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June 20, 2000
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Consolidating the savings
Earlier: • Saving for your child's marriage
Rohit Sarin now concludes his series by telling you how much to save in order to achieve all the goals tackled earlier.
After having gone through each of the four financial goals separately, let us now see how much we need to save collectively to achieve all the goals simultaneously. To arrive at a consolidated figure we need to simply add up the monthly investment plans for the investor at different stage of life.
In the case of the 25-year old................................................
| Year |
Sr. No. |
Equity Fund (Rs) |
Debt Fund (Rs) |
Total |
Yearly |
| 2000 |
1 |
4,744 |
3,163 |
7,907 |
94,887 |
| 2001 |
2 |
5,219 |
3,480 |
8,698 |
104,375 |
| 2002 |
3 |
5,741 |
3,827 |
9,567 |
114,813 |
| 2003 |
4 |
6,315 |
4,210 |
10,525 |
126,293 |
| 2004 |
5 |
6,946 |
4,632 |
11,577 |
138,923 |
| 2005 |
6 |
7,641 |
5,094 |
12,735 |
152,815 |
| 2006 |
7 |
8,405 |
5,603 |
14,009 |
168,097 |
| 2007 |
8 |
9,245 |
6,163 |
15,408 |
184,896 |
| 2008 |
9 |
10,171 |
6,780 |
16,951 |
203,412 |
| 2009 |
10 |
11,187 |
7,458 |
18,645 |
223,740 |
| 2010 |
11 |
12,305 |
8,204 |
20,509 |
246,108 |
| 2011 |
12 |
13,536 |
9,024 |
22,560 |
270,720 |
| 2012 |
13 |
14,891 |
9,925 |
24,816 |
297,792 |
| 2013 |
14 |
16,379 |
10,919 |
27,298 |
327,576 |
| 2014 |
15 |
18,016 |
12,011 |
30,027 |
360,324 |
| 2015 |
16 |
4,896 |
3,263 |
8,159 |
97,908 |
| 2016 |
17 |
5,386 |
3,590 |
8,976 |
107,712 |
| 2017 |
18 |
5,923 |
3,950 |
9,873 |
118,476 |
| 2018 |
19 |
6,516 |
4,344 |
10,860 |
130,320 |
| 2019 |
20 |
7,168 |
4,778 |
11,946 |
143,352 |
| 2020 |
21 |
3,980 |
2,653 |
6,633 |
79,596 |
| 2021 |
22 |
4,378 |
2,918 |
7,296 |
87,552 |
| 2022 |
23 |
4,815 |
3,211 |
8,026 |
96,312 |
| 2023 |
24 |
5,297 |
3,531 |
8,828 |
105,936 |
| 2024 |
25 |
5,828 |
3,884 |
9,712 |
116,544 |
| 2025 |
26 |
6,410 |
4,273 |
10,683 |
128,196 |
| 2026 |
27 |
7,051 |
4,700 |
11,751 |
141,012 |
| 2027 |
28 |
7,756 |
5,170 |
12,926 |
155,112 |
| 2028 |
29 |
8,531 |
5,688 |
14,219 |
170,628 |
| 2029 |
30 |
9,384 |
6,256 |
15,640 |
187,680 |
In the case of the 30-year old................................................
| Year |
Sr. No. |
Equity Fund (Rs) |
Debt Fund (Rs) |
Total |
Yearly |
| 2000 |
1 |
7,596 |
7,596 |
15,191 |
182,293 |
| 2001 |
2 |
8,355 |
8,355 |
16,710 |
200,522 |
| 2002 |
3 |
9,192 |
9,192 |
18,380 |
220,575 |
| 2003 |
4 |
10,110 |
10,110 |
20,219 |
242,631 |
| 2004 |
5 |
11,121 |
11,121 |
22,242 |
266,895 |
| 2005 |
6 |
12,232 |
12,232 |
24,466 |
293,584 |
| 2006 |
7 |
13,455 |
13,455 |
26,912 |
322,943 |
| 2007 |
8 |
14,802 |
14,802 |
29,603 |
355,236 |
| 2008 |
9 |
16,283 |
16,283 |
32,563 |
390,756 |
| 2009 |
10 |
17,910 |
17,910 |
35,819 |
429,828 |
| 2010 |
11 |
6,177 |
6,177 |
12,351 |
148,212 |
| 2011 |
12 |
6,793 |
6,793 |
13,586 |
163,032 |
| 2012 |
13 |
7,473 |
7,473 |
14,944 |
179,328 |
| 2013 |
14 |
8,219 |
8,219 |
16,438 |
197,256 |
| 2014 |
15 |
9,042 |
9,042 |
18,083 |
216,996 |
| 2015 |
16 |
6,474 |
6,474 |
12,948 |
155,376 |
| 2016 |
17 |
7,121 |
7,121 |
14,242 |
170,904 |
| 2017 |
18 |
7,834 |
7,834 |
15,667 |
188,004 |
| 2018 |
19 |
8,617 |
8,617 |
17,233 |
206,796 |
| 2019 |
20 |
9,478 |
9,478 |
18,956 |
227,472 |
| 2020 |
21 |
10,426 |
10,426 |
20,852 |
250,224 |
| 2021 |
22 |
11,469 |
11,469 |
22,937 |
275,244 |
| 2022 |
23 |
12,616 |
12,616 |
25,231 |
302,772 |
| 2023 |
24 |
13,878 |
13,878 |
27,755 |
333,060 |
| 2024 |
25 |
15,265 |
15,265 |
30,529 |
366,348 |
In the case of the 35-year old.................................................
| Year |
Sr. No. |
Equity Fund (Rs) |
Debt Fund (Rs) |
Total |
Yearly |
| 2000 |
1 |
17,074 |
17,074 |
34,146 |
409,762 |
| 2001 |
2 |
18,781 |
18,781 |
37,561 |
450,738 |
| 2002 |
3 |
20,659 |
20,659 |
41,318 |
495,812 |
| 2003 |
4 |
22,725 |
22,725 |
45,450 |
545,392 |
| 2004 |
5 |
24,997 |
24,997 |
49,994 |
599,932 |
| 2005 |
6 |
8,050 |
8,050 |
16,100 |
193,196 |
| 2006 |
7 |
8,855 |
8,855 |
17,710 |
212,515 |
| 2007 |
8 |
9,741 |
9,741 |
19,481 |
233,772 |
| 2008 |
9 |
10,714 |
10,714 |
21,428 |
257,136 |
| 2009 |
10 |
11,787 |
11,787 |
23,572 |
282,864 |
| 2010 |
11 |
9,063 |
9,063 |
18,126 |
217,512 |
| 2011 |
12 |
9,970 |
9,970 |
19,939 |
239,268 |
| 2012 |
13 |
10,967 |
10,967 |
21,933 |
263,196 |
| 2013 |
14 |
12,064 |
12,064 |
24,127 |
289,524 |
| 2014 |
15 |
13,270 |
13,270 |
26,540 |
318,480 |
| 2015 |
16 |
14,597 |
14,597 |
29,193 |
350,316 |
| 2016 |
17 |
16,057 |
16,057 |
32,112 |
385,344 |
| 2017 |
18 |
17,663 |
17,663 |
35,324 |
423,888 |
| 2018 |
19 |
19,428 |
19,428 |
38,856 |
466,272 |
| 2019 |
20 |
21,371 |
21,371 |
42,742 |
512,904 |
Based on the above, let us now move a step further and compare the gross investment pattern across different age groups.
| Year |
Age |
Annual Savings (Rs.) |
| |
|
25 Year |
30 Year |
35 Year |
| 2000 |
26 |
94,887 |
|
|
| 2001 |
27 |
104,375 |
|
|
| 2002 |
28 |
114,813 |
|
|
| 2003 |
29 |
126,293 |
|
|
| 2004 |
30 |
138,923 |
|
|
| 2005 |
31 |
152,815 |
182,293 |
|
| 2006 |
32 |
168,097 |
200,522 |
|
| 2007 |
33 |
184,896 |
220,575 |
|
| 2008 |
34 |
203,412 |
242,631 |
|
| 2009 |
35 |
223,740 |
266,895 |
|
| 2010 |
36 |
246,108 |
293,584 |
409,762 |
| 2011 |
37 |
270,720 |
322,943 |
450,738 |
| 2012 |
38 |
297,792 |
355,236 |
495,812 |
| 2013 |
39 |
327,576 |
390,756 |
545,392 |
| 2014 |
40 |
360,324 |
429,828 |
599,932 |
| 2015 |
41 |
97,980 |
148,212 |
193,196 |
| 2016 |
42 |
107,712 |
163,032 |
212,515 |
| 2017 |
43 |
118,476 |
179,328 |
233,772 |
| 2018 |
44 |
130,320 |
197,256 |
257,136 |
| 2019 |
45 |
143,352 |
216,996 |
282,864 |
| 2020 |
46 |
79,596 |
155,376 |
217,512 |
| 2021 |
47 |
87,552 |
170,904 |
239,268 |
| 2022 |
48 |
96,312 |
188,004 |
263,196 |
| 2023 |
49 |
105,936 |
206,796 |
289,524 |
| 2024 |
50 |
116,544 |
227,472 |
318,480 |
| 2025 |
51 |
128,196 |
250,224 |
350,316 |
| 2026 |
52 |
141,012 |
275,244 |
385,344 |
| 2027 |
53 |
155,112 |
302,772 |
423,888 |
| 2028 |
54 |
170,628 |
333,060 |
466,272 |
| 2029 |
55 |
187,680 |
366,348 |
512,904 |
The above analysis clearly points towards the following key conclusions:
- Different investors have to invest different amounts at the same age depending upon the time /age when they started investing.
- An investor who starts investing early in life has to invest much lesser to achieve similar financial goals at the same age through his/her investing life cycle.
- The amount of incremental investment required to achieve similar financial goals increases over the investment period due to the impact of compounding.
Conclusion: "One should start regular investing as early as possible for any financial goal. This would help him to achieve the similar financial goal with lesser cost."
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