Secure Your Future: Invest 170 Rupees Daily for Millionaire Wealth in FD, PPF, or Mutual Fund

Building Wealth through Regular Savings

Today, due to the increasing cost of living, saving money has become challenging for many people. Those who aspire to earn in various ways may find it difficult. If you aim to become a crorepati (a person with a net worth of at least 10 million), you’ll need to save just Rs. 170 daily from your earnings. If you start this at the age of 25, saving around Rs. 5,000 per month, you can accumulate a significant amount by 2024. To achieve this, consider investing your fixed deposit (FD) or Public Provident Fund (PPF) or any mutual fund.

Start Saving Early to Accumulate Substantial Wealth

According to Expert, starting savings early is crucial as it allows your money to grow more significantly over time. If you are 20 years old and save Rs. 170 daily from your income, setting aside Rs. 5,000 monthly, it won’t be a challenging task. You can invest this savings amount in FD, PPF, or any mutual fund.

Achieve Over Rs. 1 Crore with FD Investments

Investing Rs. 6 lakhs in an FD for 10 years can yield returns of approximately Rs. 11,43,335. If you continue this for 40 years, your returns can reach Rs. 24 lakhs, and over time, it may exceed Rs. 1 crore. This investment strategy can be achieved every 10 years.

PPF Investments Yield Over Rs. 1.35 Crore

If you invest Rs. 6 lakhs in PPF for 10 years, you can expect returns of Rs. 8.75 lakhs. Over 40 years, your returns can surpass Rs. 1.35 crores. PPF allows for consistent, compounding returns, especially for long-term investments.

Mutual Funds – Attain Over Rs. 15 Crore

Mutual funds, particularly through systematic investment plans (SIPs), are popular for long-term wealth creation. Investing Rs. 5,000 monthly for 10 years can yield Rs. 13.9 lakhs in returns and Rs. 15.7 crores over 40 years, making it a powerful tool for accumulating substantial wealth.

Post Office RD Scheme for Small Savings

Even small savings in the Post Office RD scheme can be effective. If you save Rs. 5,000 monthly for 5 years, you can accumulate Rs. 3 lakhs. With an interest rate of 6.70%, you can expect returns of Rs. 56,830 in 5 years and Rs. 3,56,830 over the maturity period. In 10 years, you can potentially receive Rs. 8,54,272.

RD Scheme Loans and Their Benefits

Post Office RD scheme also offers the benefit of taking loans against the accumulated amount. You can avail a loan of up to 50% of the total deposited amount. The interest rate on this loan is just 2% higher than the RD scheme’s interest rate. This feature can provide additional financial flexibility to investors.

Secure Your Retirement with NPS (National Pension System)

After saving Rs. 100 daily for retirement, receive a pension of Rs. 57,000 post-retirement. If you start saving Rs. 100 daily from the age of 25, according to the NPS calculator, you’ll accumulate Rs. 1,14,84,831 by the time you reach 60. Buying an annuity with the entire amount will provide a monthly pension of Rs. 57,412, while purchasing it with only 40% will result in a monthly pension of Rs. 22,970. Additionally, after retirement, you will receive a lump sum of Rs. 68 lakh, with an annual interest of up to 10%. The eligibility age for NPS pension is 60, and being a member for at least 10 years is necessary to avail the pension.

Financial Planning Rule: 50:30:20

Expert suggests adopting the 50:30:20 rule for financial planning. This rule ensures the safety of your savings and protects you from market risks. Allocate 50% of your income to living expenses, household expenses, and necessities, 30% for entertainment, travel, and leisure activities, and 20% for savings to meet short, medium, and long-term goals.

Story of a Janitor Who Became a Millionaire

The famous American author Morgan Housel recounts an incident from his renowned book ‘The Psychology of Money.’ In a small American town, a janitor passed away at the age of 92, making headlines in both Indian and international newspapers. His total wealth at the time of death was 58 crore rupees. He left 15 crores for the education of his grandchildren and donated the remaining 43 crores to charity. How did a janitor amass such wealth? According to Morgan, he led a simple life and invested wisely, creating a significant net worth.

The Art of Earning and Managing Money

Morgan emphasizes in his book that understanding how to manage your money is crucial to becoming wealthy. The skill of earning money is a soft skill, and anyone who learns it can succeed financially. It is essential to understand the stock market, practice market prediction, and familiarize yourself with business terms. Learning about stocks, conducting homework, understanding business variations, and acquiring financial literacy are key to financial success. Patience and seeking financial advice are also vital components of financial literacy.