In many households across India women are also shouldering the financial responsibilities of the family. Working women often share the financial burden of the family and support their husbands. However, homemakers can also save a sizable amount with diligent planning for their monthly budget and regular household expenses.
If you are a homemaker you can also help your husband by saving small amounts from routine expenses. A few smart investment tips can also help you to build a corpus of Rs 1 crore by the time your husband retires.
According to Aditi Jain, investment strategist at stock broker Angel One, the majority of stay-at-home moms only have their family’s needs and obligations in mind. Even with all their responsibilities, they can accumulate a corpus fund by setting aside a small amount every month, the expert suggests.
A homemaker does not have a steady source of income but assuming that they save small amounts from daily expenses they can deposit these amounts every month to grow their savings.
To start a fund for the future, all you need to do is save the cost of a child’s school lunch each day. For instance, if you save at least Rs 100 spent on the child’s lunch and pocket money on all working days, you would still be able to accumulate Rs 2,600 every month.
This amount can be invested in a systematic investment plan (SIP) mutual fund. In the long run this monthly SIP amount can generate a sizable corpus. For example, an investment of Rs 2,600 in SIP at an annual interest rate of 12% would grow into more than Rs 6 lakh. If you continue the investment for 20 years the corpus would turn into nearly Rs 26 lakh.
In another scenario, let’s say you are 28 years old when you get married and the retirement age of your husband is 60 years. You will have 32 years to build your retirement corpus. You will be able to invest a total of Rs 9,98,400, or almost Rs 10 lakh, over the course of these 32 years with an investment of Rs 2,600 each month. If you receive a yearly return of 12 percent on this, your total capital will rise to Rs 1,17,24,172 after 32 years, including Rs 1,07,25,772 in interest.
If you increase the amount invested every year, this fund will grow even more. In this way, by the time your husband retires, you will be able to create a fund of more than Rs 1 crore even without any regular job.
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