A significant number of Indians attribute their financial struggles to the burden of monthly EMIs (equated monthly instalments). However, Abhishek Kumar, a Sebi-registered investment adviser and the founder of Sahaj Money, argues that the root cause lies not in the EMI itself but in the underlying mindset.
In a recent post on LinkedIn, Walia highlighted FOMO (fear of missing out) as a key driver behind poor financial choices among Indians. He emphasized that the real issue is not the EMI but rather the influence of FOMO on decision-making.
THE PURSUIT OF BELONGING OVER BUILDING
Walia noted that many present-day purchases are driven not by necessity but by social pressure, leading to impulsive decisions influenced by comparison rather than rationality.
He pointed out, “You don’t purchase that iPhone out of necessity but because everyone else already has one.”
“Upgrading your car is not a result of necessity but a reaction to someone else’s recent purchase,” he added.
With the rise of consumerism, lifestyle spending has surged. The combination of easy financing, social media influence, and instant gratification has normalized excessive spending, disregarding financial constraints.
DEBT ISN’T THE REAL ISSUE, IT’S THE MOTIVATION BEHIND IT
Walia emphasized that EMIs can be beneficial if used wisely to foster growth. However, the problem arises when loans are taken solely for status or inclusion purposes rather than for genuine advancement.
He stated, “This isn’t financial progress but rather comparison masked as ambition.”
Loans invested in education, business ventures, or assets have the potential to generate long-term value. “If an EMI aids in acquiring an asset, enhancing skills, or increasing income, it serves a purpose. If it merely serves to maintain appearances, it becomes a pitfall,” he added.
THE CONCEALED CONSEQUENCES OF FOMO
India’s retail lending sector has experienced