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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

Life on EMIs: Convenience or Financial Pressure?

Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath, a 34-year-old salaried professional in Pune, earns Rs 85,000 a month. On paper, he’s doing well. He owns a 2BHK apartment, drives a decent car, recently upgraded to a premium smartphone, and his home is filled with modern appliances. But by the 25th of every month, his bank balance is close to zero. Where does the money go? A closer look reveals the answer: EMIs. Rs 32,000 for a home...

Life on EMIs: Convenience or Financial Pressure?

Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath, a 34-year-old salaried professional in Pune, earns Rs 85,000 a month. On paper, he’s doing well. He owns a 2BHK apartment, drives a decent car, recently upgraded to a premium smartphone, and his home is filled with modern appliances. But by the 25th of every month, his bank balance is close to zero. Where does the money go? A closer look reveals the answer: EMIs. Rs 32,000 for a home loan. Rs 11,500 for a car loan. Rs 4,000 for a personal loan taken during a family function. Rs 3,200 for a smartphone on EMI. Add to this a couple of credit card minimum payments, and over 60 per cent of his salary is already committed before he even begins to spend on groceries, fuel, or utilities. Bharath’s story is not unusual; it is the new normal for many middle-class families. Over the last decade, easy access to credit has transformed consumption patterns. With just a few clicks, you can “afford” things that once required years of savings. Zero down payments, no-cost EMIs, and instant approvals—these offers make purchases feel light on the pocket. But what often goes unnoticed is the long-term burden they create. From a chartered accountant’s perspective, the problem is not EMIs themselves. In fact, certain EMIs, like a reasonably planned home loan, can be part of healthy financial planning. The issue arises when EMIs start funding lifestyle rather than assets. There is a fundamental difference between productive and consumption EMIs. A home loan, if within budget, builds an asset. An education loan can enhance earning capacity. These are investments in your future. On the other hand, EMIs for gadgets, vacations, or luxury items often depreciate in value the moment you buy them—yet you continue paying for them long after the excitement fades. This is where many middle-class earners fall into what I call the “EMI illusion". Because the monthly payment looks small, the purchase seems affordable. But affordability should not be judged by whether you can pay the EMI; it should be judged by whether it fits sustainably within your income and goals. A simple rule many financial experts recommend is this: Total EMIs should ideally not exceed 30–40 per cent of your monthly income. Beyond this, your financial flexibility starts shrinking rapidly. In Bharath’s case, crossing the 60 per cent mark has left him vulnerable. One unexpected medical expense or a temporary loss of income could push him into a debt spiral. Another common oversight is committing to EMIs without building an emergency fund. Equally concerning is the role of credit cards. Many individuals treat the “minimum amount due” as a safety net. In reality, it is a costly trap. Interest rates on unpaid credit card balances can go as high as 30–40 per cent annually, silently compounding the burden. So, is an EMI-driven life a convenience or financial pressure? The answer depends on discipline. EMIs can certainly make life convenient. They allow you to access necessities when needed and spread out large expenses. But without boundaries, they quickly turn into financial pressure, restricting your choices, delaying your savings, and increasing stress. For middle-class families aiming for stability, a few practical steps can make a significant difference. Before taking any EMI, ask whether it is a need or a want. Ensure you have at least three to six months of expenses saved before committing to new debt. Avoid taking multiple small EMIs simultaneously, as they add up faster than expected. Prioritise closing high-interest loans, especially credit card dues. Most importantly, focus on building savings and investments alongside repayments. Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath has now started reassessing his finances. He has postponed further purchases, begun prepaying his high-interest loans, and is working towards creating an emergency fund. The journey may take time, but the direction has changed. And that, perhaps, is the real takeaway. Because in the end, the goal is not just to live a comfortable life but to live one that is financially secure. (The writer is a Chartered Accountant based in Thane. Views personal.)

Then and Now: The Changing Spirit of Festivals

The rituals remain, but is the spirit of togetherness lost to commercialisation and growing distance?

Festivals have long held a sacred place in human society, not just as religious observances but as vibrant celebrations of life, tradition, and the changing rhythms of nature. In earlier times, they were eagerly awaited moments of collective joy that brought communities together, strengthened family bonds, and kept people anchored to their culture. Today, in our fast-paced, ultra-modern digital world, one cannot help but wonder: Do festivals still hold the same significance?


Let us explore this question and consider how the spirit of festivals has evolved over the years—has it truly faded, or has it merely taken a new form?


Some believe that festivals have lost their charm compared to the past. While the core tradition and celebrations may remain, the way they are experienced and perceived has changed.


In earlier times, festival preparations would begin weeks or even months in advance. Whether it was cleaning homes for Diwali or making sweets for Ganesh Chaturthi and Sankranti, women would come together to prepare traditional items, elders would share stories behind rituals and past celebrations, and children would listen with wide eyes and eager ears. Festivals were simpler then—focused less on material displays and more on spiritual meaning.


Today, much of that has become commercialised. Readymade decorations, online orders, and store-bought sweets have replaced the personal touch of homemade effort. Convenience has overtaken experience. With smaller families and limited time, festivals often feel like little more than a day off from school or work.


In earlier times, festivals were deeply rooted in community spirit. Celebrations were never private affairs—they were shared with neighbours and the entire locality, where bonds felt like those of an extended family.


Today, physical and emotional distances have grown, especially in urban settings. Nuclear families, gated communities, and digital isolation have made it rare to truly “celebrate together.” Personal visits have been replaced by social media messages, and the essence of festivals has dimmed, becoming largely confined to the immediate family.


In earlier times, life moved at a slower pace, and time felt abundant. People paused to prepare for festivals—a sacred pause that brought meaning and joy. Children eagerly looked forward to the celebrations, spending time with grandparents, neighbours, and friends. The charm lay in the little things—watching the glow of diyas, visiting places of worship, or simply soaking in the festive spirit.


Today, time feels scarce. Work pressures, academic demands, and constant digital connectivity leave little space for wholehearted celebration. Mentally and physically exhausted, people struggle to be fully present. Children, too, are drawn into screens and global influences, replacing joy with gadgets and drifting further from their cultural roots.


Festivals were a key to preserving and transmitting tradition and values from one generation to the next.


Today, it is more globalised with diverse cultural influences impacting traditional celebrations.


Due to this, the loss of authentic cultural experience is seen and felt.


Has enthusiasm died?

It would be unfair to say that enthusiasm has completely disappeared. It has shifted. While some traditions may have faded, they still offer a chance to connect with others and take a break from daily routine. It’s evolving and adapting to a modern lifestyle, which is a natural part of cultural change. The need for celebration is still alive. It just wears a different face.


How people choose to celebrate is a personal matter, and some may still find a deep meaning and joy in traditional celebration. Yes, today festivals may not carry the enthusiasm they did. But the soul of celebration still lives in all of us. The essence is not how lavishly it is celebrated but how deeply it is felt. The challenge lies in reviving it consciously, and if we choose to, we can still bring back the magic. To strike a balance between preserving tradition and adapting to the realities of modern life is the need of the hour.


“Happy festival season to all of you. Enjoy and celebrate our rich heritage.”


(The writer is a tutor based in Thane.)

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