Avoiding these 7 things once a month can make you a crorepati

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To make this possible, we must keep investing the saved sum in equity mutual funds. The beauty of compounding plays a critical role here.

Confused? Let me first tell you that Rs 1.3 crore can be easily built if you and your family members start avoiding seven things, and that too, only once a month.

Don’t worry, I am not curtailing your leisure; you can enjoy doing the same things you do now. These small things will not only bring discipline in your financial life but, more importantly, it will teach your children the value of money and help them become responsible citizens, first towards the nation and then for their family. It will not only save the country’s natural resources, but also help your family deal with emergencies or achieve various goals.

In a month’s duration, there may be various instances of us going out for a movie with our family or to a restaurant with our friends. Considering we do something of the sort every weekend of the month, if we continue doing so on three weekends and start abstaining on one weekend, the saved money will likely become a huge kitty over 20 years.

To make this possible, we must keep investing the saved sum in equity mutual funds. The beauty of compounding plays a critical role here, as you have been investing regularly, and that too in equity mutual funds, which are good instruments for the long term.

For the purpose of calculation, I am assuming a return of 15 percent, as a period of 20 years is quite long. Though returns from mutual funds are subject to market risk, it has been seen that in the long term, investments in mutual funds through SIPs are quite fruitful.


So what are these seven things that will help you build such a corpus?

1. Don’t use your car on one Sunday:

Keeping yourself at home one Sunday a month will help you to get organized all your documents or investment papers, apart from giving your body some rest. The money saved on this Sunday, which would be around Rs 1000, if invested in an MF through SIPs, will become Rs 15 lakh in 20 years.

2. Avoid taking your car to work one day a month:

Here I suggest using public transport once a month. This will help, not only in keeping you connected with the ground, but also in being prepared for a time, lest it come, when you would need to do it every day. Like in the above-mentioned example, if you save Rs 1000 a month like this, it becomes Rs 15 lakh in 20 years.

3. Drop one movie a month:

You continue to watch movies but just reduce its frequency by once a month. A couple with two children easily spends nearly Rs 1,500 for one movie. If you invest in equity funds, this corpus could become as much as Rs 22 lakh in 20 years.

4. Give up one visit to the restaurant visit with family:

A middle class family on an average spends nearly Rs 1,500 for dinner or lunch when going out to relax and enjoy the food. Here again, I suggest you reduce the frequency by once a month, which again, translates to Rs 22 lakh in 20 years.

5. Drinking:

Drinking is injurious to health and I suggest one should never consume liquor. But if you are habitual and can’t avoid it, at least reduce it by once a month and then try to increase the reduction in consumption. If you save Rs 1,000 a month, investing it in an equity fund through SIPs will result in the corpus expanding to Rs 15 lakh in 20 years.

6. Avoid impulsive purchases:

Online purchases have become dangerous for modern society. Yes, items are cheaper, but now, the ease of purchase on a mobile has been pushing impulsive purchases. Just by browsing on a mobile, various offers make individuals buy products with their credit cards. Although it allows you to buy goods now and pay for them later, the rate if interest charged is in excess of 36 percent per annum. Start avoiding such impulsive purchases. If you save an average of Rs 2000 a month, you could build a corpus of Rs 30 lakh in 20 years.

7. Avoid food wastage and reduce electricity bills:

Wastage of food is common in all families, irrespective of economic strata. If a family is aware and starts taking efforts to reduce food wastage, the Rs 1000 a month saved on this front will help build a corpus of Rs 15 lakh in 20 years. Start using refrigerators and microwave ovens, and be calculative while preparing a meal for your family.

Important results:

  • The above small things shall add up to a corpus of Rs 1.3 crore in 20 years. The best part is that you continue doing what you do, just once a month lesser than you did before. You never know when this money might prove useful, or even necessary.
  • You are bound to start spending quality time with family members, especially your spouse and children.
  • Children start asking why you are dropping various activities once a month and this would be the most opportune time for you to teach them a lesson on the value of money and how small amounts saved could become a big corpus in the long term.

This shall inculcate a habit of saving among them and make them responsible citizens.


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