A significant shift towards financial prudence marked the spending behaviour of Indians in 2025, with a majority prioritising saving money, regular budgeting, and tracking expenses over aggressive investing or splurging on experiences. This is the key finding from the comprehensive Habit Index survey by The Times of India, which polled over 96,000 respondents across the country.
The Rise of the Budget-Conscious Indian
The data presents a clear picture of a nation leaning into fiscal discipline. A substantial 57.6% of respondents confirmed they budgeted regularly and tracked their expenses meticulously throughout the year. Technology emerged as a crucial ally in this endeavour, with more than half (50.3%) of these disciplined savers crediting expense-tracking apps for helping them stay on course. Other successful strategies included setting clear savings goals (26.6%), conducting weekly expense reviews (12.6%), involving a partner or family (8%), and using automated bill reminders (2.5%).
However, the path to consistent saving was not smooth for everyone. Another 18.7% admitted to saving money, but doing so irregularly. For this group, unexpected expenses were the biggest hurdle, cited by 41.6%. Low or unstable income was a challenge for 28.3%, while 17% struggled from a lack of clear saving goals. Lack of discipline (8.8%) and impulse purchases (4.4%) also played a role.
Investment Preferences and Experience-Driven Spending
Active investment in instruments like stocks or cryptocurrencies was a focus for a smaller segment, at 13.1% of those surveyed. Among these investors, traditional and safer avenues held strong appeal. 61.9% preferred mutual funds or stocks, while 44.5% parked their money in safer assets like fixed deposits, gold, or silver. Riskier pursuits like day trading attracted 12.1%, and only 6% ventured into digital currencies or crypto. Real estate and physical assets were the choice for 3.6%.
On the spending front, a mere 4.9% said they allocated most of their income to experiences. For those who did, travel and experiences delivered the most satisfaction (38.4%), followed by home or self-care products (17.4%), fashion and shopping (16%), dining out or food delivery (15.1%), and gadgets and technology (13%).
A concerning 5.6% of respondents reported they did not track or plan their finances at all. The primary reason, given by 43.5%, was not having enough income to budget. Another 17% relied entirely on family or partners to manage money, while lack of time and fear of financial complexity were each cited by about 15%. Disinterest in finance was a factor for 10.3%.
Financial Goals and Mindset Across the Nation
The survey also delved into the primary financial objectives for the year. Travel or personal expenses topped the list for 38.3% of people, with social media or travel influencers inspiring 60.5% of these goals. Building an emergency fund was the main goal for 19%, primarily driven by health-related concerns (41.2%) and job uncertainty (31.4%). Investing was the top priority for 28.3%, guided largely by long-term goals (49.1%) and financial literacy content (32.4%).
When it came to financial mindset, 56.1% described themselves as careful and disciplined, with 56.8% of this group actively avoiding risks. In contrast, 17% identified as experimental risk-takers, and 11.2% reported feeling financial anxiety, often due to unexpected expenses. A confident 13.2% felt financially aware, citing better expense control as a key reason.
The survey highlighted trusted sources for financial decisions, with parents or family being the most relied upon (44.7%), followed by spouses or partners (21%) and financial advisors (16%). The respondent base was diverse, with 56.2% residing in metro cities like Mumbai and Delhi, 19.8% in growing cities such as Indore and Lucknow, and 24% in smaller towns or semi-urban areas.
