Homemakers may not earn an income, but they are unmatched when it comes to saving. While managing the house, they handle their pocket money very smartly. Often, women spend their savings on household needs or to fulfill some hobbies. However, if you save and invest just ₹1,000 every month, you can build a balance of ₹10,00,000 for yourself. This means you can save such a large amount just by setting aside a small amount every month, all while staying at home. Here’s how you can do it.
Mutual Funds Can Help You Save Big
Nowadays, mutual funds are one of the best ways to invest money. Even though they depend on the market, they are safer than investing directly in stocks. You can start investing in mutual funds through SIP (Systematic Investment Plan) with just ₹500.
One big advantage of mutual funds is compounding, where you earn interest on both your investment and previous interest. The longer you invest, the more money you make. Normally, mutual funds give around 12% interest, but sometimes it can go up to 15-20%. To earn a good profit, you need to invest for a long time. If you invest for 15 to 20 years, even a small amount can grow into a big amount.
How to Turn ₹1,000 into ₹10 Lakh?
If you invest ₹1,000 per month in mutual funds through SIP, your total yearly investment will be ₹12,000. In 20 years, you will invest ₹2,40,000 in total.
- If you get 12% interest, you will earn ₹6,79,857 as interest, making your total savings ₹9,19,857 (~₹10 lakh).
- If the interest rate is 14%, the total amount will be ₹11,73,474.
- If the interest rate is 15%, you will get ₹13,27,073 at the end.
So, by investing just ₹1,000 per month through SIP, you can save ₹10 lakh or more in 20 years.
Disclaimer: This information is based on general knowledge. Investors are advised to check with the bank for the latest rates and terms before investing. Timesbull will not be responsible for any investment decisions made based on this information.