Most youngsters scrape through their graduation, funding their lifestyle with the pocket money given by generous parents, dreaming of a day when they would have an endless pool of money without even working for it! A perfect dream – you’d say. But then, that’s just a dream – or, is it?
Well, just like every other teen, Salvio had recently joined graduation and wondered how early he could start earning, and saving, to build his magical pool of money. While his peers dreamt of bikes, movies and beer, Salvio dreamt of being a millionaire at 30. But, could he achieve it?
At the young age of 17, in his first month at college, Salvio’s father took him along to attend a financial seminar. And that, dear readers, was the turning point in Salvio’s life. It was the day Salvio discovered the secret to financial freedom – the proverbial road to riches. As soon as he returned home, Salvio decided to expand his knowledge by reading more about wealthy people to emulate their success. He was surprised to learn that most rich people lived below their means and delayed gratification. This means, they did not spend on expensive cars or mansions but saved money before spending it.
He noticed that all rich people had a few things in common that had actually made them rich. Salvio observed that wealthy people:
- Set long-term goals
- Avoid frivolous spending
- Start saving and investing early in life
- Live below their means
Today, Salvio is 29 years old. He has been investing in various mutual funds through SIPs for the past 12 years and holds just short of a million rupees across his investments. By the end of 2018, as he turns 30, he would have achieved his goal of being a millionaire before 30!
Here’s how Salvio fulfilled a dream most people only think about:
At the age of 17, Salvio set his goal of being a millionaire before 30. Besides, he wanted a self-growing pool of money that would regenerate each time he took out a small portion to service his requirements, such as funding his higher education or helping his parents fund emergency repairs to their family home.
Unlike his other friends who spent their evenings over coffee, movies and unnecessary shopping, Salvio paid fifty percent of his pocket money at the beginning of each month into a systematic investment plan suggested by his father’s wealthy friend, Uncle Sebastian. While it was difficult in the beginning, Salvio was soon able to differentiate between his wants and needs – for example, he needed a healthy breakfast to start his day, but he only wanted a cup of cappuccino with his friends during lunch break. Or, he did need a pair of sports shoes to exercise, but buying that expensive pair of white sneakers was just a waste of money.
Within a year of investing, Salvio was able to see the result of his discipline. The seed of his future wealth had germinated. The money in his portfolio had started growing bit-by-bit. Now, Uncle Sebastian advised Salvio to increase his income by taking up a part-time job. He also advised Salvio to pay himself first – that is, use 20 percent of his salary to feed his portfolio, and then use the remaining amount for necessities.
Starting with only 2,000 rupees a month at the age of 17, Salvio consistently increased the amount he invested as his income increased. He also invested all the monetary gifts from family and friends into his portfolio through ‘Top-ups’ and continues to do so. As a result, his portfolio continued to grow, and, over time, the magic of compounding worked to help him realise his dream of turning a millionaire before 30!
From this very fund, Salvio took out money to pay for a diploma course at 24 that added to his skill set and helped him secure a promotion as well as a better salary. He also withdrew lump sums to take his family for a vacation and pay for some urgent repairs to their home. Today, as Salvio grows richer, many of his classmates are living paycheque to paycheque, only dreaming about the wealth Salvio continues to grow.
Salvio’s golden rules
Just like Salvio, you can also fulfil your dream of being a millionaire before 30. All you need to do is:
- Differentiate between needs and wants
- Save money before spending
- Start investing your savings today
NaveMarg and Dr Celso Fernandes, author of three much-loved books and a leading crusader for financial literacy in Goan youth, help students secure a brighter future by spreading financial awareness and giving personalised guidance on choosing the right investments. Dr Celso believes that if all the students become financially free and not depend on their jobs to survive, they can pursue careers of their choice, create and innovate lovely things and be happy and caring citizens of India.