With just 20,000 salary, you can become a millionaire?
With just 20,000 salary, you can become a millionaire?Anyone can aspire to be wealthy, but is it really feasible to add a crore or two to a wage of twenty to twenty-five thousand rupees? It's not simple, but you can become a billionaire if you make consistent investments over an extended period of time. Let's say you need to add one lakh rupees. What needs to be done in this case? Let's find out where and how much to invest.Compounding's magical power will be beneficial.Setting goals is usually a good idea when it comes to personal finance. In this instance, it is evident that we require one crore rupees, thus the next step is to select the appropriate product to help us reach that target. The best approach to accumulate a large sum, such as one crore, is through SIPs in equity mutual funds. A Systematic Investment Plan allows you to invest a set monthly amount in a mutual fund scheme on a regular basis. The force of compounding and rupee-cost averaging allows you to amass a substantial amount over time, even when the SIP amount is lower.It will take this many years for a SIP of 6,000You can easily withdraw 20–25 percent of your salary, or 4-5 thousand rupees, but it is almost impossible to deposit a significant portion of your salary—roughly 10 or 15 thousand rupees—in a SIP. Since you are investing less, it will take longer to reach your objective. It will take you roughly 26 years to accumulate Rs 1 crore if you invest Rs 5000 in an equity mutual fund with a 12% annual return. You must contribute 30 percent of your salary, or Rs 6000, to a savings account each year if you wish to accumulate Rs 1 crore in 24 years.This SIP functionality will cut down on timeYour chances of becoming a millionaire will increase with the amount of money you invest. This relates to standard SIP. Those with low incomes are unable to make a sizable first investment. In a scenario like this, you can make a wise choice for your SIP and quickly realize your goal of becoming a billionaire. You could find Step-up SIP useful in this kind of circumstance. You can gradually raise the amount of SIP because your salary will rise over time. This will help you quickly reach your goal of becoming a millionaire.