Building a steady monthly income requires careful planning and realistic financial assumptions, aiming for financial independence, future expenses, or passive income streams.
To generate Rs 2 lakh each month—equivalent to Rs 24 lakh annually—15 years from now, you’ll need to establish a considerable corpus. The “safe withdrawal rate,” which is often set at 4% per year, is a generally recognized guideline for producing steady income from assets.
According to this guideline, you can take out 4% of your entire corpus annually without worrying about running out of money too soon. Therefore, you will need to save Rs 6 crore in order to guarantee a monthly income of Rs 2 lakh. It’s crucial to keep in mind, though, that this assumption depends on keeping the withdrawal rate at 4%. This conservative strategy is intended to guarantee that your corpus lasts for several decades while taking inflationary pressures and market volatility into account over time. Calculate monthly investment needed to reach Rs 6 crore corpus, assuming 4 years of investment and 11 years of growth without further contributions.
