Want to be a Millionaire ? Calculator.

wealthymatters.comA million dollars is about 4.6 crore rupees.It is still not such a small amount but then again it’s not a figure we can’t wrap our minds around.A millionaire has a net worth of a million dollars not including the price of his/her primary residence.These days helped by inflation and the vast universe of opportunities available many many people are joining the Millionaire Club.So why be left behind?Here is a calculator to show just what you need to do to become a millionaire. http://www.religaremf.com/want-millionare-calculator.aspx .Just clarify your goals,work out the exact course of action you need to follow and stick to the plan.Voila, one fine day you will be a millionaire!

CAGR Calculator

wealthymatters.comCompound Annual Growth Rate (CAGR) is a measure that can tell us just how well any of our investments have done.We just need to know the price at which we bought the investment,the current market price of the investment and the number of years that we have invested in it to calculate CAGR.

We could of course key in this data into the compound interest formula and solve for the rate to get CAGR but here is a readymade calculator to figure  out CAGR.http://www.investopedia.com/calculator/CAGR.aspx.

CAGR can be used for all types of assets :bullion,real estate ,securities and even businesses.We can use CAGR to compare individual investments against some benchmark,or two investments within the same asset class and even investments across asset classes.We can calculate CAGR of incomes, profits etc.too.This should help us figure out how profitable it is to invest in our own businesses so that we can decide whether we can accumulate more wealth as business people or investors.Also we could treat our own lives as businesses.Of our many  income producing activities, CAGR can help us figure out out which activities produce the highest return.CAGR is thus a great productivity enhancing tool.

There is only one danger in using CAGR figures,it masks extreme volatility and periods of negative returns.So, for example, before we abandon some income producing avenue just because its CAGR is lower than another we need to check if the  volatility in the higher CAGR line is something we can live with.So, if doing something produces returns in fits and starts or even forces us to live with losses for a while we need to figure out a way to sustain ourselves and the activity in the low or negative return phase.

Inflation Calculator

wealthymatters.comInflation affects the purchasing power of a currency.So the one lakh rupees of last year does not buy the same amount of goods and services as the one lakh rupees of today.To find out exactly how much a given sum of rupees of the yesteryears would have been able to purchase in terms of today’s rupees or vice versa we can use this nifty calculator at http://www.yetanothersite.com/inflation-calculator-for-india.htm .Also by assuming an inflation rate we can project how many rupees we might need in future to buy something which costs a certain amount today.

This calculator is a great help in financial planning.We can use it to estimate how much something might cost in future.So by feeding in today’s rates and an array of inflation rates we can estimate how much we need to put aside to buy a house in the future or to pay for a child’s college education or just to retire, depending on various inflation scenarios.As an additional check on our projections we can feed in the data from our parents or grand parents time and check it against today’s prices.So if we know for a fact that our parents managed to retire comfortably on xyz rupees we can take the same number xyz, assume an inflation rate and project it out to our own retirement horizon.Then if we have the same lifestyle as our parents in retirement we too should theoretically be able to enjoy our retirements.

This calculator can also help us estimate the real returns on our investments.So if we bought a house for x rupees 10 years ago and we know its resale value today,we can project out the inflation adjusted rate for x rupees and compare it with the resale value.Similarly we can use this calculator to find out the real returns on any investment avenues we might be considering.We could also key in the data for various assets we have purchased over time and see how inflation has treated assets of various classes.

Do play round with this calculator,the insights it will provide are priceless.

PS: for the missing figures you no longer have to guess.Plug in the figures from here:https://wealthymatters.com/2011/06/29/some-inflation-figures/ , available courtesy CRISIL.

Am I Wealthy ? Calculator

wealthymattersIn the book ” The Millionaire Mind” the authors Thomas J. Stanley and William D. Danko explain the concept of Prodigous Accumulators of Wealth (PAWs) and Under-Accumulators of Wealth (UAWs). For their age and income levels,the PAWs are people who have accumulated an exceptionally good amount of wealth and the UAWs are those who fail to impress on the wealth front.This is because many people with huge incomes have equally large expenses because of their lifestyle choices.To check if you are a PAW or UAW use the calculator here Link  .

Congrats if you are a PAW!

And if you are wondering just how wealthy you are in global terms? Check here: Link

Global Rich List Calculator

wealthymatters.comWealth is a somewhat relative term. And the people we compare ourselves with to decide how wealthy we are ,are often those who surround us. The world however is a much bigger place, and  knowing where we are placed in this world depending can really surprise us.

To find out where you stand worldwide on the basis of your income, use the nifty calculator here :  Link 

Of course income hardly equals wealth, there are expenses to be considered and then there is the question of what we do with our surplus income—blow it ,save it, invest it or acquire liabilities, which go to determine our wealth position. And then again, money buys different levels of access to the good things in life in different places. So enter the location of your primary residence and total up your assets in the currency you most prefer and you can work out just how wealthy you are.

Do reflect on the different figures that the income and wealth calculator throw up. They reflect your privilege that translate to head-starts and lifelong gains. Also your profligacy that reduces your advantages in life.

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