Financial freedom is a goal many young Indians aspire to achieve, but the path can often seem unclear or too long. But there could be some standout strategies that can help build substantial wealth within a realistic timeframe, and help people to retire comfortably by the age of 40?Investment banker and financial advisor Sarthak Ahuja recently shared such a formula in a video that has gone viral from the NDTV Yuva 2025 summit, where he presented an encouraging roadmap for wealth creation. His approach is centered around carefully saving money, smart investing, and the power of compounding, showing that early financial independence is achievable with thoughtful planning and steady effort.
The easy 15:15:15 rule for early financial freedom for young Indians
At the NDTV Yuva 2025 summit titled The Voice of the Generation, Sarthak Ahuja laid out a straightforward strategy for young Indians aiming for early retirement or financial independence by age 40. He introduced the “15:15:15” rule, a simple yet powerful formula of thumb to guide savings and investment habits. According to Ahuja, “If you save and invest Rs 15,000 every month for the next 15 years and it gives you a 15% return per annum, you’ll end up with about Rs 1 crore by the end of that 15-year period”.
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How does this work
- Save and invest ₹15,000 every month consistently for 15 years, aiming for a 15% annual compounded return.
- The projected investment corpus after 15 years is approximately ₹1 crore.
- Wealth grows exponentially over time due to compounding, especially with equity investments, as consistency beats market timing.
- However, ₹1 crore may not be sufficient for retirement due to inflation, healthcare, and lifestyle costs over 40+ years.
- However, a realistic retirement goal in India is around ₹8.8 crore (about $1 million), calculated by multiplying annual expenses by 25 to 35 times, depending on lifestyle and location.
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So, how to achieve that
Start by saving ₹15,000 a month and increase this amount each year as your income grows; invest consistently in equity mutual funds or stocks for better returns; focus on staying invested for the long term rather than trying to time the market; upskill to boost your income and increase your monthly investments; and regularly adjust your financial goals to account for inflation and changing life priorities.While Rs 1 crore sounds like a significant sum, Ahuja talked about the importance of compounding, the growth of investments by reinvesting earnings, which can multiply wealth over time. He explained that if the monthly investment amount grows every year along with your income, that initial target could get you much closer to the retirement corpus you need. “Can you imagine if that number of Rs 15,000 keeps increasing every year as you get upskilled? As you earn more, that number can actually be very close to your retirement amount,” he said in the NDTV Yuva Summit 2025.
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How much is enough to retire
Ahuja also addressed the question of how much money is truly needed to retire comfortably, which varies based on the country you plan to live in. He shared his simple formula: “A person needs $1 million in India, $2 million in the UAE, $3 million for the US and $4 million for anywhere else in the world.” Converting this into Indian rupees, $1 million equals roughly Rs 8.8 crore, which could be achieved with consistent investing and time in the market.
Time in the market is more important than timing in the market
“Time in the market is more important than timing in the market.” In other words, long-term steady investing generally trumps trying to predict market ups and downs. Incrementally increasing your investments and staying invested over many years can build the kind of wealth needed for an early, comfortable retirement.
