Everyone dreams of becoming rich, but not everyone dares to fulfill this dream. However, if better planning is done along with starting a job, then nothing can stop you from becoming a millionaire. That is why today we are telling how better planning is done to become rich.
You will have to do this work at the age of 25 years: If you are 25-year-old and you want to deposit around Rs 2 crore at the age of retirement, then you have to invest Rs 5000 per month. Even if you get a return of only 10 percent on your investment, you will become a millionaire till retirement.
What you need to do: For this, you have to invest through Systematic Investment Plan (SIP). This will reduce the risk on your investment and will also give excellent returns, because money is invested in mutual funds through SIP. Experts say that in such a situation, at least the rate of 10 percent is available.
Age 25 years:
- Monthly investment: Rs 5000
- Interest rate: 10%
- Retirement age: 60 years
- Investment amount: 21 lakhs
- Income from interest: Rs 1.70 crore (approx)
- Total amount received: Rs 1.91 crore (approx)
You will have to do this work at the age of 30 years: If you are 30-year-old and you want around Rs 1.5 crore at the age of retirement, then you have to invest Rs 8 per month. Even if you get a return of only 10 percent on your investment, you will get about Rs 2 crore easily till retirement.
Age 30 years:
- Monthly Investment: Rs 8000
- Interest Rate: 10%
- Retirement Age: 60 years
- Investment Amount: 28.80 Lakh
- Income from Interest: Rs 1.53 Crore (approx.)
- Total Amount: Rs 1.82 Crore (approx)
This is how the whole math is done: Early investment through SIP would have yielded higher returns, because it gives compound interest. For example, if Rohan accumulates Rs 1,000 at the age of 30 years and gets a rate of 8% on it, he will get Rs 12.23 lakhs on completing 60 years of age. At the same time, Shaam deposits 1000 rupees at the age of 35 years and if he also gets interest at the rate of 8 percent, then after the age of 60 years, he will get only 7.89 lakh rupees. This shows that the difference of 50 thousand rupees in the beginning produces a difference of more than 4 lakh rupees.
Why SIP after all:
Investing through SIP can handle your investment as well as during the boom of the market, even in times of decline in the stock market. The cost of purchasing units of mutual funds is averaged when invested by SIP. Due to this, the risk for investment is reduced.