Earn ₹20,000? Here Is How to Become a Crorepati in India
Introduced as an entrepreneur who runs 12 companies, with qualifications in India and abroad. He says he built his businesses on chartered accountancy and law.
A man is told to put ₹1 crore into 10 startups and that nine will fail. He does it anyway. Five years later, the one that survived has turned his money into ₹10 crore. Luck, or a smart system? On The Sarvesh Mishra Show, Sarvesh Mishra asks CA Dr. Sharad Kohli a practical question: if someone earns ₹20,000 a month, what can they actually do to rise?
ये 3 फैसले 2027 में आपको करोड़पति बना सकते हैं! 💰 | Crorepati Kaise Bane @sharadkohli1425 · 54 min 9 sec
How to become a crorepati in India is one of the most searched money questions, and also one of the most misunderstood. This blog turns the conversation into three clear decisions, with numbers you can test yourself.
Before the money: rich mindset vs poor mindset
Kohli starts with mindset, because he says wealth and happiness are not the same thing.
- He met a man with ₹5 lakh who felt poor, and another with ₹10,000 who felt rich and was happy.
- He says he has seen people earning crores who were unhappy, and people earning a few thousand who were content.
- He gave an example of a person who craves a car, buys a small one, and soon feels unhappy because he wants a bigger one.
His view: the rich mindset is knowing the point at which your needs are met, and that real wealth is peace and health, not just assets. Related: Sagar Sinha on The Real Rich.
Decision 1: pay yourself first (the 20 percent rule)
This is the most practical idea in the episode. His rule: the moment income arrives, move 20 percent into a separate bank account and do not touch it. He joked that you should throw away the ATM card and cheque book of that account, so the money is never spent.
| Monthly income | Move aside (20 percent) | Live on |
|---|---|---|
| ₹20,000 | ₹4,000 | ₹16,000 |
| ₹50,000 | ₹10,000 | ₹40,000 |
| ₹1,00,000 | ₹20,000 | ₹80,000 |
He treats savings as the first expense, not what is left at the end of the month. If you do not do it, he says, your life will stay as it is today.
Practical note: his joke about losing the card is about discipline, not about locking away emergency money. A simple version is automatic transfers on salary day into a separate account or investment, plus a small easy-access emergency fund.
Decision 2: make your money work, for 10 to 15 years
Kohli says the saying goes: if you want your money to work for you, you must first work for your money. After saving, the next step is investing, and he is firm about two mistakes.
Mistake 1: investing for the short term. He says people who earned in the stock market earned over the long run, and he cited a SEBI report saying 85 to 90 percent of people lose money in short term trading. SEBI studies on futures and options trading have indeed shown that most individual traders lose money, though exact figures depend on the study. His advice is a 10 to 15 year view.
Mistake 2: putting all eggs in one basket. He suggests spreading money across four to five asset classes.
| Asset class | His view |
|---|---|
| Mutual funds | Part of the spread |
| Shares | Long term, needs research and knowledge |
| Gold and silver | Part of the spread |
| Real estate | Part of the spread, beware of developers who disappear |
| Fixed deposits | He calls FDs a lazy investment, but you need some liquidity |
He is clear that if you do not know the stock market, do not jump in. His line: if you cannot swim, do not jump into the pool. For gold as a separate conversation, see his gold and Iran war episode.
The arranged marriage method for picking a company
He compared picking a company to arranged marriage. You check the family, the reputation, income, legal cases and future prospects. For a company, that means:
- Are the promoters trustworthy, and are there cases against them?
- Is the balance sheet strong?
- What are the growth prospects?
- Could a new regulation hurt the sector?
Beware of abnormal returns
Kohli warns that very high returns mean very high risk. He mentioned social media influencers who show 15 day returns and tempt viewers to invest, and said SEBI has issued warnings about this.
The compounding table
He also explained compounding, though he noted the popular line that Einstein called it the eighth wonder of the world is widely quoted but not reliably proven. Here is what the effect looks like.
This table is an illustration from the Word notes, not from the episode. It assumes monthly investing at 12 percent a year, which is not guaranteed and can be higher or lower.
| Monthly investment | After 10 years | After 20 years |
|---|---|---|
| ₹4,000 | about ₹9.3 lakh | about ₹40 lakh |
| ₹10,000 | about ₹23 lakh | about ₹1 crore |
The lesson: time and consistency matter more than the starting amount. This is also why he says to start early and expect crorepati status over years, not by next year.
Decision 3: own something early, and keep a safety net
Kohli’s third idea is ownership. He claimed that for the world’s richest people, 80 to 90 percent of wealth comes from shares in companies they own or hold, and only 10 to 20 percent from cars, watches and property. These are his figures.
His advice for salaried people:
- Start early. He says wealth at 35 to 40 lets you enjoy it, unlike wealth at 65. He noted that average life expectancy in India is about 70, so waiting until 60 leaves little time.
- Consider your own work. He says most people with jobs carry a small spark to do something of their own, and that the pay cheque habit makes it harder to leave as you age.
- Learn from successful people. Do not envy rich friends. Stay close and learn from them.
- Avoid showing off. He says fake display pushes wealth away. Be frugal, which he describes as accepting a little less comfort now for future wealth.
The startup story: high risk, high reward
His friend put ₹1 crore into 10 startups, around ₹10 lakh each. Kohli warned him that eight or nine out of ten Indian startups fail. Nine did fail, but one worked, and the friend’s money reportedly became ₹10 crore in about five years. It took six months of research, meeting founders, checking apps and understanding the market.
This story is an exception, not a plan. Startup investing carries a high chance of losing money.
Keep a risk fund
Kohli also stressed an emergency or risk fund. He predicted a possible global slowdown, said he hoped he would be wrong, and advised keeping a reserve, mentioning up to two years of salary as his view. Many planners commonly suggest six to twelve months of expenses, so choose what fits your income and job security.
On timing, his two mantras were simple: invest for the long term, and spread your money. He also said investment advice is personal and depends on your age, goals, time horizon and risk appetite. A young investor can usually take more risk than someone over 50.
- Wealth starts in the mind. Know when your needs are met.
- Save the first 20 percent of income before spending.
- Invest for 10 to 15 years, not for quick gains.
- Spread money across four to five asset classes.
- Pick a company like you would pick a life partner: check the family, reputation and future.
- Be careful with abnormal returns and social media tips.
- Keep an emergency fund so a job loss does not break your plan.
Frequently asked questions
How can I become a crorepati in India?
Kohli says save a fixed portion of income first, invest it for 10 to 15 years across several asset classes, and build ownership through shares or your own work. There is no guaranteed shortcut.
How much of my salary should I save?
He suggests 20 percent, moved to a separate account as soon as income arrives.
Can someone earning ₹20,000 a month become wealthy?
He says yes over time. In his example, ₹4,000 a month is set aside and the person lives on ₹16,000. Using the illustration above, ₹4,000 a month at an assumed 12 percent grows to about ₹40 lakh in 20 years. That return is not guaranteed.
Are fixed deposits a good investment?
He calls them a lazy investment, because after tax the return can be around 4.5 percent. He still keeps some money in FDs for liquidity.
When is the best time to invest?
He says the bigger point is staying invested for the long term, not timing the market.
How many asset classes should I invest in?
He suggests four to five: mutual funds, shares, gold and silver, real estate and liquid options like fixed deposits.
How big should my emergency fund be?
Kohli suggests up to two years of salary as a cushion. Many planners say six to twelve months. Choose based on your job security.
Is short term trading profitable?
He says most people lose money, citing a SEBI report of 85 to 90 percent. Studies on futures and options trading show most individual traders lose money.
Should I invest in startups?
It is high risk. He says eight or nine of ten fail, so only invest money you can afford to lose.
Is this financial advice?
No. The guest said this is not investment advice. Consult a registered financial advisor.
Watch the full conversation
You do not become a crorepati by a single trick. According to CA Sharad Kohli, it comes from three decisions: save first, invest for the long term across different assets, and build ownership early while keeping a safety net. Start with ₹4,000 or ₹10,000 a month, give it time and protect it with a reserve. Treat this as education, and check your own situation with a qualified advisor before investing.
ये 3 फैसले 2027 में आपको करोड़पति बना सकते हैं! 💰 | Crorepati Kaise Bane @sharadkohli1425
Follow Sharad Kohli at sharadkohli.co.in.