“In today’s times, with inflation rising rapidly, saving money on a salary of ₹20,000 – ₹25,000 is nothing short of a challenge. After covering rent, food, electricity, clothing, and other essential expenses, there’s hardly anything left in the pocket. In such a situation, the dream of becoming a crorepati (multi-millionaire) feels like a distant fantasy.
However, the truth is that with the right strategy, proper savings plans, and a bit of discipline, you can build substantial wealth even on a modest income. In this blog, we will explore how someone earning ₹20,000 – ₹25,000 per month can become a crorepati in 20–25 years.
But first, let’s understand one fundamental principle…
It’s not magic, it’s the “Power of Compounding”
The journey to becoming a crorepati starts with one powerful word: Compounding. Albert Einstein famously called it the “8th wonder of the world.” Simply put, compounding means “interest on interest.” The returns you earn on your investments are reinvested, and over time, the returns themselves start earning returns.
Step 1: Budget Management
The first step is to decide how much of your salary will go toward expenses and how much toward savings. The “50-30-20 rule” is a great way to structure this:
- 50% for essentials – Rent, utilities, groceries, etc.
- 30% for investments/savings – PPF, SIP, NPS, gold, etc.
- 20% for personal needs – Travel, lifestyle, entertainment.
Example:
If your salary is ₹25,000, aim to invest/save ₹7,500 each month.
Top Savings and Investment Plans to Become a Crorepati
1. Public Provident Fund (PPF)
- One of the safest government-backed schemes in India.
- 15-year lock-in period.
- Interest rate around 7–8%.
- Maturity amount and interest are completely tax-free.
Monthly investment of ₹2,000 in PPF can grow to ₹12–15 lakhs in 20 years.
2. Mutual Fund SIPs (Systematic Investment Plan)
- Small investments can lead to large wealth over time.
- Average long-term returns of 12–15%.
- Can start with as little as ₹500–₹1,000.
Investing ₹5,000 per month for 20 years = ₹50–60 lakhs.
Investing ₹7,500 per month for 25 years = ₹2 crore+
3. National Pension Scheme (NPS)
- Excellent for retirement planning.
- Offers tax benefits and market-linked returns.
- Allows partial withdrawal in emergencies.
₹2,000/month in NPS = ₹50 lakhs to ₹1 crore by retirement.
4. Recurring Deposit (RD)
- Safe investment via banks/post offices.
- Best suited for small investors.
- Offers 5–7% interest.
₹3,000/month in RD = ₹5–6 lakhs after 10 years.
5. Stock Market (Long-Term Investment)
- Higher risk, but potentially higher returns.
- With smart stock selection, capital can grow 10X–20X in 15–20 years.
₹1,000/month in quality stocks = ₹15–20 lakhs in 20 years.
6. Gold ETF / Digital Gold
- A hedge against inflation.
- Easy to buy/sell, safe storage.
₹2,000/month in digital gold = ₹10–15 lakhs in 20 years.
7. Term Insurance & Health Insurance
- For just ₹500–₹1,000/month, you can get coverage worth lakhs.
- Protects your savings from sudden emergencies like accidents or illnesses.
8. Emergency Fund
- Keep a fund equivalent to 6 months of your salary.
- Store in a Fixed Deposit (FD) or Savings Account.
- Useful during job loss or medical emergencies.
9. Avoid Credit Cards and Unnecessary EMIs
While credit can help in emergencies, irresponsible use leads to overspending.
- Always pay credit card bills on time.
- Avoid taking more EMIs than you can manage.
- Stay away from impulse purchases.
10. Financial Discipline is Key
- Set up auto-debit for your investments.
- Try to increase your investments by 10% every year.
- Stay patient and avoid emotional decisions in the market.
Roadmap to Becoming a Crorepati
Assume you earn ₹25,000 and save ₹7,500 every month:
- PPF = ₹2,000
- SIP = ₹4,000
- NPS = ₹1,500
In 20 years, your total wealth can be ₹1.5–₹2 crore.
If you start small (₹500/month) and gradually increase it to ₹10,000/month, you can build wealth worth ₹2–3 crore in 20–25 years.
Essential Tips
- Start investing as early as possible – If you can, start your SIP today.
- Never underestimate small savings – Over time, compounding turns them into big money.
- Increase your investment by 2–5% every year – This protects you from inflation.
- Diversify your portfolio – Don’t put all your eggs in one basket. Use a mix of SIP, PPF, NPS, gold, etc.
- Don’t panic during market volatility – Review your investments once or twice a year, but avoid unnecessary changes.
Conclusion
We truly believe that even those earning ₹20,000 – ₹25,000 per month can become crorepatis if they plan smartly, create a proper budget, and consistently invest ₹7,500–₹10,000 per month for the long term.
