Smart Investment: Turn ₹1 Lakh Monthly Income into Wealth

• Even with a ₹1 lakh monthly income, many struggle with savings due to poor financial management.
• The 50-30-20 rule suggests saving at least 20% of your income, meaning ₹20,000 for a ₹1 lakh earner.
• Prioritize financial safety with health insurance (₹10 lakh cover for ₹800-₹1000/month) and an emergency fund (3-6 months' expenses).
• Define clear investment goals and timelines before investing; mutual funds are recommended for beginners.
• While small-cap funds offer higher returns (21.09%), large-cap index funds (13.63%) are safer for new investors due to lower volatility.

Why It Matters: Effective financial management and early, strategic investment can build significant wealth from a ₹1 lakh monthly income.