Indian millennials and Gen Z saving 20% on lifestyle spend by spendvesting, says report: Know all about the trend

Indian millennials and Gen Z now prefer to save, invest, and then spend on lifestyle, travel, and gadgets through a financial strategy known as 'spendvesting', according to a recent report by investment advisor Multipl.

The report also highlighted that about 20 per cent of the total spending is on lifestyle, with travel topping the spendvesting categories with gadgets and shopping also being significant.

Released on Monday, March 4, the report mentioned that 50 per cent of spendvestors were aged between 26 and 34, which indicates that the financial strategy resonated more with Indian millennials and Gen Z.

What is 'Spendvesting'?

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

Paddy Raghavan, Co-founder, Multipl, states, "Spendvesting is not merely a financial strategy; it represents a shift towards mindful and gainful consumer behaviour."

The report, which was presented in collaboration with Blume Ventures, DSP Mutual Fund, Augmont-Gold for All, and EaseMyTrip, tracks the evolution of Indian spending habits, indicating a shift from more traditional banking and credit usage towards a spendvesting approach.

This approach tackles the growing issue of credit card defaults and debt accumulation among younger generations, emphasising the need for financial discipline. The strategy integrates investments in short-term debt/hybrid mutual funds and digital gold with daily lifestyle spending like travel, gadgets, and insurance, seeking to simplify modern financial literacy demands and facilitate healthy and rewarding spending habits through the gains from investments and contributions from partner brands.

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

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