Skip to main content

How to become Crorepati by Avoiding few things once a Month

Best SIP Funds to Invest Online 

Confused? Let me first tell you that Rs 1.3 crore can be easily built if you and your family members start avoiding seven things, and that too, only once a month.

Don't worry, I am not curtailing your leisure; you can enjoy doing the same things you do now. These small things will not only bring discipline in your financial life but, more importantly, it will teach your children the value of money and help them become responsible citizens, first towards the nation and then for their family. It will not only save the country's natural resources, but also help your family deal with emergencies or achieve various goals.

In a month's duration, there may be various instances of us going out for a movie with our family or to a restaurant with our friends. Considering we do something of the sort every weekend of the month, if we continue doing so on three weekends and start abstaining on one weekend, the saved money will likely become a huge kitty over 20 years.


To make this possible, we must keep investing the saved sum in equity mutual funds. The beauty of compounding plays a critical role here, as you have been investing regularly, and that too in equity mutual funds, which are good instruments for the long term.

For the purpose of calculation, I am assuming a return of 15 percent, as a period of 20 years is quite long. Though returns from mutual funds are subject to market risk, it has been seen that in the long term, investments in mutual funds through SIPs are quite fruitful.


So what are these seven things that will help you build such a corpus?

1. Don't use your car on one Sunday:

Keeping yourself at home one Sunday a month will help you to get organized all your documents or investment papers, apart from giving your body some rest. The money saved on this Sunday, which would be around Rs 1000, if invested in an MF through SIPs, will become Rs 15 lakh in 20 years.

2. Avoid taking your car to work one day a month:

Here I suggest using public transport once a month. This will help, not only in keeping you connected with the ground, but also in being prepared for a time, lest it come, when you would need to do it every day. Like in the above-mentioned example, if you save Rs 1000 a month like this, it becomes Rs 15 lakh in 20 years.

3. Drop one movie a month:

You continue to watch movies but just reduce its frequency by once a month. A couple with two children easily spends nearly Rs 1,500 for one movie. If you invest in equity funds, this corpus could become as much as Rs 22 lakh in 20 years.

4. Give up one visit to the restaurant visit with family:

A middle class family on an average spends nearly Rs 1,500 for dinner or lunch when going out to relax and enjoy the food. Here again, I suggest you reduce the frequency by once a month, which again, translates to Rs 22 lakh in 20 years.

5. Drinking:

Drinking is injurious to health and I suggest one should never consume liquor. But if you are habitual and can't avoid it, at least reduce it by once a month and then try to increase the reduction in consumption. If you save Rs 1,000 a month, investing it in an equity fund through SIPs will result in the corpus expanding to Rs 15 lakh in 20 years.

6. Avoid impulsive purchases:

Online purchases have become dangerous for modern society. Yes, items are cheaper, but now, the ease of purchase on a mobile has been pushing impulsive purchases. Just by browsing on a mobile, various offers make individuals buy products with their credit cards. Although it allows you to buy goods now and pay for them later, the rate if interest charged is in excess of 36 percent per annum. Start avoiding such impulsive purchases. If you save an average of Rs 2000 a month, you could build a corpus of Rs 30 lakh in 20 years.

7. Avoid food wastage and reduce electricity bills:

Wastage of food is common in all families, irrespective of economic strata. If a family is aware and starts taking efforts to reduce food wastage, the Rs 1000 a month saved on this front will help build a corpus of Rs 15 lakh in 20 years. Start using refrigerators and microwave ovens, and be calculative while preparing a meal for your family.

Important results:

• The above small things shall add up to a corpus of Rs 1.3 crore in 20 years. The best part is that you continue doing what you do, just once a month lesser than you did before. You never know when this money might prove useful, or even necessary.

• You are bound to start spending quality time with family members, especially your spouse and children.

• Children start asking why you are dropping various activities once a month and this would be the most opportune time for you to teach them a lesson on the value of money and how small amounts saved could become a big corpus in the long term.

This shall inculcate a habit of saving among them and make them responsible citizens.



SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Debt Mutual Fund Dividends are Taxable

DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT.   The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now