Why India’s middle class is rich on EMI and broke on reality🧠
🧾 Scene 1: The ₹1 Lakh Phone in a ₹12K Salary Wallet
Meet Rahul.
- Salary: ₹35,000/month
- EMI: ₹4,299/month
- Phone: iPhone 15 Pro
- Savings: Basically nothing except WhatsApp backups
This is not satire. This is the new Indian middle class.
Welcome to the “EMI Flex Life”, where people:
- Can’t afford petrol but will buy the iPhone Titanium Blue
- Can’t afford rent increase but have Netflix, Prime, Disney+, and Apple One (even if they share it with 7 cousins)
🧮 What’s Actually Going On?
| Term | Meaning |
|---|---|
| 🏦 Lifestyle Inflation | When your expenses rise as fast (or faster) than your income |
| 💳 Credit Dopamine | That thrill when EMI goes through, and you feel “rich” because you paid something |
| 📈 Social Signalling | Buying to look cool, not for need — like wearing Jordans on DTC bus |
🤯 India’s Consumption Addiction by the Numbers
- 📱 iPhone 15 Pro Max EMI = ₹6,299/month for 18 months
Total cost = ₹1.13 lakh (with interest)
That’s more than 3 months of salary for millions. - 👗 Urban Indian millennials spend 39% of their salary on lifestyle
(As per a survey by BankBazaar 2024) - 🧾 56% of Gen Z Indians live paycheck to paycheck
– Yet 33% have premium phones (Redseer report) - 🚗 Car loan EMIs hit record highs in Tier 2 cities in 2025.
Because somehow, everyone needs an SUV to go 3km to office.
📉 So Why Do People Still Buy What They Can’t Afford?
Let’s decode the Desi Financial Psychology:
1. 🧠 FOMO Is The New Financial Advisor
“If I don’t buy it now, I’ll feel left out.”
Instagram and YouTube Shorts have replaced Excel and retirement planning. If you don’t have the latest gadget or shoes, you’re not part of the tribe.
2. 🧻 EMIs Make People Feel Rich
“₹5,000/month is manageable, na?”
But ₹5,000/month × 24 months × 5 gadgets = You’re bleeding ₹1.2L a year on depreciating junk.
3. 🏡 Social Pressure > Financial Health
Parents won’t say “Save”, they’ll say:
“Sharma ji ka beta bought an iPhone, tu kab?”
Sharma ji’s beta is also in debt, Uncle. Sit down.
🧠 It’s Not Just iPhones. This Is Happening Across Life:
| Item | Real Cost (with EMI) | Value After 1 Year |
|---|---|---|
| iPhone 15 | ₹1.13L | ₹58,000 |
| Bullet Bike | ₹2.1L | ₹1.1L |
| Smart TV | ₹89K | ₹45K |
| Zomato Gold | ₹999/yr | Just regret |
💥 The REAL Problem: This Kills Long-Term Wealth
Let’s play a game:
- What if you saved ₹5,000/month instead of iPhone EMI?
- Put in a conservative 12% SIP over 10 years?
You’d have:
🤑 ₹11.6 Lakhs — enough for a down payment on a house
Not a scratched phone that still can’t get iOS 23 updates
🎯 So Who’s to Blame?
| Suspect | Role |
|---|---|
| 🔥 Influencers | Showing luxury but not disclosing EMIs |
| 🏦 Banks | Pushing credit cards on students |
| 👪 Parents | Normalizing “log kya kahenge” over “kaun bhar payega” |
| 🧍You | Because let’s be honest, you knew you couldn’t afford it 😅 |
🙏 Can We Fix This?
Yes. Start with this:
✅ 1. Track Expenses for 30 Days
Most people have NO idea where their money goes. Fix that first.
✅ 2. Create a 50-30-20 Budget
- 50% needs
- 30% wants
- 20% saving (even if you’re broke, force this)
✅ 3. Don’t EMI Anything That Depreciates
If it’s not appreciating or giving ROI, don’t finance it.
✅ 4. Flex Your Net Worth, Not Gadgets
We need to normalize saying:
“I don’t need it right now”
instead of
“Swipe kar de bhai”
🪦 The Harsh Truth
- That iPhone won’t save you in a recession
- That car won’t pay your rent
- Your EMI won’t go to your funeral with you
But your investments, savings, and self-control?
Those will be there when the Instagram flex stops flexing.
