Saving Tips: What is the 50-30-20 formula for saving, which can make you a millionaire?
Many people believe that one cannot become rich by doing a job. You must have often heard motivational speakers saying that a job can only change your life. Today it is made of cabbage, tomorrow of ladyfinger, and the day after tomorrow of parwal. But, you can become rich only by doing business. But, you can become rich even by doing a job.
Becoming rich here means at least becoming a millionaire. To become rich from a job, your income should be at least Rs 20,000 per month. Then you have to follow the 50-30-20 formula.
Becoming rich means at least becoming a millionaire.
What is the 50-30-20 rule?
If you want to follow the 50-30-20 rule of money, then your salary should be at least Rs 20 thousand per month. This means that you have to spend 50 percent of your salary on your basic needs. This includes things like paying room rent, paying EMI, and bringing home ration. You can fulfill your hobbies with 30 percent of your salary. Like watching a movie, taking the family on a trip, or buying clothes.
Now 20 percent of your salary will be left, which will ultimately make you rich. Let us assume that you are a young man of 20-22 years. You have just started your career and your salary is only Rs 20 thousand. 20 percent of this will be Rs 4 thousand and Rs 48 thousand in a year. You have to invest this money in the long term. It can be the stock market, mutual fund, savings fund, FD, or anything where there is a possibility of getting good returns.
How much return can I get?
If your salary increases, you can also increase the investment amount along with it. The money left after necessary expenses can also be invested. Now let us assume that you have made an SIP (Systematic Investment Plan) of Rs 10,000 per month in a mutual fund. You got an average return of 15 percent. Accordingly, if you invest for 15 years, you will have to deposit the entire Rs 24 lakh.
On this, you will get a return of Rs 1 crore 28 lakh i.e. you will get a total of Rs 1 crore 52 lakh. If you make a fixed deposit (FD) of this amount, then after 15 years you will get approximately Rs 51 lakh. At the same time, one can get Rs 72 lakh in low-risk funds, Rs 1.74 crore in mid-risk funds, and Rs 3.68 crore in high-risk funds.
If the salary is less than 20 thousand...
If your salary is less than Rs 20 thousand, then it will be difficult for you to save in this era of inflation. You will not be able to meet your essential expenses. In this situation, you will have to increase your earnings. You can also do some part-time work, which will give you additional income. You can also earn money through the internet and social media.
However, for this, you must have some good skills. You can earn extra money by improving it only with the help of the internet. You just have to give some time for this. Once you have savings after essential expenses, you can invest it for the long term and take steps towards becoming rich.
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