How to make 5 lakh rupees on a 25k salary? No one will tell you these tricks!

Smart Investment Tips: If your salary is ₹25,000, with proper planning and discipline, you can easily build a corpus of ₹5 lakh. By managing your money smartly, you can easily achieve your goals. 

Best Saving Plan for 25,000 Salary: If your salary is 25,000 rupees, you might often wonder how to make significant savings or investments with such a small amount. If so, you don't need to worry too much. 

With proper planning and discipline, you can easily build a corpus of 5 lakh rupees in just a few years. This doesn't require much effort; you just need to manage your money wisely and choose the right investment options. Let's explore how this is possible and what you should do...

Understand your budget and plan your savings

First, keep track of your monthly expenses. If your salary is between 20,000 and 50,000, try to save at least 20-30% each month. For example, if your salary is 30,000 and you save 25%, that's 7,500 rupees per month.

Start with Fixed Deposits and Savings Accounts

If you're a beginner at investing, investing in fixed deposits (FDs) and savings accounts is a safe option. Your money is protected and you earn a small amount of interest. For example, if you deposit ₹5,000 into an fixed deposit every month, it will grow to approximately ₹60,000 over a year.

Start SIP in Mutual Funds

SIP (Systematic Investment Plan) is an easy way to invest money. You can invest 2,000-5,000 rupees every month in a SIP. This provides the benefit of compounding over the long term. 

For example, if you invest 3,000 rupees every month in a mutual fund offering a 10% annual return, you will accumulate approximately 2,34,247 rupees in 5 years.

Work on extra income options

If you want to build a corpus of ₹5 lakh quickly, explore additional income options beyond your salary. For example, freelancing, online tutoring, part-time jobs, small businesses, or handmade products can help you grow your corpus quickly.

Expense control and smart shopping

It's important to keep track of your expenses every month. Choose affordable options, take advantage of discounts and cashbacks. Most importantly, understand the difference between need and greed. Spend only according to your needs.

By when can a fund of Rs 5 lakh be created?

If you earn a salary of ₹25,000 and save ₹7,500 per month, your savings in one year will be approximately ₹90,000, approximately ₹2.7 lakh in three years, and you'll benefit from SIPs and FD interest. 

This can lead to a corpus of approximately ₹5 lakh in five years. If you add a little more savings or extra income, this goal can be achieved even faster.

Keep your investments separate

According to financial experts, don't rely solely on fixed deposits (FDs) or SIPs for investment. Invest up to 40% in fixed deposits (FDs) or savings accounts, 40% in mutual funds (SIPs), and 20% in additional income or small businesses. This will keep your money safe and give it the opportunity to grow.

Discipline is most important

Financial experts say that simply saving money isn't easy, but with consistent discipline, you can easily achieve your financial goals. It's crucial to continue saving and investing every month.

Disclaimer: This article is for general information only. The investment or savings advice provided herein does not constitute a financial guarantee of any kind. Please consult your financial advisor before investing.