Earning money to meet the needs, and wants is just one aspect of the wealth game. In order to build wealth, savings must be done on a regular basis that can provide a cushion against rude unseen shocks like – Unemployment, Family Emergencies, Paycuts, etc.
In this case, let us do the math for the question
Income: INR 50000 (per month) & Expenses: INR 40000 (per month)
Savings: INR 10000 (per month)
The amount of target corpus from the monthly savings: INR 1,00,00,000
Yearly Savings = INR 10000 * 12months = INR 120000
Interest(%) = 8% (assume)
Considering Compound Interest and Yearly Savings as stated, an individual will be able to accumulate a corpus exceeding INR 1Crore by the end of the 27th year
This is a long time horizon. The timeline can be adjusted in the following cases
- Increased Contribution Every year (5–10% = INR 8000–12000)
- Diversifying into vehicles giving interest higher than 8% (Stocks, ETFs, etc.)
- Saving more every month (cutting back on expenses)
- Finding a new venue to increase the monthly contribution (This can be helpful: Money: An Insane Paradox)
I am attaching a link to a compounding calculator that will help you decide what amount of money to set aside every month to meet any target you might have in mind.
Hope this helps
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Happy Investing!!
Lateral Thinking 
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