Every day, thousands of young adults make the easiest yet one of the most critical decisions: Should I spend my ₹200 on their favourite cup of coffee, or should I put it in the Systematic Investment Plan? Enjoying the daily coffee may immediately give in to your wants, but you could create more value by investing in it.
In this blog, we will cover the consequences and help you decide between these short-term gratifications and long-term benefits.
The Case for Coffee
For many, coffee is more than a beverage; it’s a lifestyle. That ₹200 spent on coffee offers:
- A Boost of Energy: Coffee keeps you awake and alert, especially during long study sessions or work hours.
- A Social Experience: Cafes are a place to meet friends, network, or just have some “me time.”
- Immediate Gratification: The pleasure of sipping your favourite brew can be an instant mood lifter.
But let’s not forget the cost. ₹200 a day sums up to ₹6000 a month or ₹72,000 a year. Over five years, that is a lot of ₹360,000 without considering inflation or the increase in coffee prices.
The SIP Case
A SIP is an investment strategy whereby you invest a fixed amount regularly in mutual funds. Here is why choosing a SIP might be the wiser decision.
- Wealth Creation: Putting ₹200 daily into an SIP, with an annual return of 12%, can work out to roughly ₹5.3 lakh after five years.
- Financial Security: SIPs ensure long-term advantages such as accumulating a corpus in case of medical emergencies, educating children, or buying a dream house.
Flexibility: You can begin by investing small and gradually increase it with a hike in your salary.
Comparison Between the Two
| Aspect | Coffee | SIP |
| Cost (Per Day) | ₹200 | ₹200 |
| Monthly Expense | ₹6000 | ₹6000 |
| Annual Spend | ₹72,000 | ₹72,000 |
| 5-Year Outcome | Instant gratification | ₹5.3 lakh (approx.) |
Whereby, on the contrary, coffee gives immediate satisfaction, but SIPs are for a secure prosperous future.
Both Balancing Around
Why not avail both the world and the world simultaneously? Have a look at these plans:
Coffee every alternate day and save the amount in SIP.
- DIY Coffee: Prepare the same in your home at a very minimal cost and the saved amount in SIP.
- Budgeting: Allocate a monthly budget for coffee and SIPs to ensure neither is neglected.
Wrapping Up!
Life is about choices, and every small decision contributes to your future. While coffee provides a daily dose of happiness, investing in a SIP ensures that your future self will thank you. Striking the right balance between enjoying today and securing tomorrow is the key to a fulfilling life.
We, at Future Ready, believe in enabling the person to make wise financial decisions. Browse our portal to find out more about smart investing and how you can plan a better future with the money without missing out on the joys of today.
FAQs
- Can I start a SIP with just ₹200 daily ?
Yes, many mutual funds allow investments as low as ₵500 per month, making it accessible for everyone.
- Is it a good idea to spend on coffee now and then?
Yes! It’s very important to treat yourself occasionally, but moderation and budgeting must be maintained at the same time.
- What returns will I get with a SIP?
Returns vary, but equity mutual funds usually give you around 10-15% annual returns over the long-term horizon.
- Am I allowed to withdraw money from my SIP anytime?
Yes. Most SIPs are liquid, though doing this before the maturity date would affect your goals.
