A new trend has started in cities. This is called DINK i.e. Dual Income No Kids. This is such a trend when both husband and wife work, they have good salaries but they do not have a child with mutual consent. Many people also call such couples selfish, but if seen from money point of view, these couples are at the forefront in the race to become rich. Now you must be wondering how this can happen.
Today we will tell you how by adopting DINK lifestyle you can easily create a fund of up to Rs 15 crore in 25 years, that too without taking any risk. Now suppose there is a couple, the salary of both of them is Rs 1 lakh per month. In such a situation, the total income in this couple’s house will be Rs 2 lakh every month. That means it will be Rs 24 lakh annually. With this, the couple can meet all the household expenses from the salary of one person and on the other hand, they can invest the entire salary in savings and investments. Meaning Rs 1 lakh can be invested directly every month. That means Rs 12 lakh can be invested annually. Let us explain its complete calculation to you.
How to create a fund of Rs 15 crore?
If you invest money in SIP of mutual fund then you can get good returns. If you invest money in equity mutual funds, then the average return in the last 20-25 years has been 12% per annum. Now you will do SIP of Rs 1 lakh every month for 25 years at 12% return. If the investment is Rs 1,00,000 every month, then let us assume the total period to be 25 years. In this, the expected return is assumed to be 12% per annum and after 25 years, a total of Rs 15.5 crore will be saved. The total investment in this will be only Rs 3 crore (25 years × 12 lakh), but due to the power of compounding the money becomes more than Rs 15 crore.
Expenses of an ordinary couple will be higher
Now suppose this couple has a child, then some expenses will increase. Like school fees, coaching, clothes, medical fees, all this. Now the savings rate has fallen from 50% to only 15-20%. That means now only Rs 30-40 thousand will be saved every month. Now in the same 25 years, if you do SIP of only Rs 40 thousand every month, then with 12% interest the total fund will be only Rs 4.5 to 5 crore. Meaning, there will be a difference of Rs 10-11 crore due to having a child.
Nowadays, thousands of DINK couples in Mumbai, Bengaluru, Delhi, Pune have made a portfolio of Rs 5-10 crores at the age of 35-40 years using this formula. Many have become semi-retired at the age of 30 – meaning they are leaving their jobs and moving around as per their own will.
Benefits of being a DINK couple
By being a Dink couple, your savings will increase every month. You will not have to pay any EMI for your child’s school fees. You will also be able to use the money for couple’s outings and a good lifestyle. Apart from this, one can also use retirement fund. For Dink couples, child is not their first priority, rather their career and living their life freely is the priority. The responsibilities of a Dink couple are also less than that of an ordinary couple. Giving birth and raising a child is a big responsibility for every couple and once you are financially strong for this big step, the process of parenting becomes somewhat easier. A DINK couple gives more importance to proper financial planning.
