People often believe that it is not possible to save and invest due to low salaries. But the truth is that saving does not depend on your income, but on your habits. If you adopt the right strategy, you can become a millionaire even with a low salary. Let’s know how this is possible.
Why is saving important
Saving is not just a way to save money, but it is the foundation of a better future. Many people think that their income is low, so they cannot save. But if you save even a small part of your income regularly and invest it in the right place, it can become a big fund in the long run.
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How much should one save
As a general rule, every person should save at least 20% of their monthly income. For example, if your salary is Rs 20,000, you should save at least Rs 4,000. This amount may seem small, but through the right investment, it can become a big fund.
Magic of SIP
There are many investment options available nowadays, but SIP in mutual funds is a great option. Investing through SIP can give you an average return of 12% per annum, which is more than traditional savings schemes.
If you do a SIP of Rs 4,000 every month and continue it for 28 years, your total deposit amount will be Rs 13,44,000. But due to the compound interest you get on it, you can get a total amount of about Rs 1.10 crore. If you continue it for 30 years, this amount can reach Rs 1.41 crore.
It is not impossible to become a millionaire even with a low salary. It is important that you start saving early, invest in the right place and be patient. Small savings can make a big difference in the future. So plan your savings and investments today and secure your future.