The fruit vendor explained that’s Rs 180 per kilogram. Sunil asserted that prices have soared. His daughter said, “But papa, you love green apples.” He reluctantly purchased a kilogram of green apples, accompanied by a free narrative about the time when prices were so low. Also, he could afford to buy even more, so 180 rupees wasn’t a big deal for him. It is just that he did not have the heart to spend the money. When we need to spend money, so many of us worry too much.
The majority of people are uncomfortable with the emotion of regret that comes from spending money. We categorize money in our minds, in addition to worrying about spending money and the rising cost of living or inflation. According to the mental accounting concept, we value the same amount of money differently depending on the purpose for spending it. For instance, if you have Rs. 19 lakhs in mutual funds, you can easily withdraw Rs. 4 lakhs to pay for your child’s college education but not for a long-awaited international vacation. Also, if you do not withdraw from accumulated wealth, spending and enjoying life becomes easier.
Goal-based investing has produced the art of guilt-free spending. Your asset allocation and financial planning get better as you start investing in mutual funds. You not only deal with inflation better but also succeed in achieving your desired objectives. At Investocafe, we make it easy for you to reach your goals by estimating the amount needed and directing you to the right funds to invest in for the best possible return within that time frame. You are valuable and you should learn to love yourself and value your needs and comforts too by creating a balance between investing and spending.