If you're aiming to build wealth and reach millionaire status before the age of 40, starting early with Systematic Investment Plans (SIPs) in your twenties could be a game-changing strategy. Chartered accountant Nitin Kaushik recently shared insights on X, encouraging young earners to begin investing as soon as possible, highlighting that the financial choices made in your mid-20s can significantly benefit you in your 30s and beyond.
SIPs involve investing a fixed amount regularly, and when combined with a disciplined, long-term approach, they can lead to substantial financial growth. Kaushik emphasized the power of starting small and gradually increasing your contributions in line with income growth. This strategy not only builds a strong investment habit but also takes advantage of compounding over the long run.
To illustrate the potential, he presented a simple calculation based on three assumptions: a 10 percent annual return on investment, a 10 percent yearly increase in SIP amount, and a 30-year investment period. The numbers clearly show how disciplined investing can lead to significant wealth creation over time.
Starting with a modest Rs 2,000 per month can grow into approximately Rs 2 crore. Increasing it to Rs 5,000 per month could lead to around Rs 6.3 crore. A Rs 10,000 monthly SIP can potentially grow to Rs 12.6 crore, while a more aggressive investment of Rs 20,000 per month might yield close to Rs 25.3 crore over three decades.
The key takeaways from Kaushikās post are simple but powerful: maintain consistency, increase your SIP amount annually as your income rises, and avoid getting distracted by short-term market volatility. This disciplined and scalable investment approach helps investors stay on track toward long-term financial goals without relying on timing the market or reacting to short-term trends.
The message is clear: the earlier you start and the more consistent you are, the better your chances of building lasting wealth. Even a modest beginning, if nurtured with regular increases and a long-term perspective, can set you up for financial freedom well before you reach retirement.
SIPs involve investing a fixed amount regularly, and when combined with a disciplined, long-term approach, they can lead to substantial financial growth. Kaushik emphasized the power of starting small and gradually increasing your contributions in line with income growth. This strategy not only builds a strong investment habit but also takes advantage of compounding over the long run.
To illustrate the potential, he presented a simple calculation based on three assumptions: a 10 percent annual return on investment, a 10 percent yearly increase in SIP amount, and a 30-year investment period. The numbers clearly show how disciplined investing can lead to significant wealth creation over time.
Starting with a modest Rs 2,000 per month can grow into approximately Rs 2 crore. Increasing it to Rs 5,000 per month could lead to around Rs 6.3 crore. A Rs 10,000 monthly SIP can potentially grow to Rs 12.6 crore, while a more aggressive investment of Rs 20,000 per month might yield close to Rs 25.3 crore over three decades.
š¢ Dear 25-Year-Olds:
— CA Nitin Kaushik (@Finance_Bareek) August 3, 2025
Your 30s will thank you for the decision you make today.
A small monthly SIP, if increased yearly, can grow into a solid financial base over time. Hereās how:
š§® Assumptions
ā¢ 10% annual return
ā¢ 10% annual step-up
ā¢ 30 years investing horizon
š°ā¦
The key takeaways from Kaushikās post are simple but powerful: maintain consistency, increase your SIP amount annually as your income rises, and avoid getting distracted by short-term market volatility. This disciplined and scalable investment approach helps investors stay on track toward long-term financial goals without relying on timing the market or reacting to short-term trends.
The message is clear: the earlier you start and the more consistent you are, the better your chances of building lasting wealth. Even a modest beginning, if nurtured with regular increases and a long-term perspective, can set you up for financial freedom well before you reach retirement.
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