Home in Mumbai with SIP of 20% of your salary since 2000
Imagine being able to buy a home in one of the most expensive cities in the world, like Mumbai, without having to worry about EMIs. Sounds like a dream come true, right? For a 25-year-old in 2000, this dream became a reality through disciplined investing and a consistent SIP (Systematic Investment Plan) approach.
The story begins in 2000, when this young individual started investing 20% of their monthly salary, a whopping ₹2,416, in a mutual fund. At the time, this was a significant amount, but the individual was determined to secure their financial future and achieve their goal of owning a home in Mumbai.
Over the next 24 years, this individual continued to invest ₹2,416 every month, despite experiencing 10% annual salary growth. This meant that the SIP amount increased by ₹241.60 every year, but the individual stuck to their plan and continued to invest the same percentage of their salary.
Fast forward to 2024, and this individual’s SIP had grown to ₹23,803 per month. But the real magic happened when they checked their mutual fund corpus. After 24 years of disciplined investing, the corpus had grown to an astonishing ₹2.13 crore!
So, how did this individual achieve this impressive feat? The answer lies in the power of compounding and consistent investing. By starting early and investing a significant portion of their salary, they were able to take advantage of the power of compounding, which helped their money grow exponentially over time.
But that’s not all. The individual’s annual salary growth also played a crucial role in their success. As their salary increased, so did their SIP amount, allowing them to continue investing without having to compromise on their lifestyle. This demonstrates the importance of regular salary increases and the need to adjust one’s investment plan accordingly.
Now, you might be wondering if this individual’s story is unique or if it’s possible to replicate their success. The answer is that anyone can achieve similar results with a consistent SIP approach and a solid understanding of the power of compounding.
To give you a better idea of how this individual’s SIP grew over time, let’s take a look at the numbers:
- 2000: ₹2,416 per month, ₹29,392 per annum
- 2010: ₹4,621 per month, ₹55,452 per annum (10% annual salary growth)
- 2020: ₹9,243 per month, ₹111,516 per annum (10% annual salary growth)
- 2024: ₹23,803 per month, ₹285,636 per annum (10% annual salary growth)
As you can see, the SIP amount increased significantly over the years, but the individual continued to invest the same percentage of their salary. This is key to achieving long-term financial success, as it allows you to take advantage of market fluctuations and ride out periods of volatility.
In conclusion, the story of this individual’s SIP journey is a testament to the power of disciplined investing and the importance of starting early. By investing 20% of their salary since 2000, they were able to achieve their goal of owning a home in Mumbai without having to worry about EMIs.
So, if you’re looking to achieve your financial goals and secure your financial future, consider starting a SIP today. With consistent investing and a solid understanding of the power of compounding, you can achieve remarkable results and make your financial dreams a reality.
News Source:
https://www.dsij.in/dsijarticledetail/articleid/48466/artmid/10163/preview/true
