How to Earn Rs 50,000 Per Month After You Quit Your Job — Here’s What You Can Do

Thinking of leaving your full-time job — whether it’s for early retirement, a break, or to try something new — often brings up a key concern: how to manage your monthly expenses without a steady paycheck. One option that’s gaining eminence is the Systematic Withdrawal Plan (SWP).

It helps you receive regular income from your investments while keeping most of your capital intact.

What is an SWP?

An SWP allows you to withdraw a fixed sum from your mutual fund investments at regular intervals — monthly, quarterly, or annually. It’s essentially the reverse of a Systematic Investment Plan (SIP). Instead of putting money in, you're pulling money out — in a structured, tax-efficient manner.

Financial planners reckon that SWPs have become particularly relevant for professionals who have either retired early or are transitioning between careers and want to rely on their investments to fund everyday expenses.

How does this work?

If you want to receive Rs 50,000 every month, that adds up to Rs 6 lakh a year. To earn this amount at an 8% annual return, you would need to invest around Rs 75 lakh (because Rs 6 lakh is 8% of Rs 75 lakh). With this setup, Rs 50,000 can be credited to your bank account each month through a Systematic Withdrawal Plan (SWP).

Each monthly payout includes both the earnings from your investment and a portion of your original money. Over time, if you withdraw more than your investment earns, your total balance will slowly go down. These figures assume that you're looking to maintain regular withdrawals for at least 10–15 years, ideally without exhausting the entire principal.

Also Read: Want a Tension-Free Retirement? These Mutual Funds Do It All for You | Republic World

Why SWPs are advantageous

1. Steady Monthly Income
   You get a fixed amount in your bank account every month — just like a salary.
2. Tax Efficiency
   Only the capital gains portion of your withdrawal is taxed. If you’ve held equity funds for over a year, long-term capital gains (LTCG) up to Rs 1 lakh annually are tax-free.
3. Capital Preservation
   When managed well, your original investment corpus can last for decades — or even grow — while providing income. 
4. Flexibility
   You can pause, increase, or decrease withdrawals anytime. There’s no lock-in period like in traditional annuity plans.

Are there any downsides?

Despite its advantages, SWPs aren’t entirely risk-free. Market-linked funds can underperform in the short term. That’s why many investors keep 12–18 months of withdrawals in liquid or short-term debt funds. Furthermore, inflation eats into your returns. You may need to increase your withdrawal amount periodically to keep up with the cost of living.

Big Picture

If you’ve been diligent about savings and investing, a Systematic Withdrawal Plan can help you live off your money without feeling financially insecure after quitting your job. With a thoughtful mix of the right funds, disciplined withdrawals, and some expert guidance, earning Rs 50,000 per month from your investments is not only possible but very much practical.