People earning small salaries often argue that inflation is so high that they are unable to save more than their salary and their entire salary is spent on meeting all the necessary expenses. Such people should remember a saying that you should stretch your legs as much as you can. This means that you should increase your expenses only as much as you can handle with your income. If you do this by looking at others, you will harm your future.
If you want to secure your future, then you will have to develop the habit of saving and investing in any case. Whether you earn less or more, you must save some part of it and invest it. In today's time, there are many such investment options available, which have the power to create a big capital even with a small investment. One of these options is SIP. You may be earning Rs 20,000 per month, but if you keep investing a part of your salary in SIP for a long time, then even with a small contribution you can become a millionaire. Know how here-
Use this formula for savings and investment.
You may be earning Rs 20,000 every month, but you should save some money from this every month. To know how much to save, you will have to adopt the formula of 70:15:15. In 70:15:15, you keep 70% of your income to fulfill your needs, create an emergency fund with 15% of the amount, and invest 15% of the amount. 70% of Rs 20,000 is 14 thousand, which means you will have to manage all your expenses with Rs 14,000. 15-15% means 3000-3000 rupees, out of this you have to deposit 3000 rupees every month for an emergency fund so that you do not have to touch your investment in difficult times. The remaining 3000 rupees will have to be invested in SIP every month.
This is how you will become a millionaire.
Investment in mutual funds is done through SIP. The average return in mutual funds is considered to be 12 percent. Also, it gives the benefit of compounding. In such a situation, your money is converted into wealth quickly. If you invest 3000 rupees every month continuously for 30 years, then in 30 years you will invest a total of 10,80,000 rupees. But at the rate of 12 percent on this, you will get 95,09,741 rupees only from interest. In this way, in 30 years you will be the owner of 1,05,89,741 rupees.
Since SIP is a market-linked scheme, its return is based on the market. Therefore, sometimes you have the possibility of getting more than a 12 percent return in the long term. Suppose you get a return of 14 percent, then you will get Rs 1,66,71,167 after 30 years. In this way, you can add a large amount with a small SIP and create a big retirement fund for yourself with a small salary.
(Disclaimer: Investments in mutual funds are subject to market risks. Do your research or consult your advisor before investing.)
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