I was on Reddit from the last 2 days and what I found out that most of the people are just rethinking their big purchases. For example just a year back people where happy to take 1 Crore or 2 Crore house and are OK to pay 1 to 2 lakhs per annum as the EMI. This is because of job certainty as well as both couples were working.
PC: Pixabay.com
Now with the AI scare and a lot of layoffs people are actually rethinking their decision of big loans. For them the first and foremost is to secure a good networth because if they lose their job, they should have something to survive. Now this is happening for most of the household and they are not committing to the big purchase as of now. For them, they are happy to stay in a rented house or driving their old car.
This is actually a good thing to do. The problem is that when the finances give upto 90% of the loan, people forget about how much they will be tied to the EMI and it is not only for a year but their whole life. If you start creating your networth, then hopefully you can afford the house with less loan and thus the stress will be less. With AI is there it's hard for most of the people to survive in the industry and thus people will not be getting a good salary. So we have to create a backup plan and that is to have better networth which can help us to survive in low cost places.
If someone having 1 Crore as networth and he is not doing any job, he cab survive in villages or small cities if the expenses is around 40K or less. And thus people can try to increase their networth as pet their expenses and then they don't have to worry about the jobless anymore.
