Taking a loan has never been easier. There is almost no friction between wanting something and borrowing to pay for it.

The problem is that income is limited, while the list of things we want is endless. And often, it isn’t even the purchase we want as much as the momentary thrill of buying it.

We are taught how to earn and save, but learning how to spend is just as important. When an impulse purchase becomes an EMI, you are committing future income even before it hits your account. The excitement of spending fades in days, but the debt stays for years.

Borrowing to invest in a home, education, or business makes sense. Borrowing for lifestyle consumption locks you into a loop that leaves no breathing room when an emergency hits.

This video by Zero1 by Zerodha looks at why household debt in India is rising, how to assess whether your debt is manageable, and practical ways to pay it down.

Congratulations to Prateek Singh, Swati Sharma, and the team on crossing 800,000 subscribers.

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