

Rs 6,000 monthly SIP for 22yrs, can lead to accumulation of Rs 1 Cr if you invest in very good Equity Mutual Funds.
Rs 12,000 monthly SIP for 22yrs, can lead to accumulation of Rs 2 Cr if you invest in very good Equity Mutual Funds.
Please note that due to inflation (= yearly price rise of almost everything), whatever you can buy today in Rs 25 lakhs, is going to cost Rs 1 Cr after 22 years. (In other words, value of Rs 1 Cr after 22 years will be equivalent to today’s Rs 25 lakhs.)
So, consider accumulating Rs 2 or 4 Cr in the next 22 years, in addition to your fully paid house. Please note that it may appear very difficult but it is not very difficult if you save & invest systematically.
How to Save & Invest?
This is partly based on the billionaire Mr Warren Buffet’s (WB) recommendations:
1. Don't waste money on expensive vehicles, mobile phones, watches, restaurants, holidays etc. just to show off to your friends, colleagues, relatives, neighbours etc. (WB)
Vehicles, mobile phones, watches are Fast Depreciating Assets. Their resale value becomes almost zero in about 5-7 years.
2. Use all expensive items for as much time as possible before replacing them with new/used items. (WB)
3. Use train, metro, bus, rickshaw, 2-wheeler, or use taxi as & when required. Delay the purchase of a 4-wheeler as much as possible. (In some countries, like the US, a car is a must except for NY city where public transport is very good & parking is very expensive.)
Use public transport for certain trips if it can save you money, time, efforts, gas/electricity.
(This would also help to reduce unnecessary consumption of resources which has been leading to global warming & depletion of resources on this planet.)
4. Start Monthly SIPs in Very Good Mutual Funds of a small value, & then increase the number of SIPs. (WB)
*Every month, Do not save what is left after spending, but spend what is left after saving & investing.*
Every month, IMMEDIATELY after getting your salary, First Invest In MFs through automated Monthly SIP & MANAGE the remaining month in the balance money available to you for spending, otherwise every month nothing will be left, at the end of the month, for investing. (WB)
Why & How to Invest?
Please note the following:
Saving money is very important, but investing it in the right way is Even More Important as the inflation has been eroding the value of our saved money, every year.
Inflation should be taken into consideration when you do your investment planning, as in India, due to price-rise, almost all our expenses tend to double every 10 yrs.
>>> For Tax Saving:
(1) Invest maximum possible in EPF
(2) To save tax beyond your investment in EPF, invest 'Rs 1.5 lakhs - investment in EPF' in ELSS MFs.
(3) To save more tax, invest in NPS (Do read my other answers on Quora for more details.)
>>> By starting multiple Monthly Mutual Fund SIPs, you can Easily Accumulate Crores of Rupees in 10/20/30 years for the Future Spending Phases in your life like for a house, children's graduate/post-graduate education, marriages, your comfortable retirement etc. (WB)
>> By starting *Only Rs 2000 per month SIP* in Very Good Equity MFs:
- In *35 yrs*, you can accumulate about: *Rs 2.2 Cr*
- In *30 yrs*, you can accumulate about: *Rs 1.1 Cr*
- In *25 yrs* : *Rs 54 Lakhs*
- In *20 yrs* : *Rs 26 Lakhs*
- In *15 yrs* : *Rs 12 Lakhs*
- In *10 yrs* : *Rs 5.0 Lakhs*
- In *5 yrs* : *Rs 1.7 Lakhs*
*The growth in the accumulated amounts, over the years, as seen above, is due to the Power of Compounding.*
For accumulating more money, you need to invest more money.
How much you need to invest in Monthly MF SIPs can be recommended by us after knowing your age, yearly expenses etc.
However, don't invest on the basis of your gut feel or on the basis of the expert(?) advice of your friends or well wishers. For a free guidance, consult a good MF Investment consultant or us.