Avinash.tech(…)

Most of us are in debt ( Loan we Indians call it ) and pretty early in life. Ever wondered why ?

Research has shown that the current generation don’t worry about the future or they feel that the future is a long time coming. There is plenty of time to save for retirement . The urgent need of the hour is instant gratification. In the 70’s, taking a loan was a taboo. People who took loan were considered ill equipped in their financial matters and had a tough time talking about their debt. Fast forward and owning/flaunting materialistic possessions have become a norm. 

As a kid who grew up in the late 90’s , when someone owned a big house or a car, they were actually well off. Loans were really hard to come by apart from home loans. These days loans are even pre-approved and this makes it hard to gauge one’s financial well being. Take a loan or two to fulfil all your dreams. Buy that expensive car, A dream penthouse.  The phrase “Fulfil your dreams” meant working hard to achieve them through savings and investment. “Fulfil your dreams through instant Loans” is what financial institutions are advertising these days. One day you see someone driving a luxury car and the next he goes belly up. 

What caused this sudden change in mindset, of fulfilling one’s dreams using debt?
It’s a recent trend that’s slowly creeped into our society due to the Internet, leading to artificial peer pressure.

Social Media has been a silent killer over the years fuelling our desire to seek out approvals from random people, we hardly speak to.

Students of Columbia University and the University of Pittsburgh showed through their Studies of about 1,000 U.S. Facebook users that spent a relatively long period of time on Facebook and had especially strong online social networks were likely to have lower credit scores and more credit card debt than those who used it less and had weaker networks.

Numerous other studies have shown likes on Social Media make our brain release Dopamine. A chemical mainly used to carry out urgent messages to our vital organs. Dopamine for example is released by our brain to send messages and ask the heart to keep beating, lungs to inhale/exhale and so on.

Dopamine also inspires us to take actions to meet our desires and needs. The advent of technology and especially smartphones have increased one’s craving for Dopamine.

Each one of us is finding something juicy to share , to push those ‘likes’ up and the easiest way is to flaunt brand new vehicles and shiny gadgets. Does not matter even if they are knee deep in debt !!. 

Now you know why it’s hard to stay away from your phone !

In 2018 Facebook raked in a whopping 40 Billion USD in Ads alone. All those ads were directed towards users trying to sell them something they don’t need. Companies are shelling out hundreds or even thousands of dollars through an “influencer” who have large fan following.

Social Media has created a self imposed rat race to own and flaunt the best. And this ugly truth  is turning the younger generation into a bunch of spendthrift zombies. To prove to the world, that all is well financially and affording a bigger, better , shinier gadget/vehicle/home etc has become a necessity. The only way to satisfy this insatiable need to own more, has dragged almost everyone into debt.

The sharks in the financial institutions have had a taste of your behavior and are ready to shower pre-approved loans, easy EMI’s and what not. This sad state of affairs has created a generation purely living paycheque to paycheque.

As soon as we see a Hi-Bye friend on Facebook posting jaw dropping pics of his/her vacation, a stomach churning cocktail of jealousy and envy brews inside the soul which is mostly calm otherwise. Life all of a sudden has a new purpose of picking an exotic location and post back images as retaliation. Over time funds funds have dried out and just when we are about to drop the whole idea one of your friends suggests you to go for a personal loan. Easy EMI option and within 6 months it can be cleared with the bonus check arriving just round the corner.

These events are common and have happened to a lot of us and will continue to happen. Jealousy is deeply embedded in us and this can easily be one of the biggest hindrances to grow your investment tree.

I have uninstalled Facebook , Instagram from my phone; definitely has been more peaceful.Have stopped watching news channels that spread Doomsday prediction of economy. According to news channels the world's economy is to crash and burn every other day. They are predicting a US economy melt down from a decade now. 
Not saying it might not 🙂 .

The latest version of phones have a screen time tracker built into them. Make sure to use it wisely. Reduce usage of Facebook , Instagram and other social platforms that tempt unnecessary expenses. ( I know this is too far fetched , but hey , if you are in real financial trouble and are a shopaholic , do give this a try 🙂 )

Last but not the least , have a circle of friends who understand the value of money and discuss investment opportunities available. For most, friends are a key differentiator between building a Freedom Fund or falling into a debt ridden life. Everything that you dream of can be achieved with hard work and the right investing mindset.

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
-Warren Buffett

Everyone will eventually get rich with a slow and study investment plan. No point trying to achieve it faster by taking huge risks and losing all your  valuable health achieving it.

Don’t fall into the debt trap, buying things you don’t need to impress people you don’t know !

Read Next : The Middle Class mindset 

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