How a Salaried Employee Built ₹10L Monthly Passive Income & Retired Early | The Crore Club Ep. 23

0:00 Welcome to the new episode of the Karur Club podcast, and I'm in Bangalore. Today's story is really, really interesting because he is someone who was living paycheck to paycheck just a decade ago. Today, he has a passive income that runs his daily life without a salary paycheck. So, from 8,000 rupees you started to now you're standing in your own villa. What was that one switch that happened that flipped your story?

0:33 >> The company that I was working, it was laying off people. I felt the same thing could happen to me anytime. >> What kind of passive income are you making now per month? >> About 3 to 4 lakhs. I used to make a little bit more. >> So, what is the highest you've made? >> The highest reach about >> Tomorrow, what if market crashes by 50%? What is your plan of action now? >> I do have the liquid funds as one of the thing in my portfolio. And this is one lesson that I learned during the COVID time. Nifty peak happened in Sep- September 29th, and then October onwards it started falling. My portfolio, in fact, there was a drop of almost like 20 to 25%.

1:07 >> If there's somebody, you know, 9-to-5 job and they have 10,000 rupees to invest every month, what is the blueprint that they can copy from you in order to have this kind of a passive income where they can earn maybe 5 lakhs per month? >> The best thing is to get into mutual >> We're talking about Mr. Ravindra Elicharla. He is the founder and CTO of Fire Works, where he helps individuals achieve financial independence. So, in this episode, we will be discussing how he converted his fear into financial independence, what he does on a monthly basis that gives him a steady passive income flow, his beautiful home tour, and what one can do to achieve financial independence. So, without wasting any time, let's go to his house and meet him.

2:03 Let's go. >> Hey, hi Shreya. >> Hi, sir. How are you? >> I'm doing fantastic. >> Nice to meet you finally. >> Nice to see you. >> Oh, we have the whole family over here. Hi, guys. You all have a beautiful home, let me just say that, especially for Bangalore. How big is this apartment? Why is there a lift in the house? I've not seen a lift in the house that is in like a two-story house.

2:31 >> my home office is the second floor. >> Let's go to the home office on the second floor. >> Yeah, that's right. >> Oh, awesome. >> Come. Come, Shreya. >> Oh, my Okay, this is where the >> So, this is my home office and then I >> Where the magic happens. >> mostly spend my a lot of time here. >> So, can you tell me a little bit about this house? Like, why did you choose a house that is outskirt of Bangalore and when did you buy this house?

2:57 >> So, this we bought in 2022. >> Okay. >> August around, but we moved 6 months ago. The reason we want to buy this is I was planning for the retirement. So, then we thought, "Okay, let's move outskirt because it's not a good for me to travel to city anymore." >> Mhm. >> So, I think this is peaceful place. >> So, when you bought the house in 2020, how much was this house worth? >> This was about 2.75 at the point of time. 2.75.

3:20 >> 2.75 and this is a four BHK, right? Okay. >> Yeah. >> somebody like I don't know, maybe 5 years down the line, if somebody has to purchase a house like this, what do you think would be the worth? >> Right now, probably this would be about 3.5 here. I think around that. >> Okay. Just wanted to How did you like get the finances in order to get this house? >> So, this house mostly came from stock stock market and some of the profits that I got over the period of time.

3:44 Financial >> Wow. So, you were able to fund the house for yourself through your investments. >> Yeah, mostly. >> A lot of people who are watching really want to know how they can make money work for themselves rather than the other way around so that they can lead a life without any fear which you have achieved already. I want to ask a few questions that will really interest my viewers. So, do you have some time for that?

4:06 >> Of course, yeah. Why not? Yeah, we'll spend some time. >> Hi, while you're enjoying this video to build your financial awareness, but that's not enough. You need to actually take action if you want to see some change in your financial life. And that's exactly why we built the brand new 1% Club app. In just 30 seconds, it can securely connect all your financial data, your bank statement, your credit card statement, and your mutual fund statement. And it can tell you exactly where you're going wrong and how you can fix your financial life. Don't just watch this video and enjoy it. Actually take action for your finances. And guess what? It's absolutely free. So, go ahead, download the 1% Club app now, and control your financial life. And now, let's enjoy the rest of the video.

4:50 So, from 8,000 rupees you started to now, you know, you're standing in your own villa. What was that one switch that happened that flipped your story? >> I think 2014, it's an interesting incident that happened, right? So, the company that I was working, it was laying off people probably for the first time. >> Mhm. >> when they after they set up the shop in India, so I felt the same thing could happen to me anytime. So, that's where I got bit worried and then came back home and then looked at what are the finances that I had.

5:20 >> Mhm. >> That point of time with the home loan that I had and then pretty much everything, I will be able to run the family for probably another 6 months. >> Oh. >> The kind of savings that I had, right? So, yeah, of course, right? So, then I felt I need to do something different. So, one thing that that I did very differently was first step was to close off all the loans that I had. In fact, from 2014, I did not have any loans with me.

5:45 >> So, whatever debt you were in, you made sure you clear that first. >> So I started pretty much saving my entire salary. >> Oh. >> So I had a corpus for about six months where I will be able to live without really touching on the salary. >> Okay, so you had six months corpus which you were using for your monthly expenses and whatever salary was coming you were not touching, you were saving all of it.

6:04 >> Absolutely. And 2014 onwards also I started track and at point of time the calculation was if you have at least about anywhere from five to six year you will be able to retire. >> Okay, so this you considered with the number of family members also. >> Of course, yeah. Anyway two daughters and then wife, right? So and then their education, all these factors I took into consideration. >> Okay. >> And that's the journey and I think I will be very honest over the period of time while my investment is growing and I think I also did fairly well in my job.

6:33 >> Mhm. >> So my salary also has increased quite substantially. So I think a combination of these two >> Okay. >> I was able to hit my corpus back in 2024. >> Okay. >> August. >> So today you don't have a regular 9:00 to 5:00 job. What are you doing? >> Mostly options trading. So that's one of my primary income. >> Okay. >> I think fairly going on well. I had some ups and downs but overall I think it's overall >> But you've already reached your fire number as well, right? So somebody who's reached his fire number and not having a traditional 9:00 to 5:00 job and doing options trading, how does that life look like now?

7:09 >> Couple of things that I do. I mean while do options trading is one of the thing but also I build a lot of these tools to help the community. So I did some open source to the people who can use them. And that is one thing and also I built a lot of tools for me. whenever I see some problem in the market I want to really go on and analyze. In the Twitter I'm known for data analytics for the options trading, right? So while I would actually sit in my office room from 9:00 to 3:40 right now. But then I think probably 80 to 90% of my time I still spend some time on the coding.

7:44 >> Mhm. >> I still love coding with the currently we have. I know you started with saying that AI is actually taking jobs, but today I'm using AI very extensively to make my life better. >> So two things I'm getting out of this. One is you're not sweating it anymore. You're not stressed. >> Agree. Agree. Absolutely. >> Not that regular stress that most of us have. You're not doing You're not waking up with anxiety. You're like leading a life that you want, what you decided for yourself. Second thing what I want even the audience to really pay attention is just because you say that you want to retire early does not mean you stop doing anything.

8:20 It just means that you have stopped working for your day-to-day survival. You achieve fire so that you can go ahead and do what exactly your soul wants, what makes you happy, and what keeps you stress-free because you have only one life. >> I think you summarized brilliantly. Then there is I'm not answerable to anyone, right? So I can pretty much take >> Yeah. >> one month off from trading. I I mean that's absolutely fine. >> Yeah, what a life. What kind of passive income are you making now per month? And to reach that number, how much time did it even take for you because if we have to be realistic, right, to our viewers as well. Like how much time did it take for you to reach that amount?

8:56 >> So passive income I would say about 3 to 4 lakhs currently. The I mean earlier I used to make a little bit more. >> So what is the highest you've made? >> The highest it is to reach about 10 to 12 lakhs probably in the market is very peak with >> Which year was this? >> This was like 2020 three >> Okay. Not Not that >> Yeah, but then now market dynamics have changed. >> Correct. It's And it's cyclic, right?

9:17 >> Yeah, currently I do couple of things. One is definitely the stock stocks whatever I invested, they do give the dividends. So that is some percentage. And then I also do against my portfolio I do a lot of covered calls. >> Doesn't it bother you that you used to in 2023 your passive income used to be 10 12 lakhs and now it's 5 lakhs. So, how do you deal with that? >> I think that's the nature of markets, so we need to adapt to it. So, we can't >> your mindset. You need to be stronger.

9:44 >> we need to understand the realities of the world has changed, right? So, whatever the problem >> And most of this is through your options trading. >> So, dividends is one part. The second is as I said, the covered calls. The third I also do some bit of a cash-secured puts. So, this, I mean, people might argue this may not be passive income, but then some of the strategies that I would put that is 80 to 90% probability that I'll be able to >> Okay.

10:11 >> make some money. >> much time did it take for you to be in this position where you're so comfortable and your mindset is so strong that even if it has gone down to 5 lakhs, I know I'm safe and comfortable. >> See, I have been trading from 2020 January 16th or 17th, whenever, just after Pongal. I traded every day. >> Okay. Is that when you quit your job as well? >> No, no, no. I quit in 2024 August.

10:33 >> Okay. >> So, I trade every day. In fact, that's where I because I was in a full-time job, I definitely can't really go on and monitor the stocks and the options every day. So, that's where I I got into some strategies where you put across a strategy, and then it it it should generate some money for you. Not that every strategy is going to give 100% win rate. So, there would be win rate, there would be risk, and then there would be risk reward. So, all those things we need to >> So, it's not like an overnight thing. It took you like a good 6 years.

11:04 >> So, as I said, I again repeat 2020 onwards, I never missed a single day until last year. >> If there's somebody, you know, 9-to-5 job, and they have maybe 10,000 rupees to invest every month, what the blueprint that they can copy from you in order to have this kind of a passive income where they can earn maybe 5 lakhs per month, have a journey towards financial independence. >> A lot of people underestimate the knowledge that they need to gain in the financial markets. A lot of times people would see their neighbor or friend saying that they're making some money.

11:39 And then let me also put some money and then gain some money. I think that's probably not possible. So, initial step is they need to build some financial knowledge. And then probably if they do not have the knowledge, the best thing is to get into mutual funds where there are fund managers. Obviously, they'll take care of whatever it happens. And also the ETFs is also one of best way to really get into. >> Do you have any resources that you can suggest for a beginner to learn these kind of things?

12:05 >> In fact, my first trade I took after studying the entire derivatives for 6 months. So, when I generally find the people generally they do not spend that that long. They generally hear somebody took a trade and the next day they will go and then put their money. Third day they will lose the money. So, that's how the things would happen, right? So, it's a derivatives is very risky instrument. So, people my view they should spend some time to go deep into derivatives and then how it works. And understand the market dynamics. I think that's where they will be able to make >> And I think you need to also have a deep understanding of your own finances as well. Where you're invested, what That's what at 1% Club also we have started our >> Very nice.

12:46 >> own AICFO. it can you know link all your mutual fund investment, credit cards, bank statement, everything together. So, it will really understand your financial habits and you can ask it any questions. >> Very nice. >> Can be like how much can I invest this month? Have I been investing properly? What can you see in my investments that and what news can you provide for me based on the investments that I have made? So, I think that is very important to also know how your financials are looking. Talking about markets and all of that, I want to ask you now that you know it's it's all nice. Now you're getting your passive income. Tomorrow, what if market crashes by 50%? What is your plan of action that you >> Yes, I do have the liquid funds as one of the thing in my portfolio and then this is one lesson that I learned during the COVID, right? And also I think my own experience, right? So, when I quit the job in 2024 August So, the Nifty peak happened in September 29th, I think, same year.

13:43 And then October onwards it started falling. So, my portfolio, in fact, there was a drop off almost like 20 to 25%. >> Oh. >> So, but then I was able to cope up with that without the job I was able to really fight back and then was able to really get back. >> So, what are some of the small things that you do now that, you know, back in the day your previous self would have thought this is a big luxury. Oh my god.

14:07 >> I think house, this kind of house I never dreamed, to be honest, and as I said, when I came to Bangalore, having this kind of house, like I thought it's going to take about maybe 10 to 20 years, even the first house. But I think thankfully it happened in the initial one or two years and then I think that is one thing and I think >> And everything through your investments? >> Yeah, salary and then investment. I think now I'm able to at least spend some time with the family.

14:34 I mean, in the job it's absolutely >> Correct. >> very difficult. What's the point of having a nice big house when you can't enjoy it? >> Yeah, I agree, absolutely right. >> You had quite a journey from 8,000 rupees per month to today being financially independent in a very nice, big, luxurious house in a prime location in Bangalore. What are some of the hardest lessons that you've learned? >> So, I'll segregate this into corporate life and then being financially independent what are the challenges and then obviously the family aspect, right?

15:02 So, corporate life I think it was hardest, hardest in the sense you will have to prove yourself each year, at least appraisals need to be really good. And also you will come across various bosses. Yeah, may not be really suitable to your way of thinking, right? So, I had seen very I'll not say bad bosses, but I seen very tough bosses. >> Tough bosses. >> Tough bosses. So, the lesson that I learned from corporate is the corporates are there to make money. They're not for your welfare.

15:31 >> Yep. >> So, at the end of the day, you need to really look at somebody need to really look at their own finances properly and then ensure that they have the correct backup. So, I think that is one lesson that I learned from the working in the corporate. I think being alone right now and being financially independent where I do not have a regular day-to-day income. So, one thing that I learned in the recent days is the risk management. So, it is very important for us to >> not to let go the capital, whatever it takes, and protect the capital. So, for me, even if I do not make any money in a month, if it is even still even if it's zero, I'm still okay.

16:09 >> Mhm. >> So, I'm not much worried. >> Yeah. >> But I I would give all my best efforts to not to let go the capital. >> Yep. >> So, that is the second thing. I think the family perspective what I learned over the period of time. So, I always used to think my wife is there to take care of the kids and I'm not required, but I think I realized even they need my time as well.

16:34 so, I think it is not just about quantity of the time not quality of the time, but also the amount of the time that you spend with the family that matters quite a bit. I personally believe my bonding with my kids and wife has tremendously increased after I quit my corporate job. Yeah. >> That was really honest. So, I hope you enjoyed our time here. >> Of course, 100%. Yeah. >> Yeah. So, I have my friends who I told them last night when I met them that, you know, who I'm interviewing and they were pretty excited because everyone is scared, right? Everyone is in that brink of, you know, what is going to happen with AI?

17:11 What how will it look like in another decade? So. >> I think that I think a lot of people they're very worried about AI, but I think AI can be used to enhance their personal life. >> Yep. >> Their jobs itself. Jobs even in the investing AI can be used quite >> Yes, yes, yes. AI is not going to take your job. But if you don't know how to use AI, that is the risky part. >> Absolutely. Absolutely. That's right.

17:35 >> Guys, thank you so much for watching till the end. If you need help with your personal finance, go ahead and download the 1% Club app. The link is in the description box below. My name is Shreya and this is The Crore Club.