Section outline

  • Loans vs Long-Term Savings 💳 vs 💼

    When it comes to your child’s education or marriage, the big question is — should you save in advance or take a loan when the time comes? Many families choose loans due to lack of planning, but that often leads to stress. Let’s explore the smarter, calmer way forward.

    • 🔹 What Happens When You Take a Loan?

      • 💰 You get instant money, but repayment starts immediately with interest
      • 🧾 Your future income gets locked into EMIs, reducing savings
      • 📉 For a ₹10 lakh education loan at 10% interest, you’ll repay ₹14–15 lakhs over time
      • 📌 Missed payments can impact your CIBIL score and future loan eligibility

    • 🔹 The Power of Long-Term Saving

      • 📆 Start saving early (even ₹1000/month) and let compound interest grow your fund
      • 🌱 No repayment pressure, no interest burden
      • 💪 You stay in control and avoid unnecessary financial stress

       

      Approach Loan Long-Term Saving
      Money Now Yes (but with interest) No (planned accumulation)
      Stress Level High (EMIs, debt) Low (predictable, controlled)
      Total Outflow ₹14–15L for ₹10L loan ₹10L saved over time
      Flexibility Low High

      💡 Tip:

      Save early to avoid loans later. If needed, use education loans as a last resort — not a backup plan.

      🌼 Final Thought

      A loan may help in emergencies, but a savings habit builds freedom. It’s your money — wouldn’t you rather use it on your own terms?