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When it comes to money, there are two schools of thought – the old and the new. The old school of thought believes that “One should save for a rainy day.” Save for tomorrow even if it means you have to be frugal today. The new school of thought, on the other hand, believes that “One should live one’s life today.” After all, you don’t know if you are going to be alive tomorrow. So why bother saving for it? My only question to people who believe this is, “What if you live till tomorrow?” This new thinking is further exacerbated by the easy availability of loans in all forms. You can borrow money to buy a car, to buy a house, to educate yourself, to invest in the innumerable IPOs, to go on that foreign trip, or for entirely personal reasons (no questions asked!). You can buy just about anything on an EMI. Today’s youth have never had easier access to money.
In my opinion, it is prudent to save a fair bit for a rainy day. That, however, does not imply frugality. You should enjoy luxuries, but only those that you can afford to. I personally believe that loans are a necessary evil. Take a loan to enjoy a luxury only if you know that you can pay it back without resorting to frugality. After all, what’s the point in enjoying a luxury if paying for it means you have to think twice for your next meal.
What’s your take on this?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.