Today I was surprised to see board reading "Buy clothes on Easy EMI".
We are still a developing country, but our spending pattern can amaze even developed countries.
That made me think actually from a consumer perspective, loan and Investment are two sides of same coin. Both of them fulfill a person's desire which is not affordable today. Loan given instant gratification whereas Investments doesn't.
Then why is loan a cuss words, while savings and investments are habits taught us from childhood.
In case of *loan we trade our future income today.* As we all know future is uncertain and tomorrow's expense are going to be much more than what it is now. *So, when it's not affordable today, how will it be paid tomorrow.*
Secondly, even in future needs will keep escalating, how that will be taken care of.. which might prompt for another loan and drag us to never ending vicious circle of EMI.
It's prudent to understand, impulsive buying on loan (In form of credit card, personal loan or consumer loan) might give temporary delight, but comes with penalty in the form of higher interest and a never ending stress, whereas buying it with own savings or investments gives satisfaction and contentment.
I think that was the reason our parents used to enjoy and cherish their big purchases. As they used to plan, work hard and compromise on many small things to buy it. *Every purchase was a long awaited dream and so used to carry enormous value to them.*
So, try *atleast never to buy your WANTS on loan* and *plan in advance for your NEEDS as well as WANTS* to avoid your financial future from getting derailed.
Have a wonderful debt free weekend and life ahead.