Earning ₹1 lakh a month? Here’s how you can
reach ₹1 crore faster.
Start by making a clear monthly budget. Break your salary into simple categories — essentials like rent, groceries, and bills; savings and investments; and personal spending. This will help you control expenses and make sure a big chunk of your income is actually growing for your future.
Break your ₹1 lakh monthly income into
three simple parts:
• Living
expenses: rent, utilities, groceries, and transport.
• Savings
and investments: money set aside to grow your wealth.
• Other
spending: entertainment, eating out, and non-essential purchases.
Try to save at least 30% of your income
(₹30,000). If you want to hit ₹1 crore faster, push this up to 40–50%.
Just parking money in a savings account
won’t get you there quickly. To grow faster, invest in high-growth options like
equity mutual funds, which can offer 12–15% annual returns (depending on the
market). The easiest way to do this is through a Systematic Investment
Plan (SIP), where you invest a fixed amount
every month.
If you’re open to taking some risk,
investing in stocks can deliver high returns. For safer, steady growth, the
Public Provident Fund (PPF) is a great choice — it offers tax benefits and
earns about 7–8% interest.
Another solid option is the National
Pension Scheme (NPS), which blends equity and debt investments while also
giving you tax savings.
By investing around ₹30,000 every month,
you can grow your wealth significantly thanks to the power of compound
interest.
To boost your savings further, reduce your
taxable income. Use tax-saving tools like Equity-Linked Savings Schemes (ELSS),
PPF, NPS contributions, and claim deductions on health insurance premiums and
home loan interest.
This approach frees up more money to invest
toward your ₹1 crore goal. Look closely at your spending habits and see where
you can cut back — reduce dining out, limit entertainment expenses, and avoid
impulse purchases. Choose budget-friendly vacations or keep them to once a
year.
Before you start making big investments,
build an emergency fund worth three to six months of living expenses. This
safety net will help you handle unexpected events, like medical bills or a job
loss, without touching your long-term savings.
Track your progress regularly — review your
savings and investments every six months. If they’re performing well, you might
reach your goal ahead of time.
To speed things up, focus on increasing
your income. Ask for a raise or bonus, take up a side hustle, freelance work,
or upgrade your skills through certifications and training. Direct any extra
earnings straight into your investments to hit your target faster.
For example, if you save ₹40,000 a month
(40% of your salary) and invest it in something that earns 12% annually:
• Year
1: ₹5.76 lakh
• Year
5: ₹34.24 lakh
• Year
10: ₹87.92 lakh
• Year
13: ₹1 crore+
Save more or get higher returns, and you’ll reach ₹1 crore even sooner.
