Motivating people to save money and invest it in some scheme where they can generate a good retirement corpus is not easy, specially if their monthly earnings are low. They may think that even if they save a little every month, how will it make any difference in their lives? Will it be sufficient to improve their life standards? Will it be enough to help them create a decent retirement corpus? They think that saving is a rich man's job, or the one with the fat monthly paycheque. But if anyone thinks that saving is related to your monthly income, it's not right! People with higher incomes also struggle with saving money and making investments. In this write-up, we will tell you a formula that may not only help you save money, but if implemented in the right direction, it may also help you become a crorepati even with a monthly income of Rs 20,000. Know how.

Saving Rule

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Financial experts also believe that saving is a habit; no matter what your income is, you should definitely save it. Also, the saved money should not be kept at home; it should be invested because the invested money grows with time.

But in such a situation, the question arises: how and how much should I save? The financial rule says that every person should save 20 per cent of their income at all costs.

How much to save in salary of Rs 20,000

Suppose you earn Rs 20,000 per month, then 20 per cent of your income is Rs 4,000. According to financial rules, you should save Rs 4,000 every month and meet all the expenses and needs of your household with Rs 16,000. You should invest these Rs 4,000 at all costs and continue this investment for a long time.

Where to invest?

Although many investment options are available today, mutual funds are also considered very good for investment. By investing in it through the Systematic Investment Planning (SIP) method, you may add a large fund in the long run. Experts believe that the average return in SIP is up to 12 per cent, which is higher than many of the fixed income options.

Suppose you invest Rs 4,000 every month in SIP and continue this investment for 28 years, in 28 years, your total investment will be Rs 13,44,000, and you will get Rs 96,90,339 as long-term capital gains. In such a situation, you will get a total return of Rs 1,10,34,339 in 28 years, and if you continue this investment for two more years, i.e., 30 years, you can add up to Rs 1,41,19,655 in 30 years through SIP.