It is rightly said that 'we are what we repeatedly do; excellence, then, is not an act, but a habit.'
You often decide to start saving and investing regularly, but get caught up in day-to-day activities and forget to make the investment. SIP is a time-tested discipline that makes it easy to invest automatically. This is also known as rupee-cost averaging and can help put the power of compounding on your side.
| Amount invested per month (Rs.) | You get after 10 years (Rs.) | You get after 20 years (Rs.) | You get after 25 years (Rs.) | You get after 30 years (Rs.) |
|---|---|---|---|---|
| 1000 | 2,25,000 | 9,20,000 | 17,00,000 | 31,00,000 |
| 5000 | 11,20,000 | 46,00,000 | 85,00,000 | 1,55,00,000 |
| 10000 | 22,50,000 | 92,00,000 | 1,70,00,000 | 3,10,00,000 |
| 12000 | 27,00,000 | 1,10,40,000 | 2,04,00,000 | 3,72,00,000 |
| 15000 | 33,75,000 | 1,38,00,000 | 2,55,00,000 | 4,65,00,000 |
It is clear from the above table that; a Systematic Investment Plan (SIP) is the most effective way of adding more value to your wealth in India. Nominal investment of Rs 1,000 per month can generate enormous wealth over a period of time. You just need the discipline to continue to save money for specific, long-term goals every month.
Financial discipline isn't a way to get rich quickly, but is a systematic execution of your lifetime plans. The more disciplined you become, the easier life gets.
