REVEALED! Through EPFO, you can become a crorepati! Just give up this BAD habit

EPFO or Employees' Provident Fund Organisation runs the Employees Provident Fund or EPF, which is an important part of every employees' investment portfolio. You can check EPFO online for more on this. It is money in the account that you will use for your benefit later in life. According to the EPFO norms, a salaried person has to contribute 12 per cent of one's basic salary into the EPF while the recruiter has to contribute the same in the employees' EPF. Apart from this, the Central Government also contributes 1.16 per cent of the basic salary of an employee into his or her EPF. You can also check your EPFI claim on its official website. However, if a salaried person decides to contribute more in one's EPF, he or she can do this by opting for the Voluntary Provident Fund. This option allows them to avail of the income tax exemption benefit under Section 80C of the Income Tax Act.

Speaking on EPFO based Voluntary Provident Fund or VPF, Kartik Jhaveri, Manager — Wealth Management at Transcend Consultants said, "In VPF, one can get the same interest, which is being provided to one's EPF because the additional money a salaried individual is contributing is going into his or her EPF account. Today interest rate on EPF is 8.65, which is highest among all debt-fund options. So, it's better to opt for VPF rather than investing in Public Provident Fund or PPF, ELSS Mutual Fund etc." He said that by opting VPF ahead of PPF, one can enjoy all PPF (7.90%) benefits in his or her VPF (8.65%), which comes along with an additional 0.75 per cent more returns! The VPF calculation is that you can tell your company to increase your contribution, which is voluntary, to the EPF account. This is in the form of VPF. There is no limit on the money you can include in VPF. It can be anything from Rs 20 to Rs 20,000 or more. However, you should know that the EPF interest rate applied will be 8.65 per cent and not more. In case you are confused, then the 0.75% difference comes when PPF rate is subtracted from EPF rate -  7.90%-8.65%. So, instead of opting for PPF, you should opt for EPF and get more money!

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How does VPF help you to become a crorepati if you leave some of your bad habits, like smoking? It can be understood with this example. If someone has a smoking habit, he or she would definitely spend at least Rs 30 per day on this. It has been found that most of the times, people take puffs on their cigarettes as a time pass. This can be during a leisure period at home or during breaks at workplace. If you check out the EPF calculator, it suggests that if someone leaves his or her smoking habit and saves this Rs 30 per day and puts it in his or her VPF, the money becomes Rs 900 in a month!

Delving deeper into the EPF calculator, this Rs 900 monthly savings shovelled into the EPF through VPF mode can make you a crorepati! Taking 10 per cent appreciation in cigarette price as a yearly top-up in your VPF savings that, let us suppose, begins at the age or 25 years, then at the time of retirement i.e. 60 years, the amount would become Rs 1,78,76,781. The interest rate that we have taken in this EPFO calculator is current 8.65.

See EPF Calculator's calculations below:

Source: EPF Calculator

So, your daily question of how to become a crorepati stands answered. Now all you have to do is to act on this and stop smoking and put that money in your EPFO account.