Hello Readers!
With the launch of new smartphones in the market with magnificent features, our temptation to buy it, rises. The most exciting devices or smartphones offered, can almost Rs 1 Lakh or maybe more than that.
Buying a smartphone worth Rs 1 lakh might seem “affordable” to people with earning in the Rs 1,00,000 plus per month range. There are smartphones with decent capabilities that cost in Rs 15,000 range as well which the vast majority own.
The generation today, or better say, any individual today, be it an adult in the age range 20-40 years or maybe the senior citizens in the age range of 50-60 years or above, are fascinated and favors to be a trend with these new smartphones. The question that such temptations often raise is can they really afford something like that?
Well, it's much necessary to analyze before buying something that if you could really afford that commodity. Let us know some ways how you can get to know whether you can afford a particular thing or not.
Do NOT Analyze Your Earnings, Analyze Your Savings
Most often we analyze how much do we earn when we set a target to buy something. We forget that the major part of our earning is taken by regular expenses, like rent/home loan EMI, utilities, transportation, groceries, and food. This ultimately creates a problem in carrying our regular expenses after we buy our target.
Not only this, our savings and investment costs are also covered within our expenses, by our earning. So basically, before buying that smartphone worth Rs 1 Lakh, you need to analyze what’s left after accounting for all expenses and savings, and then observe whether you can buy it or you have to wait a bit more.
Is There Any Other Option?
It is very obvious for a person to use his credit card or take a loan to complete their temptation. They often get attracted by the feature, zero cost EMI available on almost every smartphone purchase when bought using a credit card or loan. This offer allows people to pay off an otherwise big sum over many months.
Many less of us know that this facility available on the purchase of smartphones forces a buyer to buy something which is otherwise unaffordable and makes them think it is deceptively affordable. Experts say, taking loans or use your credit cards for things that help you enhance your abilities or take you for the long-term happiness, is okay. Otherwise taking debt to buy something that you can’t afford is never a wise choice.
The other option that lies is, we can pause our existing investments and use the released savings to finance such a purchase. It isn’t the best choice as it will affect your investment growth but it’s still better than debt.
What’s the best you can do?
Always…always try saving for whatever you want to buy or tempting for.
Well, this strategy takes time, and it cannot fulfill your instant tempt. But you should remember that this strategy is followed from years back, even your parent followed this strategy. Moreover, when you are trying to back your job with a good wealth created, filling your gratification in a delayed way is avoidable.
Create an indulgence fund, that helps you fulfill shopaholic desires, remember it must be big enough to cover your desires.
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).