How much of monthly savings should be invested?

Here’s a final rule of thumb you can consider: at least 20\% of your income should go towards savings. More is fine; less may mean saving longer. At least 20\% of your income should go towards savings. Meanwhile, another 50\% (maximum) should go toward necessities, while 30\% goes toward discretionary items.

What’s the 50-30-20 budget rule?

The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50\% for needs, 30\% for wants and 20\% for savings or paying off debt.

Should you invest Rs 5000 per month for 20-30 years?

There is absolutely no need to keep investing just the originally decided amount of Rs 5000 per month for 20-30 years. Your income would increase every year. So your investments too should increase accordingly. Isn’t it? Just imagine what would happen if you decide to go for a Step Up SIP? An SIP that increases every year in line with your income.

How to build Rs 1 crore by investing Rs 5000 monthly?

Did you know that by investing just Rs 5000 every month in equity mutual funds through a monthly Systematic Investment Plan (SIP) can create a corpus of Rs 1 crore in 15-20 years? This might seem surprising. But you can easily accumulate Rs 1 Crore by investing just Rs 5000 Monthly.

How much should I invest in SIP for 10 years?

And just notice this – If you invest Rs. 5000 per month via SIP for 10 years, you are actually just investing about Rs 6 lakh. But return you are getting is around Rs 12 lakh. It is double of what you originally invested over the 10-year period. And the longer you keep investing, the better the returns get!

How much should I invest in ELSS funds for 15 years?

Invest Rs.5000/- in good mutual fund or ELSS fund for next 15 years, considering annual rate of return 12\%, you will redeem around 24 lakhs if indian economy grows normally. It is low risk investment.