How Living a Lavish Lifestyle is Keeping You Poor!

In a world dominated by consumerism and social media, the pressure to live a lavish lifestyle has never been higher. Young Indians are especially vulnerable to this, with the constant bombardment of advertisements, influencers, and peers showing off the latest gadgets, vehicles, and fashion. While indulging occasionally is fine, consistently choosing to live a high-cost lifestyle is a sure way to undermine your financial future.

This article breaks down why living lavishly is keeping you poor and how making smarter financial decisions today can set you up for a wealthier tomorrow.

1. The High Cost of the Latest Smartphones

Every year, new models of smartphones hit the market, and many people feel the urge to upgrade. But is it worth spending a huge chunk of your income on the latest phone?

- Cost of the latest iPhone (2024): ?1,30,000+

- Cost of a decent mid-range smartphone: ?15,000

By choosing a good-quality mid-range phone, you can save ?1,15,000. The truth is, a ?15,000 smartphone today can easily handle everyday tasks like messaging, social media, photography, and even gaming. It’s a smarter financial decision to pick a phone that gets the job done without emptying your wallet.

2. Laptops: Premium vs. Practical

When it comes to laptops, the temptation to buy high-end, feature-packed machines is real. But is it necessary for everyone?

- Cost of a high-end laptop: ?1,00,000

- Cost of a reliable budget laptop: ?40,000

By opting for a reliable, budget-friendly laptop instead of a premium one, you save ?60,000. If your laptop usage is mainly for work, browsing, or entertainment, a mid-range laptop is more than sufficient. You don’t need a machine with ultra-high specs unless your work demands it.

3. Avoid Costly Vehicles: Use Public Transport or Taxis Instead

Owning a vehicle might seem like a necessity, but it’s one of the biggest drains on your finances. The upfront cost, maintenance, fuel, and insurance add up quickly, especially with premium bikes and cars. Consider the alternatives instead.

- Cost of a premium bike: ?2,50,000+

- Cost of a high-end car: ?15,00,000+

Owning a vehicle is not just about the purchase price. There are significant recurring expenses, such as fuel, maintenance, insurance, and servicing costs. Instead of buying a bike or car, consider using public transport or app-based taxis (Ola, Uber). Public transport is significantly cheaper, and with the growth of metro networks and bus services in Indian cities, it’s also convenient. Even if you take bike taxis or app cabs for daily commutes, the cost would still be far lower than owning a vehicle.

For instance:

- Monthly cost of using public transport (metro or buses): ?1,500-?2,000

- Monthly cost of app-based taxis for moderate use: ?5,000-?6,000

- Monthly cost of owning a car (including EMI, fuel, insurance, maintenance): ?25,000-?30,000

By choosing public transport or taxis, you save ?20,000+ every month, adding up to over ?2,40,000 per year!

4. Branded Clothes vs. Affordable Fashion

The allure of branded clothing is strong. Wearing the latest styles from premium brands can feel great, but it comes at a significant cost. What’s important to realize is that you don’t need branded clothes to look good.

- Cost of a branded outfit (Zara, Nike, etc.): ?5,000+

- Cost of non-branded/local outfit: ?1,000

There’s a massive price difference between branded and non-branded clothing, often with little difference in quality. By shopping for locally made or non-branded clothes, you can save ?4,000 or more per outfit while still maintaining a stylish appearance.

5. Dining Out vs. Cooking at Home

Another area where young Indians tend to overspend is on dining out or ordering food from restaurants. It’s easy, convenient, and a way to socialize, but it can also take a huge toll on your wallet.

- Cost of dining out or ordering online (per meal): ?500-?800

- Cost of cooking at home (per meal): ?50-?100

If you dine out or order food three times a week, you’re spending around ?2,100 a week or ?8,400 a month. By contrast, cooking at home costs a fraction of that amount. Even if you spend ?100 per meal, you’ll be saving around ?7,000 every month. This adds up to ?84,000 per year!

How Much Can You Save?

Let’s break down the total savings by making these smarter financial choices:

1. Smartphone: ?1,15,000 (opting for a mid-range model instead of the latest iPhone)

2. Laptop: ?60,000 (choosing a budget laptop instead of a premium one)

3. Vehicle: ?2,40,000 per year (using public transport/taxis instead of owning a car or bike)

4. Clothing: ?4,000 per outfit (opting for non-branded clothes)

5. Dining out: ?7,000 per month (cooking at home)

Let’s assume you replace your gadgets every 3 years, avoid buying a vehicle, and cut down on dining out and branded shopping.

Total savings over 3 years:

- Gadgets: ?1,75,000 (smartphone + laptop)

- Vehicles: ?7,20,000 (using public transport or taxis)

- Clothing & dining: ?3,24,000 (?1,08,000 per year x 3 years)

Total savings = ?12,19,000 over 3 years.

Investing the Savings

Now, instead of spending this money, what if you invested the ?12,19,000 in a mutual fund with an average annual return of 12%?

Here’s how your money would grow over 3 years:

- Year 1: ?12,19,000 x 1.12 = ?13,64,280

- Year 2: ?13,64,280 x 1.12 = ?15,27,594

- Year 3: ?15,27,594 x 1.12 = ?17,10,906

By simply making smarter spending choices and investing the savings, you could have over ?17,00,000 at the end of 3 years!

Smart Alternatives to Lavish Living

Here are some simple changes you can make to your lifestyle that will drastically improve your financial health:

1. Opt for affordable gadgets: Instead of buying the latest iPhone, get a reliable mid-range smartphone.

2. Choose a budget-friendly laptop: If your work doesn’t require high specs, pick a laptop that fits your needs without the premium price tag.

3. Use public transport or app-based taxis: Save the massive costs of owning a vehicle by taking the metro, buses, or bike taxis. Even app-based cabs are much cheaper than maintaining a car.

4. Buy non-branded clothing: Look stylish without spending a fortune by opting for affordable fashion from local or non-branded stores.

5. Cook at home: Not only is home-cooked food healthier, but it’s also significantly cheaper than dining out regularly.

Living a lavish lifestyle might give you momentary pleasure, but it is a financial trap. The real key to wealth is not how much you earn but how wisely you spend and save. By making smarter, more intentional financial choices—opting for practical gadgets, skipping vehicle ownership, cooking at home, and investing the savings—you can significantly improve your financial health and build a secure future.

You don’t need to deprive yourself of comforts, but a balanced approach to spending will help you avoid debt, reduce stress, and create lasting wealth. Invest in your future, not in fleeting luxuries!