It is every teenager’s dream to become a millionaire. But do you have what it takes to become one? It is a very wrong perception that the generations who have a rich past can only become one. No, even a middle class guy having basic education can also become a millionaire just before the age hits 35. Her is how you can become one.
Finish your Graduation or at least Class 12
Finishing your graduation or the least class 12 is the bare minimum qualification you should have. Today’s world is about abilities and hard work and not about how far you have studied. After finishing Class 12 or graduation, when your age is 18 or 21, the most basic job one can get is in a BPO company where your salary to say the least can be upside of Rs 15,000 a month in a city like Mumbai, Pune or Bangalore.
Stay stable and figure out expenses
Your work does not end as soon as you get a job. Your work has just begun. Impose stability in your job. Stay on your job for at least 6-8 months whilst figuring out what your average monthly expenses are and how much you can save on a monthly basis.
Never go all out on anything
Let’s say your salary is Rs 15,000 a month. Rs 5,000 is allotted towards paying guest rent and Rs 5,000 is allotted for personal expenses. Now, try and save Rs 5,000 a month atleast for 6-8 months before you make an investment decision in SIP. It is very important to get yourself secured from unexpected expenses. If you start SIP from your first month itself and if you have no money for unexpected expenses your finances may end up on the liability side.
Choose your SIP wisely
Each and every SIP you google will show amazing returns but here is the catch. How many of them show the returns considering the compounded effect of inflation? The one which shows returns with and without inflation effect is your investment vehicle. Before make a decision know how much you will have to invest every month. Also know if the scheme is open ended or closes ended. Don’t forget to know the entry and exit charges. After knowing all this make a decision
Remember, if you invest say Rs 5,000 a month on an SIP scheme while you are 19 whilst working in a BPO. You are bound to get a maturity mount of above Rs 10 lakh, factoring the inflation, before your age hits 35.