EMI Vs SIP

emi-vs-sip
Nowadays young generation of our country is more interested in EMI i.e. Equated Monthly Installment over SIP (Systematic Investment Plan) or regular savings. This is why a thought came to my mind to write something about EMI vs SIP.
The tendency of buying not so important thing has been increased due to increment in the use of E-commerce portal. People are now started earning at the age of 22-25 years. They have very high disposable income and low responsibility. The credit card has also added fuel to this tendency.
In an office floor with a capacity of 500 persons, you can easily see at least 50 new mobiles or some other electronic items are coming from Flipkart, Amazon etc. They are more interested in buying it on offer or discount even if they don’t require it. Defining a real requirement is really difficult. If you have the money and you don’t feel the importance of saving, you spend the money without thinking much.
Saving is a habit. Create the habit by starting small. A small amount of SIP in an equity mutual fund will help you to save big in a longer term. An early start gives you the boost of easy reaching your financial goal with the power of compounding
In addition to the above, home loan, consumer durable loans, and personal loans are adding burdens to the youth for the status war with their peers. I have seen many people are buying a car because all their friends have the car. This is dangerous because you will end up with buying so many things you don’t need.

One should spend as per their requirement. Don’ t go by the offer and try saving at least ten percent of your net income in the regular savings scheme like equity SIP or recurring deposit.

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