Low Salary? Invest Rs 7,000 Monthly And Retire With Rs 2.47 Crore

Last Updated:April 23, 2025, 16:57 IST

For a Rs 35,000 monthly income, investing Rs 7,000 in a SIP is ideal. According to exports, this can potentially yield Rs 2.47 crore in 30 years.

SIPs offer flexibility and gradual capital buildup, ideal for new investors.

Financial advisors often recommend starting investments from the very first paycheck. But a common question remains: how much should one ideally invest in a Systematic Investment Plan (SIP) based on their monthly income? Experts stress the importance of consistent investing, pointing out that long-term investments can yield substantial returns.

While there are multiple investment avenues available, options like government-backed schemes or fixed deposits offer guaranteed returns with virtually no risk. However, fixed deposits often fail to keep pace with inflation.

That’s where mutual funds, especially through SIPs, are gaining traction. SIPs offer a more flexible way to invest regularly, even in small amounts, and are increasingly popular among new investors. While returns are not guaranteed due to the inherent market risks of mutual funds, SIPs allow gradual capital buildup without needing a large upfront sum.

Now, let’s explore how much someone earning Rs 35,000 per month should ideally invest in a SIP.

The 50:30:20 Rule Explained

Wealth managers frequently advocate for the 50:30:20 budgeting rule to guide both spending and investing. According to this formula:

• 50% of your income should go toward essential needs (like rent, groceries, bills).
• 30% is allocated for discretionary spending (leisure, hobbies, entertainment).
• 20% should be directed toward investments and savings.

For someone earning Rs 35,000 a month, 20% of the income amounts to Rs 7,000. That means Rs 7,000 should ideally be invested every month through a SIP.

SIP Long-Term Gains

If an individual invests Rs 7,000 per month in a SIP consistently for 30 years, they could potentially accumulate a corpus of approximately Rs 2.47 crore – assuming a modest annual return, which is typical in many mutual fund scenarios over the long term.

So, if you’re earning Rs 35,000 a month, setting aside Rs 7,000 for SIPs could be a financially sound decision that sets you on the path to long-term wealth creation.