Do you want to become a millionaire before the age of 50? So start saving so much money from now on


Why wait until retirement to become a millionaire, the trend nowadays is Early Retirement. The current generation of young people is very conscious about saving and retirement planning, they do not want to work till the age of 60, but want to save enough money for 45 or 50 years to leave the job and spend the rest of their life enjoying themselves.

If this is what you are thinking then you should start investing in mutual funds from today as you cannot achieve your aggressive goals with traditional savings schemes, for which you have to take a little risk. If you want to retire at the age of 60 or 45, you will also need a higher return on investment, for which equity mutual funds are a good option. Because when you are young you can take even more risk.

If you want to raise Rs 1 crore or Rs 2 crore at the age of 45 or 50, you have to do these two things.

  1. You need to start investing at the age of 20-30.
  2. As income grows, so does investment.

When you are young, you are more likely to take risks. Most of us start a job or earn at the age of 20. You can start SIP in mutual funds from this age of Rs.500. Keep increasing it gradually. This will be a long term investment so you will not have to deal with the ups and downs of the stock market. Equity mutual funds typically offer 12 to 15 percent returns in the long run.

Example number 1

So let me tell you that if you started SIP at the age of 25 and aim to achieve Rs 1 crore at the age of 45, you will have to save and invest Rs 11,000 a month i.e. Rs 367 a day in SIP. Suppose you get an average return of 12% over this 20 year period.

Age 25 years
Retirement 45 years
The duration of the investment 20 years
Monthly investment 11,000
Estimated return 12 percent
The amount of investment 26.4 lakhs
Total return 83.50 lakhs
Total amount 1.09 crore

Example 2

Assuming you are 30 years old and want to retire at the age of 45, you have to deposit Rs 663 per day i.e. Rs 19,900 per month in SIP. So when you turn 45, you will have Rs 1 crore in your hand. Now you are starting to invest in 30 years instead of 25 years, so your investment amount has almost doubled but the final amount is only Rs 1 crore. The later you start, the less you get the benefit of compounding.

Age 30 years
Retirement 45 years
The duration of the investment 15 years
Monthly investment 19,900
Estimated return 12 percent
The amount of investment 35.82 lakhs
Total return 64.59 lakhs
Total amount 1 crore

Example 3

Now imagine what happens if you just start investing from the age of 20. In such a situation, you will have 25 years longer to invest, you will be able to get more benefit of compounding. To get Rs 1 crore at the age of 45, you have to do a monthly SIP of Rs 5300, which means you have to save Rs 177 per day.

Age 20 years
Retirement 45 years
The duration of the investment 25 years
Monthly investment 5300
Estimated return 12 percent
The amount of investment 15.90 lakhs
Total return 84.67 lakh
Total amount 1 crore



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