SIP Investment: Every working person always has this question in his mind that how much money should be saved every month, so that the future is secure. SIP stands for Systematic Investment Plan is considered to be the most preferred and easy way to prepare a large fund for the future. In this, you have to invest a fixed amount in mutual fund every month as per your pocket. Its biggest advantage is that you don’t have to worry about the ups and downs of the stock market every day. Whether the market goes up or down, when you keep investing money regularly every month, you get the benefit of compounding (profit on profit) in the long run and the big sums add up gradually.
The 50-30-20 rule of budgeting
There is no fixed scale or set in stone formula as to what portion of salary should be in SIP. It depends on your income, household expenses and needs. However, to maintain the right balance of money, the 50-30-20 rule is most useful around the world. This rule says that 50% of the in-hand salary should go towards necessary household expenses – such as house rent, ration, electricity-water bills and children’s school fees. After this, 30% is for your likes, hobbies, lifestyle and travel. The remaining 20% is kept for savings and investment. One thing to keep in mind is that instead of investing this 20% directly at one place, it should be divided wisely between SIP, emergency fund and old loans.
SIP formula for people having salary between 40 thousand to 60 thousand
If your in-hand salary is Rs 40,000 per month, at a rate of 20% you will need to save around Rs. 8,000 should be set aside. Now you can divide this 8,000 rupees three ways as per your requirement. If you don’t want to take any risk, do a SIP of Rs 2,000 and keep the remaining Rs 6,000 in the bank as an emergency fund. If you want to choose a balanced path, keep Rs 4,000 in SIP and Rs 4,000 in emergency fund. At the same time, if your entire focus is on building a large fund in the long term, you can do an SIP of Rs 6,000 and leave Rs 2,000 for an emergency fund.
People whose monthly salary is Rs. 60,000 he earns at 20% per month around Rs. 12,000 should be saved. Often the loan or EMI liability is also included in this income. In such a situation, a prudent person can keep Rs 2,000 in SIP, Rs 6,000 in emergency fund and Rs 4,000 in loan repayment or safe savings. People who take a balanced approach can invest in SIPs of Rs. 4,000, an emergency fund of Rs. 4,000 and in loans or other savings of Rs. 4,000 can be invested. Those with an aggressive approach can invest in SIPs of Rs. 6,000, an emergency fund of Rs. 3,000 and in loan or safe account Rs. 3,000 can be invested.
Calculation of people with salary of 1 lakh
Every month Rs. For people earning 1 lakh, the scope of savings becomes huge. According to 50-30-20 such people should withdraw at least Rs 20,000 per month for savings and investments. This amount can be increased further if the cost of the house is low. This Rs. 20,000, a cautious investor should invest Rs. 3,000 in SIP, Rs. 10,000 in emergency fund and Rs. 7,000 can be invested in debt relief or safe schemes. Balanced Investor SIP for Rs. 7,000, for emergency fund Rs. 7,000 and for loan or savings Rs. 6,000 can be kept. On the contrary, a person who is at a good stage in his career and wants to build wealth quickly can invest directly in SIP for Rs. 10,000, an emergency fund of Rs. 5,000 and in repayment of loan Rs. 5,000 can be invested.
Keep these things in mind before starting SIP
Don’t make hasty investment decisions by looking at your salary slip. Before deciding the SIP amount, check how much emergency fund you have for bad times, whether you have any old debts and what are your monthly fixed expenses. Also decide which major projects you will need money for in the next 5-10 years. Later, as your salary increases or expenses decrease, you can increase your SIP amount accordingly. All these figures are for understanding and estimation only, so before starting any big investment, consult a certified financial expert according to your personal situation.
