Spending beyond one’s means….
If you are not earning too well, well, you are not earning too well, dammit!
Learn to live within your budget. Stop asking how will pay for my luxuries!
Hey sending a kid ABROAD is not a necessity, but a super luxury. I know of about 30 kids who have gone to the UK for higher education in the recent past (say 5 years).
One kid (exceptionally brilliant, went to Oxford to do his Acturial studies, he is now in the US) got a job…all the others have come back to India looking for a job. Let us face it, UK is going through a real tough time and there are not enough jobs being created. How will an Indian with a heavy accent ever be able to get a job in that country? Beats me.
Most of the people who have sent their kids to UK have been people who could afford to send them. I do not have any views on people who are willing to spend or willing to guarantee a loan, as long as they know what they are doing.
However I heard of a milkman (yes repeat, doodh wala) staying in a hut in Mumbai spending Rs. 20 lakhs on his son’s education in UK. Last known he was pleading with everybody ‘please find my son a job’. The best job on offer is paying Rs. 12k pm in a call center. Fine by the father (he and his elder sons have guaranteed the loan you see)..but the son (who had earlier done an Indian MBA) is not too keen. His age? 27 years.
I think the father should be shut in an asylum.
IsItPossible
A very systematic way to change habits….
lesson from history:
US –
During 1970-1990, a heavy dose of live on credit started in US and peoples behavior was changed, fast forward to 2008 and on-going, people now have a HABIT of living on credit.
India –
2003-2005 onwards, a heavy dose of use credit cards, use debit cards started. Now we have credit score and blah blah…. In short, a very disciplined strategy to change cultural habits.
Should we expect different results!!!
param
even after doing an mba in india, the kid could manage to convince his dad & brothers to guarantee 20 lac for Uk studies – i think a post of VP must be open for him at goldman sachs 🙂
Mira D
After an Indian MBA, and there is a multitude out there, he invested in an UK one?
Reminds me of a recent conv with someone from that age gp–“If I get a sal of 1 lac pm that’s ok with me”– don’t these heroes understand it takes years to get to the number?
ps– no more anon after last comment was bumped off.
pravin
i have to agree with IsItPossible. Inflationism is the defacto policy of govts.the crack up boom of inflation makes things appear very nice to everyone. everyone should read Jen Parssons ‘when money dies’ book from 1960s i think.the money printing lifts a lot of boats and people think life is great.then the illusion stops when prices rise and the same babus apply interest rate breaks.the boom inevitably collapses.no animal spirits business.no bogus aggregate demand issue.the boom and bust is as predictable as sun rising in the east.nothing else can come out of centrally planned money with a culture of inflationism
P.V.R. Somanadha Sarma
An operator in an English daily sent his son to Ireland for one year course after commerce graduation with a student loan of around Rs 15 lakh. The son returned to India after that course and searching for a job. Yesterday, the operator, who was an alcoholic, died after being in hospital for 15 days. I learnt that the hospital bill was over Rs 3 lakh. I think basic financial education and health education should be made part of the curriculum.
P.V.R. Somanadha Sarma
Nice post. Basic financial education should be made part of the school curriculum
arjun
@ Mr.Somanadha – it will just become an additional subject to be mugged up and puked out in the exams like civics was in my day 🙂 .
Praveen
I too saw many of people returning from UK, don’t know how but many people paid back their loan amount by doing part time jobs during studies
Sanjay Singhaniya
pretty interesting. I am sure that the milkman knows 20 lacs is big amount but he must have seen successful examples from his neighborhood.
By the way, it is great example of money fetches money. Rich become richer. (Forgive my english.)