Money Series: Part 34

By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group

Goal No.-3, Fifteen years later – leaving a job and commencing his own work-requirement of Rs.30 Lac approximately:

See towards the third financial destination of Saksham. His third financial destination is to have an amount of Rs. 30 Lack for leaving his present job and start his own business after the fifteenth year, but he has already earned more than the required income in 13 years only.

Now Saksham can start his work from this year, but if he decides that he will start his work after the fifteenth year, he will have to reinvest this income for two years. The option is open. Let’s see, where Saksham can reach this money in these two years.

THIRD FINANCIAL GOAL OF SAKSHAM

Possibility of income  from Fourteenth year to  Fifteenth years for Saksham
Already available fund Rs. 32,54,757/-
Annual savings Interest earned Total saving Immovable property
Fourteenth Year
Purchased a plot of land/made other appropriated investment   Rs. 32,54,757/-

On investment of Rs. 20,000/- per month saved on the basis of principal of ‘First Payment to Self’ through ‘fixed deposit’ or ‘Recurring deposit with benefit of an additional installments as interest’

Rs. 2,40,000/- Rs. 20,000/- Rs. 2,60,000/-
Fifteenth year
Savings of fourteenth year Rs, 2,60,000/-
7% interest on Savings of fourteenth year Rs. 10.920/-

On investment of Rs. 21,000/- per month saved on the basis of principal of ‘First Payment to Self’ through ‘fixed deposit’ or ‘Recurring deposit with benefit of an additional installments as interest’

Rs. 2,52,000/- Rs. 21,000/- Rs. 2,73,000/-

Sale of plot of land with 20% growth/20% profit earned in appropriated investments already made

Rs. 39,05,708/-
Total amount Rs. 44,49,628/-
Third Goal  Rs. 30 Lac  for starting his own business)
Earned assets Rs. 44,49,628/-
Success rate 148.32%

Let’s try to understand this picture too.

Fourteenth year

This year, Saksham may purchase a plot of land from the amount created in the thirteenth year, i.e. Rs. 32,54757/ -, and following the preliminary scheme, by raising Rs. 1000/ – monthly, this year Saksham pays Rs. 20,000/ – per month to him and deposits the same in the shape of fixed or recurring deposits as usual and earns an additional income of Rs 2,60,000/ – with a further installment at the end of the year.

Fifteen years

This year, Saksham will get interest of Rs. 10,920 / – at the rate of 7% on the additional income of Rs. 2,60,000 / – made in the fourteenth year and in accordance with the principle of “First Pay to Self,” including the previous year’s increment, Saksham pays Rs. 21,000/- per month to himself and deposits in the form of fixed or recurring deposits and creates, at the end of the year, an additional installment of Rs.2,73,000/-. If he earns 20% profit on the plot purchased previously or other suitable beneficiary investment this year, then he will get the amount of Rs.39,05,708/- as the selling price. Thus, at the end of the fifteenth year, the total amount of Rs. 44,49,628 / – will be available to Saksham.

Have you noticed- in these two years, Saksham earns 48.32% more income than its target, and after the fifteenth year, after leaving the job, he can start his own business according to his interests, and after investing the initial capital of Rs.3o Lac  in that business, he can save an amount of Rs. 14,49,628 / – also.

Tarun Prakash Srivastava

From my book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money  and in Hindi at http://bit.l

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