Leaders Online Desk: Everyone dreams of becoming a millionaire. But the salary or monthly income is actually less, and for many this dream never comes true. But if you do a little planning and make the right investments, you can even pay less millionaire can be
How much to invest?
It is generally considered that 15 to 20 percent of your monthly salary should be invested. The more money you can invest, the more returns you can get in less time.
How to become a millionaire?
Equity Mutual Funds are considered best for getting good returns and as a safe investment. It can earn returns of up to 12 percent per annum. You can save very well in a short period of time by investing a small amount. Equity Mutual Fund has a little risk, if the rate of inflation is taken into account, this type of Mutual Fund not only keeps your savings safe but also gives returns.
Start with SIP
Systematic Investment Plan or SIP will help you to become a millionaire. Due to the compounding factor, even small sums of money can make you accumulate huge wealth in the future. Of course, this requires financial discipline. Suppose your monthly salary is 50 thousand rupees. If you invest 15 to 20 percent of this amount in Equity Mutual Fund through SIP, you will have earned a total amount of up to Rs 1 crore in a short period of time.
Suppose you decide to invest 15 percent, you can invest Rs 7500 per month. If you get at least 12% returns, you will have earned Rs 1 crore in 276 months or 23 years.
Suppose you invest 20% i.e. 10 thousand rupees in this scheme then in 249 months or 20.75 years you will have earned more than 1 crore.
What is Step Up SIP?
Step up SIP is a good form of investment. In this, you increase the amount of investment every year. Suppose you invest Rs 7500 per month in SIP and compound it at 5% every year, you will have saved a total of Rs 1 crore in 20.33 years. Let's say you start with Rs 10,000 per month and add 5% every year with a return of 12% and you will be a millionaire in 194 months.
Be patient
An important formula for investing through SIP is patience. Don't rush to withdraw your investment because the stock market has risen or fallen. Always invest with a long-term view.
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