the gardener of your financial journey, the satisfaction of seeing your ₹10 crore corpus bloom will be worth every effort you put in today. 🌱