India is on a growth trajectory, and as per a report from Boston Consulting Group (BCG), India is set to become the third largest consumer economy by 2025, trailing behind US and China. One of the factors that have triggered this growth is the widespread penetration of technology, changes in consumption behaviour, etc. Irrespective of whether it is a tier-1/tier-2/tier-3 city, Indian consumers are making informed decisions and utilizing technology as a medium to achieve the same.

This goes to prove that spending patterns never remain constant, but it is very important that consumers need to keep a thorough check on the items on which their hard earned money is being spent. They should not enter into the zone where they ask the question – ‘Where did all my money go?’ at the end of every month. Hence, it becomes primarily important for each one of us to cultivate the habit of ‘Investing’ and keep a continuous track of ‘Spending’.

When it comes to spending, there are fixed household expenditures that cannot be avoided, but variable expenditures are the ones that would be eating away the critical part of the savings 🙁 For example, electronic goods, vehicles, furniture, etc. are some examples of assets whose price depreciates from the very moment the item was purchased. Irrespective of the price, Indian consumers are able to afford these items since they can buy on EMI.

There is a fine line of difference between Investing and Spending and consumers need to understand the difference in order to ensure that they are putting their money in the right place. For example, you can buy a car from a good automobile brand on EMI, but the price of a commodity like a car keeps depreciating with every single day. Hence, the convenience comes at a decent price and chances are that you would not get a good resale value of the car. This would be considered as ‘Spending’.

On the other hand, Investing is something where you expect your money to grow over a period of time and returns would vary depending on the risks involved. For example, if you invest in a Mutual Fund where a major portion of the investment is in the ‘equity bracket’, stakes would be higher, but returns might also be significantly higher when the investment is in ‘debt market’. Hence, it is important to make the most of your disposable income.

With changing times, consumer demands and consumption patterns are also changing. Many of them are relocating to different cities for work. Due to the ‘relocation’ factor, owing up movable assets might not turn out to be a good investment since pendulum has shifted to an on-demand economy. For example, you can book a taxi ride at the push of a button; you can buy furniture on rent /rent bikes/buy appliances on rent or any other item that you require for setting up your home or setting up your office. As a consumer, you need to make that important decision on whether you want to ‘own’ or ‘rent out’ something that would be termed as a ‘Spending’ [Fixed/Variable].

More and more Indians, especially in the urban cities are now opting for a #SubscriptionLifestyle even when they are planning for home interior or house décor. The primary advantage of this lifestyle is that you pay for the furniture that you have purchased on rent (for the time you have used) and in case, if you do not like the same or if there is a change in the trend, you can get it exchanged with the latest trendy furniture.

Technology has been a major enabler to solve many problems faced by rapidly changing Indian consumers, and this is where startups like RentoMojo are using a lethal combination of technology, retail and logistics to make ‘subscription lifestyle’ a possibility. You can own furniture on rent, bikes on rent, home appliances on rent and purchase a house on rent using their platform.

RentoMojo is a convenient, commitment-free and cost-effective solution for anyone who is willing to adopt the ‘subscription lifestyle in India’. RentoMojo enables everyone to smartly own quality furniture, appliances and vehicles at an affordable cost. With rising inflation, it becomes important that we invest our hard earned money at the right place and don’t get confused between ‘Investment’ and ‘Spending’.

With the changing trends, there would be an increasing adoption of #SubscriptionLifestyle so that you #SmartlyOwn what is necessary.