Sometimes, some people think that people who are without any EMIs are gifted, and some other set of people think the other way round, where people who are without EMIs don't plan their finances well. So, today in the article, I wanted to review both the perspectives and have a thought on the pros and cons of both having EMI and not having EMI.
Financial burden
This is the biggest thing that people with EMI face. Sometimes it can be manageable with and without EMI, but for some people who squeeze themselves too much, they find it very hard to manage their finances well. They end up taking a loan or EMI more than their capacity. Basic needs can be a reason for some people, and for some people, greed can also be a reason. We have to know whether an EMI will burden us or not, and have a backup plan for the same. The best and clever way to go for EMI is to have the funds safe with us as a different investment and still go for an EMI and pay them in EMI. But this ideology may not work well for everyone.
Debt-free life
In a way, there is a sophistication in the way we lead a debt-free life. Some people say that if we take a loan, we end up paying more money than what we are supposed to pay. The compounding of interest or the nature of the home loan itself can be a reason for this. But if we earn enough to cover this, then it should be fine, but if we earn less and still pay EMIs for the loans that we have taken, at the end of the loan, we might end up paying more money than the value of the product that we had purchased. It can make sense for some products that are very important for us, but investing money on things that are not very important for us can create problems later in our life. It can take several years for us to repay the money and make us live in debt.
Risk-free zone
Having a risk-free life is the preference of some people. They don't take any risks in their life, and ultimately, they end up in the lower financial level, but they might be the happy ones because they don't have the stress of loans or EMIs. Some people plan it really well that even if their source of income stops, they are happy and they don't fear anything. This is a risk-free life where they just live with whatever they get in their life and be happy with that. They don't try to get hold of anything beyond their capacity, which is a great thing.
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