Daily Saving Plan: A big fund can be created by saving Rs 50 every day. Know how and with the help of which options small savings can be converted into lakhs and crores.
Small Savings Big Returns: If you think that thousands and lakhs of rupees are needed every month to create a big fund or become rich, then you should change this thinking today itself. Even Rs 50 in your pocket can make you a millionaire or millionaire in the future. If you start saving just this much money from your daily expenses, then after time you can create a big fund. Let us know how this is possible and what you will have to do for this…
How much does saving Rs 50 per day mean in a month?
Saving Rs 50 daily means you are saving around Rs 1,500 every month. This amount may not seem very big, but when it is invested in regular investments, the benefits of compounding start appearing. This compounding can turn your small savings into big funds in the long run.
Saving alone will not suffice, investment will have to be done
Often we save money and keep it at home or leave it in a normal bank account. This is where the biggest mistake happens. The money kept at home does not increase with time, on the contrary, its value decreases due to inflation. If you add Rs 1,500 per month to your household, after 20 years you will have only Rs 3,60,000. For this much money, after 20 years, you may not be able to buy even half of the things you buy today. Therefore, money should not just be saved, it should be put to work i.e. invested.
Where to invest Rs 50 daily to get maximum benefit?
1. Risk-free government option
If you want that not a single penny of yours should go anywhere and get full government guarantee, then you can open RD (Recurring Deposit) or PPF (Public Provident Fund) in a bank or post office. In this you get 7% to 7.5% interest every year. If you deposit Rs 1,500 every month for 15 years, your total deposit will be Rs 2.70 lakh, which after adding interest will reach around Rs 4.80 lakh.
2. Smart way to grow money fast
If you want to grow your money fast by taking little risk, then SIP (Systematic Investment Plan) can be the best option. This means that every month on a fixed date, Rs 1,500 will be automatically deposited into the mutual fund from your bank account. In the long run, mutual funds can comfortably give an average annual return of 12% to 15%. By compounding from here, your daily Rs 50 can turn into lakhs and crores.
How big a fund can be created through SIP by saving Rs 50 daily?
One can become a millionaire by saving Rs 50 daily. This can happen through the magic of compounding. This means that you not only get interest on your deposited money, but also ‘interest on interest’. This makes your money grow faster over time. If you invest Rs 50 every day i.e. Rs 1,500 per month in mutual fund SIP and calculate 15% annual return, then see where your money can reach in how many years…
| Year | how much money was deposited in total | How much fund will be created based on 15% return (estimated) |
|---|---|---|
| 10 years | ₹1,80,000 | ₹3,94,527 |
| 15 years | ₹2,70,000 | ₹9,24,548 |
| 20 years | ₹3,60,000 | ₹19,90,610 |
| 25 years | ₹4,50,000 | ₹41,34,841 |
| 30 years | ₹5,40,000 | ₹84,47,656 |
Source- SIP Calculator
How to start saving?
- Keep an eye on wasteful expenditure. From today itself, think about where Rs 50 can be saved a day. This can be done easily by reducing cigarettes, junk food or unnecessary online shopping.
- Complete KYC. Create a free account with your PAN card and Aadhar card on any good banking app or trusted investment app.
- Set up Auto-Pay. Choose the SIP date of the beginning of the month, so that Rs 1,500 gets automatically invested as soon as the salary or pocket money comes.
Disclaimer: This article has been written only for the purpose of general information and financial awareness. Investments in mutual funds, SIPs and stock markets are subject to market risks and the returns given are an estimated figure. Before making any investment or starting any plan, understand your personal financial situation and consult a certified financial advisor.