Cubelands everywhere across the world has no shortage of young people. Cubeland here in India has engineers as young as 21 earning huge amounts, huge in terms of more than how much they need to spend. Again I wont get into how much they need to and how much they want. I think all of us agree that they are getting more money then they spend.
Now lets come to some slightly experienced guys around 25/26 age brackets, I, along with most of people around me belong to this age group. I can safely assume that we too make good money, more than what we spend. Here there is a catch, many people in this age group, have less commitments and are the easy targets to make them commit.
Just the other day I was doing a stock check on all my investments and savings, Something I would have never imagined myself doing. I just wanted to see my limits, I wanted to see how much I can afford to do, and whats the best thing to make them grow. I have had clashes with my parents when it comes to investment. I don’t agree with investing on property when it is for the pure sake of investment and that too after taking a mortgage. I simply don’t understand this. I know I make more money when I sell it. The question here is at what cost. I don’t want to spend next 20 years of my life, giving everything I earn to a bank. This is something which is purely my feeling and please don’t consider that I expect everyone to think this way.
Indian economy is fast growing and one of the change that is happening is the way youngsters are lured into spending more money. The conservative India which once believed in saving is slightly changing into more of an liberal spending new India. I have absolutely no problem with this. I mean this does boost our economy and again gets the clash flowing, making everyone prosper.
Unfortunately Indian economy has not stopped at this, what has happened now is banks are luring people into committing to loans and mortgages. I feel this is making them indirect slaves to the economy. The growing interest rates charged for home mortgages coupled with global slowdown in high paying technology might be a super killer in a short time. You can call me a over cautious or even non risk taking fellow. But somehow I am not convinced all is well with Indian economy. I dont see alternate jobs coming up where the people can shift to, nor people planning to work on that direction.
Coming back to financial woes of twenty somethings, I just had a conversation with my father and his siblings about what used to be the their concern when they were my age. I was surprised that they never had so much concern as to what will happen in future, agreed they neither had a high paying job nor had an insight to their financial future, more importantly money was not in their priority list. I am not saying they did not have aspirations and wants, they too wanted a good life and decent house, if possible a two wheeler or a car some day, but never money.
The other point was they never had to worry about repaying a huge mortgage for next 20 years of work life, probably the most fruitful period in their life, time when they can enjoy and be happy.
I still believe in the old school of thinking that credit is devil, I am still a believer that one should not try to stretch beyond their limits. May be I am a misfit for the young school of thought