"I want ₹20 lakh for my child's higher education" sounds like a clear goal. But if the course is 15 years away, ₹20 lakh is today's price. Education costs in India have historically risen faster than general inflation, so the amount you'll actually need is much larger.
Today's money vs future money
At 8% a year, something that costs ₹20 lakh today costs about ₹29.4 lakh in 5 years, ₹43.2 lakh in 10 years and ₹63.4 lakh in 15 years. Plan for ₹20 lakh and you'd fall about two-thirds short.
Turning the target into a monthly amount
To build ₹63.4 lakh in 15 years with an assumed 11% annual return, you'd need to invest about ₹13,800 a month. That's the number that matters day to day — and it's far easier to act on than a big lump sum.
The cost of waiting a year
Start the same goal a year later, with the same target date, and the monthly amount rises to about ₹15,900 — roughly ₹2,000 more every month. You'd also put in about ₹1.8 lakh more in total, because there's less time for returns to do the work.
Sensible assumptions
- Use a higher inflation rate for education and healthcare than for everyday costs
- Assume lower returns for goals less than 3 years away — that money belongs in safer places
- Revisit the plan once a year, or whenever your income changes
- An emergency fund doesn't need an inflation adjustment; size it at about 6 months of expenses
How Welthr helps
Goals in Welthr start with sensible inflation and return assumptions for the goal type, which you can change. You'll see the future target, the monthly amount needed, and whether you're on track or behind compared with your starting plan. Link a bank account or investments to a goal and progress updates by itself; milestones at 25%, 50%, 75% and 100% give you something to celebrate along the way.