Lifestyle and travel goals are top categories to save for spendvesting enthusiasts: Multipl report

Millennials and Gen Z now prefer to save, invest then spend for the lifestyle and travel goals.

Most Indians love to spend on electronic gadgets, shopping and traveling. The millennials and Gen Z are now preferring to save, invest then spend towards their lifestyle and travel goals, according to the Spendvesting Report, released by Multipl, a fintech investment platform.

The report highlights an innovative personal finance strategy enabling Indians to save a significant 20 percent on all their lifestyle spends. This approach, developed by Multipl, merges lifestyle goals with prudent investing, offering a way for consumers to live their dream lifestyle while building a secure financial future.

The report identifies travel as the preferred category for spendvesting enthusiasts, with gadgets and shopping also gaining significance, pointing to the popular lifestyle goals that drive financial decisions. It also notes that 50 percent of Indian spendvestors are in the 26-34 age group, showcasing the strategy’s resonance with millennials and Gen Z’s.

This comprehensive report tracks the evolution in Indian spending habits, moving away from traditional banking and credit usage towards a more balanced spendvesting approach endorsing a positive habit for a stable financial future. It tackles the growing issue of credit card defaults and debt accumulation among younger generations, emphasising the need for financial discipline.

“By integrating investments in short-term debt/hybrid mutual funds and digital gold with daily lifestyle spends like travel, gadgets, and insurance, spendvesting seeks to simplify modern financial literacy demands and facilitate healthy and rewarding spending habits through the gains from investments and contributions from partner brands,” said Paddy Raghavan, co-founder of Multipl.

Also read | Explained: How SIP in mutual fund helps creates wealth

Spendvesting promotes recurring investments in assets such as mutual funds and digital gold. Catering to diverse lifestyle needs like travel, gadgets, home decor, vehicle, jewellery, insurance, education, etc., it combines investment returns with partner brand contributions, offering consumers unmatched value.

'Spendvesting' resonates most with adults aged 26-34, capturing 50 percent of Multipl users, as they seek to balance financial growth with spending.

Highlighting the investment tendencies of younger demographics, the report demonstrates millennials and Gen Z’s preference for fintech startups for customised investment advice. It illustrates that an average software engineer earning between Rs 12 lakh to Rs 14 lakh annually could save around Rs 1.2 lakh per annum simply by adopting spendvesting.

“Spendvesting is not merely a financial strategy; it represents a shift towards mindful and gainful consumer behavior,” said Raghavan.