Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us

How Can I Get Rich On A Small Salary?

by Holistic Leave a Comment | Filed Under: Financial Planning

Listen to this article



HOW CAN I GET RICH ON A SMALL SALARY? Decoding the life of Ronald Read

Have you ever been taught about the ways to generate wealth?

Do you think it is impossible to accumulate wealth due to low income?

The answer to this is no. Hopefully, there are ways in which you could accumulate wealth despite earning low wages.

Here is a real-life example of a person who turned out to be a millionaire by earning below average salary throughout his lifetime.

This article is all about the story of Ronald Read, a successful investor whose paycheck was $1,800 per month & his estate was about $8 Million.

Generally, we as investors look for role models or just follow some legendary investors like Warren Buffet or Rakesh Jhunjhunwala.

But there is a myth that says only people having high disposable income can follow these successful investors.

However even people from low-income households who want to climb up the ladder can surely follow in the footsteps of Ronald Read and acquire wealth. Let us find out how.

Who is Ronald Read?

Why did he receive high media coverage after his death?

The financial lessons to be decoded from his life are numerous.

Let us look in detail.

  • Ronald Read – Janitor to Millionaire
  • Decoding the Investment strategies
  • Savings percentage
  • Starting early
  • Reinvesting
  • Diversification
  • Key Takeaways

Ronald Read (1921-2014) – Janitor to Millionaire

Ronald Read served in The United States Army during World War II. He was discharged from his duties in the year 1945. Then, he worked as a Gas Station attendant (Automobile Mechanic) for 25 years. Even in his 60’s he took a part-time job where he worked as a Janitor (Caretaker/Security) at a retail store for 17 years.

He worked for a minimum wage for most of his life. Yet Ronald was able to transform it into a sizable sum of money.

It was quite surprising to his friends & family who had no clue as he was quietly holding on to wealth worth $8 million.

Out of the wealth he has donated $1.2 Million to a local library & $4.8 Million to a Local hospital. People seemed astounded when they came to know about the fortune he left behind when he died at the age of 92.

Are you astonished?

Then, let us take a closer look at Ronald’s investing strategies & pick up a few tips to improve our investing skills.

Decoding the investment strategies

Savings Percentage

Ronald Read lived frugally but not poorly. He led a minimalistic lifestyle. A minimalistic lifestyle is a process rather than a simple decision. It will be easier to save money because you will be spending less.


“And since you can build wealth without a high income, but

have no chance of building wealth without a high savings rate,

it’s clear which one matters more.”

― Morgan Housel, The Psychology of Money.


Most people with the low-income struggle to save or do not have the habit of saving.

The fact is everyone can save irrespective of how much they earn if they have discipline in savings. The more you save, the early you retire / the more you accumulate money.

Here is an example to help you understand better.

Let us assume a 30-year-old who earns Rs.30, 000 per month & saves 10% of his income. The assumed rate of return is 7%. Let us also assume that he has a salary growth of 3% per year till the age of 60.

Savings percentage Total corpus at the age of 60
10% of Income 48,41,602
15% of Income 72,62,404
30% of Income 1,45,24,807

From the above table we can say that if he saves just 10%, he would have accumulated around 48 lakhs. Whereas if he saves 30% then he would have accumulated around 1.45 crores.

This clearly shows that the savings percentage has a higher impact.

The discipline of savings can be achieved either by the old age method of jotting down all your expense in a note/excel sheet or use the expense tracker mobile apps.

One more way is to budget your expense & transfer the budgeted amount from your salary account to a separate bank account & limit your expense within that.

The discipline of savings can be inculcated by setting up a Systematic Investment Plan (SIP). Here, you are committing to invest a fixed amount every month.

As the name suggests it is a systematic method of investing a fixed amount of money. If you continue to do this for a longer period, then it helps you to beat inflation.

Starting early

Ronald Reed started his employment in the year 1945 at the age of 24. He worked for almost 42 years & retired in his late 60s. Since he started saving at a young age, he was able to acquire a substantial fortune.


“Compound Interest is the 8th Wonder of the World.”

― Albert Einstein.


Let us now work out what should be the monthly savings, if a person wants to accumulate wealth worth Rs. 1 crore at the age of 60. The assumed rate of return is 7%. Let us also assume that he has a salary growth of 3% per year till the age of 60.

Start Saving (Age) Retirement Age Tenure (Years) Monthly saving
25 60 35 4086
30 60 30 6196
35 60 25 9637
40 60 20 15568
45 60 15 26750

As the table suggests If he starts saving at the age of 25, the monthly savings required is just Rs.4000 to accumulate Rs. 1 crore at the age of 60. Instead of starting at 25, if he starts at 45, then he needs to contribute Rs. 26,750 to accumulate Rs. 1 crore at the age of 60.

The reason being when you delay your investment, the more you need to contribute. The following table depicts how a person can accumulate wealth by investing in a mutual fund. And also the difference between the final corpus achieved under each scenario shows the importance of starting early.

UTI Master Share fund (Growth) – Monthly SIP Rs.25000
Tenure (Years) Monthly Investment Total Investment Final Corpus
5 25000 15,00,000 20,81,010
10 25000 30,00,000 57,18,720
15 25000 45,00,000 1,22,04,290

To get a better understanding, let us recall an old story. A sage named Sissa invented Chess & presented it to a King. In gratitude, the king agrees to reward him for his invention.

A Story on “How Compounding Works?”

Sissa wishes to receive one grain in the first square & which is then doubled on every following square. The sum of all the 64 squares is 18 quintillion.

That is more than 1000 times greater than the current production of grains in the world. In mathematics, it is termed as exponential growth. This is the power of compounding.

The practical implications of compound interest are substantial. A small amount invested at regular intervals can fetch more returns. Mutual fund investments are one such investment where you can enjoy the benefit of compounding.

You can reap a significant return in the long run. The following is a real-time example.

Kotak Bluechip fund (Growth) – Investment from Jan 2008 to Dec 2022
Tenure (Years) Monthly Investment Total Investment Final Corpus
15 5000 9,00,000 25,29,289
15 10000 18,00,000 50,58,577
15 15000 27,00,000 75,87,866
15 20000 36,00,000 1,01,17,155
15 25000 45,00,000 1,26,46,443

Reinvesting

Ronald Read always focuses on companies that gave good returns so that he could reinvest the money.


“I have a problem with too much money. I can’t reinvest it fast

enough, and because I reinvest it, more money comes in. Yes,

the rich do get richer.”

― Robert Kiyosaki


Reinvestment is an effective strategy where the income received from the investment is ploughed back into that investment instead of receiving it in cash.

Here the dividends can be used to buy more stocks, interest income can be utilized to buy more bonds. One of the key benefits of reinvestment is that your investment grows faster compared to redeeming your returns

Unless there is a necessity for cash flow, make your FDs cumulative. Similarly, mutual funds have two options for all fund categories.

They are Income Distribution cum Capital withdrawal (IDCW) and Growth option. Under the IDCW option, the profit made by the fund is distributed to the investors at regular intervals. Under the growth option, the profits made by the fund are reinvested in the fund to drive future growth. Always choose the growth option in Mutual funds.

Diversification

Ronald Read owned shares across industries which include Healthcare, Telecommunication, Banks, Consumer Goods, Rail Transport, and Public Utilities.

He owned shares of Lehman Brothers when it went bankrupt in 2008, the bankruptcy minimally affected his returns because his investments were diversified.


“Successful Investing is about managing risk, not avoiding it”

― Benjamin Graham


Ronald Read relied on The Wall Street Journal to pick blue-chip companies. Unlike Ronald Read who just focused on shares, we could also shift our investment to other asset classes.

Diversification is a technique that helps to reduce the overall risk of the portfolio & tries to maximize the return. We could balance the risk & reward in your investment portfolio by diversifying your assets.

For a newbie investor, the practical application of diversification may seem daunting. Or some investors do not find time to technically analyze various things & invest.

Such investors can choose Mutual fund investments. Mutual funds invest across sectors & market caps thereby minimizing the risk involved.

When it comes to the mutual fund, the fund manager manages your investment. And also the risk is well diversified by a professional team, and the potential return of the mutual fund is manifold.

To get even better insights on Ronald Read Investment Strategies, we recommend watching this video:

Key Takeaways:

It is not how much you earn, but how much money you save.
Ronald’s life was a perfect example of someone who wants to build wealth from ground zero.
Being rich is different from being wealthy. Rich people believe in materialistic things & show off more. A wealthy person would always limit his things to necessities.

“Life is not accumulation; it is about contribution” – Stephen Covey.

“ஆகாறு அளவிட்டி தாயினுங் கேடில்லை

போகாறு அகலாக் கடை.”

Thirukkural – Couplet 478


Incomings may be scant; but yet, no failure there, if in

expenditure you rightly learn to spare

― Thiruvalluvar


Reader Interactions

Previous article: Your Comprehensive Guide to Start Financial Planning
Next article: Bajaj Allianz Life Guaranteed Pension Goal Review (2023): Is It Worth Investing?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • ABSLI Child’s Future Assured Plan Review: Good or Bad
  • Max Life Smart Wealth Income Plan Review: Is It Worth Investing?
  • ABSLI Vision Star Plan Review: Is It Worth Buying or Not?
  • Bajaj Allianz Life Flexi Income Goal Plan Review – Is It Good or Bad?
  • Tata AIA Life Insurance Wealth Pro Plan Review: Good or Bad?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×