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Writer's pictureVipin Khandelwal

Getting Rich – 1 paisa, 2x, 31 days to be a crorepati

Updated: 2 days ago

What do you think it takes to getting rich?

Lottery!


What do you think it takes to getting rich in 31 days?

Convinced – It can only be the Lottery!


No, not really. You need something better.


Here’s a challenge for you. We give you 1 paisa, yes just 1 paisa.


If you double the money every day for 31 days, what will be the final value?


Come on, take a shot. You can use an excel sheet or a calculator if you want. Give it a try before you move forward. 


Well, to give a visual impression of the idea, here is a chart plotted with the values with the days. If you start with 1 paisa on Day 1 then on Day 31 you will have…

Getting rich with compounding

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At the end of 31 days, you will have Rs. 1.07 crores.

Unbelievable!


All you did was double the money every day. Something like this –

Day 1 – Rs. 0.01

Day 2 – Rs. 0.02

Day 3 –  Rs. 0.04

Day 10 – Rs. 5.12

Day 20 – Rs. 5,242.99

Day 25 – Rs. 1.67 lacs

Day 31 – 1.07 crores


You don’t want to trust this. But that’s how it is.


The formula for getting rich

All you do is double your money. This sounds so simple. But it hasn’t been easy. Getting rich isn’t easy.


There is tremendous short term pain. As you can see in the chart above, for the first 25 days out of 31, absolutely nothing seems to move. That’s 81% of the time.


This time period constitutes the “great age of boredom“.


That’s where most investors give up. It needs lots of patience and discipline to go through this phase.


But you stick on and see how the magic works. You see the first lac only on Day 21.

Starting day 26, the movement becomes visible on the chart. And in the next 5 days, we have a skyscraper coming up leading all the way to over Rs. 1 crore.


While patience and discipline is required in the journey of “getting rich” journey, another important lesson for us is to Start early.


Look at it this way. Suppose you start with Rs. 1,000 at age 21.


Can you double it every year? How? By using a combination of investment returns as well higher savings.


You know what will be the result?


At age 51, you will have Rs. 107 crores.  


It does sound like a fairy tale. In reality, money is unlikely to double every day. But we hope the lesson is not lost.


It is not just the tricks of the trade or chasing some moonshot that you need to be rich. Discipline, patience and willingness to go the whole hog is what will actually make you rich.


All the best!


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Vipin Khandelwal is a SEBI Registered Investment Adviser with Registration no. – INA000003643 (Oct 14, 2015 to Perpetual); BASL Registration no. - 1517 Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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