Financial Freedom: how to build a corpus of Rs 3 crore with budgeting, SIPs, passive income, and the right investments..

Hearing a salary of ₹3 lakh per month makes one feel that everyone's life is set. But in today's times, this salary doesn't provide financial freedom. What if you want to leave your job? Relying on a salary is like a "golden cage"—comfort, but not freedom. Financial freedom essentially means that passive income (earnings from investments) covers your expenses. For example, if your monthly expenses are ₹1 lakh, your passive income should be more than ₹1 lakh. So, let's understand how to achieve freedom with a ₹3 lakh salary.

Why isn't a ₹3 lakh salary enough?

In reality, in today's inflationary times, a high salary doesn't equal freedom. Yes, if you can't leave your job, it's a trap. Lifestyle inflation is also a problem. It's now accepted that even those earning ₹4.5 lakh live paycheck to paycheck. To achieve freedom, build assets that generate money, not just rely on your salary.

What is financial freedom?

Let us tell you that freedom means that your income should not be dependent on your job. Passive income (rent, dividends, interest) should cover your expenses. For example, if your monthly expenses are 1 lakh, you need a corpus of 3 crore rupees (using the 4% rule) that will generate 12 lakh rupees annually. In India, a tier-1 city (like Bengaluru) requires a corpus of 3-5 crore rupees.

How to achieve freedom with a salary of 3 lakh rupees?
1. Create a budget and control expenses
What to do: Follow the 50-30-20 rule—50% essential expenses, 30% desires, 20% savings.
Advice: Prevent lifestyle inflation and increase savings instead of increasing expenses as your salary increases.
Example: Save 60,000 rupees (20%) out of 3 lakh rupees.

2. Build an emergency fund
What to do: Keep 6-12 months' worth of expenses (18-36 lakh rupees) in liquid funds.
Advice: Pay off debt first, then build a fund.
Benefit: Don't feel stressed if you lose your job.

3. Build passive income assets
What to do?: Invest in SIPs, mutual funds, real estate, or dividend stocks
Advice: Assuming a 12% return, a 60,000-a-month SIP can generate 3 crore rupees in 20 years.
Example: A 3 crore fund with a 4% rule will generate 12 lakh rupees annually.

4. Increase income
What to do?: Learn skills, start a side business, or freelancing.
Advice: Reach 4-5 lakh rupees from 3 lakh rupees, but keep expenses under control.
Advantage: Saving more will help you build a fund faster.

5. Consult a financial planner
What to do?: Get a plan prepared by a CFP (Certified Financial Planner).
Advice: Change your mindset—control unnecessary things, not income.
Advantage: Minimize mistakes and keep your goals clear.
Calculation to achieve your target salary of 3 lakhs

Expenses:
Assuming 1 lakh, you need a fund of 3 crores (4% rule).

Time

: 3 crores in 20 years from a 60,000 SIP (12%).
Tip:
Build a fund of 50x your monthly expenses.

Mistakes to avoid:
- Always try to avoid debt.
- Follow an investment and savings plan that beats inflation (5-6%).
- Regularly review your investments and expenses.

Yes, a 3 lakh salary doesn't give you freedom if you don't have passive income. You can achieve freedom through budgeting, emergency funds, assets, increasing your income, and consulting a planner. 3 crores in 20 years is possible with a 60,000 SIP. Be smart, achieve freedom. (Note: This news is based on general information; you should save based on your expenses.)

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