Top News

If you want to make money from money, then first start investing. Whether the salary is big or small, if you invest some part of it, you can create a large amount. But how much money from the salary should be invested and where, this is the big question because it depends on this how much fund you will be able to accumulate in how much time. Here is the magical formula that can make you a millionaire even with a meager salary of ₹20,000. This formula can create an emergency fund for you as well as a retirement fund of up to 1 crore. So what are you waiting for, apply this formula first as soon as your salary comes into your account on June 1.

If you get a salary of Rs 20,000, then too you can easily fulfill your dream of becoming a millionaire. But for this you will have to follow the 70:15:15 formula of savings and investment. This means that you should keep 70% of your income for fulfilling your needs, create an emergency fund with 15% of the amount and invest the remaining 15%.

If you earn a salary of Rs 20,000 every month, then 70% of 20,000 is 14 thousand, which means you will have to manage all your expenses with Rs 14,000. You have to keep 15-15% i.e. Rs 3000-3000 for emergency fund and investment. Even if you earn more than Rs 20,000, apply this formula and manage your expenses and investments, this way you can raise a good amount for yourself and can also prepare a good fund for emergency.

Now the question is where to invest to become a millionaire? So the answer is that you should invest your savings in mutual funds through SIP. SIP has the power to make even small savers a millionaire. The average return in mutual funds is considered to be 12 percent. Also, it gives the benefit of compounding. In such a situation, your money is converted into wealth quickly.

If you invest 15 percent of 20,000 i.e. 3,000 rupees every month through SIP for 31 consecutive years, then in 31 years you will invest a total of 11,16,000 rupees. But at the rate of 12 percent on this, you will get 92,74,3691 rupees only from interest. In this way, in 31 years you will be the owner of 1,03,90,369 rupees. If you get a return of 13, 14 or 15 percent, then with this investment you will become a millionaire in even fewer years. Even if you start this investment at the age of 29, you will be a millionaire at 60.

Mutual fund schemes are market linked, so returns cannot be guaranteed. The average return of SIP is considered to be around 12 percent. Therefore, the calculation here has been done on the basis of 12 percent return. It can be more or less depending on the market conditions.