Everyone wants to have a secure future and have enough money in their pocket so that they never have to worry about anything. But, if your monthly income is only ₹ 25,000, can you dream of becoming a millionaire? Yes, All you need is a little discipline, proper planning, and the habit of investing for a long time. This is not magic, but the wonder of smart investing.
If you invest a small part of your earnings every month in the right place, then after years you can have such a huge amount that you yourself will be surprised. Let’s learn the ‘Dhansu’ formula to become a millionaire with an income of ₹ 25,000, which will change your life.
Why is investment so important
First of all, it is important to understand that investment is the most important thing. No matter how much you earn, investing is essential to secure your future. It is not just a way to add money, but also a way to fulfill your dreams and deal with unexpected challenges. If you save a part of your earnings every month and invest it in the right place, then your money can grow manifold over time.
The special thing is that today there are many options available even for low-income earners, in which investment can be started with a small amount. Suppose, you earn ₹ 25,000 every month. If you save and invest 15-20% of it, then this small start can give you big results. But the question is where to invest.
SIP will become your best guide
If you are new to the world of investment or your income is not much, then a Systematic Investment Plan i.e. SIP is the easiest and smartest option for you. SIP means that you invest a fixed amount in Mutual Funds every month. The best thing about this is that you do not need to invest a large lump sum amount in it. You can start SIP even with a small amount like ₹ 500. That is, you can easily start investing even with a monthly income of ₹ 25,000.
Investing in SIP is like filling a big piggy bank by putting in a little money every month. But the specialty of this piggy bank is that your money is not only deposited in it, but you also get interest on interest on it, which keeps increasing with time. This is called the magic of compounding. The longer you invest, the more benefit you will get.
How much to save from an income of ₹25,000
Now the question is, if your monthly income is ₹25,000, how much should you save? Financial experts believe that you should take out at least 15-20% (15-20%) of your income for investment. That is, if you are earning ₹25,000, then it is possible to save ₹3,000 to ₹5,000 every month. But if your budget is a little tight, then you can start with ₹4,000. This amount does not seem much, but if you invest it for a long time, the results will surprise you.
Suppose, you invest ₹4,000 every month in SIP. Now keep doing this continuously for 30 years. During this time you have to maintain discipline, that is, you have to invest this amount every month without any mistake. Now see, how this small amount can create a fund of crores for you.
Become a millionaire in 30 years
Now let’s understand a little math. If you invest ₹4,000 every month in SIP, then in 30 years you will invest a total of ₹14,40,000 (4,000 x 12 months x 30 years). Now if your mutual fund gives an average of 12% annual return (which is normal for good equity mutual funds over the long term), then after 30 years you will have ₹1,23,23,893 i.e. about ₹1.25 Crore.
Out of this, your investment will be only ₹14,40,000, and the remaining ₹1,08,84,893 will come from interest only. This is the power of compounding. Your small savings grow so much over time that you can become a crorepati.