{"id":323994,"date":"2025-12-19T04:10:06","date_gmt":"2025-12-19T04:10:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/323994\/"},"modified":"2025-12-19T04:10:06","modified_gmt":"2025-12-19T04:10:06","slug":"your-sip-stayed-at-rs-5000-how-not-raising-it-by-10-cost-you-lakhs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/323994\/","title":{"rendered":"Your SIP stayed at Rs 5,000. How not raising it by 10% cost you lakhs"},"content":{"rendered":"

You fought for your last salary hike. You upgraded your phone, moved to a better home, and didn\u2019t blink before paying more for convenience. But your SIP? Still sitting quietly at Rs 5,000, exactly where you left it years ago. That silence is expensive \u2014 and for millions of investors, it is quietly eroding long-term wealth.<\/a><\/p>\n

IndiaToday.in spoke to personal finance expert and certified financial planner Ritesh Sabharwal to understand what happens when SIP investments are never increased, even as salaries rise year after year. \u201cPeople bargain hard for annual salary increments,\u201d he says, \u201cbut rarely think of giving their SIP the same raise<\/a>. That\u2019s where long-term wealth starts slipping away.\u201d<\/p>\n

THE \u2018SET AND FORGET\u2019 TRAP<\/p>\n

For many first-time investors, starting a SIP feels like crossing a major financial milestone. You pick an amount that feels manageable, activate auto-debit, and feel reassured that you\u2019ve done the right thing. Investing is ticked off the list.<\/p>\n

The problem is what happens next<\/a>, or rather, what doesn\u2019t.<\/p>\n<\/p>\n

Five years later, salaries rise, expenses swell, but the SIP remains frozen. \u201cThat \u2018set and forget\u2019 mindset gives a false sense of discipline,\u201d Sabharwal explains. \u201cCompounding works best only when your investment grows along with your income.\u201d<\/p>\n

WHEN LIFESTYLE GROWS BUT INVESTING DOESN\u2019T<\/p>\n

The pattern is almost universal. A young professional starts work at Rs 30,000 a month and begins a Rs 5,000 SIP. By the time they turn 30, their salary touches Rs 50,000, but the SIP stays unchanged.<\/a><\/p>\n

Where does the extra money go? Better gadgets, higher rent, more eating out, extra subscriptions. \u201cYour Netflix plan upgrades without you noticing,\u201d Sabharwal says. \u201cYour Swiggy spends double. But your SIP remains stuck in the past,\u201d Sabharwal says.<\/p>\n

This gap between lifestyle inflation and investment stagnation is where wealth quietly leaks away.<\/p>\n

THE Rs 47 LAKH WAKE-UP CALL<\/p>\n

The real damage shows up over time. Sabharwal compares two simple scenarios over 20 years, assuming 12% annual returns.<\/p>\n

In the first, an investor keeps investing Rs 5,000 every month for 20 years. The total investment comes to Rs 12 lakh, and the final corpus grows to around Rs 46 lakh.<\/p>\n

In the second, the investor starts at the same Rs 5,000 but increases the SIP by just 10% every year. The total investment rises to Rs 34 lakh, but the final corpus jumps to over Rs 93 lakh.<\/p>\n

\u201cThe difference is more than Rs 47 lakh,\u201d Sabharwal says. \u201cSame starting point, same returns. Only one habit changed.\u201d<\/p>\n

WHY MOST SIPs NEVER GROW<\/p>\n

Despite salary growth, most SIP investors never revise their contribution. Sabharwal blames mental accounting. \u201cOnce people label Rs 5,000 as \u2018investment money\u2019, they don\u2019t revisit it,\u201d he says.<\/p>\n

\u201cSIPs don\u2019t send reminders saying your salary has gone up,\u201d he points out. \u201cThe same person who upgrades flights, cars and homes as income rises will keep their SIP at entry level for decades.\u201d<\/p>\n

Ironically, the same people who upgrade flights, phones and cars as incomes rise keep their investments stuck in the past.<\/p>\n

LINK SIP GROWTH TO SALARY GROWTH<\/p>\n

The fix, Sabharwal says, is simple and practical. \u201cIf you get a 15% salary hike, increase your SIP by 10%.<\/a> You\u2019re not becoming aggressive \u2014 you\u2019re just staying consistent.\u201d<\/p>\n

\u201cIf Rs 5,000 was affordable at a Rs 30,000 salary, then a higher SIP should be equally affordable when you earn Rs 50,000,\u201d he explains. \u201cYou\u2019re not becoming aggressive. You\u2019re just maintaining the same commitment level.\u201d<\/p>\n

The idea is not sacrifice, but consistency.<\/p>\n

SAME INCOME, TWO OUTCOMES<\/p>\n

Consider two friends who start with the same salary and SIP. Both earn Rs 30,000 and invest Rs 5,000 monthly. Ten years later, both earn Rs 60,000.<\/p>\n

One keeps the SIP unchanged and builds a corpus of about Rs 11.2 lakh. The other increases SIP by 10% every year and ends up with Rs 16.3 lakh.<\/p>\n

\u201cThat\u2019s a 45% bigger corpus without feeling any extra pressure,\u201d Sabharwal says. \u201cBoth invested the same percentage of income. Only one adjusted with time.\u201d<\/p>\n

LET AUTOMATION DO THE HARD WORK<\/p>\n

Today, most mutual fund platforms offer step-up SIP options. These automatically raise your SIP by a fixed percentage every year.<\/p>\n

\u201cSet a 10% step-up and forget it,\u201d Sabharwal advises. \u201cYour SIP quietly grows in the background, just like your salary. You hardly feel the change, but your future wealth feels it.\u201d<\/p>\n

Even without automation, a simple yearly reminder can make a massive difference.<\/p>\n

USING BONUSES WISELY<\/p>\n

Bonuses are another missed opportunity. Instead of spending them fully, Sabharwal suggests using part of the bonus to permanently raise SIP amounts.<\/p>\n

\u201cA bonus shouldn\u2019t just fund comfort,\u201d he says. \u201cIt should fund momentum. When a bonus increases your SIP, it keeps working for you year after year.\u201d<\/p>\n

WHEN PAUSING IS INEVITABLE<\/p>\n

Life doesn\u2019t move in a straight line. Job losses, emergencies and career breaks can stall income growth.<\/a> During such phases, Sabharwal says continuing the existing SIP is enough.<\/p>\n

\u201cIf you genuinely can\u2019t increase, don\u2019t stop,\u201d he stresses. \u201cKeeping the SIP running is discipline. But once things improve, restart the habit.\u201d<\/p>\n

THE RAISE YOU OWE YOURSELF<\/p>\n

\u201cYou\u2019ll argue fiercely for a 10% hike at work,\u201d Sabharwal observes. \u201cBut give your own wealth zero increment for years.\u201d<\/p>\n

That contradiction, he believes, defines why many investors fall short of their goals. \u201cIf your employer froze your salary for five years, you\u2019d quit. Yet you do exactly that to your retirement fund.\u201d<\/p>\n

Simply put, a SIP is not a one-time decision. It is a living commitment that must grow with your life. Let your lifestyle inflate \u2014 but let your investments inflate too.<\/p>\n

Because compounding doesn\u2019t just reward patience. It rewards progress.<\/p>\n

– Ends<\/p>\n

Published By: <\/p>\n

Jasmine anand<\/p>\n

Published On: <\/p>\n

Dec 19, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"You fought for your last salary hike. You upgraded your phone, moved to a better home, and didn\u2019t…\n","protected":false},"author":2,"featured_media":323995,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,127442,127443,119118,127444,4174,4175,127440,127441,127437,105077,127438,127439,56,54,55],"class_list":{"0":"post-323994","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-how-sip-works","11":"tag-investment-growth-tips","12":"tag-mutual-fund-sip","13":"tag-mutual-fund-tips","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-sip-calculator","17":"tag-sip-growth","18":"tag-sip-increase-impact","19":"tag-sip-investment","20":"tag-sip-returns","21":"tag-systematic-investment-plan","22":"tag-uk","23":"tag-united-kingdom","24":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/323994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=323994"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/323994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/323995"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=323994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=323994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=323994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}