Extra Income Formula: Will not touch salary, earn separately equal to salary every month, understand maths

If you are told that as much as your salary is, you can earn separately. Or it should be said that you will not touch the salary, because every month you can earn equal to the salary from other sources. You would say how is this possible? A math works behind this. If you do a private job then it is very important for you to understand this math.

This formula for the one who earns 30 thousand…

For example, whatever your salary is, you can earn separately. Now going back to the formula itself. If your salary is 30 thousand rupees a month, and you want that you have a separate income of 30 thousand rupees every month. First of all, 30 percent of your salary will have to be invested in any situation.

That is, the person earning 30 thousand rupees a month will have to save 30 percent of his salary. Which sits at 9000 rupees a month. Now this money can be invested in Mutual Fund through Systematic Investment Plan (SIP), where better returns are expected. According to the SIP calculator, if an investor does SIP of Rs 9000 every month, then he will get around Rs 25,07,915 according to the 15% return in 10 years.

Now let’s understand it in a more easy way… After 5 years by investing Rs 9000 in SIP every month, this amount will be around Rs 8 lakh. If investors continue to deposit more money in the same way for the next three years, then after 8 years the deposit will increase to Rs 16.73 lakh. And in 10 the amount will be more than 25 lakhs.

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— AustinXeth (🦍,🦍) (@AustinXeth) October 27, 2022

Increase investment with increasing salary…

This is only estimated according to the initial salary. Most people’s salary doubles in 7 to 8 years. If there is an annual increase of 10% in the salary, then in 8 years the salary of the person earning Rs 30 thousand per month will be more than Rs 60 thousand. If the investor increases the investment amount along with increasing the salary, then in the 10th year, the investor’s salary will start saving Rs 18,000 per month. Now you can understand that by saving 30% salary every month, you can accumulate a huge amount in 10 years.

Let me tell you, interest is always dearer to the investor than the principal. But interest will be available only when you invest. The income of employed people increases gradually. That’s why SIP is a great option in today’s era, through which you can make big funds with small investments in the long term.

When you invest 30% of your salary for 10 years, you will have at least Rs 25 lakh after 10 years. Not only this, during this time the remaining amount from the increase in salary can be invested in other places. Such as in the stock market, PPF, gold bonds, real estate and short term funds. When you count the returns received from these places after 10 years, you will find that as much as your salary, the same amount is being earned through investment.

Reconciliation between income and expenditure is necessary

However, saving 30 per cent of the salary every month and investing it is a bit difficult. But when you strike a balance between income and expenditure, then there will be no problems. In the beginning, to save 30% of the amount from the salary, it is necessary to curb extravagance first. How would this be possible?

According to an estimate, the salaried class wastes 10 per cent of their income every month, which you can easily save. Apart from this, if you have a credit card, then avoid using it. Reduce traveling, eating out, buying expensive gadgets. Apart from this, do not buy those things which are not of your need in the affair of the offer. In this way you can save 30% salary every month.

Note: Before investing in share market, mutual funds, take the help of a financial advisor)