Middle class people make Rs 1 crore first, then 1 to 2, and 2 to 4 crores, it won’t take time.

Investment Tips: If you have one crore rupees, you will be called rich. Today millionaires are not considered rich but middle class. If you invest that one crore, you get 15% annual return on that investment… so your money will grow from one to 2 crores in next 5 years. Yes, this is the magic of compounding. If we talk a little further, after having Rs 2 crore, if you get the same profit in the next 5 years, you will have Rs 4 crore. That is Rs 1 crore becomes Rs 4 crore in 10 years. But the biggest problem is where will the middle class get Rs 1 crore to invest?

There is an answer to this question. According to cleartax.in, if you apply the formula of 15*15*15 in investments, you can own Rs 1 crore in 15 years. Let’s understand a little about this formula. You have to invest Rs 15,000 per month in a SIP. You have to operate this SIP for 15 years. If you earn a return of 15% per annum during this period, after 15 years you will have a fund of Rs 1 crore.

Also Read – Best Mutual Funds: These 5 Schemes Will Make You Happy, Double Your Money In Three Years

Where do people go wrong in saving?
This is not the first time we are sharing this formula. In fact, investment advisors around the world have been telling people this for years. You may have heard it, but never paid attention to it. Actually, people are not managing their earnings properly. This is where the whole math goes wrong. It will be better to understand this with an example.

Suppose, your monthly income is Rs.50,000. After earning a salary, the first thing you should do is separate your essential expenses. Pursue hobbies like shopping, watching movies, dining out, and more. Then if there is anything left, we plant it. But believe me, investment advisors get this method very wrong and ordinary people have been following it for centuries.

So what is the right formula for saving?
If you really want to make money, you have to change the math of managing your budget. Investment advisors point this out. Savings = Income – Expenses not there. The correct formula is: Expenditure = Income – Savings, this means that you should first set aside a portion of your income for savings. For example, if you want to save Rs 15,000 per month, invest Rs 15,000 as soon as you get your salary. After that manage your household expenses from the remaining Rs 35,000.

To manage household expenses, you need to see where money can be saved. You can reduce your expenses which will not make any difference in your life. This will be the right preparation for the future. By following this formula, you can invest Rs 15,000 per month. Funds up to Rs 1 crore will be available to you over the next 15 years.

(Disclaimer: Mutual fund investments are subject to market risks, read all scheme documents carefully. If you want to invest in any fund, please consult a certified investment advisor first. (News18 will not be responsible for any profit or loss you may incur.)

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