Investing Tips for Millennials: Don’t Repeat Our Mistakes

I was always curious about topics like investments, shares, mutual funds. I guess we are all curious about it just for the purpose of having more money in life. In 2020 (The time when COVID-19 came to fuck us all), me, my father, mother and brother started to take a look at the investments we all have. By the way, this doesn’t mean that we were having some financial issues, but because we were scared of living in 2020 and having this crucial pandemic. Everyone around us was dying and spending a lot of money on health. Some of them lost all their investments and savings. Everyone was fucked up. Shit got real. So, suddenly, none of us had any health insurance (I don’t know why) but we didn’t have any health insurance at that time (This is not the point we have to discuss now). My Dad started discussing money in our home, and then we found out a lot of things that we missed. But now I don’t want anybody who is reading this to repeat the same mistakes again which my father made about money.

So, because of this money concern, we started having discussions with our CA, and then we found out what he wanted to say again and again. My Dad didn’t start to save and invest money early in life and due to that we found out that we have missed a lot of things. Although we are not poor (that’s why it doesn’t hurt that much), we could have more money than we have today.

Basically, the CA (CA means ‘Chartered Accountant’ or the bitch who files your taxes in India). While discussing with the guy we found out that there are a lot of things that we want but we couldn’t afford now but if my dad was aware about it, we definitely had those things in our life. And every time the CA said that to my dad “This is your mistake Mr. Pathak to invest early in life was in your hand and you haven’t done that!” Now I’m 23 and now my dad doesn’t want me to repeat the same mistake that he did. So, if you are in your 20’s or 30’s please read this article carefully it’ll change your life.

When the CA calculated the shit and then he told us about the actual figure that my dad could have right now with us, our mind got blown and heartbeats were like running a hip-hop song in 4X speed. That time this bitch (CA) told us about this fucking concept which will change our life and we knew it but we didn’t give a shit about it that much which is “COMPOUNDING OR COMPOUND INTEREST.”

As I generally say, compound interest is your crush which is ready to marry you, you just have to give her some attention. If you don’t know what compound interest is, please… please… please, and a hundred times please read this article carefully it’ll change your life. I’ll explain you in detail with a proper example first:

Let’s consider if you have invested Rs 10,000 in a mutual fund which gives you 10% of return in 1 year then,

10000 + 10% = 10000 + 1000 = Rs. 11,000 …. (for 1 year)

This means you got after adding profit Rs. 11,000. Now wait, don’t touch it right now and wait for 1 more year so now your next interest will be on Rs. 11,000. So, it’ll be:

11,000 + 10% = Rs. 12,100 …. (for 2 years) 12,100 + 10% = Rs. 13,310 …. (for 3 years) 13,310 + 10% = Rs. 14,641 …. (for 4 years) 14,641 + 10% = Rs. 16,105 …. (for 5 years)

Compound interest is interest that is calculated on both the principal, or starting amount of money, and the interest that has been accrued over time. This implies that the principal is increased by the interest earned during each period, and the interest for the subsequent period is computed using this larger principal. The amount of interest earned consequently increases exponentially over time.

So, now you have understood what compound interest is, so now I’ll give you one realistic example which will shake your mind.

So, let’s say I’m 25 years old and my monthly investment is Rs. 50,000. Which means my annual investment is Rs. 50,000 x 12 = Rs. 6,00,000. Now if I am investing this Rs. 6,00,000 each year for the next 10 years means I will invest Rs. 60,00,000 in total until I turn 35. Now I’m saying that I am done and I don’t want to invest Rs. 50,000 each year. I want to enjoy now. Want to go for parties and pubs and want to chill with my homies. So now from age 35 to 60, I have invested “zero” rupees per year.

So, Virat Kohli is also 35 but let’s consider he is 33 years old and now he is inspired after watching me (YEAH! I have inspired King Kohli!) and now he also wants to invest the same amount of money. Kohli is also investing Rs. 50,000 monthly i.e. Rs. 6,00,000 per year. But unfortunately, Virat Kohli is richer than me so he doesn’t stop his investment until he turns 60. So, by this Virat Kohli has invested a total of Rs. 1,62,00,000. Which is near about 2.5 times greater than my investment. My investment was Rs. 60,00,000.

Now, let me blow your mind now!

Let’s consider Virat Kohli has invested his amount in mutual funds, stocks, or maybe in Laxmi Cheat Fund (hehe). And this investment gives him 10% of interest each year. So now, Virat Kohli has invested for 27 years and after doing that calculation, the final amount when Kohli turns 60 will be around Rs. 4.24 crore. WOOOWWW!!! Too much right? It’s nearly 2.6 times greater than what he invested. So now you’ll say I’m dumbfuck idiot who stopped investing just for party, pubs and to enjoy with homies? Right? But wait! Now LOOK!!!

Let’s say I have invested the same like Kohli and I was also getting 10% of interest each year. But although I started at the age of 25, my money was still invested until I turned 60. Although I was unable to invest after 35, I didn’t withdraw my money. So, after doing the calculation my money when I will turn 60 will be around Rs. 6.83 crore. BOOOOOOM!!!! Now suck it bitches!

I have invested lesser amount of money compared to Virat Kohli from 25 to 35 (10 years) and Virat Kohli has invested nearly 2.5 times greater than me from 35 to 60 (27 years). So, is there anything wrong in the calculation? How the fuck I got more money than Kohli? How the fuck I got 2.6 crore rupees more than Kohli? But there is nothing wrong in the calculation unfortunately. Virat Kohli has less money than me just because I started earlier.

Bruv! If you are in your 20’s and 30’s who are reading this stop wasting time. You can start with only Rs. 1000 too. Trust me, that Rs. 1000 will give you lakhs of rupees in future. Don’t be like our past generation who missed this. They were unaware about this. But now you, you are fucking aware about this. Don’t waste your money on stupid clothes, iPhone, chilling with bitches who can leave you any time, don’t do it. Just save and invest and that’s it. By doing this you don’t have to worry about any money related problem in future.

That’s the magic of compounding. You didn’t need to be rich, you just needed to start early and stay consistent.

Now the crazy part! (After reading this, go for the following.)

Let’s say you’re investing ₹500 every month and getting a 10% return per year. After 20 years, you’ve invested ₹1,20,000, and your total amount becomes about ₹3,79,000.

If you keep going for 40 years, your total investment of ₹2,40,000 turns into ₹27,65,000. Now imagine staying consistent for 50 years you’ll invest just ₹3,00,000 in total, and that small amount will grow into around ₹48,00,000!

That’s a 15x growth or about 1,500% return just by being patient and consistent. Crazy, right?

Now I know what you guys are thinking in your mind, it’s saying “this shithead is telling me to earn lakhs of rupees by using Rs. 500! What a moron!” But please trust me, I’m not lying. You’ll definitely become rich.

But let me add one more spice in the above investment. If you’re 25 years old, you’re not gonna invest for 60 fucking years, right? Also, you’re not gonna stick to just ₹500 either.

So let’s say you start investing ₹1,000 every month, and you increase that amount by 10% every year. You’re getting the same 10% return annually. When you turn 35, your total investment will be around ₹1,91,000 and your total amount will grow to roughly ₹2,06,000.

But now comes the real fun part, if you keep this shit going till you’re 60, your total investment will be about ₹35.8 lakh, and your return on investment will be around ₹1.36 crore!

And remember, we’ve only taken a 10% increase and 10% return here. If you stay consistent, you’ll definitely get more than this, not less. In real life, your income will increase, your investments will increase, and so will your profits. And boom! You’ll be a fucking rich bastard. That’s the impact of starting early in life.

My advice will be whatever you are earning today JUST START FUCKING NOW! Start any SIP so that the process will work for you automatically and you don’t have to worry about which stock is having vertical graph, who the fuck is resigning from the post of CEO, who the fuck is in debt, who the fuck is having profit in company so that his share price will increase. You don’t have to watch all finance related news. Just have to do this trick with discipline and trust me you’ll be richer than everyone in your family.

HEY, DON’T GO READ THIS TOO!

Thank you for reading and visiting the website, if you want to add something or if you have any thought or if you want to abuse or appreciate me, please comment below! Also, you can subscribe too!

Also you can visit and reach out to me:

Instagram: @niranjanpathakclassic
Twitter: @NiranjanClassic
Snapchat: @NiranjanPathak
Facebook: I don’t know that one, just find me I use that too.