In the case of investment, just follow this rule, and you will earn a lot of money. You will never have to worry about money.
Money is your friend who supports you even in bad times. Therefore, whether you earn less money or more money, make sure to develop the habit of saving and invest the savings somewhere. This habit of saving and investing will secure your future. But the question is how much money should be saved and where should it be invested. For this, there is a popular formula that has been prepared by financial experts. Just follow this formula in the case of saving and investing, then see how you earn a lot of money.
There is a financial rule of 50-30-20 for how much percent of your income you should spend and how much percent you should save. If you understand and apply this rule, then understand that you have done half the preparation for your future. This formula can do magic in your life in terms of money. Understand how-
According to this formula, out of the money you earn, you should spend about 50% of it on essential household expenses like ration, clothes, house rent, etc. You can spend 30% on fulfilling your hobbies, like you want to watch a movie with family, want to travel, want to go shopping, or any work that is not very important, you just want to do it for a hobby. If you are short of funds in household expenses, then also you can manage from this 30% amount. In this way, keep 80% for fulfilling your expenses and hobbies. Now save the remaining 20% at all costs. You have to invest this 20% by saving it.
Suppose you earn 60000 rupees every month. In such a situation, divide your salary according to the rule of 50-30-20. 50 percent of 60 thousand is 30,000 which will be used for essential household expenses. 30 percent is 18,000, with which you can fulfill your hobbies and 20 percent is 12,000 which you have to save at all costs. In this way, you have 30,000 + 18,000 = 48,000 rupees, which you can spend anywhere according to your wish, but you have to save 12,000 rupees every month at all costs.
Divide the savings money into two to three parts. Start SIP with one part. You can accumulate a lot of money in the long term through SIP. If you run a SIP of 6,000 for 25 years, then you can save Rs 1,13,85,811 at an average return of 12 percent. Now, with the remaining Rs. 6,000, you can start a short-term SIP or invest in any other scheme with guaranteed returns. If you want, you can also take the help of a financial expert in matters of investment.
