The Real Cost of Overspending: Skipped SIPs

Many individuals start the month with the intention to invest regularly. However, once the salary is credited, routine expenses often take priority and what’s left (if anything) gets invested. The result? inconsistent investments and missed opportunities.

A simple way to avoid this is to schedule your SIP (Systematic Investment Plan) date just a day or two after your salary is credited.

Think of it this way:

• Your EMIs gets auto debited
• Your electricity bill gets auto debited
• Your OTT subscriptions gets auto debited

Why shouldn’t your investments have the same priority? By scheduling your SIPs soon after your payday helps ensure that investments are taken care of first, and day-to-day expenses could be managed with the remaining balance.

Why this approach helps

• Encourages discipline: When your SIP is automated, investing becomes part of your monthly routine.
• Helps build consistency: Regular contributions allow you to stay invested without interruptions.
• Prioritises Investing: By investing first, you spend from what remains, rather than the other way around.
• Reduces decision-making effort: Since the process is automated, you don’t need to actively plan each month.

Example: The Story of Two Friends

Rahul and Meera, both earn the same salary and decided to invest Rs 10,000 every month through SIPs in HDFC Flexi Cap fund for 10 Years, but their approach to investing is different

Key Difference: Both earn the same salary, but Meera’s “Invest-first” approach helped her to stay consistent, while Rahul’s “spend-first” approach made his investments irregular and reduced his long-term corpus.

Takeaway: A consistent investing habit, even if small, could be more effective in the long run. Skipping SIPs may feel small in the moment, but over time it could create a gap in your wealth creation journey.

A small change, a lasting habit

By aligning your SIP date with your salary credit, you effectively give your investments the same priority as fixed monthly expenses like rent or EMIs. This simple adjustment helps in creating a disciplined saving and investing habit, something that can be valuable over the long term.

Remember

The goal is not to time the market, but to stay consistent with your investment journey

Performance

A. HDFC Flexi Cap Fund - SIP Performance - Regular Plan - Growth Option

B. HDFC Flexi Cap Fund - Performance - Regular Plan - Growth Option

For performance of other funds managed by fund manager, Please click here.

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.

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