Smart ways to invest and attain early financial freedom

Friends - I read a lot of blogs daily and I would like to share this story that I liked today. But before that - The easiest and surest way to build wealth is to have a mind set of investing for long periods - typically ten years and above. Out of experience I can say that it is very easy to make 20% plus ROI compounded in India, if you look at a ten year time frame. As the time frame goes down to 2-3 years, it becomes more and more difficult to make 20% ROI consistently. Also, the power of compounding kicks in over longer periods and that truly builds wealth ( as you will read in the story below). Let me give you an example - here is the HDFC Bank share price for the last ten years ( I know, you may not be investing through shares - but this is just an example).The light blue line is the HDFC Bank share price and the dark blue line is the BSE Sensex. You can click on the image to enlarge it.

In our quest to illustrate the "Grow rich and retire early" paradigm, we shall bring you real-life heroes—people who have worked their way up the career ladder, saved and invested prudently, and have now earned enough to be able to look forward to a comfortable retirement. Some names have been changed on request to protect the identity of the person. However, the other details are completely accurate. Read about their investment journey. In the first part of this series, we profile 47-year-old Umesh Rao (name changed), a senior executive at a multinational company. Starting from a modest Rs. 4,600 in 1992, his salary now stands at Rs. 70 lakh per annum (excluding bonuses). His investment portfolio is worth Rs. 4.3 crore. If you were to include his real estate holdings, his net worth is now worth Rs. 14.5 crore. Here is a glimpse at his investment journey and philosophy. Career path Rao started his career in 1992 with one o