The hidden investment plan no one tells you about!
WTF #10 How to Save, Invest, and Spend Smartly!
Gone are the days when roti, kapda, aur makaan (food, clothing, and shelter) were enough.
And this is What The Floww? A weekly newsletter by FinFloww to help you manage your money better in a world that is evolving dramatically.
Economics and psychology have always gone hand in hand. All the major investment strategies in some way have been built by keeping the fundamentals of human psychology in consideration.
In fact, investing is done because of the core human psychology of achieving or fulfilling a goal.
Ask yourself this question — Why do you want to earn money?
The answer is pretty straightforward — To achieve certain things in life.
Robert Shiller, winner of the 2013 Nobel Prize in Economics, has summarized this beautifully in a few lines, “Finance is not merely about making money. It is about achieving our deep goals and protecting the fruits of our labor.”
The Hidden Sauce
From buying a phone to planning your retirement. From planning a two-day trip to buying the house of your dreams. We all have such aspirations but how do we go about turning them into reality?
The answer is simple: SAVINGS!
Okay yes, we all know this. What’s unique about it?
What if you can integrate your savings to a goal-based investment strategy for your lifestyle spends?
We believe that one should have complete authority over how they spend their money, and goal-based investing for all your lifestyle needs gives that freedom.
With the help of goal-based investing you can still spend on things you want and need, but without getting into any bad financial habits.
We are a generation which doesn’t like to wait in order to achieve our dreams.
That is why we need an investment strategy that’s tailored to our lifestyle.
Majority of Indians have jumped from the middle class economic strata to the upper class, where we are looking to invest so we can spend and not for survival.
This is now possible with the help of Multipl — world's 1st Invest to Spend app!
They not only help you to create goal-based investment plans, but brands like MMT, Amazon, and Croma also contribute to your savings.
Before diving deeper into the importance of goal-based investing, we need to understand the basics.
Why should you have an Investment plan for all your needs?
Financial planning is like having a personal finance superhero by your side, ready to rescue you from money mishaps.
It's like having a trusty sidekick who whispers in your ear, 'Hey, maybe skip that fancy coffee today and save for your dream vacation instead.'
Because let's face it, life can throw financial curveballs at you, and having a plan is like wearing financial armour.
It's the secret weapon that helps you dodge impulsive purchases, slay debt dragons, and conquer your financial goals.
So, embrace the power of planning, because being financially savvy is the coolest cape you can wear!
How to unleash this superhero?
It’s simple, you just need to identify the right strategy that aligns with your spending habits.
There are many plans or hacks available in the market which can transform your wallet into a genie!
Today we will talk about one such investment plan that has become widely popular among the youth.
Invest for your Spends
So far we’ve understood that goal-based financial planning provides a roadmap for managing your spending, savings, and investments.
It assists in identifying your financial objectives, both immediate and distant, enabling you to develop a tailored strategy to attain them.
Goal-based saving, or rather goal-based investing, may sound like just another financial plan, but it’s not, and that’s the magic of this new investment avenue.
Salman Bhai can explain this better than us. He used this technique long before it was cool.
Like we said, goal-based investing helps you to spend on things you want and need, but without getting into any bad financial habits.
It provides a step-by-step approach to meeting your life’s key financial goals, such as children’s higher education, buying a home, building a retirement corpus, etc.
Here’s how goal-based investing can help you build a financially secure life:
[1] Achieve your goals: With easy access to credit, we tend to buy a lifestyle before we can actually afford it. And that debt leaves a negative effect on us.
But platforms like Multipl help you achieve the lifestyle you want without any compromise, money stress, or buyer’s regret.
It enables you to invest for your spending goals so you earn returns before you spend, & do not end up taking bad debt.
[2] Increase your savings: While it's possible to save money without a financial plan, goal-based investing empowers individuals to increase their savings intentionally, ensuring they can meet their financial needs.
For example, when you set up a spending goal on Multipl, it will tell you exactly how much you need to save & invest every month to achieve your goal.
Basically, the money you save will be invested into commission-free mutual funds which are linked to your spending goals, such as going on a holiday or buying a smartphone, and even recurring spends like school fees, insurance premiums, etc.
But there’s more to this than meets the eye!
See, most credit products make a lot of money by negotiating discounts from the brands, but do not pass it on to the users (who are hooked) to maximize their margins.
However, Multipl passes these brand benefits to their users. This means users get mutual fund returns as well as extra savings from the brand.
So, it’s a WIN-WIN as you can still buy what you want, but in a financially prudent way.
[3] Build your wealth & financial immunity: To maintain your desired standard of living in the future and fulfill various aspirations like buying a house or owning a car, you need to build a substantial corpus.
Goal-based financial planning is essential for achieving these long-term goals by investing in high-return avenues.
With Multipl's investment engine, your money is allocated to the right assets and investment portfolios based on your time horizon, purpose, and risk profile.
This ensures maximum safety and liquidity.
[4] Tax savings: You can also invest in tax-deductible avenues that not only provide high returns but also help lower your taxable income. This further enables you to meet your life's goals while minimizing the amount you pay towards taxes each year.
[5] Emergency funds: In an unpredictable future where uncertainties like COVID-19 can arise, goal-based investing can help in building an emergency or contingency fund.
Although an emergency fund should be liquid, it’s not something you can access often. Hence, you can consider investing it in a manner so you can earn decent returns from it without compromising on liquidity.
Goal-based investing is an optimal approach for making wise investments, enhancing savings, and fulfilling your family's financial responsibilities.
By effectively managing your finances, you can attain a state of financial tranquillity and security.
To explore further, click here to download the Multipl app now!
Use code “FINFLOWW” to get a FLAT ₹300 Swiggy voucher on your 1st spending goal on the app!