Note: the following content is intended to be educational but it does contain promotional material for Kaldi.

“Instead of cashback just sitting there, it’s now invested. That’s free money working harder for me.”

Meet Michael Hutchinson, a teacher from Reading who’s found a way to make everyday spending part of his financial future with Kaldi.

Michael isn’t new to the world of finance. Before becoming a maths and economics teacher, he worked as a financial consultant. He’s the kind of person who already knows the value of compounding, as well as the risks of single stocks and why inflation quietly erodes savings left in cash. But despite that knowledge, he admits it took longer than he’d have liked to become a consistent investor.

“I’m actually frustrated I didn’t start investing properly sooner,” Michael explains. “When I was working in financial services, I was dabbling in individual stocks trying to beat the market. Now, I stick to index funds and let the market do its thing. You mitigate the risk and ride the wave.”

That shift in mindset has shaped how Michael approaches money. He invests regularly into a Lifetime ISA for retirement. Now, through Kaldi, he’s found another way to keep building.

First impressions of Kaldi

Michael first came across Kaldi through a Facebook ad. “I’d used cashback apps before, but Kaldi stood out. The fact that you can earn cashback on everyday spending and then put it straight into a tax-efficient ISA … well, that’s powerful. It’s a no brainer.”

Getting started was effortless for Michael. “It’s unbelievably easy. The formatting is great, and the speed is incredible. We’re talking a minute or two between logging in and seeing it working. On Kaldi’s side, it’s massively quick.”

For someone who’s already familiar with trading apps, it wasn’t the concept of investing that surprised him as much as it was the simplicity. “It’s a revolutionary idea. I’ve got a fair few investment apps, but linking cashback makes it feel different. It’s satisfying watching it grow.”

Cashback with impact

Michael’s a self-confessed food and drink enthusiast. His Kaldi cashback tends to come from restaurants, pubs and grocery shopping, with Uber Eats, Costa, Tesco and even Miller & Carter featuring heavily on the list. Amazon is another regular, but he admits most of his spend reflects his passion for food. On average, he’s collecting around £10 a month in cashback.

That might not sound life-changing, but the multiplier effect of investing changes the picture. If Michael keeps it up for the next 10 years, that £10 a month could turn into between £1,762 and £2,160. Stretch it to 20 years and the potential growth could be between £5,419 and £8,568. And over 35 years – around the length of a typical working career – it could grow to between £19,462 and £48,282.

Of that amount, only £4,200 would be from cashback. The rest comes from potential growth.

Total returns are listed after fees. Figures shown show a range of possible outcomes based on historical performance of Vanguard LifeStrategy 100% Acc fund. Please go to kaldiapp.co.uk/example-fund for more information on this calculation. 

Just remember the above is an illustration based on assumptions. It’s not a guarantee. Investments can go down as well as up, and you may get back less than you put in. All investments carry risk, including the risk of loss of capital. Past performance is not indicative of future results. 

As Michael puts it, “If you get that £1 and invest it, you’re talking about a big old multiplier. The money is going that one step further. It’s not just money back either. It’s money growing.”

Changing the perception of investing

For Michael, one of the biggest benefits of Kaldi is how it makes investing part of daily life. “It’s made me see investing as something you can add to regularly. Most people think investing is all about risk or horror stories of losing money. But if you’re using funds and adding little by little, it’s a lot less intimidating.”

That’s exactly the shift Kaldi is aiming for, helping people become investors without feeling like they need to overhaul their financial habits. As Michael says, “We’re a nation of penny pinchers, but a lot of people are afraid to invest. Kaldi helps close that gap.”

Building on great ideas

Michael is quick to praise the concept and sees even more potential ahead. “My wife would love to see more pet-related retailers, and I’d like to see ETFs for specific industries. That would give people more choice if they want to diversify.”

He also highlights the referral scheme as an area that could grow stronger: “There’s no such thing as a free lunch. But there is such a thing as a lunch with 5% cashback invested.”

For Michael, these types of additions would build on an already unique idea and make it even more compelling.

When small change makes a big difference

Michael’s already investing his own money each month, but Kaldi adds another stream, one that feels effortless. Instead of cashback going unspent, it’s being put to work.

“The real benefits will be in five, 10, 20 years’ time. That’s when you see it’s worthwhile. People struggle to see short-term action for long-term freedom. But Kaldi makes it easy to get started.”

As far as Michael’s concerned, it’s about making the most of what he already spends and letting the market do the heavy lifting. With this mindset, cashback becomes part of his financial future.

Find out how Kaldi could work for you. Download the app today.

It’s important to remember that while Kaldi provides tools to help you invest and diversify, we don't offer personal financial advice. The value of your investments can go up or down, and you may get back less than you put in. If you're unsure about investing or your personal financial situation, it's best to seek advice from a qualified financial advisor.

‍