New Delhi. Many people doing jobs or business dream of becoming a millionaire but are never able to fulfill it. Becoming a millionaire is difficult but not impossible. You must have seen that some people rise from rags to riches within 10-15 years and their earnings reach crores. Hard work is necessary to earn money but if you work smart then it can make you a millionaire in a short time. You can become rich by making smart investments of the money earned from job or business.
Here we are telling you about a trick of smart investment by adopting which you can become a millionaire. If you are 25 years old then this will make you a millionaire by the time you are 40. Know what you have to do for this.
A great plan for systematic investment
Even if you find systematic investment and the returns it offers less today, but over time it can earn you many times more profit. For this, you will have to save as much money as possible and invest it. You will have to invest this in a scheme that gives you huge returns over time. In such a situation, mutual funds can be a great option for you. You can make yourself a millionaire in just 15 years by investing in it through SIP with the formula of 15X15X15.
Since SIP is market linked, you do not get a fixed return, but over a period of time you can get a return of 12-15% or even more. In SIP, you get the benefit of compounding and wealth creation happens many times faster.
What is the formula of 15X15X15?
According to the 15X15X15 formula, you have to invest Rs 15,000 every month for 15 years in a scheme that gives you 15 percent interest. We are talking about investing in SIP here because such returns are currently only possible in SIP. If you invest in SIP by adopting the 15X15X15 formula, then the total investment in 15 years will be Rs 27,00,000 at the rate of Rs 15,000 per month.
If you get 15% interest on this, then in 15 years you will have a total of Rs 74,52,946. In this way, by combining the invested amount and the interest, a fund of Rs 1,01,52,946 will be ready in 15 years. However, if you get a return of 12%, then it will take two more years i.e. 17 years to become a millionaire. In this way, in 17 years, your fund of Rs 1,00,18,812 will be ready.
The benefit of starting investing early
If you want to become a millionaire soon, then you will have to start investing early. To invest Rs 15,000 in SIP every month, your income should be at least Rs 70,000-80,000 per month, so that you can save money for investment while meeting household expenses. If your salary is Rs 80,000, then according to the financial rule, you should invest 20% i.e. Rs 16,000. In such a situation, you can easily invest Rs 15,000.
Tags: Business news, Personal finance, Planning your finances, Systematic Investment Plan (SIP)
FIRST PUBLISHED : July 27, 2024, 12:51 IST