The ₹15k-a-month hack you need to know: How one rule leads to ₹8.8 crore, says banker

Want to retire at 40? Investment banker Sarthak Ahuja says it’s possible—with a disciplined approach, a simple 15:15:15 formula, and enough time in the market.

Ahuja, who was speaking at an NDTV Profit event, offered a practical roadmap for young Indians aiming for early financial freedom.

“There is a simple rule of thumb called the 15:15:15 rule,” he explained. “If you save and invest ₹15,000 every month for 15 years and earn a 15% annual return, you’ll have about ₹1 crore at the end.”

Ahuja, a financial advisor and entrepreneur, added that while ₹1 crore may sound substantial, the real growth comes from consistently increasing your monthly investment as your income rises. “As you upskill and earn more, that number can get very close to your retirement goal,” he said.

Emphasizing the power of compounding and consistent saving, Ahuja urged young professionals to stay invested for the long term. “Time in the market is more important than timing the market,” he stressed.

When asked how much is actually required to retire early, Ahuja offered a simple benchmark: $1 million (approx. ₹8.8 crore) for India, $2 million for the UAE, $3 million for the US, and $4 million for other global destinations.

Though ambitious, Ahuja believes those numbers are achievable through regular investment increases and patience. His advice comes at a time when many young Indians are exploring FIRE (Financial Independence, Retire Early) strategies—and struggling to cut through the noise.

How it works

• Save and invest ₹15,000/month
• Invest consistently for 15 years
• Target an annual return of 15% (compounded)
• Projected corpus after 15 years: Approx. ₹1 crore

Does it work?

• Returns grow exponentially over time due to reinvestment of earnings
• Compounding accelerates wealth, especially in equity-based investments
• Long-term consistency is more effective than trying to time the market

Is Rs 1 crore enough?

• Inflation, healthcare, and lifestyle costs reduce future value
• ₹1 crore today won’t last across a 40+ year retirement
• Financial freedom requires a much larger retirement corpus

Realistic goal

• Ideal target for India: ₹8.8 crore (approx. $1 million)
• Benchmark: Multiply annual expenses by 25–35× to cover longevity, inflation, emergencies
• Retirement corpus range: ₹4–12 crore, depending on lifestyle and location

How do I get there?

• Start with ₹15,000/month but increase it yearly as income grows
• Stay invested in equity mutual funds or stocks for higher returns
• Focus on time in the market, not timing the market
• Upskill and boost income to raise monthly investment amounts
• Adjust targets periodically based on real-life inflation and goals

Challenges

• 15% return is possible but not guaranteed; markets carry risk
• Lower returns mean you'll need to save more
• Inflation can eat into your corpus if you don’t plan aggressively
• Requires discipline, patience, and long-term focus