In today’s fast life, everyone wants to be rich and live well. But many people try shortcuts to get rich fast, and then they lose their money. If you really want to be free with money, you must invest with patience. Saving and investing are important for all. No matter how much you earn, always save some part of it. Small savings done every month can become a big amount over time.
This is where mutual fund SIP helps. By putting money in SIP every month, you can build a big fund. Even with a small salary, you can make crores in the long run.
How to Become a Millionaire with a Salary of ₹30,000
According to the Free Press Journal, if your monthly salary is ₹30,000, you should save at least 15% of it, which is ₹4,500. The rest of the money can be used for your expenses. Invest this ₹4,500 every month in a mutual fund SIP. Along with this, increase your SIP by 10% every year. This is called a SIP top-up.
If you keep investing ₹4,500 every month for 25 years and increase it by 10% every year, your total investment will be about ₹53.10 lakh. At 12% annual return, this fund will grow to ₹1.77 crore after 25 years. Out of this, ₹1.23 crore will be profit.
A Systematic Investment Plan (SIP) is an option by mutual funds where you invest a fixed amount every month or every quarter. Instead of putting a big amount at once, you invest in small parts. SIP helps you invest in a simple and regular way without worrying about market ups and downs.
Disclaimer: This article is for education only. The views shared are from analysts or brokers, not Mint. Please check with a certified expert before investing.