Know what Rs. 5000 per month can do
There are a lot of things that we can do with Rs.5000 per month.
Here are a couple of options:
Watch a movie – These days watching a movie with family or friends is an expensive affair. You may barely watch one movie with popcorn and drinks for Rs 5000.
Go for dinner – This may again be touching too close to what you can achieve with Rs 5000 but sure you can have a meal with a friend but the dinner may not be a luxury one.
Buy clothes – Depending upon what you like but 5k can help you shop a little. You can buy a few things and that’s about it.
Keep it in saving – Just leave it in a bank account because it’s not big anyways.
Invest – Here is an interesting option. Rs 5k invested in an equity mutual fund over 25 years may become Rs 1.65 lacs. And if the same amount is invested every month, it reaches Rs 1.62 crores in 25 years. And now the favorite one, Rs 5000 invested every month and the investment amount increases by 10% every year i.e. 5000 pm in year 1, 5500 pm in year 2, 6050 pm in year 3 and so on, it reaches Rs 11.64 crores in 25 years.
Life is a choice and so is investing.
Even a small monthly contribution done sensibly can create a handsome amount if you start early by investing in a disciplined manner.