Nowadays, seeing the brightness of social media and relatives, there has been a strange competition among the people who took which car, who bought the house. In such a situation, many people think what people will say if they are left behind. The same thinking forces them to make big purchases without need and planning.
But have you ever thought that doing so can ruin your budget, mental peace and future planning? Buying a car and home for showing not only increases your expenses, but can also implicate you in the web of debt. In this article, it is known why copying relatives can become the root of the economic crisis.
The annual income of your relative may be far more than you, or they have already done some big savings. In such a situation, if you buy a car or house while copying them, then your EMI may be overwhelming on your pocket every month. Everyone’s financial condition is different. Before copying someone, it is important that you assess your income, savings and future goals correctly.
People who buy cars or houses by taking a thoughtful loan get happiness in the beginning, but when EMI installments start, then the reality is understood. The burden of loan is not only financial, but also mental.
Every month cutting salary, children’s education, medical expenses and other responsibilities can cause mental stress. If mental peace goes away in the process of showing a status, then that deal will be called harmful.
When you start spending a large part of your earnings only in maintaining status, then your long -term financial plan such as retirement planning, children’s education or emergency funds start to back. And when a real need comes, then the pocket is empty.
This type of lifestyle is only today’s thinking, not tomorrow. Therefore, it is important that you take a big decision only keeping in mind your need, budget and future plans.
