Become a Crorepati: Achieving Financial Milestones with PPF Investment

If the dream of becoming a crorepati seems daunting due to an average salary, the Public Provident Fund (PPF) offers a reliable avenue for wealth accumulation. This Post Office scheme assures the safety of your investment, remaining unaffected by market fluctuations.

Even with a monthly salary ranging from Rs 65,000 to Rs 70,000, you can realize the dream of becoming a crorepati through the PPF scheme. Here’s a simple guide:

1. Investment Limit: The maximum annual investment allowed in PPF is Rs 1.5 lakh.

2. Monthly Investment: To achieve crorepati status, you need to deposit this amount in PPF annually. On a monthly basis, this translates to an investment of approximately Rs 12,500.

3. Maturity Period: The PPF scheme matures in 15 years. After maturity, you can extend the scheme twice in blocks of 5 years by continuing the contribution.

4. Continued Investment: You must continue the annual investment of Rs 1,50,000 for 25 years to achieve the desired goal.

5. Interest Rate: The scheme currently offers a 7.1% interest rate.

Calculations:

– Total Investment in 25 Years: Rs 37,50,000

– Interest Earned: Rs 65,58,015

After 25 years, including the invested amount and interest, you will have Rs 1,03,08,015 from PPF, making you a crorepati.

For those with a salary of Rs 65,000 to Rs 70,000, investing Rs 12,500 monthly is achievable. By adopting the financial rule of 20%, where 20% of income is invested, the task becomes more manageable. If you earn Rs 65,000 per month, investing Rs 12,500 monthly aligns with this rule.

Embracing the PPF scheme and committing to regular investments can pave the way for financial success, transforming the dream of becoming a crorepati into a reality.