If livelihood wasn't a concern, what would you do?

If you earn xx lakhs per annum INR and consider a YY% hike each year on average, and you are AA years old and you will work till 60 years, how much will you earn in lumpsum going forward from now till you retire?

Let's break down the problem step by step:

You are AA years old and will work until you are 60 years old. So you have (60-AA) years of work remaining.

Your current annual income is xx lakhs INR.

Your salary increases by YY% each year on average.

We can use the formula for the future value of an increasing annuity to calculate your total earnings:

Real Growth rate ≈ Growth rate - Inflation rate

FV = P * (((1 + r)^n - 1) / r)

Where:

FV = future value (total earnings)

P = initial payment (current annual income)

r = Real Growth rate (annual salary increase rate)

n = number of periods (years remaining)

Now, after calculating the number, consider this as your maximum earning potential and a hypothetical scenario, that you get all this money now, what will you do?

If I were you and received this amount of money as a lump sum, considering it as my maximum earning potential, I could consider the following steps to manage and invest this wealth wisely:

Clear outstanding debts: Pay off any existing loans or debts, such as mortgages, car loans, student loans, or credit card debts.

Emergency fund: Set aside 3-6 months' worth of living expenses as an emergency fund in a savings account, ensuring you have financial security in case of unforeseen events.

Diversify investments: Invest in a diversified portfolio of stocks, bonds, mutual funds, and exchange-traded funds (ETFs) to grow your wealth over time. Consider working with a financial advisor or using robo-advisors to help create a balanced investment plan.

Real estate: You may consider investing in real estate, such as purchasing a home or investing in rental properties, as they can offer long-term appreciation and rental income.

Retirement planning: Contribute to retirement savings plans, such as a PPF, NPS, or other pension schemes, to secure your financial future after retirement.

Education: Allocate funds for your children's or dependents' education expenses, such as setting up a 529 plan or other education savings account.

Insurance: Purchase adequate life and health insurance coverage to protect your family and yourself against financial hardships due to unforeseen events.

Philanthropy: Consider donating a portion of your wealth to charitable organizations, or causes you care about, or setting up a charitable trust to give back to society.

Enjoy life: Set aside a portion of your wealth for leisure activities, vacations, and hobbies that enrich your life and create lasting memories. Lead a good life!

Actually, Leading a good life goes beyond financial stability. It involves finding a balance between various aspects of life and focusing on personal growth, relationships, and well-being.?What I would have done if you ask?

-- Cultivate healthy relationships

-- Pursue personal growth

-- Maintain work-life balance

-- Practice gratitude

-- Stay physically active

-- Prioritize mental health

-- Give back to the community

-- Develop a strong value system

-- Foster resilience

-- Pursue passions and hobbies

-- Practice self-care

-- Build a support network

Or Some people may choose to pursue a more adventurous and unconventional path, seeking excitement, new experiences, and pushing their limits.

Now Second part of the question is Why are you not doing some of these right now and how can one reach a point where this is possible, I am not a financial expert or a LinkedIn guru, please go figure out your path but if possible, stop once in a while and ask yourself, what would I do?

#creativity #futurism ?#motivation #personaldevelopment ?#sustainability ?#travel ?#inspiration