For many of us, the idea of buying something “big” — a smartphone, a TV, a vacation, or even furniture — almost always comes with one option flashing on the checkout screen: “Buy Now, Pay Later” or “Easy EMI Available.”
On the surface, EMIs (Equated Monthly Installments) look harmless. They promise affordability, convenience, and instant access. But the flip side is often financial stress, hidden costs, and a subtle erosion of your ability to live debt-free.
The good news? You can say no to EMIs and still enjoy nice things. It just takes a mindset shift, some practical money habits, and a different way of looking at purchases.
Why EMIs Feel Tempting (But Can Be Risky)
- Instant Gratification: Marketing today is built around the idea that you shouldn’t wait. EMIs feed this desire by saying: “Why delay happiness? Take it home today.”
- False Sense of Affordability: A ₹1,20,000 phone doesn’t feel like ₹1,20,000 when it’s broken into ₹10,000 x 12 months. But you’re still paying the same (or often more, if interest and GST are included).
- Commitment Trap: That ₹10,000 EMI may not pinch now, but stack it with your car EMI, credit card EMI, or a personal loan — suddenly, you’re living paycheck to paycheck.
Reference: According to a RBI study on household debt, Indian households’ dependence on consumer credit and EMIs has steadily risen, often leading to long-term financial vulnerability.
Steps to Say No to EMIs (Without Feeling Deprived)
1. Adopt the “Sinking Fund” Approach
Instead of paying banks, pay yourself first.
- Want a ₹60,000 phone? Put aside ₹5,000 every month for 12 months in a separate savings account.
- At the end, you buy it debt-free — no interest, no hidden costs.
Pro Tip: Use tools like ET Money or Groww to create a dedicated goal-based savings bucket.
2. Practice Delayed Gratification
A famous Stanford study on the marshmallow test showed that children who could delay gratification tended to have better life outcomes. Apply the same logic to money.
Ask yourself:
- “Will I still want this after 3 months?”
- “Will this product add long-term value or just short-term excitement?”
3. Buy Quality, Buy Less
When you avoid EMIs, you automatically become more mindful. Instead of buying 3 mid-range gadgets on EMI, save and buy one high-quality product outright. It will last longer, give more satisfaction, and reduce clutter.
Example: Many minimalists swear by the “one good thing rule” — instead of buying multiple cheap options, save for one reliable, premium item.
4. Leverage Cashbacks & Discounts Instead of EMIs
Retailers often push EMI schemes more aggressively than flat discounts. If you choose to buy with full payment, you can negotiate or watch for seasonal deals (like Amazon Great Indian Festival or Flipkart Big Billion Days).
This way, you pay less overall and avoid locking into monthly obligations.
5. Use Credit Smartly (If You Must)
Not all debt is evil. If you must use credit:
- Choose no-cost EMI only if it truly has zero hidden charges.
- Always check processing fees and GST.
- Pay off the balance before the tenure ends.
Reference: Consumer Education from RBI outlines how hidden fees in EMIs can make “no-cost” more costly.
6. Shift to Experiences, Not Just Things
Sometimes the craving for EMIs isn’t about the product, but the thrill of buying. Redirect that energy into experiences: a road trip, a short course, or a hobby. Experiences give joy without creating a monthly repayment cycle.
Real-World Example
Arjun’s Story:
Arjun, 28, had EMIs on his phone, bike, and sofa set. Nearly ₹20,000 of his ₹60,000 salary went into repayments. He always felt short on money.
He decided to stop EMIs for a year. He opened a recurring deposit (RD) of ₹10,000 monthly. At the end of 12 months, he bought a DSLR camera outright and still had ₹30,000 left as savings. He realized he could own nice things and feel financially free.
Helpful Resources
- RBI’s Consumer Awareness Section – learn about loans, credit, and hidden charges.
- Books: Your Money or Your Life by Vicki Robin, The Psychology of Money by Morgan Housel.
- Tools: ET Money Goal Planner, Groww SIP Calculator.
Closing Thought
Saying no to EMIs doesn’t mean saying no to comfort, technology, or fun. It means saying yes to freedom, control, and mindful consumption. Nice things feel even nicer when you own them fully — without the weight of monthly deductions.
