Achieving a retirement fund of Rs. 10 crore might sound impossible with a salary of Rs. 25,000, but with the right strategy, discipline, and smart financial planning, it is entirely feasible.

The 70:15:15 formula is a powerful method to balance savings, investments, and expenses while managing your work-life and financial load efficiently.

Understanding the 70:15:15 Formula:

The 70:15:15 formula divides your salary into three parts:

• 70% – Living Expenses & Necessities (Rs. 17,500)
• 15% – Savings & Emergency Fund (Rs. 3,750)
• 15% – Investments (Rs. 3,750)

By maintaining this disciplined allocation, you ensure financial security while allowing your wealth to grow exponentially over time.

How to Implement the 70:15:15 Formula:

1. Manage Living Expenses (70%) Efficiently

Your essential expenses, including rent, food, transportation, and bills, should not exceed 70% of your salary. To optimize this:

• Budget wisely – Track expenses using apps like Walnut or Goodbudget.
• Reduce discretionary spending – Limit eating out, online shopping, and entertainment expenses.
• Opt for shared accommodations – Rent a shared space to cut housing costs.
• Use public transport or carpooling – Reduce transportation expenses.

2. Build a Robust Emergency Fund (15%)

An emergency fund is crucial for financial security. Follow these steps:

• Save Rs. 3,750 monthly – This creates a Rs. 45,000 buffer in a year.
• Keep it in a high-interest savings account or liquid mutual funds.
• Maintain at least 6 months’ worth of expenses in this fund.

3. Invest Wisely (15%) to Build Wealth

Your investments will fuel your journey to Rs. 10 crore. Follow these strategies:

• Equity Mutual Funds (SIP Approach)
  • Invest Rs. 3,750 per month in a high-performing mutual fund with an average 15% return.
  • Over 35 years, this can compound to over Rs. 10 crore.
• PPF & NPS for Tax Benefits
  • Invest a portion in Public Provident Fund (PPF) and National Pension System (NPS) for additional savings and tax deductions.
• Index Funds & ETFs
  • Diversify by investing in Nifty 50 or Sensex-based index funds for long-term growth.

Balancing Work, Life, and Financial Load

To make this plan sustainable, balance is key. Here’s how:

1. Increase Income Over Time

• Upgrade skills through online courses.
• Take up freelancing or passive income sources.
• Seek promotions and negotiate better salaries.

2. Practice Smart Money Management

• Use automation for SIPs and savings.
• Avoid unnecessary debt and credit card overspending.
• Live below your means while focusing on financial goals.

3. Maintain Work-Life Balance

• Follow the 80/20 principle – Focus on high-impact tasks.
• Set boundaries at work to prevent burnout.
• Schedule regular breaks and personal time.

4. Make Smart Investment Decisions

• Review your investments annually and rebalance if necessary.
• Keep up with market trends but avoid frequent trading.
• Stay patient – wealth creation is a marathon, not a sprint.

Final Thoughts:

A Rs. 10 crore retirement corpus with a Rs. 25,000 salary is possible with discipline, patience, and smart investing.

The 70:15:15 formula ensures financial stability while allowing for long-term wealth growth.

By managing your expenses, consistently investing, and maintaining a balanced life, you can secure financial independence and a stress-free retirement.

Start today, and your future self will thank you!