'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
1. Earlier days getting a loan is very difficult. But these days there are many institutions which are offering loans very easily.
2. Once the Globalisation has taken place, many young people got employment in IT field and those days these salaries are very attractive. So these employees have seen a lot of money and they thought that they can go for monthly payments and get all required amenities in the house.
3. Many foreign banks came to India and started offering credit cards. Till then the card holders are very less and getting a card was very difficult. But these foreign banks made people go for these cards, by doing a lot of marketing and showing a lot of incentives like no entrance fee and no yearly fee etc. People got attracted and started using cards very freely. The expenses via card will not give you a correct idea of your spendings.
4. The young people wanted to enjoy the life. So they started purchasing beyond a certain limit and started paying EMIs. So they are not able to save. They are under the impression that they are still young and there is a long way in life. We can earn more as we become more experienced. Then we can save and they have postponed the savings.
- many top brands constantly bombard people with full page, front page advert for their products, online stores and malls offer discounts practically every day. A 'false sense of an upscale top class' image is created for a bride, bridegroom, office employee, corporate staff, working mother etc. Over a period of time, some of us have to fit into this image to be socially accepted.
- There was a lack of growth in all sectors because people were spending less, hence accessibility and affordability were made very easy to get the product sold.Nowadays you get at least 2-3 calls and SMS every day to say that 'you are eligible for a loan' single day processing etc.
- we are being lured to buy things beyond our means as we need not pay a lot upfront. A bike, a car, an apartment, a site, you just have to show the interest in it, the sales team literally fall over each other to get everything done and delivered at your doorstep.
- The software industry in its glory days gave earning beyond imagination and people started the trend of the new urban young elite who splurged money on cars and high-end living.
- the mass media (tv, movies) often glorify the heroes and character in exotic locations, fashionable clothes, cars and the same stars endorse many product adverts.
- earlier filing for bankruptcy was considered a shame but now it's just an announcement in the papers.
Yes, we need to enjoy life and all that it has to offer but we have to be realistic and know our limitations.
How it changed in other countries first? Let us review the historical evolution in that regard.
Most of the ancient texts on wealth and spending wealth was written much before the advent of concept of money as a universal medium. Main sources for human needs were mainly plants and trees- that depended on weather and seasons, and yields were taking long periods of production cycles. Hence the concept of 'saving' evolved from necessity of providing for the bad season.
That gave rise to the teachings highlighting savings and provisions. like "only if we plant trees when we are rich, we can get fruits when we need'; 'make hay while the Sun shines'. "A slack hand causes poverty, but the hand of the diligent makes rich. He who gathers in summer is a prudent son, but he who sleeps in harvest is a son who brings shame." etc.
However when money became as a medium of exchange, it became easy to save money which was easy to store and also as less perishable. As the government saw people's money savings as a source savings was encouraged by giving incentives.
However towards the second half of last century, new concept developed in the western countries who had surplus production with them with which they wanted to dispose and earn profit. This commercial greediness led to creating a new economic theory that savings will stagnate growth, and only spending will boost the economy.
It was actually a very selfish,clever one sided theory aggressively put to practice for their favour. Spreadsaw their security walls crumbling by the thrust of multinational sellers.
To make people bring out all the saved money and spend to buy their wares, device various money derivatives and encouraged borrowing . Simultaneously savings was discouraged by reducing incentives. Splashing wealth was promoted as a virtue and status.
One who saved was treated as a miser and good-for-nothing fellow, but a large borrower was respected.That revolutionised the money habit of people. Even the less earning people also started to spend by borrowing. People were using 'tomorrow's money today' to 'enjoy today'.
Though a Global financial crash slightly halted and paused us to review the new economic theory, people soon forgot all and restarted the spending spree.That is what we see now.
A population which was treating debt(Rina in Sanskrit)as one of the cause for lack of good sleep and had 'rina vimochana stotra' or 'debt liberating prayers' slowly moved to becoming a debt-ridden society and exalting and excited on debts.
However when the cycle makes a full turn, we may return to old lessons. The Earth itself is round.And there is constant revolving happening.
In olden days people used to send their children to government schools where there was no fees, but now we send our kids to the top most school in the city, which is expensive. This also reduces our savings. For higher educations, people pay donations, which is wasting a huge amount from your hard earned money. Everything including education is a business now, then how will people save.
"Do not give up, things might not favour you always"