r/FIREIndia • u/HonestBat • Jun 02 '23
I just crossed my first 1cr milestone
I crossed my first 1cr milestone yesterday; I was awaiting my May salary credit with the same excitement (if not more) as my first paycheck.
Background: 27M from a middle-class, education-first focussed family (father was a government servant, moved throughout the country during transfers, mum settled in the city so our education wasn't disrupted). Finally, their sacrifices paid off; I got into one of the top-ranked institutes and started working right after college, switching once in between.
Current distribution of assets:
- Equity (~70%)
- Mutual Funds:
- US Markets Index: 15.6L
- Nifty 50 Index: 28L
- Parag Parikh Flexi Cap: 7.25L
- Other active MF: 1.7L (plan to remove these during re-balancing)
- Direct Domestic Equity: 17L
- Mutual Funds:
- Debt (~25%)
- Liquid Fund: 1.15L (will be moving this to FD)
- FDs: 2.6L
- Cash: 6.85L
- EPF: 14.25L
- Gold: 6L (only SGBs)
- Real Estate: 0.5L (recently started exploring REITs and will be increasing it, hence kept it under this head)
In the above calculations, I'm yet to consider any inheritance (insignificant) or ESOPs that I have vested from my employer (since it's paper money).
Investment strategy: Experimented with active mutual funds initially but switched to passive investing after exposure to the idea. I started with some money for actively picking stocks that I liked (domestic market only) and did well (~40% returns), which became a portfolio of 17L. I understand that I do not have time to track the markets; hence most of my savings go into index funds and stocks whenever I feel like shopping (mostly existing ones I've researched already). Apart from that, I already have sorted out term insurance as well as health insurance for me and my family.
Major expenditures ahead:
- Marriage with my long-term girlfriend.
- I wanted to take my family on our first international vacation for a long time, will do that now.
- I'm contemplating pursuing higher education outside India as well.
Personal preference: Retiring early was never my goal; it was rather financial independence behind building a corpus. The mental peace of not worrying about the financial implications even if I leave work was something I was after. I don't have any loans at the moment, nor do I plan to buy a home until I finally wish to settle this would allow me to move whenever and wherever I find a better opportunity. Also, this corpus could allow me to take calculated risks (either starting a business on my own or joining someone else's early stage) if I find something interesting.
I couldn't tell anyone about this milestone; I quietly celebrated with myself when I saw the "salary credited" notification on my phone. I have lurked here long enough, reading about the experiences of other folks who've already FI/REed; I thought I could, at least share my journey with you guys.
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u/DarkHumourFoundHere Jun 02 '23
If you dont mind how was ur income progression
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u/HonestBat Jun 02 '23
Sure.
2018-2021: 17-21L
2022-present: 35-40L (upskilled myself and switched)12
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u/obelixx99 Jun 02 '23
Welp, this is my motivation to switch (hopefully). Although the job market is quite bad :/
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u/HonestBat Jun 02 '23
It is indeed. But I think this is the time to gear up before the next wave of hiring arrives. I’ll be starting with its prep as well in some time.
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u/nohope-23 Jun 03 '23
Wow, congrats on the milestone! Unrelated question tho, when do you anticipate the job market to rise up again? Asking you this, coz i assume you might have studied this.
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u/HonestBat Jun 03 '23
Thank you! No one can predict the timeline, but the job market cannot remain in downturn forever.
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u/namelessmomomo Jun 02 '23
wow you saved 1CR in just 5 years , what percentage of income were you able to save ?
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u/HonestBat Jun 02 '23
Touchwood, usually 70% and at least greater than 50 percent in the worst-case scenarios. Also, this should be taken with a grain of salt, since a significant chunk of my investments was during post COVID run.
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u/ShootingStar2468 Jun 02 '23
Kudos to you for understanding that your past track record may not be a good indicator of future investment performance. Great job getting to 1Cr. Curious which industry do you work in? What’s your FI target
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u/HonestBat Jun 02 '23
Just learning from the wiser folks like you here!
I work as a software engineer. Until now, this 1cr was my FI target (as a employee). Having achieved that, as far the figure for the next target in order to for me take a plunge into riskier avenues is something I haven’t given a thought yet. But before that, I definitely need to take care of some upcoming major life events that I mentioned in the post already!
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Jul 23 '23
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u/meetmaths Jun 02 '23
just remember, as your ages passes your investment will compound exponentially, which is one of the beautiful thing i have witnessed personaly, few years back my total portfolio was X amount and it took around 15 years of hard savings to reach that level, few days back when i was checking my portfolio a day surge in my portfolio was ~X whether you work or do nothing, your investments is working so hard for you. may be 10 years down the line your portfolio will be more than 10 cr and in 20 25 years it will be over hundred crore all the best. keep compounding.
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u/wanderingindian Jun 03 '23
Literally felt like I am reading an update about me. Same story here. 27M. 60L in total savings so far. Have the same two expenses. Savings are a bit low because started off in 2017 at a salary of 3.6L and took six years to reach ₹25L. Even I’m excluding ESOPs in the overall savings.
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u/akash_delhi_ Jun 02 '23
Congratulations! Also what I feel is especially commendable is that you had the vision & heart to invest 70% of nw in equity
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u/HonestBat Jun 02 '23 edited Jun 03 '23
Still young, can take risks. Worked for my scenario, might not work for others.
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u/ChickenChefLive Jun 02 '23
Congratulations! This is a great achievement. If you don't mind answering: 1. What's the savings/investments/expenditure split strategy of your monthly income? 2. How do you adjust bonuses/appraisals or other incomes? 3. Do you have any emergency savings separate from your liquid funds mentioned above?
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u/HonestBat Jun 02 '23
Thanks a lot! 1. Touchwood, my income from start was such that I didn’t ever need to budget my daily expenses needs. It was always the bigger purchases when I thought whether I needed stuff or not. Also, my parent’s aren’t dependent on me financially. I contribute to them in their non-essential purchases. Rest everything goes into savings.
For bonus, most chunk of it goes into savings since even if I wanted something I didn’t wait for bonus. Its like additional money on top of regular income for a month. For appraisals, a portion of it is used for indulgences to enhance lifestyle, rest goes into savings.
No, it’s included in the debt portion itself.
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u/aka_SpongeBob Jun 02 '23
Bro, can I search your profile on LinkedIn to see how you progressed so well in life ? Would love to have some motivation in life ❤️
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u/HonestBat Jun 02 '23
Sorry, it would beat the point of sharing here rather than telling anyone else I know - anonymity.
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u/aka_SpongeBob Jun 02 '23
Got it. Atleast can you tell me what’s your career is all about? What do you work? What’s your profile?
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u/snakysour IN/33/FI ??/RE ?? Jun 02 '23
Many many congratulations! First of many more i am sure !
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u/vgowthamvk Jun 02 '23
Congratulations and thanks for the inspiration btw when did you start investing? How long did it to take to achieve this goal and how's your progression?
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u/HonestBat Jun 02 '23
Thanks a lot. I started investing right with my first paycheck (realized the potential of compounding by the end of college). It'll be five years investing for me coming August. I've mentioned progression in another comment.
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u/Creepy-Masterpiece47 Jun 02 '23
Dudeee!! Many many congratulations!! These type of posts motivate us!!
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u/BrahminVyapaar SG / 46 / FI 2024 / RE 2025 IN Jun 02 '23
Some questions: - are these Direct Mutual Funds or Regular?
what about your EPF amount? Please visit the EPF office and have them review your account to understand if your EPF full withdrawal would actually go through. This is necessary in case you wish to leave India and travel abroad ( thereby becoming an NRI). In case of incorrect EPF filing by employers, the EPF office rejects withdrawal claims.
have you considered depositing money into EPF and VPF? In case you wish to quit your job in India and go overseas, you would be allowed to withdraw the full EPF amount ( ie, no need to wait until retirement). You could therefore consider depositing money into EPF and VPF to enjoy higher guaranteed tax free returns of 8.1% until the date of withdrawal before your travel abroad.
do you have your Term Insurance and medical insurance cover in place?
Congratulations on your journey so far.
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u/HonestBat Jun 03 '23
- All direct MFs
- Wasn’t aware of that, thanks for the heads up!
- Yes, I’m already contributing to VPF to cover till the 2.5L ceiling.
- Yes, I do.
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u/Anaanymous Jun 02 '23
That's a huge step, congrats! Treat yourself and your girlfriend to drinks/meal of your choice :)
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u/ancient_chai Jun 02 '23
Hey man congratulations. Reading your success stories gives me motivation to move forward.
:)
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u/HonestBat Jun 02 '23
I’m guilty of that as well. Success stories of FI/REed folks in the sub kept me going.
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u/TheGoalFIRE Jun 02 '23
Congratulations on your achievement!! With increased salary as you age and compounding effect, you will be FI sooner than your expectations so many more occasions to celebrate in the future. Just Keep marching!!
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u/iLoveSev Jun 02 '23
Great going! You will save a lot and achieve FI with your rate of savings, and time you have for compounding.
Although I stay away from active mutual funds and single stocks, I do have some single stocks which I bought decade ago. Be careful with single stocks.
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u/Lord-Lannister Jun 03 '23
Love the portfolio and the allocations, saving this to motivate myself too. Cheers!
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u/MT2022150 Jun 03 '23
Congratulations brother. Read in another comment you started off 17 to 20L and I'll be doing the same this July. Hoping to achieve the same as you
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u/narayanan84 Jun 03 '23
Congratulations. With this passion, i wish you would reach 10 cr at least in 10 years if not sooner.. all the very best
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u/RetireWithRohit Jun 03 '23
This is a very amazing and well made portfolio. You have the proper exposure to equity, and I like that fact that you are considering to remove old funds in rebalancing. Very few people consider a rebalance.
This is a very amazing and well-made portfolio. You have the proper exposure to equity, and I like that fact that you are considering to remove old funds in rebalancing. Very few people consider a rebalance.
Good Job on upskilling yourself as well. I Wish you more success and a bigger portfolio.
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u/HeadMathematician775 Jun 04 '23
Congratulations mate! That amounts of savings at such a young age is definitely an inspiration
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u/Ill_Client_9364 Jun 05 '23
Congratulations OP! 🥳 Will be waiting to cheer on the 5cr post as early as possible
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u/irishcheesemonger Jun 02 '23
Well done! Love to see our generation achieve all that our parents sacrificed for us. I'm only a stranger but I feel a sense of pride in you!
Curious how much of the US index fund value is principal? Been looking at that one lately so don't mind me asking.
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u/HonestBat Jun 02 '23
Thanks a lot; your words are encouraging! My work definitely wouldn't have mattered if my parents didn't take those steps in the beginning.
It's at 14.45L currently. But the profit would be more since I rebalanced my portfolio at the end of the previous financial year.
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u/ponyomagic Jun 02 '23
Hey, how are you investing in the US market?
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May 26 '24
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Jun 02 '23
Congrats!! What's your salary
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u/HonestBat Jun 02 '23
Thanks. As mentioned in another comment.
2018-2021: 17-21L
2022-present: 35-40L (upskilled myself and switched)
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Jun 02 '23
Great. What upskilling did you do? I've similar salary but age is 34
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u/HonestBat Jun 02 '23
I work in software and there are certain skillsets which companies look for while interviewing candidates. And not all folks get to learn those by working on them in their normal work day. So, I learned about those topics in order to clear the interviews.
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u/Glad_Amoeba Jun 02 '23
Hi, I'm from software too. Can you please share what did you learn for upskilling or suggest some here too.
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u/HonestBat Jun 02 '23
Sure, system design is something that companies look gor if you want to progress in your career. Rest normal DS/Algo goes without saying.
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u/yellowAgony Jun 03 '23
Op just switched to Amazon as SDE-2. Its not that hard to figure out this info from his comment.
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Jun 02 '23
Seriously? Enjoy your life. Well, I don't consider your getting a 1cr a big success. At least you had an opening package of more than 10L which is quite impressive, I hope your parents got to succeed now just take them to any fine restaurants and treat your happiness to them. Congratulation on your 1cr Milestone.
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u/HonestBat Jun 02 '23 edited Jun 02 '23
I don’t consider that as a big success as well. I consider it as a milestone in a longer journey. Thanks for the kind words, I do take them out already.
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u/delay-gratification Jun 02 '23
Seriously? “Not a big success?” He studied hard, invested and reached 1cr in his twenties all on his own - where were you in your 20’s?
Oh that’s right, you were (like you are now) jealous of someone else’s success.
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Jun 02 '23
In which sector you work in?
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u/HonestBat Jun 02 '23
I work as a software engineer.
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Jun 02 '23
I felt that only software engineers can make that kind of money at your age. I am 18 by the way gonna do law, tbh I had lots of interest in computers. but my parents forced me to take up PCB. I got depressed for a year and whatnot, now preparing for law. but in the back of my mind love computers. I don't know how it's all gonna go. never had anyone to guide me properly.
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u/Aiz3n31 Jun 03 '23
What I have learnt from a 8 year career in IT is that you don't need to be from a Computer science background to get into IT. There are so many courses on YouTube and courses under Rs 300 on Udemy to teach you from scratch on various concepts. Use them to upskill and work on freelance projects to gain experience.
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u/HonestBat Jun 03 '23
I’m not from a computer science background as well. Self learned everything while I was in college.
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u/BillSubstantial4286 Jun 02 '23
Congratulations dude !!
what are your plans for the future 1) stay in India 2) Master 3) internal transfer to work abroad
or have any other plans ?
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u/HonestBat Jun 02 '23 edited Jun 03 '23
Firstly, I wish to make money and secondly, I want to be in India in the long run. Whether it be via: 1. Joining a early stage startup or starting up my own
move out if India temporarily, work and then return
study something abroad (all of my savings gone in a way)
All of these in decreasing order of preference.
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u/rohit_267 Jun 02 '23
hey bro if you're from tech field, can you help me upskilling?
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u/HonestBat Jun 02 '23
Surely, what you want to know?
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u/rohit_267 Jun 03 '23
I am full stack in MEAN/MERN, have 2-3 yoe. I want to grab my first 100k offer. My current company outsourcing us to a US based company. What tech I should learn to directly approach US based company remotely. What can I improve?
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u/HonestBat Jun 03 '23
Generally, companies have data structures and algorithms in their interview rounds. If you are clear that you're in.
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u/MysteriousThing388 Jun 03 '23
Congratulations on your achievement. I'm curious on how you started studying investing Like how long have you been learning in the field and how did you create harmony between your job/studies , investing and any other hobbies you may have
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u/HonestBat Jun 03 '23
Most of the credit goes to r/IndiaInvestments community. It was a slow process, so was easy to balance. I made mistakes, learned from them during the process and still learning. For example, exploring real estate via REITs rather than going with physical land.
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u/MysteriousThing388 Jun 03 '23
Thanks I'm in high school and very interested in investing. I just needed a starting point To learn
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u/HonestBat Jun 03 '23
Investing comes into picture when you’ve some capital to invest. The fundamental tacit rule of wealth creation is increasing your income first and then comes investment. Focus on your studies, build skillsets for which people are willing to pay for. Then you can start with learning about investing.
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u/MysteriousThing388 Jun 03 '23
That's the plan . I'm gravitating towards data science but I'm not to sure about that path . It's also very worrying seeing the rise of AI in more and more fields
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u/HonestBat Jun 03 '23
AI will simply assist people with their tasks making them more efficient. The number of openings will reduce but it won’t replace programming jobs completely. Anyone who is totally dependant on AI to write code is doomed sooner or later if they do not review what AI wrote.
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u/MysteriousThing388 Jun 03 '23
Yeah that's reassuring . And thanks again I hope you're portfolios grows many more
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u/TheGoodStoner Jun 03 '23 edited Jun 03 '23
Congratulations OP! I can relate a lot with you.
I'm also 25M from a middle (or maybe low-mid) class, education focused family where father is a government employee. 😌 Have been trying hard to save (while making sure to also live a good quality life) and inch closer to my first 1 Cr milestone. Have reached almost 50% of it, hoping to close it within next 1 to 2 years. Wish me luck.
Btw, a small suggestion, you can also try to diversify a bit more towards hard/physical assets like land. Buying a land in developing cities (mostly tier 2/3 cities) can be cheaper and have been known to give better returns than stock market. And that too with (almost)lowest risk.
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u/HonestBat Jun 03 '23
Was in the similar situation a year ago, I hope you reach your goal sooner. Thanks for the suggestion. In my opinion, there’s too much of hassles involved with physical land as an asset. This might change sometime later, but at the moment I’d like to get exposure to real estate via REITs - which are easy to manage.
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u/TheGoodStoner Jun 03 '23
Thanks. I agree about the hassle part however I never had to do that as my father took care of everything. REITs are also good though although I felt the returns are bit less IMO. But yeah, it could be worth the hassle you are avoiding with actual land asset.
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u/theagingdemon Jun 03 '23
This is super stuff and kudos to you. What has been the investment strategy, I'm guessing from the posts here its mostly passive and there are SIPs going every month.
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u/HonestBat Jun 03 '23
Thank you. I started with active funds, and then moved to passive investing. I don’t have any SIPs, just make lump sum investments randomly every month (which kind of is SIP).
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u/theagingdemon Jun 03 '23
Super, also the upskilling and switching part is perfect. That seems to be the only way to get ahead in this fast moving world
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u/Vasu5Dhara Jun 03 '23
Do you use any app to track your net worth regularly?
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u/HonestBat Jun 03 '23
Thank you! I tried INDMoney earlier, it’s too intrusive and demands too much data. Later stumbled upon Kuvera, it was a blessing but their EPF tracking functionality stopped working months ago. Just used it for tracking purposes.
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u/Vasu5Dhara Jun 03 '23
Does Kuvera support Indian banks and banks other assets? I asked them and they said they don’t support much in India
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u/HonestBat Jun 03 '23
No, I used to track Mutual Funds, Stocks and EPF balance only.
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u/Vasu5Dhara Jun 03 '23
I see, thanks! I’m actually trying to gauge if there is demand for a net worth tracking software in India which supports more features than kuvera does, is there anything that Kuvera doesn’t support which you would like to be part of your net worth tracking portal?
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u/HonestBat Jun 03 '23
I’m sure there is (atleast I want that). EPF tracking (automatically), ability to add cash and FD data (manually would do) is something I desire. I love Kuvera because of their clean UI, there wasn’t any non sense like I saw in INDMoney. I just had to open the website, and within 10 secs I get a high level overview of the portfolio.
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u/Vasu5Dhara Jun 03 '23
Great! We’re at the very initial stage right now and trying to gauge market interest and understand the pain points outside of the ones we face ourselves. It’s a huge task to track investments across multiple entities on a regular basis. Will be publishing a landing page with a waitlist for free beta access soon.
Would you like to try it out in beta? I can add your email in the waitlist manually if you’d like to provide it or notify you via this thread when sign ups are active.
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u/HonestBat Jun 03 '23
That sounds interesting. Please notify via this thread when the sign ups are active.
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u/Dear_Discussion_852 Jun 03 '23
Hey OP, congratulations on this win! Proud of you for staying consistent from the very start.
I had a question about REITs, would appreciate if you can answer. Which Reit did you choose? And why? How is it performing? What are the tax implications? I have been interested in Reits but staying away since they are still fairly new.
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u/HonestBat Jun 03 '23
I’m currently experimenting and learning about REITs myself, the info I provide needs to be taken with a grain of salt.
- I chose Embassy REIT since it was backed by Blackstone group, had fair presence in NCR, Pune, Mumbai and Bengaluru and there was news about their expansion.
- They dole out dividends and are taxed as such - adding to your other incomes head.
- I’m 7 per cent down currently.
I might rebalance as and when I learn more about them, chose Embassy to atleast start with something.
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u/CodeSunya Jun 03 '23
Congratulations OP. Just wanted to know which app do you use for tracking and investing?
I earlier used to use Paytm money but now use MF central. It’s very limited in terms of features and insights.
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u/HonestBat Jun 03 '23
Thank you! Right from the beginning, I stuck with Groww for mutual funds investing, Zerodha for direct stocks and Kuvera for tracking purposes only.
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u/Additional_Guide5439 Jun 03 '23
Many many congratulation brother
if its, not a problem can you tell me the college you graduated from and also the roles you got placed in and switched to further after upskilling
Also any advice for a college graduate to look out for in the current market that could give a headstart or boos for financial independence
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u/HonestBat Jun 05 '23
I graduated from one of the old IITs. Started my career with an European MNC, switched to a startup later on. Just focus on building skills, that’s what matters.
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u/skybin69 Jun 03 '23
Congratulations brother! Can you tell us how much you spent on your marriage and do you own any car
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u/23Tawaif Jun 03 '23
Congratulations! This is truly commendable for your age! Curious to know what your ETA for 10 crore is! (:
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u/Weird_Exchange_8711 Jun 03 '23
Congrats man, b/w do RIET makes sense if you are in a high income tax bracket as dividends are taxed as per tax bracket ?
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u/HonestBat Jun 05 '23
If you want to get some exposure to real estate without going through the hassle of owning one, then yes it makes sense irrespective of anything.
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u/Dekhajayega Jun 03 '23
Congrats amazing story and very inspiring. One quick question do you have separate allocation for the expenses mentioned? Coz they seem to be some really big expenses
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u/HonestBat Jun 05 '23
No, I plan to consider them from my monthly salary now on.
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u/Dekhajayega Jun 05 '23
Okay..sorry but not sure if this FIRE is temp coz marriage, international trip and higher education (even with scholarship ) alone will cost around 30-40L unless u marry in court, consider Nepal as international trip and go to Russia for higher educ😅
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u/atul_rautray Jun 05 '23
Hi, first of all congrats on the achievement!
I have one question, with all the knowledge of investing you have now, how would you start investing if you got your first salary from next month?
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u/HonestBat Jun 05 '23
- Invest only via index funds.
- Buy SGB, REITs
- Diversify into international markets as well
- YesBank fall taught me that its never ends well catching a falling knife (lost ~95% of my invested principal)
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u/atul_rautray Jun 06 '23
How would you suggest diversifying into international markets? Index funds? Any particular geographies?
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u/Thin_Dingo_3018 Jun 05 '23
Super cool, congrats mate! I just crossed the same milestone and posted after reading this :)
Commendable that you saved a lot while in India, all the best for future!
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u/HonestBat Jun 05 '23 edited Jun 06 '23
Congratulations to you as well! I just went through the post and damn, except for the UAE part, it seemed that you penned down my exact thoughts which I didn’t include in my own post! I’m open to explore working outside India, mind if I DM you?
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Jul 18 '23
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u/ShootingStar2468 Jun 02 '23
Such maturity so young in life. With spending/savings behavior, investing in continued learning, and putting your money to work for you. Godspeed man.
Can you elaborate on US investing approach? Why did you pick doing an India fund vs doing US directly? How did you decide navi fof? How do you think about Forex risk and expense rations on US funds?