Sunday, 6 September 2009

Simplenomics

Let’s assign values to these things. From 1 to 10.
Being able to breathe in clean air.
Being able to walk in the park.
Being able to watch the birds, feed the sparrows.
Being able to quit from a job if you don’t like it.
Being able to take a year off at 32 and do your thing.
Say fuck you to the job and actually go and live in Goa for 6 months and do pottery.
Being happy.

Now let’s assign a value to these things.
Not being able to quit the job because you are paying a humungous EMI (Easy Monthly Installment).
Wasting each passing year doing things you hate doing because you are paying a humungous EMI.
You get the drift.

It would be easy to conclude that the simpler things in life score highly, and anything to do with being tied down score really badly. And yet every one of us gets into an EMI trap willingly.

Let’s explore the importance of EMIs. Or the biggest instalment that we pay. The Home Loan.

We buy a home because it’s good to have a home.
Any home loan would last up to 20 years.
So if I take a home loan at 25, by the time I actually own a home, I would be 45.
Asset made.
And life wasted.
For 20 years I am trapped by an Easy Monthly Installment that doesn’t allow me to be happy in most cases.
I end up doing a lot less interesting things than I would have, if I had not EMI trapping my soul.
And who knows, if I followed my heart for 20 years, I would have more chances of buying a home outright. And in the place I want to.

But if it’s so simple, it can’t be economics.

8 comments:

Jugular Bean said...

What?? You don't wanna make money all your life? *increduloous *

Idling in Top Gear said...

Good point. However, there's one other thing that (in most cases) stands against points 4-7 in your first list - a wife!

So, not only should one not buy a home and get trapped in loan payments, he should not get married either! :D

Anvita Lakhera said...

Though I appreciate that the comment above is made in jest but why assume that women don't want the same things as men.

Hopefully no one would begrudge a woman wanting to-"Being able to breathe in clean air.
Being able to walk in the park...
Say fuck you to the job and actually go and live in Goa for 6 months and do pottery.
Being happy."

Even if she is your wife.

Rahul Jauhari said...

Simply put :-)

Aditi said...

Found your site via Notcot..must say your work is fantastic!!

ifeelrandom said...

and if its economics, it can't be simple.

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vineeta said...

I love you for writing this post. and every single post of yours :) And for walking the talk. And for encouraging me to quit my job when I was sitting on the fence. I've done it & man, does it feel good :)