How to be a millionaire by the age of 35?

If you are reading this blog you are probably planning to earn big and retire early to travel the world.

Which brings us to our topic of discussion. So, for example, you receive your first paycheck of Rs. 30,000. Being a heavy saver and with a long-term plan of becoming a millionaire in the next 10 years, you aim at preserving a part of your wealth.

To make Rs. 1,000,000 by the age of 35 you need to start saving at the age of 20

= 1,000,000/15 = 66,666 a year for 15 years

= 66,666/12 = 5,555 per month

Seems too much? Luckily for you, there are investment alternatives that can provide you with high returns and help achieve these targets with lower savings. Plus don’t forget, you will not always be earning Rs. 30,000!

Our guide to becoming a young millionaire takes a deep journey into the world of investment alternatives that you can invest in. We next provide a brief introduction to the investment alternatives that can be explored by young individuals looking to making quick money. So, sit back, fasten your seat belts, and enjoy the ride!

Mutual funds

Mutual funds provide you with the opportunity to make big gains with an investment of as low as Rs. 500. Several Mutual funds provide you with the opportunity to invest for your preferred frame of time. You can get your money out of the fund whenever you decide to do so.

For an example, check out the following real-life mutual fund:

Another important benefit of investing in Mutual funds is that they are highly liquid and the units can be bought and sold easily. So, if you do not wish to wait for the end of the investment term to get your investment back, you can simply ask your broker to sell the units. If after a year you decide to sell the units for Rs. 10,000, your total return for the year will be around 12.6% (after taking into account the management fee).

Too good to be true isn’t it? Big gains, high liquidity and short tenure is just a mouthwatering proposition!


Fancy investing in the stock market? Interested in putting some of your funds in high growth or high dividend shares? Well, you have to go through a licensed broker who would invest in these stocks on your behalf. Brokers charge you minimum fee of Rs. 5000 to register an account with them, plus a small fee for every transaction you make.

Assume that you are willing to invest Rs. 10,000 to buy stocks that would pay some money (dividends) towards the end of each year. Take a look at the following table for some of the attributes along with revenues and costs of one real-life stock that pays a high dividend:

If you choose to sell the shares after a year at the price you have bought them for, you can actually earn a return of 24% (not accounting for taxes). Imagine earning a return of at least 24% for the next 10 years! You can actually earn a lot more than that if you invest Rs. 10,000 each year and maintain a minimum balance of Rs. 5000 with your broker.

It is also important to understand that brokers also create and manage diversified portfolio for investors. They will invest your funds in different sectors of the economy so as to prevent steep losses. So, if your parents tell you to stay away from stocks, tell them that abundant liquidity, high levels of diversification to reduce risk and potential for large gains produce a sweet smell of success!


Heard of the $ rate sky rocketing? Didn’t you wish you had stashed some dollars aside and earned an instant gain? To understand how the dollar has gone up against Rupee, have a look at the following graph:

10 years ago, 1 Dollar was valued at Rs. 60. If you would have converted Rs. 10,000 in Dollars, 10 years ago, you would have made a profit of 100% in 2018. That is a whopping 10% return on average per year!

It is because of inflation and a reduction in buying power that you should dedicate a portion of your earnings towards investing in currencies that have historically appreciated against the rupee. Investors should also keep a close eye on currencies such as Yen and Yuan, which have gone by 100% and 105%, respectively over the last 10 years.

So, the next time you plan a trip to US, make sure that you convert rupee into dollars 6 months ahead of time!


Up until 1930s, Gold was widely used as a currency to buy and sell products. Yes, you read that right! There was a time when paper money never existed. Paper currency eventually came into prominence but its value was also backed by the price of gold. Fast forward to 2018 and we live an era where Gold is treated as a mere commodity and worn by brides in weddings, with paper money possessing its own value.

So, the questions that an individual should be asking are: Is gold really a safe-haven asset? Does gold really maintain the value of your investment? In order to answer some of these questions, take a look at the price of gold for the last 10 years:

The up-down trend depicted by the graph might make some of us believe that Gold prices have fluctuated over the last decade. However, on close inspection Gold has actually provided the investors with a return of around 150%! That is a return of around 15% on average per year!

So even though Gold is not used as means for buying goods in the modern era, it is still viewed as a very valuable asset. We got to seriously stop using it in weddings and save some in our portfolios!

Government bonds

Bonds are loans issued by the government to raise money from general public. These bonds pay a pre-determined amount of money at the end of a certain period (often expressed as a percentage of initial investment). They are extremely safe investments and the chances of not getting paid by the government are extremely low (hopefully in the case of our government!).

Have a look at a bond issued by the government of Pakistan in 2017:

Bonds are simple instruments but less commonly understood by individuals investing in the product for the first time. One benefit that bond has over savings account is the high liquidity and the potential to sell them at higher prices. So, if you would have bought this bond a year ago for Rs. 101 and sold it recently you would have made a return of 28% (16% by selling them at a higher price and 12% on the fixed annual amount received).

Prize Bond

Unlike government bonds, which make periodic payments to the investor, Prize Bonds do not make any such payments. Don’t panic, they do offer the potential for a huge pay day; that is, if you hit the jackpot. That certainly does not mean you will not have to get up for work tomorrow! They come in denominations of as low as Rs. 100 and can go as high as Rs. 40,000, making it affordable for first timers to try their luck.

Here are some of the details about Prize Bonds that you might find interesting:

Prize bonds are extremely liquid instruments that can be easily bought and sold in the secondary market. In addition, the value of your bond actually increases with time. Older the bonds are, the more valuable they get since the probability of winning a prize increases with the age of the bond. For instance, if you buy a bond worth Rs. 100, you might be able to sell it at Rs. 120 after a few years, making a gain of Rs. 20 in the process. So, if you are tired of waiting for your stars to shine, you can just go ahead and sell it!

Our comprehensive guide on Prize Bonds provides useful information to individuals looking to invest in this instrument. Topics such as the mechanics of Prize bonds, the secondary market, premium bonds among others are discussed in some detail. So, go ahead and check out the exclusive issue on this investment alternative!