I am a billionaire. Are you? Ofcourse you are.
People generally consider being billionaire means having a lot of money. In fact it is True, but you also may be billionaire not in term of money but having integrity,honesty,selfrespect, having lovely parrents, faithful friends and so many things.
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But money is also necessary because it fulfils our big needs other than food and clothes ,which can not be avoided like child education, child marriage ,buying home.
By Money you can also achieve your wants like having big car, foreign tour, tention free retirement, helping to needy people in your society or donation to orphan charity which gives you happiness.
For all these , you need more money and in first glance it appears impossible.
But pause a while and re-think.Here you will observe that you may have more than 10 years to achieve each goal.
Today, if you start a SIP even with small amount for each goal separately in a good selected fund then your future needs can be easily achieved, because SIP works on the priciple of Power of compounding and in calculation of compounding interest TIME is the most valued factor(exponential),which you have . Means you will get more compounded value if you have invested for more time.(See magic of Compounding).
Lets see how much monthly SIP amount will be required for each goal.
1.Child education: Rs.40 Lac
If your child's age is 5-10 years then you have 15-10 years when he/she will be enrolled for higher education and you may need more money say Rs.40 Lacs comparing to present education cost(Considering 6- 7% inflation rate).
If you start Rs.5500 monthly SIP for 15 years or invest
Rs.4 Lac one time with expected 17% return and stay invested for 15 years then you will get Rs 40 Lacs and can easily the bear cost of providing well education to your children for their bright future.
2. Child marriage: Rs.30 Lac
Similarly for a child of age 5-10 years have 25-20 years of getting married( Considering 30 years for marriage).If you expect Rs 30 Lac (By thinking today's expenditure) will be required for their marriage then it can be easily achieved by monthly SIP of Rs Rs.800-1200.
3.Buying Home: Rs.60 Lac
Suppose you are a serving personal and planning to buy a home/plot to settle in your native town after retirement and you have a 20 years of service .
If the expected cost of plot/home is Rs.60 Lac assuming present cost is Rs.15 Lac and going up 7 % each year (i.e inflation rate.)
Then by setting a monthly SIP of Rs.3500 or one time investement of Rs.2.6 Lac and staying invested for 20 years can be achieved the goal of Rs.60 Lacs.
4. Buying Car: Rs.20 Lac
If the present cost of a new model car is Rs.20 Lac (approx) and you got a job at the age of 22-25 year and getting married at 30 year then you have approx 10 Year when a car will be actually required considerig the need.
By a monthly SIP of Rs.7000 you can achieve this goal(Since time is less so amount is more).Not only this your payment also increases as your length of service increases and if you Step -Up your SIP amount by 10% annualy then it can be achieved in 8 years when you are going to get married and enjoying young life. Same way you can plan for your many future wants and needs.
Conclusion:
✅Child education Rs 40 Lac:SIP Rs.5500/month
✅Child marriage Rs30 Lac:
SIP Rs.800/month
✅Buying Home Rs60 Lac:
SIP Rs.3500/month
✅Buying Car Rs 20 Lac:
SIP Rs 7000/ month.
Save the money( See How to save money),start the SIP and reach to your goal comfortably. since a right investment makes your life comfort.
๐Free SIP guide by expert
For illustration purpose only
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