Some Surveys suggest that Humans spend almost 85% of their
thinking time in assuming things that might not ever happen in their life time!
(Source: Go Search Yourself) Well, that’s true… Have you ever thought any of
the followings when you were sitting idle, while watching a movie, while riding
or at least when you were in the bathroom?
What if a dinosaur appears all of a sudden in the real
world?
What if there is a Zombie Apocalypse?
What if I get to see the real end of the world and I am one
of the very few survivors?
What If the most beautiful girl in the office (School or
College) comes and proposes?
What if I get supernatural powers like Jedi in the movie Star
wars?
What if a group of terrorists suddenly show up in the School
or Company you work and how would you save all?
And Finally….
What if I happen to get huge stack of money (like in a Full
Truck or a Very big Bank Locker) so that I never have to work or earn again?
If you ever though about any of these questions, welcome to the club!
In this article, I would like to share one of my thoughts through
which I’ve wasted several hours.
The last question in the above set of examples, to rephrase
it
How much money one really needs to spend his entire lifetime without earning again?
And when I had a brainstorm (about something that might
never happen) with my friends while boozing, the final decision to which all my
friends agreed is INR 2 Crores, according to 20 Million INR .
Assumptions
Here are the assumptions;
1 – I am an Indian
2 – I don’t like to work again
3 – All that I am yearning for is an upper middle class life
4 – My IQ is equal to someone who passed a High School
5 – I’ve got 2 Crores from nowhere
Action Plan
The following considerations, you better understand if you
are from India (Pricings, Banks Interests etc.)
For universal understanding, I haven’t mentioned the brands
and organization’s names.
Out of 2 Crores I have, The First thing I am going to do is
Spend 1 Crore for the most basic needs.
1.
An Individual House in a Metropolitan city - Starts
from 45 lakhs in the outer skirts and the price increases as you move towards
the heart of the city up to 2 Crores.
Now for an upper middle class family a 2BHK
villa you can spend – 60 Lakhs (6 Million INR)
2.
A Car – Not a hatchback but a Sedan – 8 Lakhs
(800 thousand INR)
3.
A Bike – Pretty decent bikes starts from 80
thousand INR – Let’s say I spend a Lakh
Now out of 1 Crore I’ve spent 69 Lakhs, remaining
amount – 31 Lakhs.
4.
I would like to marry a girl and live happily
ever after (another assumption)
Marriage Expenses – Bachelor’s Party, Engagement,
Marriage and Reception – 8 Lakhs
5.
Let’s assume you spend 3 Lakhs to fill your
family’s wardrobe with dresses and related accessories. Remaining amount – 20 Lakhs
6.
Indian women will always go crazy about gold
ornaments – Bash! – 15 Lakhs for 60 Sovereigns
7.
What’s left out is 5 Lakhs and you are married
with a Car, Bike and a Villa in a Metropolitan city
Offff!!! Half of the life is over or in other words “Life
has just started!!”
What can you
do with the remaining 1 Crore and 5 Lakhs and at least 50 years of remaining life
with lots and lots of responsibilities in terms of family, friends and
relatives?
This is the
tricky part where you have to spend a little time researching about banks and
interest rates they provide for fixed deposits!
Based on my
research, the highest interest rate for Non - Senior Citizens trends from 9% to
11% for an investment of a minimum of 1 lakh INR up to 1 Crore INR over a
period of 5 to 15 years.
Split the
remaining 1 Crore and 5 Lakhs (10.5 Million)
1st
Part 50 Lakhs goes for the monthly expenses – Opt for Quarterly Payouts
Assuming
9.5% Interest – Yearly interest is 4.5 Lakhs – Monthly - 37500
2nd
Part 35 Lakhs goes for Children’s expenses (School, Puberty ceremonies, College
etc.)
Opt for 5 years
(Yearly Cumulative Interest) – Assuming 10% - Once in every 5 years – 20 Lakhs
(Interest)
Calculate
Here - http://www.moneycontrol.com/fixed-income/calculator/state-bank-of-india-sbi/fixed-deposit-calculator-SBI-BSB001.html
3rd
Part – 20 Lakhs – Save it For Emergency – Accidents, Medical Expenses etc.
Conclusion
The Principal
amount 35 lakhs you invested for your children remains untouched.
Isn’t that a
happy upper middle class life without going to work?
A Foreign
trip once in every 5 years, more money when you child gets into school or college
or gets married. If they are willing to work and earn, it’s a double treat then…
Hmmmm…. If
only I had those two Crore rupees… ;-) :-P
Or if you have 2 Crores dumped in a bank account, Put it to work....
No comments:
Post a Comment