Delay gratification…have a life


In my last post I spoke about living your life.

One of my sisters commented that my post was so depressing that she actually decided that I write a lot of crap because before buying a Rs1400/- dress she started thinking how it could it impact her future and did not buy the dress.

Well she got out of that low feeling by going out and buying an even more expensive dress – but to come to the Rs1400/-…what it could mean if she delays the gratification.

Assume that my sister is 25 years of age.  She has a long runway.  given how medical science is progressing she will at-least live till the age of 95-105 on an average….that means she has 7-8 blocks of 10 years each…25-35, 35-45, 45-55 and so on.

I have earlier written how small differences in percentage can make a huge difference in outcome.  Now lets assume she gets 15% per annum return on this money….which means every 5 years the money doubles….so in 10 years the money becomes 4 times, in 20 years it becomes 16 times.  By the time she is 55 she will have 64 times the money that is close to Rs90000/- and at the age of 75 it will be close to Rs14,00,000/-.

The same thing if she is able to earn at 25% in 10 years Rs1400/- will become Rs14000/-, in 20 years Rs140,000/-, by the age of 55 it will be Rs 14,00,000/- and at age 75 hold your breadth Rs 140 million (14 crores).

What this means is – if you start early and every month just avoid that one dress or that one meal outside, you can actually stop working for a living  by the age of 35-40 and earn from your investments and live a more contented life, travel the world and what have you

India presently is in such a stage of growth that these things are possible in our country.  just defer your gratification by a little and you could be a millionaire multiple times over.

Carpe Diem!!

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