1. The plan: SIP ₹10,000 per month for 10 years Step up 10% every year Stop after 10 years Withdraw ₹25,000 per month for 12 years (age 10 to 22) Still left with ₹56.42 lakhs at the end! Sounds unreal? Let me break it down

2. Step up SIP = increase investment 10% yearly. That means: • Yr 1: ₹10,000/month • Yr 2: ₹11,000/month • Yr 10: ₹23,579/month Total invested = ₹19.12 lakhs Expected return = 12% CAGR

3. After 10 years, corpus grows to ₹32.68 lakhs. No insurance gimmicks. No loan. Just consistent investing & compounding. This is my child’s education fund.

4. Now flip to SWP (Systematic Withdrawal Plan). Withdraw: • ₹25,000 per month = ₹3 lakhs every year • From age 10 to 22 (12 years) Covers school, coaching, college & even early career support.

5. Will the money run out? Even after pulling ₹3 lakhs/year for 12 years = ₹36 lakhs withdrawn… The fund still compounds ₹56.42 lakhs left by age 22. That’s the magic of compounding & SWP.

6. Summary: • I would invest ₹19.12 lakhs • I would withdraw ₹36 lakhs for education • I would STILL have ₹56.42 lakhs left All debt free. All from disciplined SIPs.

7. Now, many will say: • How can you assume 12%? Returns aren’t stable. • Education inflation is too high. Fair points. But here’s the truth Having a plan with medium assumptions is always better than having no plan at all.

8. Most parents wait, then borrow. Smart parents start early, step up yearly, and let compounding pay the bills. This single strategy can secure your child’s education without touching your salary later and you can follow your passion without worrying about child’s education

9. Lesson: Don’t wait for the perfect time. Start small, step up, stay consistent. The earlier you begin, the lighter the burden later.

Disclaimer: This is just a framework tailored to my risk tolerance & child’s needs. Not advice. Past returns is not equal to future. I have assumed 12% for my understanding. Start small, review annually, consult a SEBI registered advisor. This is my personal mindset. Everybody

RT to help new parents avoid education loans. Comment EXCEL SHEET and I will send dm you the calculation sheet I made. (I am not not a mutual fund distributor) Follow @ValueWithPrem for more real life wealth strategies. Parents do you think compounding beats education

@ValueWithPrem You missed 8-12% fee hike every year.

@MidhaNitish https://x.com/valuewithprem/st...

@ValueWithPrem and the tax which they cut from your capital gains

@ValueWithPrem 2 saal mein bacche ko school bejte hain. So if one gets married at 30 he or she has to plan for the unborn child by 20. Aur agar partner ne divorce aur alimony ka plan banaya toh bhai uska bhi plan batana

@ValueWithPrem Hi, why we have not discussed the tax part in this.....

@ValueWithPrem Excellent Strategy.

@imvrindasoni Glad you liked it.

@ValueWithPrem some next-level hack? 💡💰

@MadhusudanSahuu Next level nahi, simple level. But most parents miss it.

@ValueWithPrem You are absolutely Right Brother But every Parents' Hope "Papa Kahate hai Bada nam Karega Beta Hamara Asaa Kam Karenge"

@ValueWithPrem Excel sheet

@ValueWithPrem Thank you Prem

@smit230 Just wanted to share my personal strategy. Always welcome Smit.

@ValueWithPrem Thanks brother, sounds interesting and convincing 👍🏻

@ValueWithPrem You just explained the essence of financial goal planning. Simple thing, but missed by most.

@money_theory Real wealth is built by goal based planning & compounding.

@ValueWithPrem Excellent thread. Planning is half work done. Plan well and you see the tension free life!!

@ValueWithPrem EXCEL SHEET

@ValueWithPrem Sir can you suggest some MF to start with??

@ValueWithPrem Excel sheet

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@ValueWithPrem Nice analysis Sir ..💞💞

@ValueWithPrem Bro you done a tremendous job also made parents easy to understand about child future plan about education financial bottom of my heart I salute 🫡 EXCEL SHEET

@HunashyalA Means a lot bhai 🙏 If even one parent avoids debt with this framework, mission accomplished.