Stop whining about low earnings! Plan this way, you will easily buy everything, stop crying of low earnings! Plan this way, you can easily buy the car from home

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Usually But we all keep meeting people who cry for less income. Maybe we can join their tribe. If you are worried about your low income and are not able to understand how dreams will be realized for the future, today we are trying to explain you through an example how you can easily fulfill your big needs with low income. You just have to plan for it.

Great example for low earners

Mohan is a working man. His monthly income is Rs 25,000 per month. He manages to save around Rs 5000 per month after monthly expenses. He wants to invest the savings for the future so that he can fulfill his dream of a house and a car. Mohan met a financial advisor for this. The advisor advises Mohan to invest through Systematic Investment Plan (SIP) for better returns. Let’s see what SIP is and how low income people can fulfill their dreams.

Increase SIP amount as income increases

Financial experts say every youth should start a SIP or two along with starting a job. Why does he invest only 500 rupees per month? As his income increased, so did his investments. Thus, if he starts investing at the age of 25, by the time he is 35 he will easily save up to buy a house and a car. SIP always gives great returns in long term. Over the long term, investors get the benefit of compound interest.

Small investment big savings

Investing through SIP may not seem attractive at first but it not only inculcates the habit of saving, but also gives better returns. This is how you can understand. If you invest Rs 1000 per month in SIP and it is getting 9 percent return, after 10 years you can get Rs 6.99 lakh, after 30 years you can get Rs 17.38 lakh and after 40 years you can get Rs 44.20 lakh. . That is, very little savings can make you a millionaire and millionaire.

What is Systematic Investment Plan (SIP)?

Investors’ interest in mutual funds has picked up sharply following the cut in interest rates on small savings schemes. Mutual funds are easily giving returns of 10 to 12 percent per annum. Investing in mutual funds is done through SIP. Investing through SIP also works on the principle of Recurring Deposit Account. SIP gives the freedom to make small investments instead of investing a large amount at a time. Some amount has to be deposited in SIP every month. SIP allows you to invest Rs 1000 in 5 places instead of investing Rs 5000 in a single mutual fund.

Why invest through SIP?

Disciplined Investment: SIP encourages disciplined investment. Depositing some amount every month does not affect your budget. A large amount accumulates over time.

Benefit of compound interest: Starting initial investment through SIP will yield higher returns as it offers compound interest. For example, if Sohan deposits Rs 1000 at the age of 30 and gets 8% return on it, he will get Rs 12.23 lakh at the age of 60. At the same time, Ram deposits Rs 1000 at the age of 35 and he also gets interest at the rate of 8%, then after reaching the age of 60 he will get only Rs 7.89 lakh. It can be seen that the difference of 50 thousand rupees in the beginning becomes more than 4 lakh rupees in the end.

Not affected by market volatility: By investing through SIP, you can manage your investments evenly during stock market downturns like bull markets. Investing through SIP excludes the cost of buying mutual fund units. Due to this, the risk in investment is reduced.

Investing is easy: Investing in SIP is very easy. For this, an enrollment form, ID proof has to be submitted along with the cheque. In mutual funds, the check is deposited on the date you provide and the share units are added to your account. You can avail bank auto debit facility for hassle free investment.

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