Everyone in this world is different from other. Some have bigger houses or bigger cars but comparing your life with others is always a losing proportion because there will always be people who “appear” to be better off than you. But that does not mean we also have to run towards those bigger things in life. Remember there is definitely no harm in fulfilling your deeds and desires. As your grow, your family grow, your need for a better and comfortable life grows and we all wants to buy a bigger car and better homes. While you are planning to do all that meanwhile you think oh! why not get a bigger LCD on EMI. The whole EMI system changes the wants into the needs and that’s why EMI is a disease that slowly creeps into your financial planning and makes you addicted.
The question arises is EMI system bad? Well, No, definitely not because it is a convenient option to buy things. But the issue is that EMI option makes many people think that they can buy just anything that they want and that’s where the problem occurs. The concept of EMI is very good because with the help of this payment method even a person with 40k salary can buy a private jet and it’s quite simple with EMI of Rs9999 for next 200 years. But does anyone really need a jet plane in a normal life? But really who cares? what matters is he can afford. The biggest problem is not EMI, it’s us. When you lose your control on your spending and let your affordability go to such length, we end up with everything but most of all high amount of debt.
There is another aspect to the overall understanding of EMI function. EMI kills the creativity of an individual by not letting us pursue our passion and letting us continuously do the same mundane activity on daily basis to pay the EMIs. The life is driven by the diseases of EMI often end up making a compromise on intellect and morality by not allowing us to invest into ourselves. The feeling of instant gratification makes us live beyond our limit and needs. As per the study, nears 67% of people from the urban set are paying at least 1 EMI which is mostly for either house or car loan. It is surprising and shocking at the same time that almost 11% of the urban set of people pay almost 3 EMIs. Always make sure that your EMIs do not exceed 50% of total salary. Because of this smaller chunk we end up buying things that we really don’t need and also cannot afford. Since our future earnings are more predictable the most of the products are easily available on the EMI which puts into this web of buying today and paying for next few years. So be careful as EMI is a disease that will enter your life and make it miserable.
As per the survey by National Sample Survey Organization (NSSO), around 22% household from the metro cities, and around 31 percent people in villages are under debt. The major factor behind that consumerism is on rising and at a rampant speed. Savings has been one of the biggest virtue of our country for many centuries but with growing consumerism, we need to realise the importance of our resources for future. When you tell a person about the price of the product in EMI, they believe that they can afford it as compared to when you tell them the actual price. The lower the price, the affordable it gets. But that is not actually true because when you reduce the amount of EMI, the tenure gets longer and the total cost over the longer period drastically increases. Hence proved, EMI is a disease.
Conclusion: Though there is nothing wrong in opting for EMI for something you want to buy. But it is important that you know what you are doing and what are your needs in real. Don’t run after everything as with time it will burden you mentally and psychologically leaving no space self-interest. Don’t let yourself drown into the sickness of EMI disease because it may get tough to come out. Start saving early and make your wealth with time.