Mr. X is in his early forties. He works for an engineering company and has a gross salary of more than a lakh per month. He bought an house some 3 years back and is paying 70% of his net monthly salary as EMI.
Whenever there is a bonus or some extra income, he passionately gets some classical teak wood furniture for his house. Mr. X has been dreaming of owning a car for almost two years now and unfortunately not been able to buy one because his salary hasn't grown as much in the same proportion that he expected it to grow. (2002-2007 salary growth in India was phenomenal for most of the salaried class ).
The net salary is just enough to meet the day to day expenses and pay school fees for his only child.
He avoids travel to his native, any entertainment ,etc just because he cannot afford them. His personal loan for one lakh was recently rejected by a bank stating that he was already over leveraged .
Mr. X has no funds for any contingency expenses and his investments are almost nil ( except for the house which he claims has increased in value).
His EMI at the current interest rate would end 10 years from now. Whenever a colleague at the office buys a gadget or travels abroad for vacation, this person fumes.
This is a classical case of forced poverty. If EMI is such a big burden , one should be ready to sell the property and start "living life". Overburdening EMI can kill the essence of our life. So, please think thrice before you commit to an EMI. When you are caught, be ready to switch down your lifestyle and come out of debt.
Don't be sentimental , get rid of your burden and live peacefully.