Can a average white collared employee in an Indian city become a US millionaire before he retires?
Let's find out. As of today, since USD is the global currency, let's consider in $ terms. Let's consider a million dollars as a global standard of being rich.
As of today (20.06.2021) a single USD is ₹ 74.14 (Indian Rupees). So a 1,000,000 USD is 7,41,44,100 ₹ (7 Crore Forty-one Lakh Forty-four thousand one hundred only).
A Fresh out of college, with a white collared job secured from a campus placement, would be about 5 lakhs ₹. Let's assume that he stays in that company and that company gives 10% increment every year and he gets a promotion every 4 years and his salary increases 15% on that year alone. (This is highly unlikely) but we can average out the rise due to change in company and some foreign opportunities, bonuses, etc. He would have earned about ₹ 30,82,91,191 (Thirty Crores). Let's assume a tax of 25% flat. So he would be left with ₹ 23,12,18,393.4 (Twenty Three Crores). If we assume he saves about 32% of his post-tax income it would be about ₹ 7,39,89,885 (Seven Crore thirty-nine thousand) very close to one million USD.
Google tells that about “A record 6.71% (or 8,386,508 out of 125,018,808 total U.S. households) can now claim millionaire status”
So as you keep investing 30% of your take-home salary every month in good avenues, you can become a millionaire even quicker.
With that amount of money, you can choose to do what you like.
Please note: When the individual turns 60 years 1 million USD or 7.41 Crore ₹ might not be a very good amount. (Considering inflation).
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