How to Become a Crorepati at the Age of 40?

By Anupama Deshpande | July 17, 2023

Achieving a net worth of one crore (Rs. 10 million) by the age of 40 is an ambitious yet attainable financial goal. By starting early, adopting disciplined saving habits, and making strategic investment choices, individuals can accumulate wealth and become crorepatis. Here, we will outline a roadmap to help you reach this milestone, with practical examples of how saving from the age of 25 can pave the way for financial success.

How to Become a Crorepati at the Age of 40?

Set Clear Financial Goals

To become a crorepati at the age of 40, it is essential to set clear financial goals and develop a comprehensive plan. Define the desired net worth, evaluate your current financial position, and determine the time horizon to achieve your goal. Having a specific target and timeline will help guide your saving and investment decisions.

If you aim to accumulate a net worth of one crore in 15 years, you need to save and invest strategically to generate substantial returns.


Suppose you aim to accumulate Rs 1 crore by the age of 40 and you start at the age of 25, you will need to start saving Rs 20000 per month in a mutual fund SIP which gives around 12% returns per annum. In this way, the total amount invested through SIP in 15 years will be around Rs. 36 lakhs and the total growth amount will be around Rs. 64 lakhs in 15 years.

  • Monthly SIP: Rs 20,000
  • Number of years: 15 years
  • Total amount invested through SIP in 15 years: Rs. 36 lakhs
  • Total growth amount in 15 years will be: Rs. 64 lakhs

Suggested reading What Should You Do instead of Breaking Your FD?

Develop a Robust Savings Plan

A strong savings plan is crucial to accumulate wealth. Create a budget that aligns with your financial goals and prioritize saving a significant portion of your income. Identify areas where you can cut back on unnecessary expenses and redirect those funds towards your savings. Automate your savings by setting up a dedicated savings account or recurring deposits that automatically transfer a fixed amount each month.


For instance, if you earn a salary of Rs 1.35 lakhs per month and save around 30% of your monthly income, you will be saving Rs 40,000 per month. Over 15 years, this amounts to Rs 72 lakhs, excluding any investment returns.

Start Early and Harness the Power of Compounding

Starting your savings journey as early as possible is a critical factor in becoming a crorepati by the age of 40. The power of compounding plays a significant role in growing your wealth exponentially over time. By investing consistently and allowing your money to compound, you can potentially achieve impressive returns.


For example, let's consider an individual who starts saving Rs 10,000 per month from the age of 25 and invests it in a diversified equity Mutual Fund with an average annual return of 12%. By the age of 40, the accumulated corpus could amount to approximately Rs 1.15 crores.

Must Read New Bank Locker Rules Effective from January 1, 2023

Increase Savings over Time

As your income grows, increase the amount you save each month. Take advantage of salary increments, bonuses, and other windfalls to boost your savings rate. Consistently increasing your savings rate accelerates the growth of your investment portfolio and helps you reach your crorepati goal faster.


If you start with a monthly savings amount of Rs 5,000 at the age of 25 and increase it by 10% annually, your monthly savings will reach around Rs 17,000 by the time you turn 40. Assuming an average annual return of 12%, your investments could potentially grow to approximately Rs 1 crore.

Maintain a Disciplined Saving Routine

Consistency and discipline are key to achieving financial goals. Create a budget that allows you to save a fixed percentage of your income every month. Automate your savings by setting up a recurring deposit or Systematic Investment Plan (SIP) in Mutual Funds. This ensures that a portion of your income is regularly allocated towards wealth creation.


For instance, if you save 20% of your monthly income, which amounts to Rs 20,000 per month, and invest it in a tax-saving Mutual Fund SIP with an average annual return of 15% from the age of 25, you could potentially accumulate around Rs 1.1 crores by the time you turn 40.

Diversify Your Investment Portfolio

Diversification is key to managing risk and maximizing returns. Allocate your savings across various investment avenues such as Mutual Funds, stocks, bonds, real estate, and other suitable financial instruments based on your risk appetite and financial goals. A well-diversified portfolio can help mitigate risks and optimize returns. Diversification reduces the impact of market fluctuations and provides stability to your portfolio.


For example, an individual starts investing Rs 12,000 per month in a well-diversified portfolio consisting of Mutual Funds, stocks, and real estate from the age of 25. Assuming an average annual return of 10%, by the age of 40, the total portfolio value could reach approximately Rs 1.2 crores.

Must Read Does your Credit Score Get Impacted if you Enquire About it?

Reinvest Dividends and Returns

To expedite your journey to crorepati status, reinvest dividends and returns generated by your investments. Instead of withdrawing these gains, reinvest them to benefit from compounding. By doing so, your wealth can grow at an accelerated rate, potentially helping you achieve the desired net worth by the age of 40.


For instance, an individual invests Rs 15,000 per month in a well-performing equity portfolio that generates an average annual return of 12%. By reinvesting the dividends and returns earned over the years, the accumulated corpus could surpass Rs 1 crore by the age of 40.

Seek Professional Guidance

Consider consulting with a financial advisor or investment expert who can provide personalized guidance based on your financial goals, risk appetite, and time horizon. They can help you identify suitable investment options, rebalance your portfolio as needed, and make informed decisions to optimize your wealth creation journey.

Closing Remarks

Becoming a crorepati at the age of 40 requires a combination of early planning, disciplined saving, strategic investments, and the power of compounding. By starting to save from the age of 25 and making consistent contributions to well-diversified investment options, individuals can pave their way to financial success. However, it is crucial to assess your own financial situation, consult with financial advisors, and tailor the strategies to your specific needs and risk appetite. With perseverance, smart financial choices, and the magic of compounding, you can realize your dream of becoming a crorepati by the age of 40. Remember, everyone's financial journey is unique, so it is important to assess your own circumstances, adapt strategies accordingly, and stay committed to your goals. With determination, patience, and informed decision-making, you can become a crorepati and enjoy financial security and freedom in your 40s.

Share This :
About Anupama Deshpande
Anupama is a Co-Founder of She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for & important resource to all those around her.