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Come, now let’s look at the figures. About 70% of people who buy iPhone in India choose to pay through EMI. A recent study found that 93% salaried Indians who get less than ₹ 50,000 monthly salary are completing their everyday expenses through credit cards and EMI. Now these credit and EMI are not just options, but have become a lifeline.
If Warren Buffett would have been here now, and watching long queues at Apple stores, where people are choosing “easy EMI” like fast fashion, perhaps they say something simple: Do not confuse what you want now with the help of tomorrow. Live within your capacity, protect your freedom from interest payments and allow savings to become the guidance of your choice instead of borrowing.
EMI’s psychology is very clever. Today, instead of asking you to buy a phone of ₹ 80,000, it asks for just ₹ 6,000 per month. When spreading in this way, it seems painless. And during Diwali or large launch week, when everyone around you is upgrading, it seems almost irresponsible not to buy it.
But the figures that show here are this. Credit card interest rates in India often cross 36-40% annually, which means that if the balance of ₹ 50,000 is left without being repaid, it can be quietly doubled in two years. Buy Now Pay Later schemes, which many people consider to be risky, have already seen a quarter of users struggling to repay. And EMI, which was once for home and cars, has now become normal for phone, clothes, even holidays.
It is here that Warren Buffett’s advice is beyond time. He often said that you cannot become rich by spending more than your income. Debt in his perspective is not just a financial burden, it is a mental weight that increases over time. And in India’s current credit culture, this load is spreading rapidly.
If Warren Buffett was sitting in front of the young Indians of a group today, he might not have used any complex terminology. He would keep it simple, perhaps advising life like a patient.
Save first, then spend
He would say, do not wait to see what is left for savings by the end of the month. First decide the amount that you want to keep aside, then live on what you survive. Even if that amount is small, the habit is more important than the number.
Buffett reminds us that the credit card is not an extra money. This is only a means of making payment easier. If you are not paying your entire bill, then you are already in dangerous condition. In India, card interest rates can reach about 40% annually. This is not a loan; This is a trap.
Third, let the compounding work in your favor, not against you
Buffett prefers to talk about compounding because it makes the property quietly over time. If you invest a few thousand rupees every month, then the amount increases rapidly with your expectation. But this principle works upside down with debt. They are also compounded EMI and unpaid card bills, but against you. One increases your freedom, the other eats it.
He will probably ask us to keep a few emergency money separate. Not because he is against Anand, but because life is unpredictable. When you have some savings, you do not have to be forced to swipe your card in the worst time or take another EMI.
As soon as the festive light starts sparkling and new gadgets are filled in shops, feels like joining the crowd. I look at my friends who are proudly holding the phone purchased on EMI, the cards are easily swipe and the “no-cost” deals that seem harmless on the surface. But behind this glow, I also see stress. I see those whose salary is already tied in installments and there is no place to breathe.
So my appeal is to enjoy this season, celebrate with family, but do not make your happiness on borrowing money. The phone will be old, the gadget will change, but the debt may remain for a long time. Buffett would say that true festival is financial freedom, the joy of living without EMI and credit card bills. This freedom is more valuable than any launch-day gadget.
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