Can You Buy A House On A Rs 25,000 Salary? Expert’s SIP Formula Sparks Debate

Financial coach says disciplined investing and long-term planning can help even low-income earners build big wealth — but only with patience and realistic expectations.

Owning a comfortable home and a good car is a dream many people carry, often assuming it is only possible for the wealthy or high-income groups. But a recent discussion online suggests that even someone earning just Rs 25,000 a month could work towards this goal with the right financial discipline.

Business coach Deepak Wadhwa, in a LinkedIn post, explained that income alone does not decide financial success — planning, consistency and long-term investing matter just as much. He said that while buying a house and even a luxury car may sound unrealistic on such a salary, the power of systematic investment could create a strong financial base over time.

The SIP Strategy: Small Start, Big Growth

Wadhwa’s formula is built around a Systematic Investment Plan (SIP). According to him, if a person invests Rs 5,000 per month from a Rs 25,000 salary, and increases the SIP amount by 20% every year, the investment could grow significantly over the long term.

He claims that over 15 years, this approach may help build a fund of around Rs 1.5 crore, largely due to the benefit of compounding — where returns generate further returns as time passes.

Turning Savings Into Monthly Income Through SWP

Instead of spending the accumulated corpus directly, the expert suggests shifting it into a Systematic Withdrawal Plan (SWP). SWP allows investors to withdraw a fixed monthly amount from their mutual fund investment.

Wadhwa said such a plan could potentially generate up to Rs 2 lakh per month for the next 30 years, helping cover home loan EMIs, car instalments and other major expenses.

Why Discipline Matters More Than Income

Experts stress that the real challenge is not just buying a house or car, but building the required capital steadily. Long-term investing demands patience, regular savings, and the ability to stay consistent even with a modest salary.

SIP remains one of the most popular investment methods in India, with long-term returns often ranging between 12% and 15%, though they are never guaranteed.

Ultimately, the message is clear: even with a smaller income, financial goals may be achievable — but only with realistic planning, sustained effort, and a long-term mindset.

Disclaimer: This article is for informational purposes only. Mutual fund investments are subject to market risks, and returns are not guaranteed. Readers should consult a certified financial advisor before making investment decisions.