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(Precious) Words of Wisdom : "Never spend your money before you have earned it." ~ Thomas Jefferson

Six sixes in T20 is equal to Rs.1 crore

No one can forget that glorious evening, when Yuvraj Singh dispatched each of the 6 balls of Chris Broad's over, sailing over the boundary rope for 6 mighty sixes. 

And for this remarkable achievement, BCCI awarded Rs.1 crore to Yuvraj.

Yes, that was the equation of Yuvraj Singh’s one crore – 6 sixes in an over in a Twenty20 match.

It may interest you to note that we can do the similar thing with our money.

Our equation would look something like this:

Rs.6666 p.m., increasing 6% every year, @6% p.a. returns, 20 years = Rs.0.5 crore.

If we invest Rs.6666 every month, increase our savings every year by 6% and invest all this money in a safe instrument which gives 6% p.a. returns, in 20 years we would have accumulated Rs.0.5 crores.

Not good enough to match Yuvraj’s crore?

Well, that’s because we are assuming a risk free return of 6%. 

Whereas Yuvraj took lot of risk for each of his shots! And he also took a lot of risk with his career. Just imagine if he had failed! With so many new players trying to get into the team, his position in the team was definitely not safe.

OK, so let’s assume that you too take some risk and try to target 12% p.a. returns thru’ a suitable mix of debt and equity instruments. This, on a 20-year horizon, is a very reasonable return expectation. This will give you your Rs.1 crore.

However, good shot selection is important:

Or else, you might just get a single or two; or maybe even get out. 

Similarly, good investment selection is important. Or else you might make very low returns (as can happen in insurance policies) or even lose money (as can happen with penny stocks).

Besides this, I am sure that another issue would be bothering you – 20 years

That’s too long a period to wait to become a crorepati, you would say. I want to be crorepati today!!

Do you believe Yuvraj Singh made a crore in just one over? 

If you think so, then you are totally wrong.

On TV we see only the glorious moments. Hence, we think how lucky Yuvraj was to get Rs.1 crore for just a few minutes of effort. But we fail to see his 15-20 years of hard work. We fail to see his 15-20 years of discipline. We fail to see his 15-20 years of patience. We fail to see his moments of trials and tribulations. That moment of his glory, which you saw on the TV, was a result of 15-20 years of hard-work, discipline, patience and commitment.

You too would have to similarly sweat it out for 20 years to get to your crore. You would have to show same discipline, same hard-work and same patience as Yuvraj. There are no short-cuts in life.

We always hear about Yuvrajs, Amitabhs, Shahrukhs, Sachins, 
Narayanmurthys, Ambanis, Tatas and many others earning crores of rupees and feel envious. We always wish to have the same kind of money, prestige and popularity. But are we willing to put in the same of kind of effort? Are we willing to take the same kind of risk? Are we willing to rough it out? No, we usually lie in the comfort of our sofa and hope for miracles.

Well, the choice is entirely yours. The world is full of opportunities. There are a million gold mines out there. All you have to do is to just get up and get going and going and going - till you find your pot of gold.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

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