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Will you become a millionaire by the age of 40? People will ask you for your secret! Just remember this formula when investing..

Shikha Saxena | December 4, 2025 6:15 PM CST

In middle-class India, becoming a millionaire seems like a dream, but the truth is that it's not rocket science. With proper investment planning and discipline, this dream can easily be achieved. You don't need a lottery or a big business to become a millionaire; just a habit of wise investment is enough. If you start investing at the age of 25, it's not difficult to build a corpus of ₹1 crore by the age of 40. You just need to remember a special formula.

Step 1 - Where to invest?

If the goal is big, then the investment should be in an option that has the potential to beat inflation. For this reason, SIPs are considered the best option for the long term, as they offer an average return of up to 12%. This means that the longer the time horizon, the faster the money will grow.

The Formula to Become a Millionaire - 12-15-22

If you follow this special formula in SIP, you can become the owner of ₹1 crore by the age of 40.

Number Meaning
12 Average Return (12%)
15 Investment Period (15 years)
22 SIP Amount (₹22,000/month)
If you invest ₹22,000 every month in SIP from the age of 25 and earn an average return of 12%, by the age of 40, your wealth will exceed ₹1 crore.

Understand it with calculations.
Total investment: ₹22,000 × 12 × 15 = ₹39,60,000
Estimated return (at a 12% SIP): ₹65,10,491
Total amount: ₹1,04,70,491
What if the return increases?
SIPs are market-driven, so sometimes returns can exceed 12%. If the return reaches 15%, then:

Interest: ₹96,00,043
Total amount: ₹1,35,60,043

This means your goal of becoming a millionaire can be achieved even more easily.

Big question: How to withdraw ₹22,000 per month?
If your monthly salary is ₹1 lakh to ₹1.25 lakh, this isn't a big deal for you. According to the 20% rule, you should set aside at least ₹20,000 for investment. By adding just ₹2,000, you can start an SIP of ₹22,000. With a little budget planning, adjustments to expenses, and discipline, this isn't impossible.

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