- hindi news
- opinion
- N. Raghuraman’s Column – You Won’t Become Rich Solely Through Savings…
4 hours ago
- copy link
N. Raghuraman, Management Guru
Often we think that saving money is the way to wealth, but the reality is different. Recently I came across the website ‘thecrazyplan.com’ of a British banker Tim Taubman. Tim started this platform in 2024. His claim is exciting: the journey of a novice investor from ‘zero’ to ‘billionaire’. Here there is talk of 1 billion dollars (about more than Rs 9,400 crore), which may sound impossible.
But the real beauty of this website lies in the financial education they provide. Tim says that the wealth of Warren Buffet (95 years), one of the richest people in the world, is more than 150 billion dollars (about Rs 1.42 lakh crore). People talk about Buffett’s success, but forget the three basic things that made him a ‘giant’…
- Longevity: He is 95 years old and is still active.
- Continuity: They have been investing for over 80 years.
- Simplicity: They are known to spend very little from their earnings and live with discipline. Tim’s Crazy Plan shows that anyone can create unimaginable wealth. Their website rests on two plans…
- Monthly Plan: Saving 50 pounds (about Rs 6,400) every month.
- Lump sum plan: Investment of £ 10,000 (about Rs 12.8 lakh) at one time.
- According to Tim’s calculations, the lump-sum plan will take 77 years to reach one billion dollars and the monthly plan will take 86 years and months.
This blog makes several references to Buffett’s investing principles. Tim says that Buffett started thinking from the perspective of what investing could mean for future generations of his family. Generally, an investor has a time horizon of 30-40 years for the family, but if the same time frame is extended to 80 years, then everyone can become Buffett.
Understand it this way:
An amount of around Rs 13 lakh can increase to Rs 268 crore in 50 years, but the same amount turns into a huge fund of Rs 18 thousand crore in 80 years!
Management Tip: Remember, you cannot become rich by saving and wealth cannot be created overnight. This is a long journey. Disciplined investment not only secures the future but also lays a strong foundation for the next generation.
