Ashirwad: Sada Debt-Free Raho

 I recently read a pessimistic article meant for Americans called 'Money Mistakes You Are Making' or some such... As I read the article, it struck me that some of these were the opposite money mistakes from those that we Indians are making with our money.

For example, the article exhorted Americans to put down those credit cards and stop taking on so much debt.

Americans are simply not wary of debt. Often, they seem to invite it into their lives and see it as a means to live the life they can't yet afford.

On the one hand, that seems quite optimistic - let's live the life we want, money be damned. On the other hand, this is unsustainable - and pretty soon collectors are banging down their doors, or at least hounding them on the phones, usually around dinnertime, threatening lawsuits... That part is not fun.

If you have ever been in debt, you know that it severely hampers your peace of mind and quality of life.

The general perception is that Americans take on too much debt and are not always economical - that, if any, is a money mistake they might be making. We, however, tend to make the opposite mistake. We don't always spend where we should, in an effort to save money.

This doesn't mean we don't sometimes end up in the same debt struggles. It's just that we are naturally wary of debt, and we're lucky for that. Sometimes, older Indians will give blessings, 'have a happy life (sada sukhi raho)', etc. One of the blessings I have often received from older relatives is 'may you always remain independent and free of debt.' An American would probably respond to this saying 'I'll have to give up my car!' For Indians, this is the ultimate aspiration.
But the mistake we make is that sometimes we think a little too much before each expense. Is it paisa vasool? Is there a cheaper alternative? Can I live without it? Can my children live without it? You know the joke that all Indians say, 'Arre I can get this made for cheaper.'

But sometimes you can't get the same thing made for cheaper, or you don't want to compromise on quality, but we are so obsessed with saving that we can't stop thinking and open our wallets even for things that could really make a difference in our lives.

Be prudent in your spending habits, certainly. Be economical. Save for your future. But don't cross the line into miserly - because that leads to a different kind of discomfort. Being miserly is 'to scrimp and save and cut corners until every rupee that leaves your pocket seems to leave a hole where it once was. Being frugal, on the other hand, means to spend wisely.

There was a time when only a few things were available to us - either you bought it or you didn't. When I was younger, there was only one kind of coir/cotton stuffed mattress everyone used. We never thought about mattresses... We didn't have to because there was no choice to make. There was only one kind of milk that the doodhw

ala bhaiyya brought home.

Now, there are literally hundreds of different types of mattresses to choose from - mattresses for back problems or neck problems, those that are firm or soft or adjustable, those made with foam or spring or a combination. Even mattresses that were developed for use in space by astronauts are probably now available to us. Now there is powdered milk, tetra-pack, organic, farmed, cow, goat, bottle, can...the list goes on.

So how do you buy what is best for you now? Do you just go for the cheapest, or for the most expensive, or even just the most convenient, or just keep doing what you have always been doing and refuse to change (pledge that you will forever sleep only on coir mattresses and drink buffalo milk from bhaiyya)?

Or can you learn to think differently, let go of your existing prejudices, and make the best decision for yourself based on a dual goal of the best experience for the least money?

Can we live rich, and yet within our means?

If we can keep our natural Indian wariness of debt and overspending and combine it with the American optimism of living a better life, we can find the formula for living a richer, better quality of life on a smaller purse. Our wealth coach Mark Ford says,

I've learned through my own experiences that you really can live just as luxuriously as a multimillionaire or billionaire just by knowing what to splurge on...and what not to spend your money on. And it doesn't slow down your wealth-accumulation efforts one little bit.

In fact, he has written a book on living like a billionaire - without spending like one - because he thinks everyone should be enjoying a rich life rich no matter how much money they have.

It really is possible to change the way you experience life - the way you enjoy everything about it - food, travel, sleep...without hurting your pocket. It doesn't measure life by the money you make OR the money you spend, but by the enjoyments and value you can get out of it. You can read more of these ideas if you like.

So we wish upon you a life that brings you your own right level of satisfaction - a balance of quality, prestige, and happiness - at the right price. And a life filled with both optimism, and of course, freedom from debt.