Investment Tips: When a middle class person thinks of earning money, the first thought that comes to his mind is how to properly create a fund worth crores of rupees. It is often difficult for middle-class families to build large wealth, especially when income is limited and expenses are high. But according to chartered accountant Nitin Kaushik, if discipline and consistency is maintained in savings and investments, then wealth worth more than Rs 1.2 crore can be created in 10 years.
To build wealth worth crores, not only is a high salary necessary, but it is more important to take right financial decisions and stick to them in the long run. Nitin Kaushik has recently shared some important ways on social media platform
Create financial goals first
The first way CA Nitin Kaushik has told is that it is very important to set financial goals early. Families who are focused on their child’s future should start investing right from the birth of the child. If parents invest around Rs 10,000 every month in index funds through SIP and Public Provident Fund (PPF), then a corpus of around Rs 60 lakh can be created in 15 years. In this, one gets the benefit of PPF security, tax benefits and additional investment from time to time along with the expected return of about 12% per annum from mutual fund. Starting early also gives the benefit of compounding, due to which the fund increases significantly in the long run.
home ownership
Everyone wants their own house, but to fulfill this dream people take the help of home loan. Nitin Kaushik says that it is better to invest while living in a rented house first, so that at least 25 percent of the price of the property can be raised as down payment. It is advised to take a home loan with a shorter tenure of 10 years instead of 20 years. Along with this, by limiting the monthly EMI to 35 percent of the income, the interest burden is reduced, the loan is repaid quickly and the tension is also less. This method can save your family from getting stuck in debt and maintain financial balance.
Retirement preparation is important
It is important to prepare for retirement in advance. According to Nitin Kaushik, relying only on EPF cannot be sufficient for retirement. Therefore, earning people should gradually increase their contribution to the National Pension System (NPS). It is also important to continue a separate SIP for retirement. In this way, a retirement fund of about Rs 30 to 35 lakh can be created in 10 years. This investment approach protects against inflation and future uncertainties and ensures a more secure retirement than traditional options.
Don’t spend unnecessarily
Nitin Kaushik says that it is more important than high salary that you adopt right money habits. You should avoid increasing lifestyle expenses unnecessarily, keep track of expenses through simple methods like spreadsheets, it is also very important to celebrate small goals like completing Rs 5 lakh in SIP or repaying some part of the loan first. These financial habits help families stay disciplined and build wealth over the long term.
After saving and investing through these disciplined methods, a common family accumulates huge wealth in 10 years. For example, about Rs 72 lakh from mutual funds, Rs 28 lakh from safe options like PPF, EPF and NPS, Rs 8 lakh from fixed deposits and emergency fund and due to increase in the price of the house, the benefit is about Rs 15 lakh by reducing the loan. Even if the average home loan remains at Rs 22 lakh, after deducting all the liabilities, the total net worth of the family becomes more than Rs 1.20 crore, which is the best result of ten years of hard work and wise saving.
