Warren Buffett, one of the most successful investors, started investing at the age of 11.

And today his net worth is 85.6 Billion Dollars.

And the fun fact is, he’d once said in an interview that he wished he’d started earlier.

So, why did he say this?

And wasn’t 11 years early enough?

Yes, he started investing his money when he was of 11 years.

There are many other billionaires like Warren Buffett who’ve earned a huge chunk of money by making investments.

And if you are one of those people who’s just thinking and thinking about investing, then this article is for you.

**If You want to Have 7 Crore by The Time You Retire in 45 Years, How much you should invest per month? **

The Answer is only 3000rs per month. I will tell you at the end of this post that how to do that.

Are you ready to become a crorepati?

## Start Investing Now [3 Advantages]

Contents

Yo know what, there is a science behind everything.

If you want to earn money and become a millionaire, you need to know about the science behind money.

If you are serious and want to earn money.

There is a book “Rich Dad Poor Dad.” I will really suggest you to read that book.

Rich Dad Poor Dad is one of the most selling books available on this planet.

I had provided you the downloading link of Rich Dad Poor Dad Book, so you can download that.

If you are a teenager, the most valuable thing that you have is, your time. So, I am sharing 3 Advantages of Investing early.

### 1. Younger the age lesser the personal expense

When you’re 19-20 years old, then your responsibilities and financial burden are very less, and your risk appetite is big.

Which means that, you can take more risks.

Why is it so?

Because you have a lot of years left to earn money.

And just in case you make a loss, you have a considerable amount of time to recover it.

Generally at this age, you get pocket money from your parents, or you’re doing an internship, or a part time job, and your expenses are less too.

If you put a fraction of this amount in investments, then along with time, you can get very good returns.

Comparatively, a 45 year old has many family responsibilities.

Like, the education of his children, household expenses.

So their risk appetite turns out to be very low.

They have to handle their expenses and investments after giving it much thought.

Like we all know, So before investing, we should keep in mind the **‘100 minus’ thumb rule. **

#### ‘100 minus’ thumb rule? [It Can Make You Rich Easily]

This rule says that, if you are 30 years old, then 100 minus 30 which is 70 percent of your portfolio should be invested in equity.

Because you are still young, and you can take many risks.

And vice-a-versa, if you are 70 years old, then 100 minus 70 which is 30 percent of your portfolio should be invested in equity.

Because as you grow old, your risk appetite decreases.

### 2. Make Money Work For You [Compounding]

Why is it so, that when you invest some money they start increasing slowly?

This happens due to compounding.

Albert Einstein used to believe that compounding is the world’s eighth wonder.

So, what is compounding?

And what is it’s relation with age?

Let me explain. Suppose you invest Rs.1000 for 3 years at a compounded rate of 10% Then after 3 years, after adding interests, the amount becomes Rs.1330.

A simple example of this is Fixed Deposits.

You can even invest in Govt. Bonds, which are semi annually compounded.

In this way, you can diversify your portfolio, and with time, your money will increase.

Now you must’ve understood that your money increases due to compounding.

But what is it’s relation with early investments?

**Understanding With an Example**

Two Friends, Sanchit and Satyam, who earn the same amount of money every year.

But Sanchit started investing at the age of 20 while Satyam started investing at the age of 27.

Every year, they invested the same amount at a compounded rate of 10% And by the age of 35, Sanchit’s investments were almost double.

It is simple math but the trick is that Sanchit learned the power of compounding earlier and took the advantage of it.

Satyam did the same thing but after 7 years.

If he’d started the same thing earlier, then he could’ve taken the advantage of compounding too.

Don’t get me wrong, I’m not saying that if you’re old then you shouldn’t invest.

You definitely should! Especially for those people who are salaried employees, who rely on their income.

This can be a game changer for them.

### 3. Secure Your Future

If at the age of 20, you are doing a normal job, and at the age of 40, you get a brilliant business idea, for which you’ll need a lot of capital, But where will you bring this capital from?

A common way is to take a loan. But loan has its own drawbacks.

In the future, you have to return that money, that too with interests.

But if you’ve started investing at an early age, then by the age of 40 years, through these investments, you’ll get a lot of money, to fund your own venture and business.

That too, without any loan.

Not only this, if in the future for some reason, you lose your job or the country’s economy becomes low, or due to inflation you have financial problems, then you can always count on your investments.

When your friends and peers are spending money uselessly, you are saving that money and investing it.

Due to which you get financial discipline and you start making better financially calculated decisions.

## Become a Crorepati When You Retire

Alright guys, these were the 3 most important reasons why you should start investing early.

Because it’s the smartest way to earn a lot of money, and increase your wealth gradually.

So don’t think too much, start investing today itself! And as Warren Buffett says,

“If you don’t find a way to make money while you asleep, you will work until you die”

Warren Buffet

At the beginning, I told you that you can become a crorepati when you retire.

But How to do that?

Nifty has given a return of 14% per year on an average in 30 years.

Still, if we consider 12%, **you can reach 7 crores by investing RS 3000 per month. **

I hope you are going to share this post with your friends, because you want others to become rich.

Thanks for reading till the end ðŸ™‚