📱 iPhone vs SIP – The Compounding Benefit

 

📱 iPhone vs SIP – The Compounding Benefit

Back in 2008, when both were 20 years old, Aman and Rohan got their first jobs. Both earned similar salaries, but their choices were very different.

Rohan – The Spender

Every time a new iPhone or car was launched, Rohan bought it—sometimes even on EMI. From the first iPhone in 2008 to iPhone 17 in 2025, he never missed an upgrade. His money went into gadgets that lost value the moment they came out of the box.

Aman – The Investor

Aman had the same temptations but thought differently. Instead of paying EMI for gadgets, he decided:

👉 “I’ll invest ₹20,000 every month into a mutual fund SIP.”

And he stuck to it, month after month, year after year. Even during tough times like the 2008 market crash or COVID, Aman never stopped his SIP.

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Fast Forward: 2025 (Age 37)

Seventeen years passed. iPhone 17 has just launched.

• Rohan proudly bought it again, but his savings were close to zero. He had great photos, flashy gadgets, and cars—but no real wealth.

• Aman, on the other hand, opened his SIP statement. That same ₹20,000 per month since 2008, with the power of compounding (at ~12% return), had grown to nearly ₹1.25 crore.

While Rohan had a drawer full of old, outdated gadgets, Aman had a portfolio that could buy not just iPhones—but true financial freedom.

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The Realisation

Rohan sighed, “All these gadgets lost value the moment I bought them. But your investments grew silently every single year.”

Aman smiled and said,

“That’s the compounding benefit, brother. You can either spend on things that lose value or invest in things that gain value. Time is the biggest magic here—because I started early, my money kept multiplying.”

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🌟 Takeaway

• Starting early matters more than starting big.

• Gadgets lose shine, compounding never does.

• Seventeen years of ₹20,000 SIP = ~₹1.25 crore, while seventeen years of EMIs only change your gadgets.

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📌 Mutual Fund Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The above example is for illustration purposes only, based on assumed returns. Actual returns may vary depending on market conditions. Investors should consult their financial advisor before making any investment decisions.