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  • Category: Miscellaneous

    Is it the correct attitude?

    During my childhood, my father was always advising me to save at least 10% of the earnings so that in case of any emergencies that will come in handy. Another issue he used to advise was not to go for loans unless otherwise, it is an absolute necessity.
    But these days the situations are entirely different. Earn and enjoy is the order of the day. Nobody thinks about the coming days and after retirement days. Nobody will hesitate to take loans and purchase many items. I think we will find no person without any loans.
    If we observe even ants they will try to store food for the rainy season. We should learn from them. I like to know the views of the members on this issue.
  • #655234
    The author has brought out a pertinent thread which requires discussions to understand the change in the outlook of present generation towards savings and loans.

    Our parents were very particular in these matters and always told us to follow the golden
    principles of mandatory savings and not taking loans.

    Today situation is drastically different. The line of caution says that - those who are not saving for a rainy day and taking more loans than their repaying capacities will soon find themselves trapped in a adverse financial situation and then there will be nothing else they can do except repenting.

    Seeing the inflationary trends, even our savings may not be up to the mark in the near future. Earlier in Govt sector there was pension scheme which ensured a respectful retired life. That has been discontinued some time back except in some important sectors like defence.

    Today whatever PF funds we are getting will be eroded soon due to the inflation and we may not be financially comfortable in the long run. The only solution is to save a good amount of your earning for your future prosperity. We may have to sacrifice some luxuries in our present life but to gain something you have to lose something.

    Knowledge is power.

  • #655241
    The advice given by the father of the author is very prudent and time-tested. We should take a loan only in case of extreme emergency and only in such cases when the loan can bring property or help in arranging the higher education.

    But the new earners don't follow this advice, perhaps due to a sudden rush of blood after starting the earning.

    Beware! I question everything and everybody.

  • #655244
    The author has rightly presented the situation in which the new generation is more prone to take loans rather than saving for the future. Though nowadays there are much more options to save than earlier and many are investing in different schemes, but the general trend is to take loans for everything. For many things, people are choosing the EMI option to pay the vendors.

    It is always necessary to analyze one's need rather than be crazy, but many people are crazy nowadays to purchase things by thinking that possessing more materials will help them to attain the so-called social status. It's always prudent to think of the future and save money rather than continuously keep on purchasing things. Maybe people are giving in to the lucrative offers by various dealers selling different items and there are different loan schemes also which many people think is manageable. We all know the present economic condition and the job scenario. There are instances where people with heavy loans became unemployed and their life became really tough to repay the loans.

    The advice of the author's father must be kept in mind by every individual and unless it's extremely necessary, people should not go for loans.


    "Life is easier when you enjoy what you do"

  • #655284
    Obviously, savings is very important. The pressure of repaying the loan is a huge one. If anyone falters in it, then their lives become miserable because the money lending institutions will never allow them to run away with the loan amount. In such a case, negativity comes in, and the situation becomes more and more complicated.

    It is always safe to be within one's limit. The living standard should be based upon income and not on personal desires. The savings is mandatory or else at one stage life becomes a burden especially when the medical expense is becoming unimaginable.

    Everything around us is getting costlier day by day, so the best option is to be within budget. If at all taking loan becomes necessary then one must be very cautious or else, life can become a pain.


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