TomorrowMakers

According to the BankBazaar study, the Aspiration Index 2023 is a study that measures the personal finance goals and aspirations of salaried men and women in India. The All-India Aspiration Index has declined for the first time since 2020, with a score of 88.4 in 2023, down from 89.5 in 2022.

Highlights:

• The Aspiration Index dropped to 88.4 in 2023, down from 89.5 in 2022.
• Health, wealth, fame, relationship, and personal growth are the five parameters for the Aspiration Index.
• Health takes precedence, scoring 87.5; mental well-being leads at 89.1; and investing in children's education ranks second at 88.9.
• Property ownership remains a top-three goal.

The report analyses the goals of salaried individuals aged 22 to 45 across five key aspirations: health, wealth, fame, relationship, and personal growth, contributing to their overall financial safety. The scores are:

What are the top financial goals in India?

The five top financial goals identified in order of priority are:

Source: BankBazaar

The report further stated:

• Health is the first priority.

India prioritises health, scoring 87.5 on the Aspiration Index, with mental health at 89.1. Interestingly, there's a 5.5-point readiness gap. Women, except Wealth Warrior women, aspire more to health.

Also Read: Women: Your Health and Money Are Linked. Know How.

• Relationships matter.

Investing for children’s education is the second highest aspiration at 88.9, followed by maintaining close family ties and enduring friendships in the 86s. Women desired meaningful friendships, while early jobbers showed comparatively lower relationship aspirations.

• Buying property remains the third priority.

Buying property that’s your own remains a top three goals, but India lags in other wealth aspirations. Modest aspirations for travel (83.1) and retirement (84.1) contribute to a wealth index of 85.1. Premium product purchases score an average of 85.0.

• Fame has diverse perspectives.

Women lead in fame aspirations. Early Jobbers, especially men, show less interest. Wealth Warrior women aimed social media influencers at 91.4, while Women Moneymooners sought recognition at 90.3.

• Personal growth is on hold.

Pursuing hobbies and reinventing oneself takes a backseat, with personal growth ranking lowest at 84.1. Men express less fervour for hobbies, scoring in the mid-70s. Start-up aspirations are high, with women driving the force.

What are the reasons for the score falling?

The world economy is facing challenges like high inflation, unemployment, and expensive borrowing. Other factors include:

• Challenges for Indian males with the lowest scores across all goals. Women face additional challenges due to family responsibilities and work pressures.
• High living costs are the main hurdle for 48% of respondents.
• High borrowing costs have greatly impacted homebuyer sentiments for 82% of respondents. Around 74% find loans more costly, with 42% experiencing higher monthly instalments.
• Loan uptake has declined, and more people (19%) have debt liabilities compared to the previous year (14%).

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Also Read: What is the smartest way to repay loans and become debt-free?