Payday feels good. Your phone pings — “Salary credited.” But before you even think of celebrating, a big chunk is already gone. Why? EMIs.
The Rise of EMI Culture in India
Today, everything is available “easy on EMI.”
- iPhones, bikes, TVs, furniture — swipe and pay later.
- Cars and houses — 5 years, 10 years, even 25 years of instalments.
No wonder, for millions of Indians, salary = EMI machine. Read more on how India became an EMI-first economy (Economic Times).
Why Everyone Chooses EMIs
First, EMIs make luxury feel affordable.
Second, social pressure pushes us to match friends, family, even neighbours.
And third, banks and fintechs sell EMIs like candy — “Sir, just ₹2,999 per month.”
Check RBI’s take on retail loans and household debt.
The Hidden Reality
But here’s the catch:
- You don’t own it till the EMI ends.
- Emergencies never pause EMIs.
- Multiple EMIs eat away savings, leaving you paycheck-to-paycheck.
The Smarter Way Forward
Not all EMIs are bad. A home loan or education loan can build assets. But EMIs on gadgets, vacations, or lifestyle spends? That’s where debt traps begin.
👉 Rule of thumb: Keep EMIs below 40% of your salary.
(Here’s a handy EMI calculator from Mint).
India’s EMI lifestyle is booming, but remember: if inflation is shrinking your money and EMIs are swallowing the rest, your salary is just passing through your account.
So next payday, ask yourself — Are you owning your life, or are EMIs owning you?
Finance #PersonalFinance #MoneyMatters #FinancialFreedom #WealthManagement