Become a millionairePhoto by Karolina Kaboompics on Pexels

Investing just Rs 7500 every year : Will you believe that you can become a millionaire by investing just Rs 7,474 every month? If you start investing Rs 7,474 every month for the next 25 years that gives 10 percent return, then believe me you will become a millionaire. This is actually possible, because that’s how investing and the power of compound interest work. Initially Rs 1 crore seems like a huge amount, For most of us it is. But, as soon as you start breaking the problem down into smaller parts, the goal actually starts to seem achievable. You have the option of putting your money in a deposit that can earn 10 percent or look for a mutual fund that has a history of delivering average returns of 10 percent over the long term. All you have to do is contribute (Investing just Rs 7500 every year) regularly. It is simple and not difficult to follow. This will definitely help you achieve your goal.

How you will become a millionaire by Investing just Rs 7500 every year

Target century by one run

Taking the example of cricket to become a millionaire when a batsman scores one and two runs then the same run helps in scoring further century. Similarly, your contribution of a few thousand will prove helpful in becoming a millionaire. Today, one can invest in mutual funds every month through Systematic Investment Plan (SIP). Especially for those people. Who get monthly salary. If you think Rs 7,474 per month is too much, then you can start with Rs 5,000. You can increase it by Rs 2,500 every five years for the next 20 years and thus become a millionaire.

Keep increasing the amount at every interval

If you invest Rs 5,000 for the first five years. Add Rs 2,500 over the next five years, making Rs 7,500 every month for 5 years and Rs 10,000 in the next five years. You will invest Rs 12,500 in the last five years. Mathematically this is both possible and practical. You are simply increasing your initial investment by 50 percent every five years. The important thing is that you should keep investing regularly and remain invested till you reach the goal.

Be patient for a long time

We don’t have as many millionaires as we could have, because often investors who start out lose patience after a few years. This is because they do not get the results they want to see. They should think about their investments like their own child. At first they are small and remain so for several years before becoming adults. This does not mean that you should stop feeding them or give up any expectations. For Example- If your child is weak in any subject in school, you consider giving him coaching. You can do the same for your investments also. In a year when your income is low or the stock market is sluggish, you can compensate by working harder.

Have confidence in investment

  • Under no circumstances should you abandon your investments. One must have faith in investment. Must remain invested for the entire course. The good thing about mutual funds is that they are flexible, well regulated.
  • The types of funds and their past performance provide investors with many options in terms of track record. Being well regulated you don’t have to fear about losing your money or getting scammed.
  • The regular investment (Investing just Rs 7500 every year) model of SIP makes mutual funds easier for a large number of people. You can use this method to make investing a habit. So, what are you waiting for, get started and be on your way to becoming a millionaire by investing today.

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