Blueprint for Basic Financial Independence

We should be planning our 20s for our 30s, to push the plan further I made the blueprint for basic financial independence. (Note: It might be a kind of perfect retirement plan for many.)

I found the perfect golden number, ie. 80,64,900.58. This is the amount of money you will be accumulating if you follow this planned 10 years course ahead.

All you need to do is to invest ₹25,000 per month in equity such as index funds and stocks for the first year, then ₹26,750 per month for the second year (Here note that the deposit goes 7% incremental each year to cancel out the assumed 7% inflation each year), and if you do it for 10 years (assuming an average market return to be 13%), then the final balance with 13% market gains will be ₹80,64,900.58.

Here’s the table to help visualise:

And congratulations you have reached the amount you needed to be financially free and earn passively rest of the life!

Here’s how:

This table will help you visualise if the basic average expenses to be ₹25,000 per month and it goes 7% incremental to cancel out the assumed 7% inflation each year:

And here’s the best thing you get to withdraw ₹50,000 per month i.e. ₹6,00,000 per year (if you would wish to) with 7% incremental to cancel out the assumed 7% inflation each year:

Here’s an awesome fact that if you would invest in stocks that provide good dividends you won’t be required to withdraw ₹50,000 every month as dividends would be directly credited to your bank account after it’s announced. And another thing is that as your expenses every month will not always be fifty thousand, so you will also be saving from your withdrawals. (If you wanted to withdraw somehow.)

Voila! You will be able to live worry-free from a financial perspective. As money works passively for you, you will have all the time to build things you dreamed of and build a life as per your wishes!

In case if you wouldn’t believe in a 13% return, here’s some of the index funds returns: