My parents had a simple rule: If you cannot pay for it, you cannot afford it. This means avoiding debt at all costs. My father was 40 when he was urged to buy a two-wheeler on EMI.
He reluctantly agreed because public transport to his workplace was a nightmare. That was the only item my parents ever got on a loan. They (and, therefore, I) were lucky to live on ancestral property, so the home loan hassle was avoided. This is a reasonable debt to service as long as the property is for self-occupation. Not because it is an appreciating asset (self-occupied property has no value and depreciates!), but because inflation will reduce the impact of the EMI over time – provided we are not in a rage to close it.
That mindset was ingrained in me. And my wife came from a similar background. So, I never got anything on loan. I did start my career with a net worth of minus Rs. 3 lakhs – the amount my brother-in-law gave us to pay for my dad’s hospital costs.
My parents lived from paycheck to paycheck and barely managed to save anything. Because they stayed out of huge debt, they could somehow manage. I was lucky enough to stand on their shoulders, get qualified, earn a reasonable salary, and build wealth.
To me, if you can’t pay for it, you cannot afford it was golden common sense. Sadly, it is long dead. I was shocked to learn via Sonia Shenoy that ” Credit card default is rising at an alarming rate, pushing a lot of young Indians into a growing debt trap. Outstanding credit card dues had skyrocketed to nearly Rs 2.7 lakh crores in June 2024 compared to less than 90000cr in March 2019.”
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Also see: Millennials fuel a surge in credit card defaults as e-commerce drives debt.
Credit Card Dues and Defaults on the Rise. There are many such reports (including many news by the time this article is published).
Excellent FOMO marketing by product manufacturers has resulted in a huge increase in consumerism. Is this the price to pay for a country to become economically strong? That a good chunk of its citizens live paycheck to paycheck, suffocating under a mountain of debt?
Too much saving – the way we were in the 1980s and 1990s – is neither good for the citizens nor the country. Too much spending – the way we are now may seem good for the country, but when the party stops, and it will, this style of living will crumble like a biscuit quickly.
We must balance our wants for today and our needs for tomorrow. We must curb our spending, ignoring all that “you only live once (yolo)” gyan. Otherwise, we will guarantee that there will be no tomorrow. Resolve to change your life in the new year before it is too late.
If you cannot pay for it, you cannot afford it. No, you are not special in any way. You don’t deserve anything special, certainly not something you cannot pay for in cash.
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Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
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- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
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