I was talking about frugality to a guy whose knowledge of English does not include this word. Here he was all 29 years of age, not a penny saved, married to a woman who was spending most of her income.
Earnings of this couple was in the region of Rs. 20 lakhs per annum and they had life time savings of Rs. 5 lakhs. That too saved in safe instruments like government securities, endowment policies, etc – which meant it was not growing in real terms. Welcome, USA, so what if we cannot come to you, we have brought you here, fully packaged.
The lady was in the process of buying a I Phone and had set apart about Rs. 55000 for the same. I do not judge people at all on how they spend, but I was amused when she said:
“Sir it is nice to be frugal, BUT at this stage of our life, WE CAN AFFORD IT”.
That really got my goat!
Here was a couple who ASSUMED THAT their salary will ALWAYS grow at a rate GREATER than inflation. They were seeing stagnating salaries in Europe, youth unemployment all over the world, and pathetic REAL yields on all asset classes. They were just committing themselves to a house that was 7 times their GROSS salary and about 30 times their current ANNUAL savings. There was no saving grace of being able to save rent, as that house was to be ready only in a couple of years.
Amazing that a couple which was about to sign up to a life of voluntary slavery for the NEXT 30 years for sure, saying
we can afford it. If it is something that we enjoy, what is the harm in indulging in it
Sure, but in the same breath do NOT tell me ‘I want to start off on my own’ or ‘I wish I were financially free’.
Frankly I do not see this couple being financially free till they are in the 60s.
I shudder to think what will happen to them if she gets pregnant and has to quit her job.
I hate to think that one of the parents will step in to pay the EMI. OMG will Indian parents cut the umbilical chord when the kids are 40 at least?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.