Anything is possible with girl math. The latest Tiktok trend of women explaining money habits which defy the rules of mathematical logic has taken over the internet. If taken light-heartedly, it can be quite entertaining to watch, but is there real value from this girl math that can be applied to investments?

To first understand the concept, girl math logic usually goes like this: 

• If something’s on sale and you don’t buy it, you’re practically losing money.
• I took a Grab ride off peak when ‘fares were low’, basically made a profit.
• If I wore this bag everyday for a year, it would only be $7 a day per wear. Same price as my oat latte! 

Sounds familiar? We’re all guilty of it sometimes to justify our spending habits. Jokes aside, there are real parallels to be made with both girl math and investment math. Given the right framework and tools, it can even empower you to get closer to financial independence.

Buying things on sale = Buying the dip

How to apply this logic:

You could have the opportunity to buy Lululemon (USX:LULU) at least 6 times in the last 5 years and by now would have made a gain of 42.7% (as of 20 November 2023).

Breaking down prices to cost per wear  = Breaking down investment goals

How to apply this logic:

You could be investing the money you saved aside, in a cash management solution like Cash+ Flexi. With 3.7% p.a. projected return, compounded daily you can end up to $197.70 (returns) on top of your $10,556 (principal) saved.

Splurging on $200 a month for a cross-fit subscription for physical AND mental health

How to apply this logic:

Using Core Equity100 as an example, if you DCA $200 every month for 20 years, you’ll end up with over $136k by the time your kids are in university.

Putting all the lessons together

There are endless possibilities with girl math. More recently, permutations of the meme has picked up with boy math, Asian mom math as well as corporate math. You can check those out on Tiktok.

Our key takeaway for investments math is that if you break some of your financial goals down, understand what you’re investing into and be disciplined over the long-term, it can help get you on a path to financial independence. No matter how big or small our aspirations are.