What do you think is the better way to buy something, saving up for a thing first, or buying the thing first and paying the debt slowly through EMIs later?

We live with the conflict between reality and aspirations. Aspirations are becoming more prominent.

Ideally saving up first and buying later is the way. In case we buy today and pay tomorrow, necessarily means we are not eligible to buy today, as we may not have money.

Buying on EMI has the following flaws-

  • Paying higher as we have to pay interest later. It means you are buying that thing costlier than the market rate.
  • In case it is a zero cost EMI, check for the other charges, apart from the interest. Zero EMIs may be a better option if you do not have to pay a penny higher. In this case, you need to check the comparative cost of the product have you bought it with upfront cash.
  • Paying EMIs later can affect your mental peace. There is a burden of EMI which makes you feel unhappy to some extent.

So to conclude; buying on EMI may be suggested only in case you are buying such an asset which will make you money, which does not depreciate, which can create an appreciating asset, which can earn you tax breaks and has a reasonable rate of interest.

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