Earlier, we composed a blog about investing 30K and getting an income of 50K every month. Most of them may have thought that they need such a huge amount to begin investing. At Droplet, our wish is to be all-inclusive and that constant endeavor has led to this blog. I think it is relatively safe to believe that an average middle-class earner can save 5K monthly. Now next we want to secure this Middle-class earner’s future. In the Financial world, the future is and always 15 years after always.
Droplet Team advises a saver should divided his investments into 2 parts one. One for Security and another for Savings. As long as you are alive your family will live in your shade. But, God forbid, Something happens to you? Who the family low fat on? That’s why Droplet suggests that the breadwinner’s 1t “Investment” should be in “protecting his life”. Ideally one should take 20 times of your respective annual income as Term Cover. Assuming the middle-class earner has a yearly income of 3 lacs, 20 times will be 60 lacs. Rs 770/month (premium varies based on ones age/health – Rs.
In case any unlucky event happens, his family will get a lump amount tax free payment of Rs 60 Lacs. Out of 5000, 770 went out for security, leaving us with 4230 for Investment. Assuming a return of 12% on your investment, You will have a kept a good 20 lacs for yourself.
- Contribution to the PPF account is exempted under 80C
- 95% of annual returns between: +36.8% and -20.2%
- An similar performing field in your competition for investors’ savings both in Denmark and abroad
- Alternative minimum taxes traps
- DSPBR Mutual Fund
- Changes in revaluation surplus (IAS 16 and IAS 38)
Now that you have saved 20 lacs, what should you do next? Take that money and spent out. Droplet suggests that you park this in a balanced fund that enables you to withdraw 12K per month. Assuming the money give 10% return for the next 10 Year period, your investment will be worth 30 lacs! 75 years old you will have 50 lacs. So with just an Investment 5K for 15 years, you can create a 50 lacs corpus with or without your existence. Every penny is worth it!
And that has to indicate you are economically astute. Obviously, that mini-mansion doesn’t provide itself, and with the wife staying home the whole day, she has little to do, apart from take her aggressions out on shopping, per month to the melody of thousands. And of course, because you are “rich” you deserve that vacation in Vegas, right?
And it’s tax-deductible as a small business expense, so that it must be considered a smart move to make, right? 250,a yr and anyone who makes a good salary is a rich man 000. No matter how much you make, if you may spend more than you make, you are poor – and going into debt.
And what is actually sad is that individuals do that, and then question “where all the amount of money went”. Now, a few of you may accuse me of fudging the amounts here – of earning up a situation that is too fantastic to believe. 250,000 a year would squander money in this way, right? The situation described above explains a couple I understand (or understood).