You deserve your Smartphone??

Everyone has their own desires. One can get Admission into college based on their scores. One can get Job based on their skills. On what basis one think they deserve a phone. Simple, if you have adequate finances then you are free to have whatever you wish for.

Problem arises when you don’t have enough funds yet you procure a phone with EMI. Currently, there are many Banks which attracts its customers to purchase something hassle free with EMI. That’s not wrong, it is their Business. mostly Youngsters Inclined towards these offers and loses their financial freedom.

Why Anyone should not take Every Month Instalments:

It’s simple, if you opting for an EMI to purchase a smartphone, then you simply don’t deserve that smartphone. This statement might contradict your opinion. While in reality, EMI are for those who really needed something but don’t have enough funds right at the moment or couldn’t afford completely at a time. If you are a student and you really needed a laptop and doesn’t have enough funds. Then you deserve to have that laptop irrespective of whether it is on EMI or not. If you have a Laptop which serves your need and you wanted to purchase a Latest spec one, again If you have enough funds to purchase the laptop right at one shot, you are good to go. But if you plan to opt for an EMI- you simply don’t deserve it.  Same case with any electronic device.

For example If you have a basic smartphone which you are currently using. and you really like a smartphone which exceeds your budget. human tendency to attract for better contrivance. Obviously, technology is evolving every other day, and you wish to have the best out there. If the smartphone you like costs somewhere around 60 odd Thousands INR. (most premium smartphones in India costs somewhere from 50-80k INR on average). And you don’t have 60 Thousands at the moment- it is evident you don’t deserve it. But you took an extra mile on Opting the one with EMI. You will be in pretty joy since you got your favourite latest spec smartphone.  Lets calculate the math that you have to pay for every EMI.

Scene 1. Since the price of smartphone is 60k, for say you opted 12 months of EMI with an average interest rate of 15%. The price you will be paying 60,000 = 5407 (each month ) X 12 (15%) = 64,884. And after an year, let it be any smartphone, its value will decrease anywhere between 40-60% or even more based on the condition of phone. So, 60,000 – 40% = 36,000.

Scene 2. For say instead of purchasing the phone, you have invested the same amount in any financial instrument, let it be stocks, MF’s or bonds which gives the same return of 15% PA ( usually it will be more but let’s take same as EMI interest). Your invested amount 5407 ( per month ) X 12 (15%) = 70,405 INR.

If you compare scene 2 with scene 1, in scene1 you will have 36,000 at the end of year and 70,405 in scene2. It is clear that you are losing 34,405 (70,405-36000) for an year, if you opt for EMI  instead of investing.  If you invest the same amount that you planned to pay for your EMI, You will have 70,405 INR in hand at the end of year. You can get a better smartphone with this amount without any EMI if you can resist yourself and start saving before an year. This gives you financial freedom.

My Intention was not to recite on the ones who are opting for EMI’s. first, Become financially strong Or save the amount for an year that you had to pay if you opt EMI. Let it be Electronics, car, bike etc. Assuredly, you will get a better product without an EMI at the end of year ( world gets better everyday).

Thanks for reading till here mate😊!! I wish all your wishes you desire deserves you.