In India, a wedding is not just a ceremony, but also a major family celebration. Weddings have been associated with numerous expenses for years, such as clothing, jewelry, food, and decorations. Nowadays, a typical Indian wedding can cost anywhere from 20 to 30 lakh rupees. So, if you want to save 25 lakh rupees for your wedding, choose the right plan to build a corpus of lakhs in 5 years. Let's understand how to save 25 lakh rupees, the methods, and what to keep in mind.
Target to Save 25 Lakh Rupees
To accumulate 25 lakh rupees in 5 years, you need to save a fixed amount every month and invest it in the right place. Weddings are expensive, but by saving and investing smartly, you can have the wedding of your dreams without debt.
Ways to Save ₹25 Lakh
1. Create a Budget and Save
What to Do:
Keep track of your income and expenses. Follow the 50-30-20 rule:
50% on essential expenses (rent, electricity, groceries)
30% on desires (entertainment, eating out)
20% on savings and investments
Example:
If your salary is ₹50,000 per month, save ₹10,000.
Benefit:
This allows you to set aside money for investment every month.
2. Invest in a SIP
What to Do: Start a Systematic Investment Plan (SIP) in mutual funds. This is an easy way to build a large corpus from a small amount.
Calculation: To accumulate ₹25 lakh in 5 years, if you get a 15% annual return:
Monthly SIP: Approximately ₹29,000
Total Investment: ₹25,000 × 15 × 5 = ₹17.4 lakh
Wealth Gain: ₹7.9 lakh
Total Fund: ₹25,3,29,20 (25.3 Lakhs)
3. Invest in Gold
What to do?: Jewelry is essential for weddings, so invest in gold. Gold can generate an average return of 10% per year.
Calculation: If you buy ₹5 lakh worth of gold five years ago, it can become ₹8 lakh with a 10% return.
Benefit: Gold can be used for wedding jewelry and also provides profits as its value increases.
4. Reduce Expenses
What to do?: Reduce unnecessary expenses, such as frequent dining out, expensive clothing, or vacations.
Example: If you save ₹5,000 every month, you can accumulate ₹60,000 in a year.
Benefit: This money can be used for SIPs or investing in gold.
5. Increase Extra Income
What to do?: Take up part-time work, such as tutoring, freelancing, or starting a small business.
Example: If you earn ₹10,000 extra, you can invest it in a SIP and earn ₹10-12 lakh in 5 years.
Benefit: Higher earnings can help you reach your target faster.
Some Important Precautions
Market Risk: Mutual funds don't guarantee returns, so choose good funds.
Expense Control: Make a budget in advance for wedding preparations to avoid excessive spending.
Emergency Fund: A fund of 6 months' expenses (e.g., ₹180,000) should be set aside.
Avoid Debt: Avoid spending through credit cards or loans.
Wedding Expenses in India
Clothes and Jewelry: Minimum of 5-10 lakh rupees
Venue and Food: Minimum of 5-8 lakh rupees
Decorations and Others: Minimum of 3-5 lakh rupees
Total: 20-30 lakh rupees (depending on the city and number of guests)
A fund of 25 lakh rupees can easily cover these expenses.
How to Get Started?
Create a Budget: Save 20-30% of your income.
Start a SIP: Start investing 25 to 30,000 rupees a month in mutual funds.
Buy Gold: Buy a little gold every year.
Market: If you wish, you can also invest some in the stock market.
Complete KYC: Provide Aadhaar, PAN card, and bank account details.
Monitor: Check your investments every 6 months.
A fund worth lakhs will be created for your wedding. It's possible to save ₹25 lakh in 5 years if you invest ₹25,000 every month in a SIP (Subsidiary Investment Plan) and invest in gold. A strict budget, low expenses, and extra income can make this goal achievable. So, with proper planning and discipline, you can have your dream wedding without debt. (Note: This news is based on general information only.)
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
