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The secret to building a Rs 5 crore corpus lies in one simple decision.
But the longer you wait, the more it costs you -- not just in money but in missed opportunities, says Ramalingam Kalirajan
Do you know what one of the biggest financial mistakes people make is? Procrastination.
Yes, waiting even a few years to start investing can turn your dream of wealth into a nightmare of missed opportunities. But don't take my word for it -- let the numbers speak.
Why Delay Is Your Biggest Enemy
Are you under the impression that you can start saving later and still achieve your financial goals? Let me show you why that's a costly mistake.
With a modest assumption of 12 per cent annual returns -- thanks to the power of compounding -- the SIP required to hit Rs 5 crore by 60 grows exponentially every time you delay.
The SIP You Need to Build Rs 5 crore (Based on Your Starting Age)
| Age at Start | Monthly SIP |
| 25 | Rs 8,200 |
| 30 | Rs 15,800 |
| 35 | Rs 31,500 |
| 40 | Rs 66,500 |
| 45 | Rs 1,55,000 |
| 50 | Rs 4,20,000 |
The Hidden Cost of Procrastination: How Delaying Your SIP Destroys Your Financial Goals
Let's take a moment to truly understand what procrastination costs you. It's not just about delaying an investment -- it's about losing the most valuable asset in your financial journey: Time.
Every five years you delay starting your SIP (Systematic Investment Plan), the amount you need to invest doubles. Yes, doubles! But that's just the beginning of the story. Let's break it down.
The Rising SIP Burden Over time
At 25, a SIP of Rs 8,200 per month is enough to build Rs 5 crore corpus by age 60, assuming an average annual return of 12 per cent. But if you wait until 30, that monthly SIP amount leaps to Rs 15,800. A five-year delay just made your financial burden twice as heavy.
Think you can afford to wait a little longer?
By age 35, your SIP requirement jumps again to Rs 31,500 per month. That's double the previous amount. Notice a pattern?
Every five years, the SIP amount required doesn't just increase -- it doubles. This doubling effect is the compounding power you're losing every year you wait.
But here's where it gets even scarier.
By the time you hit 50, the SIP burden doesn't just double -- it balloons to 1.5 times the previous level.
At 45, you would need Rs 1.55 lakh per month to hit Rs 5 crore. At 50? Brace yourself -- you'd need Rs 4.2 lakh per month.
The Real Price of Procrastination
Procrastination is expensive. And not just in terms of money -- it's expensive in terms of effort, stress, and opportunity. The more you delay, the more money you need to invest every month, leaving you with less disposable income for other goals and responsibilities.
Imagine trying to squeeze Rs 4.2 lakh into your budget at 50 when you could have achieved the same goal with just Rs 8,200 per month at 25.
But the real tragedy is the lost opportunity. The money you could have invested early doesn't just sit idle -- it loses the chance to grow exponentially. The compounding you miss in those early years is something you can never get back.
The Lesson: Start Now, Not Later
The takeaway is clear: Procrastination is not just a delay -- it's a direct attack on your financial future. Every year you wait, you're robbing yourself of the magic of compounding, doubling your financial burden, and increasing the chances of falling short of your goals.
So, ask yourself: Can you afford to wait? Or will you start today, even with a small SIP, and commit to growing it over time? The choice is yours -- but the cost of waiting is far too high.
The earlier you start, the longer your money has to grow exponentially. Every year you delay is a year stolen from your financial future.
The lesson is simple: Start today, not tomorrow, not next year -- today. Because every day you wait is a day when your money could have been working for you.
And let's not forget: Compounding is like planting a tree. The sooner you plant it, the larger it grows. The later you start, the more effort it takes to get the same results.
Why Compounding Is Your Best Friend
Albert Einstein called compounding the eighth wonder of the world. Why? Because when you give your money enough time, it grows on itself. A Rs 8,200 SIP started at age 25 can achieve the same goal as a Rs 420,000 SIP started at age 50.
Doesn't that sound incredible? A small step today saves you a mountain of stress tomorrow.
The Influence of Early Action
Have you ever wondered why some people effortlessly build wealth while others struggle? It's not luck -- it's strategy. Early starters understand two things:
Why Start Now?
Let's face it. You can't control the markets, but you can control when you start. And starting today costs you less than starting tomorrow.
If you wait, the pain compounds instead of the money. Do you really want to be paying Rs 1.55 lakh per month in SIPs just because you delayed by 20 years?
Take Action Today
What's stopping you? Is it the fear of taking the first step? Or are you telling yourself you'll 'start next month'?
Remember, every month you delay is costing you far more than you realise. Start small, but start now. Because the earlier you begin, the easier your journey to Rs 5 crore becomes.
Ramalingam K, an MBA in Finance, is a Certified Financial Planner. He is the Director and Chief Financial Planner at holisticinvestment, a leading financial planning and wealth management company.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this article to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.