Got your Increment?

I am sure most of the people would get an increment now or would have got it already. We thought that this is the right time to talk about "Top Ups" in Investments. Top Up means increasing your investment by a certain % at regular interval. For Example Increasing investment by 10% once a year. 

Below is a table that the shows the additional wealth you can generate by increasing your Investment regularly. 


By only increasing the investment by 10%, one can increase the saving by 25%. If we continue to do the same for 15 years, then we can generate 50% more wealth! 

This is a random example that we have took just to show how powerful an idea top up is. So let me give a more specific example by taking our own case.

I got my 1st job 12 years ago and a back of hand calculation tells me that my earnings have grown at ~20% per annum. If I had been wise back then, I would have saved around 30% of my income and Increased it by 20% every year, in line with my increments/promotions, Below is what I would have generated as wealth 


Yes, simply by increasing my investments by 20%,  I would have generated almost 100 % more wealth !!! 

One of the arguments that I had was my salary was too low to let me save anything at all. But giving such excuses is not going to help me make 100% more money 😔 So let's look at why we should consider to "Top up" our Investments
  1. It helps to create significant wealth even if you start with a small Investment. 17 lacs vs 9 lacs in our case
  2. Since you do not have to start with a big amount, It does not pinch you purse and helps you to create a habit of savings. 
  3. Since we only increase our savings as and when we get Promotion/Increments, we don't have to run a shoe string budget simply to create higher corpus. 
  4. For people who are yet to start Investing, this is the best way to regain the time lost. Our suggestion is to start with 30% of Income & top up 30% every year rather than taking unneeded risks to create a big corpus like buying wanton real estate or crypto currency or speculating in stock markets. 
A status check assuming that I continued to invest as per the suggestions of this blog - 


Only by increasing the savings yearly by 20%, I would have 200% more corpus! Yes thats the power of the topping up your investment. So what you are waitng for.. Increase your investment if you have started investing. If you not started, Better late than never.. Start and aim for higher yearly top ups ! 


For financial planning and investment-related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. Visit our website - www.dropletwealth.com

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