Hey buddy,
Remember when we used to save pocket money for weeks just to buy that cricket bat? Or how our parents would say “paise bachao, tab kharido” (save money, then buy)? Well, those days are long gone. Today, I bought my third gadget this month on EMI, and it hit me – we’re all trapped in this credit game, and we don’t even realize it.
Let me share what I’ve discovered about our generation’s relationship with money. Spoiler alert: it’s not pretty.
The Wake-Up Call
Last week, I was at a Starbucks (paid with credit card, obviously), and overheard two college students discussing whether to buy an iPhone 15 on EMI or wait six months to save up. Guess what they chose? The EMI, of course. “Bhai, ₹5,000 per month toh easily manage ho jayega” (₹5,000 per month is easily manageable), one said.
That’s when it struck me – we’ve completely changed how we think about money. Instead of asking “Can I afford this?”, we’re asking “Can I handle the EMI?”
And honestly? We’re all doing it.
The Numbers Don’t Lie (And They’re Scary)
Here’s something that’ll blow your mind: credit card debt in India has tripled from ₹87,686 crore in 2019 to ₹2.7 lakh crore in 2024. That’s a 24% growth every year! Our salaries definitely didn’t grow that fast.
Even crazier? 70% of iPhones sold in India are bought on EMI. We’re literally financing our Instagram stories, yaar.
And get this – the average person now spends more than 33% of their monthly income just paying EMIs. Think about it. One-third of everything you earn goes to paying for stuff you bought earlier. That’s insane!
Why We’re All Falling for This EMI Trap
The Social Media Manipulation Game
The Algorithm Knows You Too Well Here’s something creepy: I looked at a laptop once on Amazon. For the next two weeks, every social media platform showed me laptop ads with “Special discount just for you!” and “Your cart is waiting!”
The algorithm tracks everything – what you search, how long you look at products, even what you screenshot. Then it bombards you with “personalized” ads designed to make you buy.
Instagram’s Shopping Trap Instagram has turned into a shopping mall. You’re watching reels, and suddenly there’s a “Shop Now” button on every influencer’s post. They make it so smooth – one tap and you’re buying a ₹3,000 skincare product because some influencer said it “changed their life.”
The Influencer Credit Push Ever noticed how influencers casually mention “I got this on EMI” or partner with BNPL apps? They’re normalizing debt. When someone with 2 million followers says “just EMI kar do, yaar,” it feels like normal advice, not a sponsored debt trap.
The Fear of Missing Out Factory Social media creates artificial FOMO. Everyone’s posting their new purchases, trips, gadgets. You start feeling like you’re falling behind if you’re not constantly upgrading your lifestyle. So you swipe that credit card to keep up with people who might themselves be drowning in debt.
2. The “Just ₹2,000 Per Month” Psychology + Dark Patterns
EMI marketing is genius, I’ll give them that. They break down a ₹60,000 phone into “just ₹2,000 per month for 30 months.” Sounds totally affordable, right?
Wrong! You end up paying ₹60,000 for a phone that’ll be worth ₹20,000 in two years. Plus interest. Plus processing fees. The math is brutal when you actually sit down and calculate it.
But here’s the darker side – we’re being manipulated:
Dark Pattern #1: The Countdown Timer Ever noticed “SALE ENDS IN 2 HOURS 47 MINUTES” on every shopping app? That’s artificial urgency. The same “sale” has been running for months, but the timer makes you panic-buy.
Dark Pattern #2: “Only 2 Left in Stock” I’ve seen the same product show “only 2 left” for weeks. It’s fake scarcity to make you buy immediately instead of thinking it through.
Dark Pattern #3: Social Proof Manipulation “4,847 people bought this in the last 24 hours” – these numbers are often inflated or fake. They make you feel like you’re missing out if you don’t buy NOW.
Dark Pattern #4: The Pre-Selected Credit Option Notice how EMI or credit card is always pre-selected at checkout? You have to actively choose “pay full amount.” They’re literally making debt the default option.
3. The Quick Commerce Trap (This One’s Dangerous)
Here’s something we don’t talk about enough: quick commerce is making us lazy AND broke. Blinkit, Zepto, Swiggy Instamart – they’ve made buying stuff ridiculously easy. Too easy.
I realized I was ordering groceries worth ₹200 and paying ₹50 delivery charges. That’s 25% extra! But here’s the worse part – the convenience made me order random stuff I didn’t need. “Oh, they have this new snack, let me try.” “This face wash looks interesting.”
Before I knew it, my monthly grocery budget doubled. Not because prices increased, but because I was buying more random stuff.
The Real Problem: Quick commerce removes the “friction” of buying. Earlier, you had to plan, make a list, go to the market. Now? Two taps and it’s at your door in 10 minutes. This makes impulse buying super easy.
And guess what payment method these apps push? Credit cards and pay-later options. They’re literally making it easier to buy stuff you don’t need with money you don’t have.
4. Our Parents Never Taught Us This Stuff
Here’s the truth bomb: only 27% of Indians understand basic financial concepts. Among teenagers? It drops to just 16.7%.
Our education system teaches us calculus but not compound interest. We can solve complex equations but can’t figure out why our bank balance is always low despite having a decent salary.
The Dark Side Nobody Talks About
Young People Are Drowning
The scary part? Young millennials are using their entire credit limits and directly defaulting. Credit card defaults jumped from 1.6% to 1.8% in just one year.
I know guys who take personal loans to pay credit card minimums. It’s like borrowing from one friend to pay another, except both friends are charging you 24-36% interest annually.
Mental Health Impact
Money stress is real. 51% of students show depression symptoms linked to financial stress. When you’re spending 40-50% of your income on EMIs, there’s no room for emergencies. One job loss, one medical expense, and you’re completely screwed.
The Savings Crisis
Here’s the most depressing stat: India’s household savings rate hit an all-time low of 18.1% in 2024 – the lowest in 47 years. Meanwhile, household debt doubled to 6.2% of GDP.
We’re literally becoming a nation that borrows to consume instead of saving to invest.
How I’m Trying to Fix This (And You Should Too)
1. The Reality Check Exercise
I listed all my EMIs and calculated the total amount I’m paying vs. the actual product prices. The interest I’m paying could’ve bought me another phone! That was my wake-up moment.
Try this: Add up all your monthly EMIs. Multiply by 12. That’s how much of next year’s salary is already gone.
2. The Instagram Detox + Ad Blocker Strategy
I unfollowed accounts that constantly show luxury lifestyles. Sounds extreme? Maybe. But it seriously reduced my urge to buy stuff I don’t need.
But here’s what really helped:
- Turned off personalized ads in Instagram and Facebook settings
- Used ad blockers on my browser to reduce shopping temptations
- Unfollowed influencer accounts that constantly push products
- Stopped following shopping pages that post “deals” every day
Your feed shapes your desires. Curate it wisely. When you’re not constantly seeing “Must Have!” and “Limited Time Offer!” posts, your brain gets a break from the buy-buy-buy messaging.
3. The 24-Hour Rule
Before any purchase above ₹5,000, I wait 24 hours. If it’s above ₹20,000, I wait a week. Amazing how many “urgent” purchases suddenly don’t seem that important.
4. Emergency Fund First
I know it sounds boring, but having ₹50,000-1,00,000 in savings changes everything. When you know you can handle emergencies, you don’t panic-borrow.
Start small. Even ₹1,000 per month adds up to ₹12,000 in a year.
The Smart Way to Use Credit
Look, I’m not saying never use EMIs. Sometimes they make sense:
- When you’re buying something that’ll make you money (like a laptop for freelancing)
- For genuine emergencies (medical expenses, urgent home repairs)
- When the EMI interest is lower than what your money can earn (rare, but happens)
But buying clothes, gadgets, or vacation packages on EMI? That’s just future-you paying for present-you’s impulses.
What Actually Helps
Learn the Basics
Spend one weekend understanding:
- How credit card interest works (it’s usually 24-48% annually)
- What compound interest means (your friend and your enemy)
- How EMIs are calculated (spoiler: you always pay more than the product price)
Change Your Questions
Instead of “Can I afford the EMI?”, ask:
- “Do I really need this?”
- “What else could I do with this money?”
- “Will this matter to me in 5 years?”
Find Your Money Tribe
Surround yourself with friends who talk about investments, not just the latest iPhone launch. Your social circle hugely influences your spending habits.
The Bottom Line
We’re the first generation in India that’s normalized borrowing for consumption. Our grandparents saved for months to buy a bicycle. We finance our coffee with credit cards.
The credit companies are making billions while we’re drowning in debt. The average Indian now has ₹4.8 lakh in personal debt. That’s not wealth; that’s financial quicksand.
But here’s the good news: recognizing the problem is the first step. We can still turn this around.
The Reverse Lifestyle Inflation Challenge
Here’s something wild I’m trying: reverse lifestyle inflation. Instead of spending more as I earn more, I’m challenging myself to spend less while earning more. Sounds crazy? Let me explain.
The APJ Abdul Kalam Way
Remember our Missile Man? Dr. APJ Abdul Kalam owned just 2,500 books, a few clothes, a harmonium, and a laptop when he passed away. This man could’ve afforded anything, but he chose simplicity. He once said, “Simple living and high thinking” – and he meant it.
I’m not saying we should live like saints, but there’s something powerful about choosing less when you can afford more.
Simple Hacks That Actually Work
1. The One-In-One-Out Rule Before buying anything new, I donate or sell something old. Want a new shirt? Great, but one old shirt has to go. This keeps my stuff minimal and makes me think twice about purchases.
2. The Upgrade Resistance My phone works perfectly fine. My laptop handles everything I need. Why upgrade just because there’s a newer version? I’m challenging myself to use things until they actually stop working, not just when they stop being “latest.”
3. The Local Hero Shift Instead of expensive cafes, I’m rediscovering local chai tapris and street food. Better taste, better prices, and honestly? Better conversations. My monthly cafe budget dropped from ₹5,000 to ₹1,500, and I’m happier.
4. The Experience Hack Rather than buying stuff, I’m investing in skills. That ₹30,000 I would’ve spent on gadgets? I’m using it for online courses, books, and workshops. These actually increase my earning potential.
The Experience Hack Rather than buying stuff, I’m investing in skills. That ₹30,000 I would’ve spent on gadgets? I’m using it for online courses, books, and workshops. These actually increase my earning potential.
The Magic Formula: Earn More, Spend Less (Without Stopping to Live)
Breaking the Quick Commerce Addiction: I realized that ordering everything online was making me lazy and disconnected. Now I:
- Walk to nearby shops for small purchases (gets me moving + saves delivery charges)
- Buy groceries weekly instead of ordering random stuff daily
- Use quick commerce only for genuine emergencies
This simple change saved me ₹3,000+ monthly and made me more active.
Side Hustle Strategy:
- Freelancing skills I already have (writing, designing, coding)
- Teaching what I know (tutoring, online courses)
- Selling stuff I no longer need
Smart Spending Cuts:
- Cook 4 days a week, eat out 3 days (instead of the reverse)
- Use public transport twice a week, even if I can afford cab daily
- Buy generic brands for basics, splurge only on things that matter
The Joy Part: I’m not becoming a miser. I still:
- Take weekend trips (but stay in homestays, not 5-star hotels)
- Buy books without guilt (knowledge is never wasteful spending)
- Treat friends occasionally (but at places we actually enjoy, not just expensive ones)
Why This Actually Makes Life Better
1. Mental Peace When you’re not constantly worried about EMIs and bills, your mind is free to think about bigger things. I sleep better knowing I’m not financially stressed.
2. Real Confidence There’s something empowering about choosing simplicity over showing off. You realize your worth isn’t tied to your possessions.
3. Better Relationships Friends who only hang out at expensive places aren’t really your friends. The ones who enjoy chai-pakoda conversations? Those are keepers.
4. Future Freedom Every ₹1,000 I save today is ₹1,000 I can invest in my dreams tomorrow. Whether it’s starting a business, taking a career break, or helping family – savings give you options.
My Promise to Myself (And What I Hope You’ll Consider)
I’m done living paycheck to paycheck despite earning well. I’m done buying happiness on EMI.
Starting this month:
- No new EMIs for wants (only needs)
- Building an emergency fund before any major purchase
- Learning to enjoy experiences that don’t require financing
- Taking the reverse lifestyle inflation challenge
- Finding joy in simplicity, just like Dr. Kalam did
- Earning more while consciously spending less (without becoming boring)
Money shouldn’t control our peace of mind. We’re smarter than this.
Final Thoughts
The EMI culture has convinced us that we can afford anything as long as we can handle monthly payments. But affordability isn’t about monthly cash flow – it’s about whether something adds real value to your life and doesn’t compromise your financial future.
Our parents’ generation built wealth by saving first, spending later. Let’s not be the generation that borrows today and regrets tomorrow.
What do you think? Ready to break free from this EMI trap together?
P.S.: If you found this helpful, share it with friends who might need this reality check. And if you disagree or have your own experiences to share, let’s discuss. Money conversations shouldn’t be taboo anymore.
