First let me quote few examples:
Person A: He saves all the money in his PF account. He would buy grocery in minimum. say, only 1/2 kg sugar. when his wife say its over, he would take his bike and go to the nearest shop and buy it. basically they dont buy and store anything. He doesnt believe in Hight-fi schools. He would join the kids in near by school, he will do the teaching part after going back home.
He saved for 12 years, and then borrowed little money from brothers and father without interest and bought a 2 bedroom house. Yes, he didnt take any loan. he bought a house in his budget and he says he would do the interiors when he has money.
Person B: This person is habituated to using credit card and loans. So, he bought a house as soon as he got a job. He took loans from private bank as they were also giving a top loan and person loan with house loan. He bought a 3 bedroom house in same floor as Person A. he manages house on credit basis only. i.e, he would shop for thing and stock it up, buy cloths and gadgets in EMI schemes. but ya, he is regular in paying all his bill, but he has NO savings.
Now, both A and B are there. A had to forgo so many So called luxury, wait till he has all money to buy the house. But B, thought he is really young, managed to buy a house, but its in loan. B is enjoying the life without saving, but has everything. A waited to fulfill his desires one by one.
whom do u think is really smart?? its always a question in my mind. Is it good to buy things In EMI schemes??