Salary comes and by 15th the money is missing! Become a millionaire by following this easy rule, know the secret

Today, the story of a typical Indian middle class family is almost the same. Salary is credited on the first of the month, there is a glow of happiness on the face, but as soon as the 15th comes, lines of worry become clearly visible on the forehead. We often think that if the salary increases a little more, life will become easier. But the truth is that the salary increases, but the expenses start rising much faster than that. After all, how can a common middle class person get out of this money maze and become a millionaire? Chartered Accountant and Financial Educator CA Nitin Kaushik has explained this in a very accurate and practical way.

Earning is not less, habits are the real mess

Often we feel that we are not able to become rich because our income is low. But CA Nitin Kaushik calls this thinking completely wrong. According to him, financial crunch does not come from any big problem, but from small bad habits of daily life. As soon as we get a promotion or our salary increases, the first thing we do is upgrade our lifestyle. A new smartphone, a big car or EMIs on credit cards – these are the things that slowly drain your pockets. The ups and downs of the stock market do not harm you as much as your uncontrolled spending does.

What is the magic rule of 15-85?

If you are afraid of the complications of the stock market or do not have time to choose stocks, you can still earn huge wealth. For this, Kaushik has given a simple rule of ’15-85′. This rule says that as soon as salary or any income comes, immediately set aside 15 percent of it for investment. You can invest it in low-cost index funds through SIP. The remaining 85 percent is to run your entire household, fulfill your hobbies and manage your lifestyle. Discipline is the biggest key here.

The race of appearance is the biggest enemy

The biggest obstacle for middle class families is ‘lifestyle inflation’. In simple language, the expenditure incurred to show off to neighbors or relatives. Kaushik explains that people consider the market collapse as the reason for their poverty, whereas the real loss is caused by unnecessary subscriptions, frequent changing of gadgets and ‘buy now, pay later’ thinking. If you learn to invest your increasing income in the right place instead of spending it, your future can become not only secure but also wonderful.

This is how you will become a millionaire

No magical stock tips or shortcuts are needed to build wealth. Mathematics is very straight. If you invest in equity for a long time and get an average return of 12 to 15 percent, then compounding will work wonders. Even if a person doing a normal job keeps investing with discipline for 25 to 30 years, he can easily create a corpus of Rs 3 crore to Rs 6 crore. Becoming rich is not a matter of luck, but a game of adopting right habits at the right time.