The financial rule says that every person should save 20 percent of his income at all costs. If you save 20 percent and start investing, then even if you earn Rs 20,000 per month, it is not a big deal for you to become a millionaire even with such a low salary. Know how.
Whenever there is talk of savings, many people argue that how to save with low income. But financial experts believe that saving is a habit, no matter what your income is, you should definitely save it. Also, the saved money should not be kept at home, it should be invested because the invested money grows with time. If you develop this habit of saving and investing, then even low salary people can add a good amount of funds in the long run.
But in such a situation the question arises that how and how much to save? The financial rule says that every person should save 20 percent of his income at all costs. If you save 20 percent and start investing, then even if you earn Rs 20,000 per month, it is not a big deal for you to become a millionaire even with such a low salary. Know how here-
How much to save in salary of Rs 20,000
Suppose you earn Rs 20,000 per month, then 20 percent of your income is Rs 4,000. According to financial rules, you should save Rs 4,000 every month and meet all the expenses and needs of your household with Rs 16,000. You should invest these Rs 4,000 at all costs and continue this investment for a long time.
Where to invest
Although many investment options are available today, mutual funds are considered very good for investment. By investing in it through SIP, you can add a big fund in the long run. Experts believe that the average return in SIP is up to 12 percent, which is much higher than any other scheme.
Suppose you invest Rs 4,000 every month in SIP and continue this investment for 28 years, then in 28 years you will add a total of Rs 13,44,000 and you will get Rs 96,90,339 as return. In such a situation, you will get a total of Rs 1,10,34,339 in 28 years and if you continue this investment for two years i.e. 30 years, then you can add up to Rs 1,41,19,655 in 30 years through SIP.
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