India’s middle class population is about 31%, which is expected to increase in coming years. There are many reasons for financial burden and problems in families. Few lost money due to health issues or debts, few had financial problems and lacked jobs or money. Apart from these reasons, there are a few major constraints which bring poverty and restrictions. They should avoid certain mistakes, which most people do and later deal with big problems.
While everyone takes loans at one point of time, either be it poor or rich, both their needs are different. While a middle class person only prefers loans, only when his life becomes tough. He takes loans from anywhere with high interests. Initially, it solves the problem, but later the interest rates kill happiness for multiple years.
Many of us in India have a status-driven and showoff culture just to prove that even I have it. People who have high earnings spend differently, and you can't compare your lifestyle with others. Buying a car, home and luxuries beyond your financial limit or capacity, might make you feel great, but during bad times, it will impact severely. Imagine you buy everything, and later you realize you can't manage it or suddenly an emotional event happens, like your father or mother is admitted to hospital, and you have to pay EMI’s and bills along with medical expenses. So, basically sacrifice and being alert are better than a few pleasures of life. Just skip it or limit it.
Social media and the digital world have increased the competition for comparing each other. Which disturbs your mind, mental peace and increases greed in society, but in reality you can survive with or without those lavish resources also. Many people have better lives with just 12,000 rupees a month and few have big amounts but no peace and time. What is meant and which fulfill your needs, handling life in that pattern would make you happy and secure rather than anxious and sad.
Never borrow or beg for money from anyone for enjoyment, it would create a debt trap in your life. A limited amount of enjoyment and a restrictive life is hard and tough but during a crisis you can help your family, loved ones and people with that saved money. So, Save and think about your future and growth. Putting the right efforts into the right things can make your social status better after a few years. Level up by gaining financial knowledge and growth, prepare a proper financial plan for your needs, wants and future outcomes. This would be delayed but would give long-term fruitful results.
These are a few mistakes and suggestions about finance. Which general middle class people do, a few impulsive decisions can cause life-long traps and burdens, trying to clear them for years later. So Be smart, grow better and be happy.
