Want to become a millionaire? 'Golden Rule' for those earning a salary of 1 lakh! Invest like this, and get a strong fund of ₹ 1 crore?

You can become a millionaire even with a salary of 1 lakh. Know the golden rule of smart investment, with which a strong fund of ₹ 1 crore can be created with the right planning and discipline.

If you invest according to your monthly salary, you can become rich. Because you cannot make 1 crore rupees quickly by just saving money in a bank account. But if your monthly salary is 1 lakh rupees, then you have already reached halfway. For this, by adopting a little right planning and financial discipline, becoming a millionaire is not as difficult as it seems.

First step: Make a budget

First of all, divide your salary of 1 lakh rupees into a list of expenses and investments -

Necessary expenses:

Rent, electricity-water, grocery, transport.

Savings and investment:

The part that will create your future wealth.

Other expenses:

Entertainment, eating out, hobbies etc.

Just keeping money in the bank account will not make you a millionaire quickly, yes, investment is necessary to increase wealth quickly.

Equity Mutual Funds – 12–15% annual return is possible through SIP.

Stock Market – High returns can be obtained with little risk.

Public Provident Fund (PPF) – 7–8% interest and tax benefits.

National Pension Scheme (NPS) – Balanced investment of both equity and debt.

So if you invest Rs 30,000 every month, then your wealth will grow rapidly by taking advantage of compound interest.

Save tax, increase investment

Apart from this, you can increase investment by saving tax. Actually use tax saving schemes like ELSS, PPF, NPS, health insurance and home loan interest exemption. By doing this, your taxable income will be reduced and more money will be left for investment.

Control expenses

If you want to become a millionaire in the future, then it is important to control expenses. Cut down on frequent eating out, unnecessary shopping and unnecessary entertainment. Along with this, choose affordable options instead of expensive holidays and plan only once a year.

Emergency fund is necessary

Before any big investment, create an emergency fund equal to 3–6 months of expenses and keep it aside. Actually, this will keep your long-term investment safe in case of medical emergency or job loss.

Ways to increase income

Apart from this, find options to increase money. For this, ask for a salary hike or bonus, do side hustle or freelancing, increase your earning capacity with new skills and certification. Every extra income will directly accelerate your goal of becoming a millionaire.

Magic of Compound Interest

Suppose you save Rs 40,000 (40% of your salary) every month and invest in a fund that gives 12% annual return, then the result will be:

In 1 year: ₹5.76 lakh approx

In 5 years: ₹34.24 lakh approx

In 10 years: ₹87.92 lakh approx

In 13 years: ₹1 crore+ approx

So if you increase the amount of savings or get better returns, then the target of 1 crore can be achieved even sooner. (Note: This article is for information only and should not be considered as investment advice in any way, it is suggested to consult financial advisors for investment)

5 FAQs

Q1- Is it possible to become a crorepati with a salary of ₹1 lakh?

Yes, with the right investment strategy and discipline, a fund of ₹1 crore can be created even with a salary of ₹1 lakh.

Q2- How much investment is required every month to create a fund of ₹1 crore?

A SIP of around ₹25,000 to ₹30,000 can achieve a target of ₹1 crore in 15–20 years (at an estimated return of 12%).

Q3- What is the right formula for investing in salary?

Follow the 30-30-40 formula: 30% for expenses, 30% for investments and 40% for savings and lifestyle.

Q4- Which investment options are best?

SIP, mutual funds, PPF, NPS, term insurance and emergency funds are good options.

Q5- Can one become a crorepati only by savings?

No, not only by savings. You have to make regular and strategic investments only then you can become a crorepati.