SRK KBC LIVE : Be Crorepati : Lession 1 : Start Saving Early
admin December 29th, 2006
So, here comes our first lesson on ‘Be Crorepati’ Series.
Start saving early, remember even to be on KBC set with SRK, you have to be proud owner of Airtel, BSNL or MTNL. So start saving, Save so much so you can do something big.
Start early to be on top. You can see from the chart.
The power of compounding is summed up by the table below. These figures are based on an assumed annual rate of return of 10 percent, with no withdrawals and no taxes. Whether these conditions are attainable or desirable is beside the point. This table merely illustrates a principal that’s based purely on mathematics. Assuming the same rate of return (10 percent) in each of the two examples, a person who invests early and for just eight years will have more money at 65 years old than will someone who starts late and invests for nearly 40 years. Naturally, someone who starts early and doesn’t stop has the potential to do much better than either of these examples.
|
 |
Example 1: |
 |
Example 2: |
 |
|
Age |
Annual Investment |
Year-End Value |
Annual Investment |
Year-End Value |
|
19 |
$ 2,000 |
$2,200 |
$ 0 |
$ 0 |
|
20 |
$ 2,000 |
$4,620 |
$ 0 |
$ 0 |
|
21 |
$ 2,000 |
$7,282 |
$ 0 |
$ 0 |
|
22 |
$ 2,000 |
$10,210 |
$ 0 |
$ 0 |
|
23 |
$ 2,000 |
$13,431 |
$ 0 |
$ 0 |
|
24 |
$ 2,000 |
$ 16,974 |
$ 0 |
$ 0 |
|
25 |
$ 2,000 |
$ 20,872 |
$ 0 |
$ 0 |
|
26 |
$ 2,000 |
$ 25,159 |
$ 0 |
$ 0 |
|
27 |
$ 0 |
$ 27,675 |
$2,000 |
$2,200 |
|
28 |
$ 0 |
$ 30,442 |
$2,000 |
$4,620 |
|
29 |
$ 0 |
$33,487 |
$2,000 |
$7,282 |
|
30 |
$ 0 |
$36,835 |
$2,000 |
$10,210 |
|
31 |
$ 0 |
$40,519 |
$2,000 |
$13,431 |
|
32 |
$ 0 |
$44,571 |
$2,000 |
$16,974 |
|
33 |
$ 0 |
$49,028 |
$2,000 |
$20,872 |
|
34 |
$ 0 |
$53,931 |
$2,000 |
$25,159 |
|
35 |
$ 0 |
$59,324 |
$2,000 |
$29,875 |
|
36 |
$ 0 |
$65,256 |
$2,000 |
$35,062 |
|
37 |
$ 0 |
$71,782 |
$2,000 |
$40,769 |
|
38 |
$ 0 |
$78,960 |
$2,000 |
$47,045 |
|
39 |
$ 0 |
$86,856 |
$2,000 |
$53,950 |
|
40 |
$ 0 |
$95,541 |
$2,000 |
$61,545 |
|
41 |
$ 0 |
$105,095 |
$2,000 |
$69,899 |
|
42 |
$ 0 |
$115,605 |
$2,000 |
$79,089 |
|
43 |
$ 0 |
$127,165 |
$2,000 |
$89,198 |
|
44 |
$ 0 |
$139,882 |
$2,000 |
$100,318 |
|
45 |
$ 0 |
$153,870 |
$2,000 |
$112,550 |
|
46 |
$ 0 |
$169,257 |
$2,000 |
$126,005 |
|
47 |
$ 0 |
$186,183 |
$2,000 |
$140,805 |
|
48 |
$ 0 |
$204,801 |
$2,000 |
$157,086 |
|
49 |
$ 0 |
$225,281 |
$2,000 |
$174,995 |
|
50 |
$ 0 |
$247,809 |
$2,000 |
$194,694 |
|
51 |
$ 0 |
$272,590 |
$2,000 |
$216,364 |
|
52 |
$ 0 |
$299,849 |
$2,000 |
$240,200 |
|
53 |
$ 0 |
$329,834 |
$2,000 |
$266,420 |
|
54 |
$ 0 |
$362,818 |
$2,000 |
$295,262 |
|
55 |
$ 0 |
$399,100 |
$2,000 |
$326,988 |
|
56 |
$ 0 |
$439,010 |
$2,000 |
$361,887 |
|
57 |
$ 0 |
$482,910 |
$2,000 |
$400,276 |
|
58 |
$ 0 |
$531,202 |
$2,000 |
$442,503 |
|
59 |
$ 0 |
$584,322 |
$2,000 |
$488,953 |
|
60 |
$ 0 |
$642,754 |
$2,000 |
$540,049 |
|
61 |
$ 0 |
$707,029 |
$2,000 |
$596,254 |
|
62 |
$ 0 |
$777,732 |
$2,000 |
$658,079 |
|
63 |
$ 0 |
$855,505 |
$2,000 |
$726,087 |
|
64 |
$ 0 |
$941,056 |
$2,000 |
$800,896 |
|
65 |
$ 0 |
$1,035,161 |
$,2000 |
$883,185 |
|
Less $ invested |
 |
($16,000) |
 |
($78,000) |
|
 |
 |
$1,019,161 |
 |
$805,185 |
|
Money increased |
 |
64 fold |
 |
10 fold |
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Table has been taken from http://www.saferchild.org/power.htm
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But We know you do not have so much time to be crorepati, so we will keep telling you about these things. After all telling people about how they can become crorepati is also one of the work by which one can be crorepati 
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