The thing is even if we earn quite well unrealistic aspirations will make us poor. Let me explain, today's generation is consuming much more than the previous generations. The apiration, dreams, desire or wants are much higher than the salary. And this leads to the excessive debt. You know in India, 65% of IPhone are on EMIs. And just like that most of the things which are desired are on EMIs.
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If I compare this generations from the previous, the ability to take loan has decreased and thus people are happy to take as much as possible rather than thinking the effect of it in the future. I have a friend who has 4 loans going on and his 80% of the salary is going on loan. Now think about it, what if he lose his job tomorrow and if he doesn't get the job soon. This is the harsh reality of most of the Indians.
In previous generations, people used to follow delayed gratification. I remember, we got our first colour TV after asking my father for 2 years. But now everyone wants it quickly. The phone got damaged, they want the new one tomorrow itself. And the thinking changed in one generation. There is growing mismatch between the salary and aspirations. People are buying stuffs which they cannot afford and easy EMI making it affordable.
Someone I know has thrown a massive first birthday party for their son and I know they would have spend their entire monthly salary on that event but they wanted to fit in. They wanted to show the society that they are well to do. The problem is now the old generation who were saving generously are becoming like that. My friends father smartphone got damaged and he demanded that he need a new phone by tomorrow itself.
I feel social media is also a culprit. People whom we don't know, buys something and we straight away thinking of buying the same thing. They could have bought with their own money but for you to buy, you have to take loan. And the Credit Card is getting misused by the same mindset. More and more people are defaulting the credit card payment, why because their are buying stuffs and not able to repay on time.
And thus this habit is making us poorer day by day.
