Everyone wants to live a good life by eliminating financial problems in life. For this, it is necessary for you to have a good amount of funds and the way to collect funds is investment. The sooner you start investing, the sooner you can accumulate a good amount of funds. But for this, it is important to choose that scheme from where you can get bumper returns. Know here about one such trick or a special formula which can make you a millionaire by the age of 40.
Becoming a millionaire is not rocket science, for this, you just have to adopt the right investment strategy. In such a situation, the formula of 12-15-20 can be very helpful for you. In this, 12 means 12% return, 15 means investment will have to be made for 15 years and 20 means Rs 20,000 will have to be invested every month. With this formula, if you start investing at the age of 25, you can make yourself a millionaire by the age of 40.
Now the question arises of where to invest, from where you can get a 12 per cent return. The answer is SIP. You invest in mutual funds through SIP. Mutual funds are linked to the market, hence its returns are not fixed, but financial experts consider their average return in the long term to be 12 per cent. Sometimes it can be more than this.
If you deposit Rs 20,000 every month in mutual funds through SIP, you will invest a total of Rs 36,00,000 in 15 years. According to the SIP Calculator, you will get Rs 64,91,520 as interest at the rate of 12 per cent. In this way, after 15 years you will become the owner of a total of Rs 1,00,91,520.
Another thing that comes to mind that how will Rs 20,000 be available for investment. So let us tell you that if your salary is between 65 to 70 thousand then you can easily withdraw Rs 20,000 per month. Financial rules say that every person should invest at least 30 per cent of his earnings. If you earn Rs 65,000 per month, then 30 per cent of it is Rs 19,500 i.e. around Rs 20,000. In such a situation, you can easily withdraw this amount for investment.
Disclaimer: The above article is for information purpose only. The author is not recommending any particular investment method. Please check with your investment advisor and experts before investing. The publisher and/or author will not be responsible for any loss of money incurred.
