[Milestone] Crossed 1 cr networth

[revots]

Personal info - 28M, Software Engineer in India, married, spouse will look for non-tech job.

Family - Couple in Tier 1 city, 3 dependents in Tier 3 city.

FIRE goal - 5 Cr by age 42 (subject to refinement).

Net worth - 1.01 Cr (Excluding RE which I will inherit).

Instrument
% of networth
xirr %

Direct Stock
5
20.1

Mutual fund
37 (All equity)
16.9

Company stock
33
20

FD
18


EPF
6


Crypto
1
8

Expenses:

Year
Income (post tax)
Savings rate
Notes

2016
1.9L
67.54
from July.

2017
6.67L
83.3


2018
6.53L
80.5


2019
8.3L
83.3


2020
10.3L
88.3


2021
23.4L
66.1
Switched Job. Large expense of a small home construction in native for rental yield)

2022
30.4L
90.2


2023
31L
66.6
Till Nov. Big expense - Marriage

Till 2019, I transfered remaining amount to mom. She put in FD and later used for home extension and large expenses. Expenses tracked only had mine and did not include family member expenses.

From 2019, I started stock and equity, I stopped sending money to mom directly and started paying all bills and grocery. Family members can have some misc expenses but negligible.

My Story:

I grown up amid my parents' separation in my grandparents' home. To fund for my needs and education, my mother started working in a private office, teaching me value of money and spend money only on needs.

When I started my journey, I was lucky that there are no family debt or medical expense or need to get into home loan early on. And for the jobs, which paid me more than what I would need.

With a frugal mindset, I embraced a modest lifestyle, maintaining a high savings rate. Initially aiming for 1 Cr by April 2024, I able to reach it early, thanks to the current bull run. If I think back, I have made lot of sub optimal decisions, (like I would have made more in mutual fund in case I stick to index funds) and learnt some lessons from those decisions. I am grateful for my current position.

 

[jeremias]

@revots Congratulations! Your savings rate in incredible, care to share the details of your lifestyle?

I'm curious to know how you're surviving in a Tier 1 city spending under 3 lacs p.a.

 

[revots]

@jeremias Thanks, Expenses were less before as I got 1BHK at a cheaper rent near office due to post covid vacancies (8k pm). Plus, food were provided at office for two meals and dinner I prepared myself. (personal grocery expense < 1.5k pm). Dineout/food orders and movies were rare unless I have company of my gf. (current wife - we were in long distance relationship at that time). Weekends were spent mostly on beaches and park. Travel, Bills and Shopping were major expenses.

Due to marriage, I switched the rental home recently (19k pm). Next year, I expect the expenses in the range between 5l and 6l.

 

[jeremias]

@revots That's very frugal living, well done. Only thing I would say is don't forget to also live your life, you're quite young still and one thing that I realize now(about 10 years older than you) is that I wish there were trips that I took when I was your age and had way less responsibilities and lot more energy.

 

[svjoyner]

@revots Starts modestly. Hails from the middle class. Supports mom and family. Focuses on savings and talks about frugality. Is grateful for what they have. No entitlement, no arrogance.

This is the Indian dream, right here. So glad to have come across this. Congratulations on the achievement, and all the best for your future.

 

[revots]

@svjoyner Thanks, I am glad for your message

 

[leroy25]

@svjoyner Fuck man the Indian dream statement sent shivers down my spine... Yes that IS the Indian dream. So many of us see that through our eyes, just hope it reaches the mainstream conciousness of the masses one day

 

[resjudicata]

@revots Congratulation

>I grown up amid my parents' separation in my grandparents' home. To fund for my needs and education, my mother started working in a private office, teaching me value of money and spend money only on needs.

only one thing I would like to add will be to spend as much time as you can with you mother.. take trips together or just have as much good time as you can.

also you can consider making more switches, even if you get lucky (and even if you are not able to meet expectations in the new job) like this is the worst case.. then also you will end up with a good chunk of money if you spend one-two in a high paying company.

 

[godismyprovider]

@resjudicata This one OP is really good advice if you wanna take.

 

[revots]

@godismyprovider Thanks, I really appreciate your advice. I took her for few trips in the past, but I would like it to be more regular.

 

[mrdean36]

@revots Why do you want to fire by 42, if your expenses are 3-4L a year, With 1.5cr you can retire with 4L spend a year.

 

[lovelysoul13]

@mrdean36 Because at their age they are yet to have kids etc, the maths will change

 

[revots]

@lovelysoul13 Yes, Number is based on few assumptions (kids, place of settlement). I have to refine the numbers at some time once some of it get clarified.

 

[followgodnotman]

@mrdean36 How is this possible. Can I pls clarify? I was thinking I have to save up a lot more to do this my goal is 4l pm. Then do I need to save up 10cr?

 

[mrdean36]

@followgodnotman 3% withdrawal rate, 5% liquid, 20% debt and 75% equity

 

[amada___]

@mrdean36 Just browsing this sub and i don’t understand this. Can anyone eli5?

 

[mrdean36]

@amada___ If you have 100rs, you keep 5rs in liquid fund, 20rs in debt fund and 75rs in equity, spend 3rs every year, and replnish 3rs from equity->debt->liquid every year.You can expect equity to grow at inflation + 3% hence keeping the flow forever.

if the equity doesnt grow due to market conditins you dont replnish, you wait it out by emptying out the debt fund, you have 8 years worth of debt + liquid to wait out a black swan event

 

[amada___]

@mrdean36 Thanks that makes sense now

 

[swiderskial]

@mrdean36 Is this for post retirement or pre retirement?

 

[mrdean36]

@swiderskial For me its same on both side. But now i have 0 debt. 10-10 pf sgb split to minimise tax