Investment Tips: In this era of inflation, living on a salary of Rs 20,000 and making savings in it sounds very difficult. But with the help of a smart trick, you can easily create a corpus of Rs 2 crore from a salary of Rs 20,000. Yes, you read it right. For this you just have to adopt a little wisdom and discipline.
Ankur Wariku has told a trick in his YouTube short in which he is telling the strategy to create a fund of Rs 2 crore with a salary of only Rs 20 thousand. If you invest smartly, then after just 30 years you can have a fund of Rs 2 crore 40 lakh ready.
Make complete monthly budget in this way
Suppose, if your salary is Rs 20 thousand per month. With this salary, you can earn up to Rs 2 crore even by living in a city like Delhi, Mumbai. Now let us tell you what things you have to keep in mind in this budget plan. First living expenses. If you live in a shared PG or shared flat, the rent goes up to Rs 7-8 thousand. Then electricity, water and internet together may cost Rs 1000-1500. In such a situation, the total living expenses will be Rs 9 thousand. Now talking about food, it may cost you Rs 5-6 thousand to buy healthy food and prepare it at home.
After this, if you have to use public transport daily, then adding the fare of metro, bus and sometimes auto, it may cost you Rs 1500-2000 per month. After this, if we look at phone bill and internet separately then it will be Rs 700-800. After this, consider subscription of Netflix Prime and other apps up to Rs 500. You can also keep aside Rs 1500 for clothes, personal care, groceries together.
This is the way to invest
After this let’s talk about investment. If you take health insurance and term insurance, it will cost you Rs 800-1000. Keep Rs 1000 aside for emergency fund in your separate account. Now if we add it, the total expenditure will come to around Rs 15 to 16 thousand. This means that in a salary of Rs 20,000, Rs 4000-5000 will be saved every month.
Put the remaining Rs 4500 in mutual funds through SIP. Let us assume that in this you can get an average return of 12% which is easily given by equity funds in the long run and you can increase the SIP by 10% every year because the salary also increases every year after changing jobs. That is, you can increase the SIP amount by doing 4500 in the first year, then 4950 in the next year and then 5445 in this way.
If you follow this trick for 30 years, you will also get the benefit of compounding. In this, if you invest for 30 years at 12% interest and step up by 10% every year, then the total investment will be Rs. 4500 per month. That means around Rs 45-50 lakh will be invested. But due to compounding, it will increase to Rs 2 crore 40 lakh.
Starting with a salary of Rs 20 thousand, you can become a millionaire by the age of 50. Home, car, marriage, children’s education, retirement, everything will be easily completed with this fund. In this you just have to keep one thing in mind that control your expenses and maintain the habit of investing. Apart from this, if you make your budget properly and check the list of expenses every month, then your savings can increase further. If you want, you can talk to a good financial advisor or do your own research and choose an index fund or flexi cap fund.
