A few years ago, I made a decision that changed my life—I started investing ₹10,000 per month when I turned 25.
My friend Rohan, on the other hand, decided to wait. “Let me earn more first,” he said. Fair enough.
Fast forward to today—we’re both 35—and I did a little math that shocked both of us. Spoiler: starting early beats investing more, later.
The Magic of Compounding (with Real Numbers)
Compounding is when your investment earns returns… and then those returns start earning returns. It’s like a snowball rolling downhill—it grows bigger the longer it rolls.
We both invest in a mutual fund that gives a steady 12% annual return (realistic over the long term for Indian equity mutual funds).
Now let’s break it down with real calculations 👇
Meet Me vs. My Friend Rohan
Me: Started investing ₹10,000/month at age 25.
I’ll continue until I’m 60. That’s 35 years of investing.
Rohan: Started later at age 35.
To make up for lost time, he invests ₹20,000/month—twice as much—but only for 25 years (till 60).
We both aim to retire rich. But who gets there first?
Let’s calculate.
My Investment Journey
Investment: ₹10,000/month
Duration: 35 years (420 months)
Return: 12% annual
Total Invested: ₹10,000 × 420 = ₹42 Lakhs
✔ Wealth Created: ₹6.49 Crore
✔ Profit: ₹6.07 Crore
Rohan’s Investment Journey
Investment: ₹20,000/month
Duration: 25 years (300 months)
Return: 12% annual
Total Invested: ₹20,000 × 300 = ₹60 Lakhs
✔ Wealth Created: ₹3.79 Crore
✔ Profit: ₹3.19 Crore
Wait... So I Invested Less and Got More?
Yes! I invested ₹42 Lakhs, while Rohan invested ₹60 Lakhs, yet my corpus is ₹2.70 crore more than his.
Why?
Because I gave compounding a 10-year head start.
And that’s the power of early investing.
Quick Snapshot
| Age | My Corpus (₹) | Rohan’s Corpus (₹) |
|---|---|---|
|
35 |
₹23.23 Lakhs |
Just Starting |
|
45 |
₹99.91 Lakhs |
₹46.46 Lakhs |
|
55 |
₹3.52 Crore |
₹1.99 Crore |
|
60 |
₹6.49 Crore |
₹3.79 Crore |
4 Key Takeaways
🔹 Start Early, Not Big – You don’t need ₹20,000/month. ₹5,000–₹10,000 is enough if you start soon.
🔹 Time is Your Superpower – Compounding rewards patience, not perfection.
🔹 Consistency Beats Intensity – Don’t stop when markets fall. Stay invested.
🔹 Your Future Self Will Thank You – Small decisions now = massive rewards later
Final Thoughts
The only real difference between me and Rohan? Time.
And trust me, you don’t need to be a finance expert or earn lakhs to begin. Just start. ₹5,000 or ₹10,000 a month. The sooner the better.
I’m not richer because I invested more. I’m richer because I started before.
So, are you going to be the 25-year-old Me, or the 35-year-old Rohan?
Start today. Let compounding do the magic.
Need help getting started with your first SIP? Drop a comment, and I’ll guide you 😊
So, are you going to be the 25-year-old Me, or the 35-year-old Rohan?
Disclaimer: Investment in the market and securities is subject to market risk; read all the scheme-related documents carefully.The return figures mentioned in this blog are based on assumed or historical data and are for illustrative purposes only. They do not guarantee or predict future performance. Readers are advised to consult a certified financial advisor before making any investment decisions.
