Personal Finance

How Rs 30,000/month can make you a crorepati in just 10 years

Updated : November 23, 2018 07:06 AM IST

Stay focused and disciplined on your monthly and yearly payments on time, including your taxes, EMIs, interests, if any. Since you are in the long haul of schemes, a lot of patience is required.

The right financial planner will guide you through the various policies and schemes that are available in the market and help you invest in the schemes that will give you good returns.

How Rs 30,000/month can make you a crorepati in just 10 years

Financial planning and savings have been an integral part of our lives and one of the best ways to do that is by investing in a Systematic Investment Plans (SIP).

Looking at mutual fund returns of 12 percent a year and increasing your SIPs by just 10 percent each year, your 30,000 investment over 10 years would yield Rs 1.01 crore. Since your investment is Rs 57 lakh, this is a gain of nearly 76 percent.

Here's how you can do ramp up your investments and derive maximum profits:

Check your finances before investing

Take a look at your monthly income and the amount you spend. This will give you an idea of your annual expenditure and you can carefully plan your investment. As a salaried person it is important for you to calculate and know how much you can save in a month so as to invest in your SIP on a monthly basis in the right scheme.

Choose a financial planner

Choose a financial planner for yourself as they are experts in matters of investment. The right financial planner will guide you through the various policies and schemes that are available in the market and help you invest in the schemes that will give you good returns.

Manage expenses

Since expenses never come with a heads-up, its important for you to manage them appropriately. Unnecessary expenses can become a burden to your investment plans over time. After all, "Money saved is money earned."

Stay Informed, Focused and Patient

Equity markets in general are highly volatile and witness unexpected movements every single day. It becomes really important that you stay informed about what will affect your investments. Stay focused and disciplined on your monthly and yearly payments on time, including your taxes, EMIs, interests, if any. Since you are in the long haul of schemes, a lot of patience is required.

Planned investment in right scheme:

Look for a right scheme for yourself as it is your hard-earned money that you are going to invest for the next 10 years and you do not want to take an uninformed investment decision. So the choice of the right schemes and management of the portfolio of these schemes will have to be carefully chosen and planned with the help of the financial planner. Strike a balance between the schemes you chose to invest in so as to avert or minimise the risk and balance the gains.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more