Investment: A salary of 1 lakh will create a fund of 1 crore, this is the right way to invest..

Earning and saving your earnings are two very different things. You must have often heard people say that I earn " much or I earn so much, but nothing is left at the end of the month. But, if your monthly salary is Rs 1 lakh, then you can raise it to Rs 1 crore. For this, you will have to make an investment plan and invest for 10 years.

How to achieve the target of Rs 1 crore
If you want to create a fund of Rs 1 crore in 10 years, then it is possible with the right planning and discipline. For this, first of all, you have to deposit a fixed amount every month. After that, according to the return, you will create a fund of crores. Suppose you invest in equity mutual funds, where you can get an average annual return of 12%. For this, you will have to invest about Rs 44,000 every month. If your monthly income is Rs 1 lakh, then this can be half your income. Initially, it may seem difficult, but it is possible with smart spending and planning.

When we earn more, we often move towards a luxurious lifestyle, like eating out, buying new gadgets, or taking expensive holidays. But keep in mind, every rupee saved today earns for you in the future. Limit your essential expenses to 40-50% of your income. Save 10% for an emergency fund. Invest the rest of the money. Financial experts advise that you first invest, then spend.

Choose the right investment option.
Now the thing is that you have to invest for 10 years. But it is important to know where to invest. Equity mutual funds and index funds are the best options for 10 years. These can beat inflation and give good returns in the long run.

Keep increasing SIP
Apart from this, as your income increases, increase your investment as well. Increase your SIP by at least 10% every year. For example, if you start with Rs 50,000 per month and increase it by 10% every year, you will get the benefit of compounding. With this, you can achieve the target of Rs 1 crore in less time, and the pressure of investment in the future will also be reduced.

Monitor the portfolio
Check the progress of your investment at least once a year. If needed, rebalance your portfolio, i.e., adjust the funds. However, do not make frequent changes, because discipline is what creates wealth, there should be no constant manipulation.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.