Financial Planning: How to create a fund of Rs 10 lakh with a salary of Rs 30,000, how much time will it take..

Saving is extremely important these days. Financial difficulties can arise at any time. Only savings can save you from these financial difficulties. However, saving with a low salary is difficult. Many freshers or young people earn a starting salary of around 30,000 rupees.

Therefore, we have assumed a monthly salary of 30,000 rupees for calculations. Saving while meeting expenses with a 30,000 rupee monthly salary is difficult, but not impossible. First, let's understand how you can manage a 30,000-rupee monthly salary.

How to manage?
You can use the 50:30:20 formula for salary management.

50 percent - Use 50 percent of your salary for essential expenses. With a 30,000 rupee salary, you can use 15,000 rupees for essential expenses like electricity bills, groceries, rent, etc.

30 percent - You can use 30 percent of your salary for savings. You can use ₹9,000 from ₹30,000 for savings.

20% - The remaining 20% ​​can be used for hobbies or entertainment. Of the ₹30,000, you can use ₹6,000 for activities like watching movies, buying new clothes, etc.

How to build a corpus of ₹10 lakh from ₹9,000?

As we saw above, you can easily save ₹9,000 from a ₹30,000 salary. But don't invest the entire ₹9,000 in mutual funds. Invest ₹5,000 in mutual funds and the remaining ₹4,000 in RDs or other safe schemes. This balances your portfolio.

Now let's find out how much corpus you can build from mutual funds and RDs.

Invest Rs 5,000 in a mutual fund.
If you invest Rs 5,000 every month for 8 years, you will receive Rs 808,000 at a 12% return. Your principal alone will be Rs 480,000.

Invest Rs 4,000 in an RD.
Similarly, you can invest Rs 4,000 every month in an SBI RD for 6 years. At a 7.5% return, you will receive Rs 364,580 upon maturity. This way, you can easily build a corpus of Rs 10 lakh in just 8 years.

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