The dream of owning a home often remains unattainable due to low income or falling into debt traps that force one to spend their entire life repaying loans. However, there is a way to build a decent home in a few years without taking out a loan by following specific financial management rules.
The presented method allows a person with a monthly income of 40,000 rupees to purchase a 50 lakh house. For families requiring a two-bedroom apartment (2BHK) in locations such as Delhi-NCR, expenses of at least 50 lakhs are necessary, which becomes achievable at this income level.
To reach the goal of 50 lakhs, the 50-50 formula must be implemented. According to this scheme, 20,000 rupees from the monthly salary of 40,000 rupees should be saved while managing monthly expenses. The remaining 20,000 rupees must cover costs for housing rent, medical care, and food.
Next, it is discussed how to manage a budget of 20,000 rupees. By using the 'cut-to-cut budget' method, it is possible to manage all family expenses within these 20,000 rupees while maintaining a net savings of another 20,000 rupees.
To transform the monthly 20,000 rupees into 50 lakhs, these funds need to be invested in instruments that provide an annual return of about 15 percent. This level of return can increase the capital to over 52 lakhs. To achieve a 15% annual return, it is recommended to use the SIP (Systematic Investment Plan) strategy, distributing it across various funds to maintain average annual income and reduce risk.
It is recommended to divide the amount of 20,000 rupees into four parts of 5,000 rupees each and place them in four different funds with good performance. If these funds generate an average annual return of 15%, then monthly investments of 20,000 rupees through SIP over 10 years will amount to 5,260,364 rupees. Of this amount, 2,860,364 rupees will be generated solely from income, and the invested capital will be 2,400,000 rupees, allowing for the comfortable purchase of a 50 lakh house over a decade.



