Touched 2.5 CR and 2 CR in the same year

[jj254]

Hi everyone,

Thanks for all the encouragement and support on my journey.

https://www.reddit.com/r/FIREIndia/s/nGrP5OscAi

I've a new update to share.

With few days left in 2023, I've crossed 2.5 CR in networth (almost 2.6 CR now) after touching 2 CR in May this year.

Here's the breakup:

Direct shares: 1.65 CR (this was the major driver of growth),
ELSS: 0.06 CR,
Company shares: 0.06 CR,
Real Estate: 0.4 CR (while it has grown a bit, keeping this unchanged),
EPF: 0.34 CR (intrest for last year kicked in),
NPS: 0.06 CR (getting 14.8% xirr here),
SGB: 0.02 CR

The driver for growth has been high saving rate.

I've added 29.5 lakhs in equity, about 2.5 lakhs every month. 6 lakhs in company shares (US listed). The EPF and NPS savings are on top of this. My target is to save 36 lakhs in equity overall this year which is just 50k away. Quite confident of achieving it.

Another change is that I've moved away from active advisory. I get the shares from Twitter, analyse them fundamentally and take bets based on the charts. I'm quite confident of my charting skills with max drawdown of 25-30% but upside of multiple x. I could capture 2-3 2x this year with sizable investment in them. I got this confidence after i could take my wife's account from 11 lakhs to 19.5 lakhs in about 2 years.

While the next year can be a huge bull run if BJP wins, I'm still trying to diversify. I'm planning to add a real estate of about 75 lakhs by paying 10%. This will help me leverage as well. The rental yield is the property is approx 5% and calculations show that I'll have to only pay 40-45% of the EMI and rest will be covered through rent. This should bring my equity exposure down from the current 65% to less than 50%. In this I'm trying to diversify and leverage while not denting my current equity corpus.

Thanks!

 

[unworthytx]

@jj254 how much net salary/income you have? also congratulations!

 

[jj254]

@unworthytx https://www.reddit.com/r/FIREIndia/s/eLV3Io0FdN

 

[joshuaamosley]

@unworthytx +1 ! Curious to know!

 

[xloan570]

@jj254 My God. Jesus Christ !!!

 

[bazman1]

@jj254 Congrats dude.
How do you manage to keep expenses low?
What percentage do you spend, vs invest on AVG every month?

 

[jj254]

@bazman1 I live in the same house on rent since 2017. Delayed buying a car until 2020. Currently have a used Honda City. Never bought any Apple device. Found deals online, always compared prices. Recently learnt to maximize credit card rewards for 5 star stays and flights and much more.

I invest more than 50% of my earnings currently.

 

[bazman1]

@jj254 Thanks for sharing.
This is excellent financial discipline.

 

[howdodrive]

@jj254 Wow! What is your savings as % of income? You think there is scope for bull run even after we have been in one for last few years and at such high valuations?

How long did it take for you to reach the first cr?

 

[jj254]

@howdodrive Slightly above 50%

I strongly believe that if BJP wins convincingly in 2024 general elections, we will have the bull run continue in 2024. If BJP wins, I expect more FII money to flow in Indian equity markets.

The first crore took about 8-9 years.

 

[frankdux]

@jj254 As you are investing heavily in direct stocks, how do you time the market? Or is it a monthly cadence where you just put some money?

I am planning to do a SIP because I feel I will overthink and not invest or over invest at times

 

[jj254]

@frankdux No one can time the market. I put in money every month in direct stocks, mostly small caps. I've a high risk appetite and hence playing larger bets. Please take your own call based on your condition. But if you have a 3-5 years horizon, you can hardly go wrong with a regular sip.